What Has Been the Growth of the Healthcare Distribution Market So Far?
The healthcare distribution market has seen considerable growth due to a variety of factors.
• There has been robust growth in the healthcare distribution market size over the past few years. It is expected to rise from $1233.03 billion in 2024 to $1340.71 billion in 2025, with a Compound Annual Growth Rate (CAGR) of 8.7%.
This growth during the historical period can be credited to the development of healthcare infrastructure, aging demographics, regulatory adherence, pharmaceutical globalization, and supply chain refinement.
What Are the Future Growth Projections for the Healthcare Distribution Market?
The healthcare distribution market is expected to maintain its strong growth trajectory in upcoming years.
• The size of the healthcare distribution market is expected to experience significant expansion in the coming years. The market is projected to reach $1991.16 billion by 2029, with a compound annual growth rate (CAGR) of 10.4%.
This predicted growth during the forecast period is due to factors such as telehealth, remote monitoring, personalized medication, value-based care, resilient supply chains, and issues related to sustainability and environmental impact. Key trends during the estimated period are expected to be cold-chain logistics, e-commerce, direct-to-consumer (DTC) initiatives, tracking and traceability of medical devices, data-informed decision-making, and inventory management solutions.
What Are The Core Factors Supporting Growth In The Healthcare Distribution Market?
The healthcare distribution market is predicted to expand owing to the escalating growth of the medical device industry. This sector encompasses firms that produce, integrate, and circulate technologies, devices, diagnostic evaluations, and health information structures. These innovations are revolutionizing healthcare with early disease detection and methods that minimize invasiveness. The medical device sector's output needs to reach healthcare facilities, thus fueling the healthcare distribution market. For example, the India Brand Equity Foundation (IBEF), a government brand equity organization in India, reported in February 2022 that the estimated value of India's medical device market will hit $50 billion in 2025, a surge of 37% CAGR from $10.36 billion of 2020. Hence, the healthcare distribution market's growth is tied to the flourishing of the medical device industry.
What Are The Major Segments Within The Global Healthcare Distribution Market?
The healthcare distribution market covered in this report is segmented –
1) By Type: Pharmaceutical Product Distribution Services, Biopharmaceutical Product Distribution Services, Medical Device Distribution Services
2) By End User: Retail Pharmacies, Hospital Pharmacies, Other End-Users
Subsegments:
1) By Pharmaceutical Product Distribution Services: Prescription Drug Distribution, Over-The-Counter (OTC) Drug Distribution
2) By Biopharmaceutical Product Distribution Services: Cold Chain Distribution, Specialty Drug Distribution
3) By Medical Device Distribution Services: Surgical Instrument Distribution, Diagnostic Equipment Distribution, Consumables And Disposable Device Distribution
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Which Trends Are Expected To Transform The Healthcare Distribution Market?
The enhancement of technology has become a significant trend gaining momentum in the healthcare distribution market. Big players in the healthcare distribution arena are investing in technological improvements to solidify their position and cater to customer needs. To exemplify, Cardinal Health Inc., a healthcare services company based in the US, introduced Velocare in November 2022. Velocare is a supply chain network combined with a last-mile delivery solution, capable of delivering critical supplies and services for hospital-level treatment to patients' homes within one to two hours. Cardinal Health at-Home Solutions, in collaboration with Medically Home, is offering Velocare to Medically Home health system patients, enabling scalable, high-acuity care at home.
Who Are the Key Players in the Healthcare Distribution Market?
Major companies operating in the healthcare distribution market include:
• Alliance Healthcare UK
• AmerisourceBergen Corporation
• Cardinal Health Inc.
• CuraScript SD
• Dakota Drug Inc.
• FFF Enterprises Inc.
• Henry Schein Inc.
• KeySource Medical Inc.
• Medline Industries LP
• Morris and Dickson Co. LLC
• Mutual Drug Company
• Owens & Minor Inc.
• Patterson Companies Inc.
• PHOENIX Group
• Rochester Drug Cooperative Inc.
• Shanghai Pharmaceutical Group Co. Ltd.
• Smith Drug Company
• TTK Healthcare
• Anda Inc.
• Associated Pharmacies Inc.
• Besse Medical
• Curascript Specialty Distribution
• Gulf South Medical Supply
• H.D. Smith LLC
• Harvard Drug Group LLC
• Kinray Inc.
• MasterPharm SA
• McKesson Corporation
• Metro Medical Supply
• MMS - A Medical Supply Company
• Oncology Supply Inc.
• PSS World Medical Inc.
• Seneca Medical Inc.
• TheraCom LLC
What Is The Most Dominant Region In The Healthcare Distribution Market?
North America was the largest region in the healthcare distribution market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the healthcare distribution market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
