Healthcare Distribution Market Size to Reach USD 1,384.59 Billion in 2028 Growing at a CAGR of 7.0%, according to Emergen Research

Emergen Research has published its latest report titled “Healthcare Distribution Market By Type (Medical Devices, Biopharmaceutical product, Pharmaceutical product), By End-use (Hospital Pharmacies, Retail Pharmacies), and By Region Forecast to 2028”

According to Emergen Research, the global healthcare distribution market size was USD 808.13 billion in 2020 and is expected to reach USD 1,384.59 billion in 2028 and register a revenue CAGR of 7.0% during the forecast period, 2021-2028.

Market Dynamics:

Distributors provide healthcare institutions with significant amounts of goods from manufacturers, so that they can improve their supply chain efficiency, reduce cost, and enhance safety. As a result, distribution plays a significant role in the healthcare industry's supply chain.  Furthermore, government from developing and developed countries are increasingly investing on healthcare infrastructure in order to improve efficiency in medical services and meet global healthcare commitments. This is a major factor expected to drive healthcare distribution market revenue growth over the forecast period.

In addition, increasing private investments on blockchain technology to boost medical supply chain distribution networks and maintain transparency in the process boost market revenue growth. Advanced technology and effective medications have been developed to treat chronic illnesses that are complicated or rare through research advancements. The market has grown because to an increase in medical equipment, speciality drugs and drug production (especially during the Covid 19 pandemic) in biopharmaceutical industries. However, unfavorable government policies on the research and development of new drugs, and concerns regarding data privacy on use of technologies that help in management of distribution networks can hamper healthcare distribution market growth over the forecast period.

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COVID-19 Impact Analysis  

  • Social distancing and restrictions severely disrupted businesses and operations
  • Lockdowns caused disruptions in transportation and logistics
  • Impacted manufacturing activities and mining operations globally
  • Took a toll on economy of various countries
  • Caused sudden and drastic downturn in economic activity
  • Disrupted agriculture, fisheries, dairy, and other sectors
  • Caused loss of employment and financial crisis
  • Supply impacts were further compounded owing to reduced disposable income
  • Emergence of variants  continue to cause concerns and impact normal routines

Pharmaceutical Product Distribution Services Segment Revenue to Expand at a Rapid CAGR:

Pharmaceutical product distribution services segment is expected to register a rapid revenue CAGR over the forecast period attributed to adoption of robotics and artificial intelligence (AI) to boost supply chain transparency and minimize human error. Further, distributors are collaborating with biopharma companies to deliver medical and healthcare services. Pharmaceutical product distribution services include distribution of OTC drugs, generic drugs, and brand name or innovator drugs.

Retail Pharmacies Segment to Register Significant Revenue Growth:

Retail pharmacies segment is expected to register significant revenue growth over the forecast period due to growing awareness regarding health and wellness products which is now readily available in retail pharmacies, favorable government policies to minimize healthcare expenditure which has surge demand for prescriptions, and rising consumer preference towards generic medicines.

North America to Account for Largest Revenue Share:

North America is expected to account for largest revenue share in the global market over the forecast period due to rapid expansion of pharmaceutical and biopharmaceutical industry, rising demand of specialty drugs and generics, and large scale adoption of advanced technologies such as blockchain in healthcare sector. Further, presence of pharmaceutical distributors such as Cardinal Health, Owens & Minor, McKesson Corporation in the region drive market revenue growth.

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Major Companies in the Market Include:

  • McKesson Corporation
  • Cardinal Health
  • AmerisourceBergen Corporation
  • Owens & Minor
  • Morris & Dickson Co.
  • CuraScript SD
  • FFF Enterprises, Inc.
  • Medline Industries
  • Attain Med, Inc.
  • Dakota Drug.

For the purpose of this report, Emergen Research has segmented the global healthcare distribution market based on type, end-use, and region:

Type Outlook (Revenue, USD Billion; 2018–2028)

  • Medical Device Distribution Services
  • Biopharmaceutical Product Distribution Services
    • Vaccines
    • Monoclonal Antibodies
    • Blood and Blood Products
    • Recombinant Proteins
    • Others
  • Pharmaceutical Product Distribution Services
    • Generic Drugs
    • OTC Drugs
    • Brand Name or Innovator Drugs       

End-Use Outlook (Revenue, USD Billion; 2018–2028)

  • Hospital Pharmacies
  • Retail Pharmacies
  • Others

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Regional Outlook (Revenue, USD Billion; 2018–2028)

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Rest of APAC
  • Latin America
    • Brazil
    • Rest of LATAM
  • Middle East & Africa
    • Saudi Arabia
    • U.A.E.
    • South Africa
    • Turkey
    • Rest of MEA

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About Emergen Research

Emergen Research is a market research and consulting company that provides syndicated research reports, customized research reports, and consulting services. Our solutions purely focus on your purpose to locate, target, and analyze consumer behavior shifts across demographics, across industries, and help clients make smarter business decisions. We offer market intelligence studies ensuring relevant and fact-based research across multiple industries, including Healthcare, Touch Points, Chemicals, Types, and Energy. We consistently update our research offerings to ensure our clients are aware of the latest trends existent in the market. Emergen Research has a strong base of experienced analysts from varied areas of expertise. Our industry experience and ability to develop a concrete solution to any research problems provides our clients with the ability to secure an edge over their respective competitors.

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