Digital Healthcare Supply Chain Management Industry Overview

The global digital healthcare supply chain management market size was estimated at USD 2.9 billion in 2023 and is projected to grow at a CAGR of 9.0% from 2024 to 2030. The market growth is attributed to the increasing investments in next-generation technologies such as control towers and digital twin technology, rising adoption of dashboards to enhance analytics, execution, and visibility, and government initiatives to enhance medical supply. Moreover, the emergence of cloud-based solutions and rising demand for limiting the large-scale counterfeiting of drugs in the pharmaceutical industry are anticipated to fuel the market growth over the forecast period.

The increasing adoption of cloud computing across the globe has transformed the healthcare industry. The SCM software industry has transformed the healthcare sector by adopting cloud-based supply chain software. The manufacturers and providers are focusing more on cloud-based software as it helps them achieve higher supplier quality and inventory optimization. For instance, Jump Technologies offers a cloud-based software solution called JumpStock, which integrates with ERP, EMR, or scheduling systems, thus allowing hospitals to lower costs related to variations in physician preferences, supply hoarding, stockouts. Cloud-based traceability and tracking protect many manufacturers from variable expenses of a product recall by identifying product quality problems early.

Gather more insights about the market drivers, restrains and growth of the Digital Healthcare Supply Chain Management market

Detailed Segmentation:

 Product Insights

Based on product, the software segment led the market with the largest revenue share of 39.8% in 2023 and is expected to witness the fastest CAGR of 9.3% over the forecast period. The market is segmented into software, hardware, and services. The growth is driven by the increasing adoption of software as a service, which offers cloud computing applications for supply chain management and enterprise resource planning. In addition, the rising need for effective management of organizational workflows in healthcare companies and the increasing need for accurate timely procurement of information are among key factors for segment growth.

Moreover, growing demand for reducing the rising medical costs and the shift toward value-based care in developed economies are boosting this segment. The increasing initiatives undertaken by public private players for supporting healthcare IT infrastructure are also driving the segment in healthcare organizations. For instance, Premier, Inc. introduced an innovative cloud-based SaaS solution, called the PremierConnect Supply Chain, designed to streamline and optimize the procurement process for health systems across the continuum of care. This comprehensive solution provides flexible and real-time procure-to-pay  supply chain analytics capabilities.

Deployment Insights

Based on deployment, the cloud-based segment held market with the largest revenue share of 40.43% in 2023 and is anticipated to grow the fastest CAGR of 9.3% over the forecast period. The market is segmented into on-premises, cloud-based, and web-based. The growth is attributed to the increasing adoption of user-friendly technology and cost-effectiveness. In addition, the rising demand for maintaining inventory and procurement information among healthcare providers through cloud computing is expected to drive the segment further.

Moreover, the rising awareness regarding the benefits of adopting the technology is anticipated to drive growth. Benefits associated with cloud technology include the use of external web servers, remote access authorization, information sharing across different stages of the value chain, and immediate detection of security threats lapses. Furthermore, it reduces the need for physical infrastructure subsequently lowers the investment required, as cloud-based services are typically designed in a pay-as-you-go model.

End-use Insights

Based on end-use,the pharmaceutical segment held the market with the largest revenue share of 36.5% in 2023, driven by the need to comply with strict product tracking and tracing regulations throughout the supply chain. The market is segmented into pharmaceutical, medical devices, biotechnology, vaccines, and clinical and point-of-care diagnostics. The COVID-19 pandemic has also emphasized the importance of supply chain resilience, leading to increased adoption of digital supply chain management tools to mitigate disruptions and reduce inventory costs in the pharmaceutical industry.

The medical devices segment is expected to grow at the fastest CAGR of 9.7% from 2024 to 2030. The segment growth is attributed to the increasing demand for technologically advanced supply chain for medical devices, as it encompasses various tasks and procedures that ensure the transportation of medical devices from the manufacturing site to the point of use. 

Regional Insights

North America dominated the market with a revenue share of 32.9% in 2023, owing to the need for enhanced digital supply chain efficiencies, the adoption of technological advances facilitating overall cost reduction, and the integration of machine learning and AI to analyze and predict supply chain management outcomes. Moreover, the presence of many pharmaceutical medical device manufacturers and logistics companies. These players are investing in RD of supply chain management solutions that are efficient and cost effective. For instance, in January 2023, Palantir Technologies Inc. launched a Quality Management System for Foundry’s life science customers, enabling them to achieve GXP requirements.

Browse through Grand View Research's Category Healthcare IT Industry Research Reports.

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Key Digital Healthcare Supply Chain Management Companies:

The following are the leading companies in the digital healthcare supply chain management market. These companies collectively hold the largest market share and dictate industry trends.

• Palantir Technologies, Inc.
• InterSystems Corporation
• ump Technologies, Inc.
• Tecsys
• LogiTag Systems
• Mckesson Corporation
• Oracle
• SAP
• Infor
• Terso Solutions
• CenTrak (HALMA plc)
• Biolog-ID
• Mediceo Corporation

Digital Healthcare Supply Chain Management Market Segmentation

Grand View Research has segmented the global digital healthcare supply chain management market report based on product, deployment, end-use, and region.

Digital Healthcare Supply Chain Management Product Outlook (Revenue, USD Million, 2018 - 2030)

• Software
• Hardware
• Services

Digital Healthcare Supply Chain Management Deployment Outlook (Revenue, USD Million, 2018 - 2030)

• On-premise
• Cloud-based
• Web-based

Digital Healthcare Supply Chain Management End-use Outlook (Revenue, USD Million, 2018 - 2030)

• Pharmaceuticals
• Medical devices
• Biotechnology and Vaccines
• Clinical and Point of Care Diagnostics

Digital Healthcare Supply Chain Management Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Norway
  • Denmark
  • Sweden
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
  • Thailand
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Kuwait

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Recent Developments

• In January 2023, Palantir Technologies Inc. partnered with Cardinal Health. Under this collaboration, Cardinal Health’s solution would be integrated into Palantir’s Foundry platform, which would further amalgamate real-time clinical data, diagnosis, customer purchasing, and consumption data for pharmaceutical life sciences products. This collaboration was anticipated to enhance the company's purchasing decisions using predictive inventory needs
• In February 2022, Global Healthcare Exchange (GHX) announced acquiring Syft AI-enabled inventory management and SCM solutions. The acquisition is expected to help GHX expand and digitalize its supply chain segment
• In September 2021, McKesson Corporation launched McKesson’s Rapid Returns Solutions for Health Systems. This solution focuses on increasing the accuracy and amount of credit received by hospitals healthcare systems for returned pharmaceuticals other healthcare products