Healthcare Supply Chain Management Market Grows at 11.05% CAGR by 2034

The global healthcare supply chain management market size is calculated at USD 3.60 billion in 2025 and is expected to reach around USD 9.20 billion by 2034, growing at a CAGR of 11.05% for the forecasted period.

Ottawa, Oct. 14, 2025 (GLOBE NEWSWIRE) -- The global healthcare supply chain management market size was valued at USD 3.24 billion in 2024 and is predicted to hit around USD 9.20 billion by 2034, rising at a 11.05% CAGR, a study published by Towards Healthcare a sister firm of Precedence Research.

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Key Takeaways

The healthcare supply chain management market will likely exceed USD 3.24 billion by 2024.
Valuation is projected to hit USD 9.2 billion by 2034.
Estimated to grow at a CAGR of 11.05% from 2025 to 2034.
North America held a major revenue share of 46% in the healthcare supply chain management market in 2024.
Asia-Pacific is expected to be the fastest-growing region in the predicted timeframe.
By component, the software segment dominated the market in 2024.
By component, the services segment is expected to witness the fastest growth during 2025-2034.
By delivery, the cloud-based segment led the market in 2024 and is expected to grow rapidly in the studied years.
By function, the inventory & warehouse management segment was dominant in the healthcare supply chain management market in 2024.
By function, the supplier performance management segment is expected to register rapid expansion in the coming years.
By end user, the healthcare providers (Hospitals &Clinics) segment registered dominance in the market in 2024.
By end user, the group purchasing organizations (GPOs) segment is expected to be the fastest-growing during 2025-2034.

What is the Healthcare Supply Chain Management?

The global healthcare supply chain management market ensures medical products, from therapeutics to equipment, reach patients efficiently and safely. Drivers involved in the overall market expansion include a rise in demand for effectiveness and minimal expenses, greater adoption of new technologies like AI and IoT, an emphasis on patient safety, and the need for expanded inventory management. For innovations, the market is fostering traceability using RFID and blockchain, the growth of robotics and drones for delivery, a major shift towards sustainability, and direct-to-patient (DTP) delivery models.

Key Metrics and Overview

Metric	Details
Market Size in 2025	USD 3.6 Billion
Projected Market Size in 2034	USD 9.2 Billion
CAGR (2025 - 2034)	11.05	%
Leading Region	North America Share by 46%
Market Segmentation	By Component, By Delivery Mode, By Function, By End User, By Regions
Top Key Players	Oracle Corporation, SAP SE, Infor Inc., McKesson Corporation, Cardinal Health, Inc., Siemens Healthineers, GHX (Global Healthcare Exchange), IBM Corporation, Tecsys Inc., LogiTag Systems, Medius (formerly Wax Digital), Manhattan Associates, Smith & Nephew plc (via SCM digital tools), Jump Technologies, Inc., Zuellig Pharma, Vizient, Inc., O&M Systems, OptiFreight Logistics (Cardinal Health unit), LLamasoft (a Coupa company), Tradeshift

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What are the Key Drivers Involved in the Market Expansion?

In this era, the global healthcare supply chain management market is mainly fueled by the accelerating healthcare expenditure by numerous governments and healthcare providers in both well-developed and emerging countries. Moreover, the emergence of robust inventory management systems is a major factor in the reduction of expenses and material handling time. This further bolsters product availability and lowers storage space, all of which are involved in market expansion.

What are the Significant Trends in the Market?

Involvement of advanced healthcare technology companies in securing their position in the healthcare supply chain management market is supporting the prospective changes.

In September 2025, Curvo and BroadJump, two healthcare data and supply chain technology companies, united to revolutionize hospitals’ and health systems' analysis, optimization, and action on purchasing decisions.
In April 2025, Thermo Fisher invested $2bn to enhance the US healthcare supply chain.
In August 2024, Clarium, Inc., a healthcare technology company, secured a $10.5M strategic financing round to expand the modernization of the healthcare supply chain.

