MEDICAL SUPPLY DELIVERY SERVICE MARKET SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024-2031)

Medical Supply Delivery Service Market Size and Trends

The medical supply delivery service market is estimated to be valued at USD 65.08 Bn in 2024 and is expected to reach USD 112.09 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 8.1% from 2024 to 2031.

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The market is expected to witness positive growth over the next few years. With the ongoing COVID-19 pandemic, the demand for fast and reliable medical supply delivery has increased substantially. This is driving many hospitals and healthcare organizations to outsource their delivery needs to specialized service providers. Moreover, the rising prevalence of chronic diseases and growing geriatric population are resulting in higher volumes of medical supplies and equipment needing transport. This growing demand is providing opportunities for established players in this market to expand their service networks and introduce new solutions. However, pricing pressures may remain a challenge due to strong competition among these service providers.

Rising telehealth and virtual care services

With rapid advancements in technologies over the past few years, telehealth services and virtual care have seen tremendous growth. Patients are increasingly comfortable communicating with their doctors remotely through online video calls and digital platforms. This has required healthcare providers and hospitals to build robust telehealth infrastructure to provide virtual care services to patients from the comfort of their homes. As more consultations and follow-ups move online, there has been a significant increase in demand for delivery of medications, diagnostic samples, and medical equipment directly to patients. Medical supply delivery services play a crucial role in ensuring patients have access to required prescriptions and products virtually. By offering convenient home delivery options, these services help enable the expansion of telehealth and ensure patients can continue their treatment journey seamlessly without having to visit clinics frequently. With telehealth predicted to play an ever-increasing role in how healthcare is delivered in the future, medical supply delivery services are well positioned to benefit from this major shift in the healthcare landscape.

Market Concentration and Competitive Landscape

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In addition to telehealth, e-pharmacies and online platforms for purchase of medical products have seen tremendous growth in recent years. Patients are increasingly looking at the convenience and comfort of ordering medications and other healthcare essentials from the ease of their homes through digital interfaces. Several e-pharmacy startups have emerged that allow customers to consult doctors online, get prescriptions electronically and order medications for home delivery within a few days. Similarly, established pharmacy retailers have also strengthened their online presence and delivery capabilities. On the product side, sale of durable medical equipment, monitoring devices, testing kits, and others through e-commerce websites has witnessed a significant rise. All these digital healthcare channels require reliable partners for fulfillment and last-mile delivery of ordered medical supplies. This growing demand from e-pharmacies and online retailers of medical products opens up massive opportunities for medical supply delivery service providers. Their abilities to efficiently ship medications, samples, and products nationwide helps expand access to healthcare virtually.

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The medical supply delivery service market faces several challenges. Hospitals and healthcare facilities increasingly demand just-in-time delivery to reduce inventory costs. However, this creates pressure on delivery firms to meet strict time windows while controlling expenses. Delivery drivers may face traffic or difficult parking situations that hamper timely drop-offs. Rural routes spanning long distances increase transportation expenses. Regulations require temperature-controlled and safe transport, adding to operational complexity. Staffing qualified drivers and maintaining reliable vehicles further complicates affordable service delivery.

Market Opportunities – Adoption of advanced technologies

The aging population is driving greater demand for healthcare services and medical equipment. Home healthcare is a growing field as patients seek treatment outside of hospitals. This increases the need for medical supplies to be regularly delivered to private homes. New technologies now enable real-time tracking of shipments, dynamic routing, and digital proof of deliveries. Advanced technologies present a significant opportunity to revolutionize the medical supply delivery service market. The integration of Internet of Things (IoT), Artificial intelligence (AI), and robotics allows for contactless, efficient delivery of critical supplies directly to hospitals, clinics, and patients. This reduces potential exposure and ensures supplies reach their destination safely and securely.

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The service type segment includes medical lab supplies, pharmaceutical supplies, biological specimen delivery, hospital equipment, and others. The pharmaceutical supplies segment is estimated to hold 29.6% share of the market in 2024. Pharmacies and hospitals rely heavily on the steady supply of pharmaceutical products to effectively treat patients. However, managing large and complex pharmaceutical inventory takes up valuable time and resources that are better spent on direct patient care. Medical supply delivery services fulfill this important logistical need by delivering the right pharmaceutical products directly to where they are needed, when they are needed. This saves healthcare organizations from having to allocate staff to pharmacy delivery tasks or maintain large on-site pharmaceutical storage. Rather than focusing on supply chain minutiae, hospitals and clinics can focus on their core clinical missions thanks to the reliable and timely delivery of pharmaceutical supplies.

Insights, By Mode of Delivery: Efficiency Powers Courier Delivery Model

The mode of delivery segment includes courier and drone. The courier subsegment is expected to have 89.5% of the market share in 2024. Unlike other modes of delivery such as drones, couriers offer a tried-and-tested solution for delivering medical supplies within dense urban environments. Couriers can nimbly navigate complex road networks and traffic conditions to fulfill a high volume of same-day or next-day deliveries. Their flexibility meets the urgent yet varied supply needs of large hospital networks with multiple facilities. Furthermore, courier fleets are already established in most major cities worldwide, offering reliable coverage and rapid deployment when incidents requiring emergency supplies arise. The consistency and scalability of courier services prove invaluable for healthcare logistics that must function seamlessly behind the scenes.

