North America - Healthcare Logistics Market size to grow by USD 18.4 billion from 2022 to 2027, Legislative and regulatory changes supporting pharma growth to drive the growth - Technavio
NEW YORK, Oct. 2, 2023
NEW YORK, Oct. 2, 2023 /PRNewswire/ -- The North America healthcare logistics market is expected to grow by USD 18.4 billion from 2022 to 2027. However, the growth momentum of the market will progress at a CAGR of 9.34% during the forecast period. The market is segmented by product (pharmaceuticals and medical devices) and service (transportation and warehousing). The adoption of legislative and regulatory changes supporting pharma growth is the key factor driving the market growth. Several mandatory health and medical insurance schemes are being introduced by the Government of Canada that will cover essential healthcare services as well as easier access to treatment for individuals. The result will be an increase in healthcare expenditure on diseases and disorders, a rise in demand for pharmaceutical production and consumption as well as increases in the use of healthcare logistics predominantly within the pharmaceutical sector. Furthermore, there are single-payer health care plans paid for by federal, state, and local taxes in many northern American countries such as Canada. These regulations will lower the cost of medicines, improve their accessibility to the public, and boost sales and demand for medical transport services in this region. Hence, these factors are expected to drive market growth during the forecast period. The report analyses the market size and growth and provides accurate predictions on the growth of the market. View a Free PDF Sample
- The report recognizes the following as some of the key players in the healthcare logistics market in North America: Air Canada, AmerisourceBergen Corp., AP Moller Maersk AS, Bollore SE, C H Robinson Worldwide Inc., CMA CGM SA, Cold Chain Technologies, Deutsche Bahn AG, Deutsche Post AG, DSV AS, FedEx Corp., Hellmann Worldwide Logistics SE and Co KG, Kuehne Nagel Management AG, Nippon Yusen Kabushiki Kaisha, Noatum Holdings SLU, Owens and Minor Inc., SEKO Logistics, UniGroup CA, United Parcel Service Inc., and VersaCold Logistics Services
- The Healthcare Logistics Market in North America is fragmented in nature.
- Market to observe 6.82% YOY growth in 2023.
- The advent of pharma 4.0 and logistics 4.0 are major trends in the market.
- The integration of new technologies into traditional manufacturing and industry processes has led to the transformation of industries.
- In production and business processes, the use of new technologies such as Digital Technologies and Intelligent Automation is described in Industry 4.0.
- The emergence of advanced technologies such as 3D printing, additive manufacturing, the Industrial Internet of Things (IIoT), artificial intelligence (AI), augmented reality, virtual reality, and big data analytics has been a positive sign of Industry 4.0.
- Similarly, the adoption of Industry 4.0 in the logistics sector has resulted in a new type of service called Logistics 4.0 which is similar to those principles.
- Hence, these factors are expected to drive market growth during the forecast period.
- The high cost of branded drugs is a significant challenge restricting market growth.
- The high cost of medicinal products is an important factor limiting the development of the pharmaceutical sector, especially in the US.
- For instance, Harvoni (ledipasvir+sofosbuvir) is a combination drug indicated for the hepatitis C virus.
- In the UK, it costs about USD 605 for one tablet, and more than USD 1,500 in the US.
- The installation and operation costs of the advanced equipment to produce medicinal products, such as Biopharmaceuticals, are high.
- Moreover, the R&D process of some medicines is an intensive and expensive one that makes pharmaceutical companies pay a high price to generate faster returns on their investments.
- Hence, these factors are expected to restrict market growth during the forecast period.
The report also covers information on upcoming trends and challenges. Explore detailed information by purchasing a report
- The pharmaceutical segment, which includes branded drugs, generic medicines, and vaccines, will have a significant share of the market. The Food and Drug Administration's (FDA) Center for Drug Evaluation and Research (CDER) has approved 46 new drugs or new molecular entity (NME) drugs in 2021. There is expected to be increased demand for pharmacy supply in the region due to a growing number of new drug approvals. In addition, based on the needs of pharmaceutical producers, logistics companies convert existing warehouses or storage units to new products and build new ones. Hence, these factors are expected to drive segment growth during the forecast period.
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Healthcare Logistics Market Scope in North America
Growth momentum & CAGR
Accelerate at a CAGR of 9.34%
Market growth 2023-2027
USD 18.4 billion
YoY growth 2022-2023 (%)
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled
Air Canada, AmerisourceBergen Corp., AP Moller Maersk AS, Bollore SE, C H Robinson Worldwide Inc., CMA CGM SA, Cold Chain Technologies, Deutsche Bahn AG, Deutsche Post AG, DSV AS, FedEx Corp., Hellmann Worldwide Logistics SE and Co KG, Kuehne Nagel Management AG, Nippon Yusen Kabushiki Kaisha, Noatum Holdings SLU, Owens and Minor Inc., SEKO Logistics, UniGroup CA, United Parcel Service Inc., and VersaCold Logistics Services
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
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Historic Market Sizes
Five Forces Analysis
Market Segmentation by Product
Market Segmentation by Service
Market Segmentation by Geography
Drivers, Challenges, & Trends
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