What is the Major Challenge in the Market?

A rise in challenges in the unpredictable nature of healthcare demand, particularly for new drugs or during pandemics, creates a hindrance in balancing the risks of overstocking and understocking. The increasing spending for materials, manual force, and energy is generating a huge pressure on healthcare budgets.

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Regional Analysis

Why did North America Dominate the Market in 2024?

In 2024, North America held the biggest share by 46% of the healthcare supply chain management market. Mainly, the market is fueled by the increasing healthcare spending and the subsequent pressure to minimize prices, with raised demand for high-value biopharmaceuticals and temperature-controlled deliveries. Also, the emergence of mandatory regulatory standards, especially GS1 and Unique Device Identification (UDI), for optimized tracking and safety, is impacting the comprehensive adoption and expansion.

For instance,

In April 2025, Ginkgo Bioworks, a leading platform for cell programming and biosecurity, made a contract with the Advanced Research Projects Agency for Health (ARPA-H), Tritica Biosciences, US Pharmacopeia (USP), On Demand Pharmaceuticals, and Isolere Bio by Donaldson to stabilize pharmaceutical supply chains.

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What Made the Asia Pacific Grow Significantly in the Market in 2024?

In the coming era, the Asia Pacific is anticipated to expand at a rapid CAGR in the healthcare supply chain management market. This expansion will be boosted by the wider immersion of healthcare infrastructure and the rising penetration of digital technologies like AI, IoT, and blockchain, to improve effectiveness and transparency. Moreover, ASAP is bolstering the adoption of AI/ML for predictive analytics and automation, a vital investment in cloud computing and real-time tracking, and emphasizing decarbonizing supply chains through sustainable packaging and waste reduction.

For instance,

In March 2025, DHL acquired CRYOPDP to expand its capabilities in temperature-sensitive logistics for clinical trials and cell/gene therapies, aligning with its "Strategy 2030".

Segmental Insights

By component analysis

Why did the Software Segment Lead the Market in 2024?

In 2024, the software segment captured a dominant share of the healthcare supply chain management market. The globe is shifting towards value-based care, which further enables the broader use of artificial intelligence, Internet of Things (IoT), and blockchain, allowing real-time tracking, predictive analytics. Software is exploring digital models of the physical supply chain by enabling real-time simulation and analysis in the identification and solving of possible concerns before they impact operations.

Whereas the services segment is predicted to expand rapidly during 2025-2034. It encompasses consulting, implementation, and support services for supply chain software, logistics and distribution, inventory management, and procurement services. Nowadays, companies are involved in the use of robots in warehouses for tasks such as picking and packing, and drones for faster delivery of crucial medical supplies to remote or difficult-to-access areas. Green logistics are used through investment in energy-efficient, carbon-neutral warehouses and the transformation of biodegradable medical equipment.

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By delivery analysis

How did the Cloud-based Segment Dominate the Market in 2024?

The cloud-based segment was dominant in 2024 and will expand fastest in the healthcare supply chain management market in the coming era. Along with its scalability, & affordability, it often operates on a pay-as-you-go model, which enables organizations to pay only for the resources they use, advantageous in smaller enterprises.

In August 2025, GHX introduced AI-enabled data analysis on cloud platforms for customized supplier management, supply chain automation, and predictive risk management to accelerate resiliency and procurement efficiency.

By function analysis

Why did the Inventory & Warehouse Management Segment Lead the Market in 2024?

The inventory & warehouse management segment held a major share of the healthcare supply chain management market in 2024. The market is focusing on accelerating patient safety through timely access to supplies, optimized supply chain visibility, and the rising adoption of digital technologies like AI, IoT, and WMS. By adopting the integration of real-time inventory tracking, it will automatically trigger reorders when stock levels reach a predetermined threshold.

