There has been a sharp increase in the population of the elderly. Of late, the population who is 60 years and above will increase from 1 billion in 2020 to 1.4 billion. By 2050 , the global population of individuals aged 60 years and older will double up (2.1 billion). The volume of people aged 80 years or above is likely to triple between 2020 and 2050 to reach 426 million.
In 2021, the healthcare supply chain management market size was approximately $2,090.5 million, and it is likely to propel at a 10.2% CAGR from 2021–to 2030 and reach $4,999.3 million. The main features pushing the market growth include the burden of cost reduction in the healthcare business, acceptance of GS1 standards, along with growing investments made by healthcare providers and manufacturers of related products in the healthcare supply chain management solutions.
There is an increase in the population of the middle class; and with urbanization hastening, individuals are adopting a further sedentary routine. This is pushing the rates of obesity and cases of diseases like diabetes upwards. As per the WHO, the prevalence of the chronic disease is likely to increase by 57% by 2020. The developing markets will have the highest number of people affected by chronic diseases, as the growth of the population is projected to be most noteworthy in developing countries.
The software and services bifurcation in the component segment of the healthcare supply chain management market is likely to progress at a substantial CAGR, in excess of 10%, in the coming years. The key factors attributed to this development of the industry include the recurrent introductions of products, increasing requirement for better access to data of business intelligence to frame strategies, ease of tracking products through these solutions, acceptance of ecological initiatives, for example, those for lessening the paperwork in healthcare establishments, and growing volume of online purchases.
There was a positive impact of the pandemic on the industry, as the requirement for medical supplies and further associated products around the world increased at a significant level. Cold chain businesses that transported vaccines and other medications, requiring the regulation of temperatures, throughout the pandemic comprised technical upgrades and innovative methods of procedures. For example, UPS, which acted as one of the chief cold-chain firms to deliver temperature-controlled medical goods, including the doses of vaccine, did an on-time delivery with the help of cutting-edge SCM technology.
Cloud-based services are likely to observe healthcare supply chain management market growth of approximately 12% in the coming years as they are altering the entire niche. A huge amount of the end-users is favoring cloud-based solutions as compared to on-premises solutions because of the former’s scalable deployment through the software-as-a-service (SaaS) model, ease of sharing info at wide-ranging places, and low upkeep and cost of installation. This model is fairly prevalent amongst pharma companies as it aids them lessen time interruptions across the lifecycle of the product, from growth to manufacturing and delivery.
North America was the leader in the industry in the past because the US is the major employer in the healthcare division around the world with over 780 thousand companies. Furthermore, the country employs just about twice what the other nations dole out on healthcare, which is about 19.7% of its GDP in 2020. APAC is likely to observe the highest growth in the demand for solutions in the coming years on account of the regional governments' digitization initiatives, which are taking the healthcare sector by storm.
The industry is expected to have an upward shift because of the increasing number of elderly populations around the world
