Healthcare Logistics Market size was over USD 93.9 billion in 2024 and is estimated to reach USD 297.9 billion by the end of 2037, expanding at a CAGR of 10.1% during the forecast timeline, i.e., 2025-2037. In 2025, the industry size of the healthcare logistics is evaluated at USD 103.3 billion.
The global market is expanding rapidly, driven by the globalization of pharmaceutical manufacturing and the rise of cross-border trade. Integration of blockchain for enhanced transparency and security is gaining traction in regions with high counterfeiting risks. The import and export of medical supplies and pharmaceuticals have grown vividly over the years, which significantly impacts the healthcare logistics industry. Advancements in medical technology, the rise of biologics, and increasing demand for temperature-controlled logistics are driving further market growth.
For instance, U.S. International Trade in Goods and Services, October 2024, the country exported USD 38,761 million worth of medical equipment in 2023, and USD 38,488 million in 2024. The exporter of medical instruments in the U.S. was California, with USD 505 million in exports to mainly Netherlands with USD 437 million worth of exports in September 2024. Moreover, the adoption of predictive analytics to forecast demand and optimize inventory management, reducing wastage of perishable medical products including vaccines is also boosting the market.
Furthermore, the growing trend of decentralized clinical trials drives the need for customized logistics solutions to transport sensitive medical samples and supplies to diverse locations worldwide. In October 2023, Cyroport, Inc. and CGTCatapult entered a strategic partnership to support the advancement of cell and gene therapies. The collaboration establishes Cryoport Systems’ first global supply chain logistics center in the UK, which is a Good Manufacturing Practice (GMP)-compliant facility located within the bioscience cluster in Stevenage.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
10.1% |
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Base Year Market Size (2024) |
USD 93.9 billion |
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Forecast Year Market Size (2037) |
USD 297.9 billion |
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Regional Scope |
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Product (Pharmaceutical products, Medical devices, Medical equipment)
By 2037, medical devices segment is anticipated to account for healthcare logistics market share of around 51.8%. The growing demand for diagnostic tools, in addition to the increasing prevalence of chronic diseases, and rising surgical procedures drive the need for efficient and timely logistic solutions. The developing economies around the world are importing a wide range of medical devices, majorly from the U.S.
For instance, according to the OEC, in 2022, the U.S. exported USD 33.3 billion in medical instruments, becoming the first largest exporter of medical instruments in the world. Additionally, in 2022, medical instruments were the eleventh most exported products from the U.S. to countries including the Netherlands (USD 5.4 billion), China (USD 3.7 billion), Mexico (USD 3.2 billion), Japan (USD 2.4 billion), and Germany (USD 2.4 billion). This in turn is boosting the market growth further.
Type (Branded drugs, Generic drugs)
Based on type, the generic drugs segment is projected to dominate the healthcare logistics market during the forecast period. Generic drugs form the basic layer of hospital and preventive healthcare and comprise the vast majority of shortages. The increasing demand for affordable medicines has boosted the production and distribution of generic drugs. These drugs also benefit from streamlined logistics, as they typically have less stringent storage requirements, allowing efficient large-scale transportation and accessibility across the diverse market.
For instance, according to the CPA, in the U.S. generic pharmaceuticals were the second largest manufactured import, with a value of USD 176 billion in imported products in 2021. India, Mexico, and China held 57% of all pharmaceutical imports (by weight) in 2021. In addition, 84% of all prescription volume in the U.S. includes generics in comparison to 35% in other OECD nations, paying USD 0.8 for generic drugs compared to other OECD nations. In 2019, the U.S. FDA approved more than 1,100 generic drugs under the abbreviated new drug application (ANDA). This has promoted the demand for generic drugs, in turn boosting the transport demand in the market.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Product |
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Service |
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End users |
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North America Market Analysis
North America in healthcare logistics market is poised to capture over 45.8% revenue share by 2037. The region benefits from a well-established pharmaceutical industry and a robust supply chain infrastructure. Furthermore, according to the International Trade Administration, in January 2024, the U.S. witnessed an estimated 25% rise in medical device exports in the last three years and an estimated import value of USD 600 million in the year 2022. Increasing collaborations between logistics providers and healthcare companies are propelling further market growth in the region.
The market in the U.S. is driven by advancements in technology and the growing demand for temperature-sensitive pharmaceuticals. Additionally, regulatory standards set by the FDA emphasize supply chain transparency, and security, further boosting investments in modern logistics infrastructure. For instance, in February 2022, DHL Supply Chain’s Life Sciences and Healthcare (LSHC) sector invested more than USD 400 million. The investment was aimed at expanding the company’s pharmaceutical and medical device distribution network footprint by 27% in the same year.
Canada healthcare logistics market is witnessing growth due to its emphasis on improving healthcare access across its vast geography. The demand for cold chain logistics has surged particularly vaccine distribution, with a focus on ensuring compliance with Health Canada. Technological innovations, including real-time tracking systems, are being adopted to enhance delivery efficiency and overcome challenges posed by the country’s remote and rural regions.
Asia Pacific Market Statistics
APAC healthcare logistics market is projected to witness the fastest growth during the forecast period. Emerging economies in the region are focusing on improving medical infrastructure and supply chain efficiency to enhance access to medicines and vaccines. International Trade Administration stated in 2024 that India imports nearly 80% of its medical devices, particularly, high-end equipment such as cancer diagnostics, medical imaging, and ultrasonic scans. E-commerce in healthcare is also boosting last-mile delivery innovations in the Asia Pacific.
India market is expanding majorly due to government initiatives such as the Make in India campaign. The rise of telemedicine and home healthcare services further fuels the need for strong delivery networks in the country. For instance, in September 2023, Cipla Limited partnered with Skye Air Mobility and launched drone-powered deliveries of critical medicines for hospitals and pharmacies in the state of Himachal Pradesh, India. Such factors are significantly boosting market innovation and expansion for a greater outcome by the end of 2037.
China market witnesses growth owing to its advanced manufacturing capabilities and extensive cold chain infrastructure. The local government’s focus on healthcare reforms and investments in smart logistics technologies, including IoT and AI, is transforming this sector. Furthermore, the aging demographic of the country demands efficient and reliable logistics support, majorly for home-based care, and specialized treatments.
Healthcare logistics market companies are focusing on regional expansion by establishing distribution hubs in emerging markets to improve supply chain efficiency. For instance, in November 2024, FedEx expanded its state-of-the-art Korea Life Science Center in Gimpo, Gyeonggi-do, spanning 2,288 square meters, designed to meet increasing demand for specialized healthcare transportation solutions. Overall, the company achieved a target of USD 1.8 billion in structural cost-out in FY24, showcasing its worldwide growth and expansion. These expansion strategies are boosting companies’ growth and maintaining competition in the market significantly.
Author Credits: Radhika Pawar
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