Healthcare SCM market to be worth $2.31bn by 2022

18 January 2018

The global healthcare supply chain management (SCM) market will be worth US$2.31bn by 2022, according to research.

A report by MarketsandMarkets said the market, worth $1.55tn in 2017, would grow by 8.4% a year over the next five years, driven by increased pressure on healthcare providers to improve operational efficiency and profitability. 

It pointed to the emergence of cloud-based systems, the implementation of a unique device identification initiative by the US Food and Drugs Administration and the global adoption of the GS1 system of standards in the healthcare industry as key factors that would drive growth.

It added that growing efforts to reduce the large-scale counterfeiting of drugs would also lead to big changes in healthcare supply chains. 

Tapan Mehta, market development executive at mobile technology firm DMI, said counterfeit prevention could potentially see a widespread rollout of blockchain through the industry.

“With an estimated global annual loss of $200bn due to counterfeit drugs, pharmaceutical supply chain integrity may be one the most relevant and demanding use-cases for blockchain,” he said. 

“A blockchain system could ensure a chain-of-custody log, tracking each step of the supply chain at the individual drug or product level.”

However, the report added that the high implementation costs of supply chain management systems would restrain market growth.

The report said the North American market would grow the fastest between 2017 and 2022, due to factors including the consolidation of hospitals, regulatory requirements, rising prevalence of chronic disease, increasing patient burden in the US and implementation of various strategies to improve healthcare SCM in Canada. 

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