Healthcare SCM market worth US$2.22 billion by 2021
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A market research report “Healthcare Supply Chain Management Market by Component (Software (Inventory (Order and Warehouse Management), Purchasing (Supplier, Strategic Sourcing)), Hardware (Barcode, RFID)), Delivery Mode (On-premise, Cloud) and End User – Global Forecast to 2021″, published by MarketsandMarkets, studies the global market during the forecast period of 2016 to 2021. This market is expected to reach USD 2.22 Billion by 2021 from USD 1.45 Billion in 2016, at a CAGR of 8.9%.
This market is expected to reach US$2.22 Billion by 2021 from US$1.45 Billion in 2016, at a CAGR of 8.9%.
Factors such as the Unique Device Identification (UDI) initiative by the FDA, rising adoption of cloud-based solutions, increasing pressure faced by hospitals to improve operational efficiency and profitability, and compliance of the G1 system standards in various countries are driving the growth.
Moreover, the superior supply chain performance, mobile-based solutions, and counterfeiting of drugs in the pharmaceutical industry are expected to offer significant growth opportunities for players. On the other hand, the high price of the healthcare supply chain management (SCM) software and fragmented end-user market are expected to restrain the growth of this market.
In this report, the market is segmented on the basis of component, delivery mode, end user, and region.
“The web-based segment is estimated to account for the largest share of the global Healthcare Supply Chain Management Market in 2016.”
Based on applications, the market is segmented into bariatric surgery, gynecological surgery, general surgery, urological On the basis of component; the global Healthcare Supply Chain Management Market is broadly segmented into software and hardware. The software segment is estimated to account for the largest share in 2016, while the software segment is projected to grow at the highest CAGR in the forecast period.
Based on delivery mode, the market is segmented into web-based, on-premise, and cloud-based delivery modes. The web-based segment is estimated to account for the largest share of the global Healthcare Supply Chain Management Market in 2016. Web-based models help to reduce operational and administrative expenses. This advantage is contributing to the large share of this segment.
Based on end user, the market is broadly segmented into manufacturers, providers, and distributors. The manufacturers segment is estimated to account for the largest share of the global Healthcare Supply Chain Management Market in 2016. The providers segment is projected to grow at the highest CAGR.
Geographically, the Healthcare Supply Chain Management Market is divided into North America, Europe,Asia-Pacific, and the Rest of the World (RoW). In 2016, North America is estimated to account for the largest share of the Healthcare Supply Chain Management Market, followed by Europe, Asia-Pacific, and the RoW (rest of the world). The North American market is also projected to grow at the highest CAGR and serve as a revenue pocket for companies offering healthcare supply chain management solutions.
Prominent players in the global Healthcare Supply Chain Management Market are SAP SE (Germany), Oracle Corporation (U.S.), Infor Inc. (U.S.), Global Healthcare Exchange (GHX) (U.S.), McKesson Corporation (U.S.), TECSYS Inc. (Canada), Jump Technologies, Inc. (U.S.), and LogiTag Systems Ltd. (Israel).
Questions & Answers
Q.What factors are primarily driving the growth in the healthcare supply chain management market?
What factors are primarily driving the growth in the healthcare supply chain management market?
Growth is driven by initiatives like the FDA's Unique Device Identification, increasing adoption of cloud-based solutions, pressure on hospitals to improve efficiency, and compliance with G1 system standards. Also, mobile solutions and addressing drug counterfeiting offer further opportunities.
Q.Which segments of the healthcare SCM market are expected to have the largest share and highest growth rate?
Which segments of the healthcare SCM market are expected to have the largest share and highest growth rate?
The software segment is estimated to hold the largest share and project the highest growth rate. Geographically, North America is expected to have the largest share in 2016 and also project the highest CAGR.
Q.What are the main challenges or restraints identified for the growth of this market?
What are the main challenges or restraints identified for the growth of this market?
The high cost associated with healthcare supply chain management software is a key restraint. The fragmented nature of the end-user market also poses a challenge to overall growth.
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