On the other hand, the supplier performance management segment will expand rapidly. The possession of a complex supply chain, with contributions of various suppliers, different products, and strict regulatory environments, is boosting demand for these kinds of management. The exploration of the electronic Logistics Management Information System (eLMIS), which employs AI in managing the distribution of supplies across the country. Ultimately, it gives rise to enhanced product quality and patient outcomes.

By end user analysis

What Made the Healthcare Providers (Hospitals &Clinics) Segment Dominant in the Market in 2024?

The healthcare providers (Hospitals &Clinics) segment led with the largest share of the healthcare supply chain management market in 2024. They are mainly using these solutions for improving inventory, lowering waste, and enhancing overall operational effectiveness to control increasing healthcare expenses. The presence of stricter government regulations, like the U.S. Drug Supply Chain Security Act (DSCSA), mandates traceability and safety approaches for medical products, assisting providers in adopting advanced HSCM measures.

However, the group purchasing organizations (GPOs) segment will expand rapidly. GPOs consist of the purchasing volume of multiple healthcare providers, which have developed to negotiate major discounts from manufacturers and vendors for supplies and services. They utilize numerous services, like vendor selection, product portfolio management, contracting, and data analytics, to support providers in expanding the overall supply chain performance.

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The AI-based pharmaceutical R&D services market is witnessing remarkable growth, with revenues expected to reach several hundred million dollars by the end of the 2025–2034 forecast period.

Recent Developments

In June 2025, Tecsys Inc., a global company in supply chain management solutions, launched TecsysIQ, a cloud-native intelligence layer to unlock AI-assisted insights in the healthcare supply chain.
In July 2025, Oracle unveiled the Advanced Inventory Management solution to simplify warehouse operations by exploring embedded AI technology.
In June 2025, Simplify Healthcare, a well-known company in enterprise software solutions for Payers, introduced Xperience1™, an innovative solution developed to accelerate the advantages inquiry experience for health plan members, providers, brokers, and other stakeholders.

Healthcare Supply Chain Management Market Key Players List

Oracle Corporation 
SAP SE 
Infor Inc.
McKesson Corporation 
Cardinal Health, Inc. 
Siemens Healthineers
GHX (Global Healthcare Exchange)
IBM Corporation
Tecsys Inc.
LogiTag Systems
Medius (formerly Wax Digital)
Manhattan Associates
Smith & Nephew plc (via SCM digital tools)
Jump Technologies, Inc.
Zuellig Pharma
Vizient, Inc.
O&M Systems 
OptiFreight Logistics (Cardinal Health unit)
LLamasoft (a Coupa company)
Tradeshift

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Segments Covered in the Report

By Component 

Software
- Inventory Management
- Order Management
- Procurement & Sourcing
- Supplier Relationship Management
- Analytics & Reporting Tools
Hardware
- RFID & Barcode Scanners
- Automated Dispensing Systems
Services
- Consulting
- Managed Services
- Support & Maintenance

By Delivery Mode 

On-Premise 
Cloud-Based
Enables real-time data sharing, scalability, and remote access

By Function 

Procurement 
Inventory & Warehouse Management
Transportation & Logistics
Demand Forecasting & Planning
Order & Billing Management
Compliance & Regulatory Management
Supplier Performance Management (Fastest Growing)

By End User 

Healthcare Providers (Hospitals & Clinics)
Distributors & Wholesalers 
Pharmaceutical & Biotech Companies 
Contract Manufacturing Organizations (CMOs) 
Pharmacies & Retail Chains 
Group Purchasing Organizations (GPOs) (Fastest Growing)

By Region

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

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Towards Healthcare is a leading global provider of technological solutions, clinical research services, and advanced analytics, with a strong emphasis on life science research. Dedicated to advancing innovation in the life sciences sector, we build strategic partnerships that generate actionable insights and transformative breakthroughs. As a global strategy consulting firm, we empower life science leaders to gain a competitive edge, drive research excellence, and accelerate sustainable growth.

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