PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1930133
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1930133
The global healthcare supply chain management (SCM) market is experiencing significant growth due to the rising adoption of cost-cutting strategies by hospitals, increasing demand for operational efficiency, and advancements in digital technologies. As per Fortune Business Insights, the market was valued at USD 3.93 billion in 2025, projected to grow to USD 4.52 billion in 2026, and expected to reach USD 11.35 billion by 2034, registering a CAGR of 12.2% during the forecast period. North America dominated the market in 2025 with a 48.6% share, supported by the presence of key solution providers, advanced healthcare infrastructure, and widespread technology adoption.
Healthcare supply chain management involves overseeing and optimizing the flow of healthcare products, reducing inventory waste, minimizing human error, and ensuring timely delivery to providers and patients. The rising need for agile and resilient supply chains, coupled with strategic acquisitions, such as SYMPLR's acquisition of GreenLight Medical, Inc. in 2022, has enhanced the deployment of SCM solutions.
Market Dynamics
Drivers
The market growth is fueled by launches of advanced supply chain solutions and the increasing adoption of cloud-based platforms. Advanced software solutions, such as e-procurement and supply chain planning systems, streamline operations across procurement, storage, manufacturing, and transportation. For example, in January 2022, Bridge Medical GPO launched an e-Procurement platform developed by JAGGAER at Arab Health 2022, enabling UAE healthcare providers to optimize procurement practices.
Cloud-based solutions reduce capital and operating expenses while enabling real-time visibility and coordination across supply chains. In October 2022, Methodist Hospital in Indiana partnered with Infor to develop a cloud-based healthcare application, improving standardization and efficiency. Similarly, in November 2023, Oracle added mobile capabilities to Oracle Fusion Cloud Inventory Management, supporting stock optimization and patient care improvement.
Trends
The adoption of Radio Frequency Identification (RFID) and blockchain technologies is transforming healthcare supply chains. RFID tags provide real-time tracking of inventory, including stock levels, expiration dates, and asset management. For example, in August 2022, Bluesight partnered with GENIXUS to incorporate RFID technology in KinetiX Propofol syringes. Blockchain enhances traceability, allowing stakeholders to verify the origin and movement of drugs and medical products securely.
Restraints
High costs associated with SCM software installation, subscription, and customization pose challenges. Products like Control Data Inc.'s ProcurePort and Flowtrac incur recurring monthly costs, limiting adoption in healthcare facilities. These expenses, combined with complex integration requirements, slow the uptake of SCM solutions in certain regions.
Market Segmentation
By Component: The market is divided into software, services, and hardware. Software led the market with a 56.86% share in 2026, driven by technologically advanced solutions that enhance procurement, inventory, and operational efficiency. Services and hardware segments are expected to grow steadily due to outsourcing trends and rising demand for tracking systems.
By Delivery Mode: Cloud-based solutions dominate due to advantages such as improved operational efficiency, risk monitoring, and collaborative information sharing. By 2026, on-premise solutions also hold a substantial market share, catering to organizations requiring customized deployment.
By End-User: Healthcare providers led the market with a 49.78% share in 2026, fueled by cloud adoption in hospitals and clinics. Healthcare manufacturers also contribute significantly due to increasing SaaS adoption for inventory management and supply chain visibility.
Competitive Landscape
Key players include Oracle, Tecsys Inc., Global Healthcare Exchange, LLC., McKesson Corporation, Henry Schein, Cardinal Health, Epicor Software Corporation, Ascension, Ochsner Health, and Banner Health. Companies focus on strategic partnerships, product innovation, and global expansions. Notable developments include Tecsys Inc. enabling Stanford Health to optimize supply chain operations (2022) and Global Healthcare Exchange acquiring Syft (2022) to enhance AI-enabled inventory management.
Conclusion
The global healthcare supply chain management market is projected to grow from USD 3.93 billion in 2025 to USD 11.35 billion by 2034, driven by cloud-based platforms, advanced software solutions, RFID adoption, and blockchain integration. While high implementation costs pose challenges, the increasing focus on streamlining procurement, inventory, and operational efficiency is expected to drive adoption across healthcare providers and manufacturers, ensuring enhanced patient outcomes and sustainable growth in the global market.
Segmentation By Component
By Delivery Mode
By End-user
By Region