Digital Pharmaceutical Supply Chain Management Market Size To Reach $1.84Bn By 2030

Digital Pharmaceutical Supply Chain Management Market Growth & Trends

The global digital pharmaceutical supply chain management market size is expected to reach USD 1. 84 billion by 2030, expanding at 8.2% CAGR from 2023 to 2030, according to a new report by Grand View Research, Inc. Several significant factors are responsible for expanding the market. These include the expanding usage of the GS1 Standard System and Unique Device Identification (UDI), the emergence of cloud-based solutions, the rising demand for operational cost reduction, and the increased use of mobile-based healthcare supply chain management solutions. Collectively, these elements have fuelled the market's strong upward tendency to growth.

Furthermore, through market research, digitalization within the supply chain is becoming increasingly necessary to meet the demands of consumers in a timely and efficient manner. Current market players are exploring the potential of transitioning from traditional supply chain models to digitalization. For instance, industry experts emphasized the significance of digitization as a key driver of the transformation in the podcast episode titled "Digitised Supply Chain", aired on August 24th, 2022. Industry sources emphasized the value of creating end-to-end connections to contact clients and efficiently attending to their demands. The podcast provides insight into how digitization can improve organizational agility and responsiveness.

The increase in the adoption of process automation in pharmaceutical SCM involves using technology to automate and streamline various tasks in the supply chain. This can include automating inventory management, order processing, and tracking shipments. By implementing automation, healthcare organizations can reduce manual errors, improve efficiency, and save time and resources. For instance, automated inventory management can help to ensure that supplies and medications are always in stock, reducing the risk of running out of essential items. In addition, automating order processing and tracking shipments can help reduce delays and errors in the supply chain, ensuring that healthcare providers receive the supplies they need on time.

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AI is one of the most significant strategic advancements in supply chain technology and has a big impact on many different industries. Furthermore, a survey conducted in February 2020 by Syft, a provider of software and services for end-to-end supply chain management and AI-enhanced inventory control, revealed that few hospitals in the U.S. use AI and predictive analytics for supply chain management, highlighting a growing opportunity for the healthcare sector to investigate digitization to improve its supply chain management.

Key market players are engaging in various strategies such as acquisitions, partnerships, expansions, and new products launched to strengthen their market position and expand their customer base. Some of the notable recent developments within the digital supply chain management industry are mentioned below:

In February 2022, Global Healthcare Exchange (GHX) announced the acquisition of Syft, AI-enabled inventory management, and SCM solution provider. The acquisition will help GHX expand and digitalize its supply chain segment. In June 2022, Kaleida Health partnered with Infor to use its solution in consolidating various organizations under one single enterprise and moving its supply chain and financial applications to the cloud to create a more dependable, scalable platform.

Product Insights

Based on product, the market is segmented into software, hardware, and services. The software segment held the largest market share of 39.7% in 2022, owing to its applications in the digital pharmaceutical supply chain management market. Software is also expected to be the fastest-growing segment over the forecast period. The increasing adoption of software, such as SaaS, which can offer next-generation cloud computing applications including supply chain management & enterprise resource planning, is among the key factors boosting the market. 

Based on the software module the software product segment of the market is segmented into planning & analytics, procurement, manufacturing, logistics, and inventory management. The manufacturing software module segment dominated the market with a market share of 41.6% in 2022.

Mode Of Delivery Insights

Based on the mode of delivery, the market is segmented into cloud-based, web-based and on -premises segments. The cloud-based segment dominated the market with a share of 40.3% in 2022. Cloud-based deployment is also expected to be the fastest-growing segment over the forecast period. Its growth can be attributed to rising demand for user-friendly technology, cost-effectiveness, and increasing adoption. Growing penetration of cloud computing among healthcare providers for maintaining inventory and procurement information is expected to further drive the segment.

The on-premise segment is anticipated to show at a CAGR of 7.86% from 2023 to 2030. On-premise deployment is commonly adopted by several medium- & small-scale enterprises through in-house data centers and security infrastructure. Previously, the majority of healthcare centers were dependent on-premise deployment; however, with the advent of cloud-based technology, several organizations are opting for cloud-based deployment.