Insights, By Delivery Type: Reliability Drives Demand for Scheduled Delivery

The delivery type segment includes express/urgent delivery, STAT delivery, scheduled delivery, and others. The scheduled delivery subsegment is expected to have 36.2% of the market share in 2024. While express deliveries fulfill pressing needs, most medical supply transportation is planned rather than emergent. Hospitals and clinics prefer the predictability of scheduled delivery routes that ensure steady replenishment without stockouts or excess waste. Medical staff can accurately anticipate supply levels and order refills in a timely fashion. Suppliers also benefit from the consistency of scheduled routes that streamline transport operations and allow for precise demand forecasting. Furthermore, scheduled time windows reduce unnecessary trips or waiting around for recipients’ availability. The dependability of scheduled logistics is paramount for healthcare’s efficient day-to-day functioning and smooth execution of treatment plans.

Regional Insights

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North America currently dominates the global medical supply delivery service market and is anticipated to hold 42.3% of the market share in 2024. With one of the most advanced healthcare infrastructures in the world and a large elderly population, the demand for timely delivery of medical supplies and equipment is incredibly high. Companies in the U.S. have pioneered supply chain logistics solutions tailored specifically for the healthcare sector over the past few decades. This first-mover advantage has allowed U.S. firms to achieve substantial scale and lower costs through dense networks across major population centers. Furthermore, expansive demand has attracted significant private investment and fostered ongoing innovation in delivery technologies, ranging from fleet management systems to temperature-controlled packaging. Overall, these factors have enabled the market to consistently achieve some of the fastest delivery times along with a high level of reliability and traceability that international customers have come to expect from American medical supply delivery brands.

Asia Pacific represents the fastest growing regional market for medical supply delivery services. Rapid economic development over the past two decades has strengthened domestic healthcare manufacturing base. Counties, such as China, India, and Japan, are some of the major economies driving the market growth. China’s massive population size as well as ongoing initiatives to modernize and expand access to care even in rural areas, the need for transportation of medical goods within China has grown exponentially. Domestic companies are ramping up their capabilities to handle increasing volumes and sophisticated cold chain requirements. At the same time, major U.S. and European brands have also established local operations to tap into opportunities in China, bringing new technologies and process expertise. Additionally, the Chinese government has been actively promoting the medical supply delivery sector through trade policies aimed at improving connectivity between manufacturers, distributors, and care facilities nationwide. All of these factors are expected to fuel continued double-digit expansion of the market in Asia Pacific for the foreseeable future.

Market Report Scope

Medical Supply Delivery Service Industry News

• On February 5, 2024, TechEagle, a drone logistics company, announced cooperation with 10 All India Institute of Medical Sciences, a collection of autonomous government medical universities, for quick pharmaceutical delivery. In a key study, TechEagle transported a medical payload of up to five kilograms to remote primary health clinics at AIIMS Rajkot and AIIMS Mangalagiri.
• In December 2023, Apian, a U.K.-based healthcare logistics company, partnered with Zipline, the world's largest autonomous instant delivery company, to greatly expand the NHS program that delivers medical supplies to healthcare facilities. The development, which is slated to begin with Northumbria Healthcare NHS Foundation Trust in the autumn of 2024, is expected to provide local job opportunities in the region.
• In June 2023, Siemens Healthineers Middle East, a medical technology company Southern & Eastern Africa and Wingcopter GmbH, an aerospace company, have signed a Memorandum of Understanding (MoU) to develop and implement an integrated drone delivery solution for transporting laboratory diagnostic items and other medical supplies throughout Africa. The combination of Siemens Healthineers' Laboratory Diagnostics testing capabilities and Wingcopter's drone delivery services will result in more accurate diagnoses and speedier treatment.
• In May 2023, Tomorrow Health, an innovator in home-based care, announced the closure of its first-party home medical equipment (HME) supply business in order to remove barriers and open up new opportunities for its network of home-based care providers. Tomorrow Health partners with leading suppliers for home-based care, including AdaptHealth, Apria, Home Care Delivered, Lincare, and Rotech Healthcare, to provide holistic technology solutions that streamline end-to-end workflows and enable unparalleled operational efficiency at scale.

*Definition: The medical supply delivery service market provides logistics services for delivering critical medical supplies to hospitals, clinics, long-term care facilities, and individual patients' homes on their behalf. As time is of the essence for medical supplies, this service ensures supplies like medications, equipment, medical protective wear, and emergency supplies reach destinations promptly and safely. Customers can rely on their dedicated delivery staff and real-time tracking to meet demanding delivery windows.

Market Segmentation

• Service Type Insights (Revenue, USD BN, 2019 - 2031)
  • Medical Lab Supplies
  • Pharmaceutical Supplies
  • Biological Specimen Delivery
  • Hospital Equipment
  • Others
•  Mode Of Delivery Insights (Revenue, USD BN, 2019 - 2031)
  • Courier
  • Drone
•  Delivery Type Insights (Revenue, USD BN, 2019 - 2031)
  • Express/Urgent Delivery
  • STAT Delivery
  • Scheduled Delivery
  • Others
•  End User Insights (Revenue, USD BN, 2019 - 2031)
  • Hospitals
  • Diagnostic Laboratories
  • Pharmacies
  • Blood Banks
  • Government Agencies
  • Others
• Regional Insights (Revenue, USD BN, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC Countries
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Dropoff
  • Excel Courier
  • Rapidus
  • GoShare Inc.
  • UPS
  • FedEx
  • DHL Medical Express
  • Cardinal Health
  • Agility
  • Wings Logistics
  • CEVA Logistics
  • Zipline
  • Byram Healthcare Centers, Inc.
  • National Delivery Solutions
  • Diamond Logistics
  • MCKESSON CORPORATION
  • Pillow Logistics
  • ModivCare
  • Gritstone bio
  • Incyte