Regional Insights

In 2022, North America dominated the digital pharmaceutical supply chain management market with a share of 32.9% due to its adoption of technological advances that reduce supply chain management costs, the need for improved digital supply chain efficiencies, and the integration of machine learning and artificial intelligence (AI) to better analyze and predict supply chain management outcomes.

Key Companies & Market Share Insights

The digital pharmaceutical supply chain market is rapidly evolving, and the role of suppliers is becoming increasingly important. Suppliers in this market are companies that provide a variety of goods and services to support the development, production, & distribution of pharmaceutical products. These include raw materials, packaging materials, equipment, logistics & transportation services, and technology solutions. In recent years, there has been a shift toward more collaborative & integrated relationships between pharmaceutical companies and their suppliers. This has been driven by the need for higher efficiency, cost-effectiveness, & flexibility in the supply chain, as well as the increasing complexity and regulatory requirements of the industry. The market is consolidated, and major market players are adopting various strategies such as acquisitions, partnerships, collaborations, expansions, and new product launches to strengthen their presence in the global market. 

Some prominent players in the global digital pharmaceutical supply chain management market include:

McKesson Corporation; Mediceo Corporation; Palantir Technologies, Inc.; Jump Technologies, Inc.; InterSystems Corporation; Tecsys; Oracle; SAP; Infor; Terso Solutions; CenTrak (HALMA plc); Biolog-id; TraceLink

Digital Pharmaceutical Supply Chain Management Market Report Highlights

• Based on product, the software segment accounted for the largest market share of 39.7% in 2022 and is anticipated to experience the fastest growth with a CAGR of 8.22% during the forecast period. This expansion can be attributed to the increased efforts made by public and private companies to support the healthcare IT infrastructure. These activities significantly influence the adoption of software solutions within healthcare organizations.
• Based on software modules, the manufacturing software module segment dominated the market share of 41.83% in 2022. This is mainly because healthcare providers use technologies like barcodes very frequently, which lowers operating costs and stimulates market expansion
• Based on the mode of delivery, the cloud-based segment dominated the market with a share of 40.3% in 2022 The adoption of cloud-based technology has increased owing to various security breaches on web-based and on-premise deployment. The old-generation systems require regular investments for upgrading software. Moreover, with growing IT infrastructure needs and changing business requirements, information sharing with clients & other stakeholders is a key concern, and therefore, several players are using cloud-based technology
• North America dominated the digital pharmaceutical supply chain management industry in terms of a market share of 31.2% in 2022.  The demand for improved digital supply chain efficiencies, the adoption of technological advancements that lower supply chain management costs, and the incorporation of machine learning and artificial intelligence (AI) for better analysis and prediction of supply chain management outcomes all contribute to the growth. These factors also support the overall market's expansion
• Some key industry players are Sap; Oracle Corporation; McKesson Corporation; Tecsys; Jump Technologies, Inc.; Infor Inc. Market players are implementing strategic initiatives such as geographical expansion, collaborations, partnerships, and joint ventures to increase their market presence

Digital Pharmaceutical Supply Chain Management Market Segmentation

Grand View Research has segmented the global digital pharmaceutical supply chain management market segmentation based on product, mode of delivery, software module, and region:

Digital Pharmaceutical Supply Chain Management Product Outlook (Revenue, USD Million, 2018 - 2030)

• Software
• Hardware
• Services

Digital Pharmaceutical Supply Chain Management Mode of Delivery Outlook (Revenue, USD Million, 2018 - 2030)

• On-premise
• Cloud-based
• Web-based

Digital Pharmaceutical Supply Chain Management Software Modules Outlook (Revenue, USD Million, 2018 - 2030)

• Planning & Analytics
• Procurement
• Manufacturing
• Logistics
• Inventory Management

Digital Pharmaceutical Supply Chain Management Regional Outlook (Revenue, USD Million, 2018 - 2030)

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

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