E-commerce is changing the healthcare landscape, and understanding the consequences of this change is crucial for healthcare suppliers. E-commerce in healthcare is definitely a positive force, as with any fresh technology, but one that needs to be harnessed with cautious and creative thinking. In addition, e-commerce offers clinics, hospitals, and doctor's offices the opportunity to streamline their purchases of medical equipment and supplies. Manufacturers of medical devices are increasingly moving online to enable direct orders and deliveries of products. This generates some difficulties, because health care providers need to guarantee that their suppliers are able to comply with laws and deliver products on time. But it also implies suppliers can provide better quality care for their patients by enabling more patient focus and less concentrate on supply problems.
Due to the enhanced use of the Internet for clients to access products and medical care, healthcare companies are increasingly worried about the quality of their internet presence. In a globe where transactions and collecting of data are progressively online, health care providers need to be conscious of how they present themselves online.
The global healthcare e-commerce market size is valued over USD 206 billion in 2020. This can be ascribed to growing pharmaceutical and medical device sectors coupled with penetration of internet across the globe. Besides, rapid advancements in technology and rising adoption of telemedicine are other key factors driving the market growth for healthcare e-commerce.
Healthcare E-commerce Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 206 billion|
|Growth Rate||CAGR of 16.8% during 2021-2028|
|Segment Covered||Type, Application, End-users, Regions|
|Regions Covered||North America, Europe, Asia Pacific, South America, Middle East & Africa|
|Key Players Profiled||Amazon, Flipkart Pvt. Ltd., Exactcare Pharmacy, eBay Inc., Alibaba Group Holding Ltd., Lloyds Pharmacy Ltd., Remdi Senior Care, McCabes Pharmacy, CVS Health, MedLife, FSA Store, Netmeds and Kroger Co.|
Key Segments of the Global Healthcare E-commerce Market
Type Overview, 2019-2028 (USD Billion)
- Medical Devices
Application Overview, 2019-2028 (USD Billion)
- Caregiving Services
- Medical Consultation
End-users Overview, 2019-2028 (USD Billion)
Regional Overview, 2019-2028 (USD Billion)
- Rest of Europe
- South Korea
- Rest of Asia Pacific
- Rest of South America
Middle East and Africa
- South Africa
- Rest of Middle East and Africa
Reasons for the study
- The purpose of the study is to give an exhaustive outlook of the global healthcare e-commerce industry
- Impact of increased demand for telemedicine across the globe. Major companies are therefore striving to offer innovative solutions coupled with the latest technological advancements to address the increasing demand.
What does the report include?
- The study on the global healthcare e-commerce market includes qualitative factors such as drivers, restraints, and opportunities
- The study covers a qualitative and quantitative analysis of the market segmented based on type, application, and end-users. Moreover, the study provides similar information for the key geographies.
- Actual market sizes and forecasts have been provided for all the above-mentioned segments.
- The study covers the competitive landscape of existing/prospective players in the healthcare e-commerce industry and their strategic initiatives for product development.
Who should buy this report?
- This study is suitable for industry participants and stakeholders in the global healthcare e-commerce market. The report will benefit every stakeholder in the market.
- Managers within the healthcare e-commerce industry looking to publish recent and forecasted statistics about the global healthcare e-commerce market.
- Government organizations, regulatory authorities, policymakers, and organizations looking for investments in trends of the global healthcare e-commerce market.
- Analysts, researchers, educators, strategy managers, and government institutions looking for insights into the market to determine future strategies.
E−commerce is increasingly becoming a common method of shopping by customers across the globe, however the market for pharmaceutical drugs and medical devices has been slow to embrace digital approaches due to the heavy level of legislative scrutiny and government regulations under which products are marketed. The safety, efficiency, claims and packaging of each healthcare products are regulated by lawmakers and respective regional governments.
Therefore, marketers of pharmaceutical and healthcare products have been hesitant to jump aggressively into digital marketing since the company is no longer fully in control of the brand’s message in the digital environment, such as with bloggers and on social media. However, as healthcare e-commerce continues to evolve from being just a sales channel to also a critical awareness driver, leveraging e−commerce will become critical to the growth of all pharmaceutical and medical device manufacturers. Digitization in any business is expected to have influenced majority of all sales and is similar trend is anticipated to further boost the growth of healthcare e-commerce over the forecast period.
Pharmaceutical OTC medications, especially the leading five brands Mucinex cold medicines (Reckitt Benckiser), Claritin allergy medicines (Bayer), Advil pain relievers (Pfizer), Vicks DayQuil & NyQuil cold medicines (P&G), and Tylenol pain relievers (J&J) are not usually, the most natural fit for internet purchases. This is because usually, customers buy products online due to reasons such as comfort, flexibility, reliability, and transparency.
Amazon is the go-to website that customers are redirected to by these products. There are about 80 million Amazon Prime memberships in the United States in 2017, the distributor provides free 1−2−day shipping and even 1−2 hours shipping in select towns and is a company extremely regarded for its ease and convenience of doing business, concentrated on continuing to increase the e-commerce bar. While these shipping choices may not be easy for the bed-ridden customer who immediately requires medication, they are fast and convenient choices for those who want to stock their cabinets.
Amazon is a notable marketing platform for reach as well as being a nice place to stock up. The exceptional amount of distinctive visitors to Amazon's daily website generates a chance to reach a large amount of prospective customers who may never have visited an individual brand site or brick and mortar store. Walgreens, CVS, Costco, Harmon Face Values, Meijer, Rite Aid, Target, and Walmart, to name a few, are other websites that are frequently redirected to customers.
Application-wise, the market is segmented into telemedicine, caregiving services and medical consultation. It is not surprising that even healthcare itself has started to penetrate the e-commerce area. Apps such as FirstOpinion and Practo, as well as websites such as Doctor2U and YourDoctors.Online are different kinds of healthcare e-commerce platforms. Each service operates on a slightly distinct business model, but the idea is the same: physicians provide patients with guidance on text or chat, eliminating the need for a physician's office or time spent traveling away from home. While this does not eliminate the need for in-person exams, telemedicine can often assist patients determine whether an exam is needed.
Fascinatingly, for a remarkably smooth patient experience, telemedicine can be combined with pharmaceutical e-commerce. Patients can discuss their symptoms with a doctor, get a diagnosis, and receive medication supplied to their door within a couple of hours. Platforms such as Walgreens and NowRX provide prescriptions that can be ordered online rapidly and easily. As technology progresses, healthcare companies leveraging e-commerce have a chance to dramatically enhance the experience of patients through healthcare access.
Based on end-users, the market is segmented into hospitals, clinics, and others. The hospitals segment dominated the market in 2020 and it is likely to maintain its place throughout the forecast years. Hospitals and health systems are discovering a diversity of virtual care models, several of which are reinforced by healthcare e-commerce technology. Hospitals by now are using healthcare e-commerce to increase access, deliver services 24/7, and magnify access to medical professionals.
Due to the development of technological advancements in healthcare, the e-commerce industry in healthcare is dominated by North America and Europe. Healthcare is evolving quickly in the United States. An aging population has risen demand for services and the need to handle plans and advantages for health care. Technology is becoming a significant factor in both health care delivery and service payment. Costs continue to rise, and payers face the need to maintain low premiums while offering appropriate coverage. Despite all efforts to reduce healthcare expenses with subsidized charges or renegotiated fees, the US still has one of the Western world's largest per capita spending.
Unfortunately, this expenditure did not yield better results. This trend in expenditure on health care and poor results is unsustainable. Without better quality and results, the current economy cannot continue to spend more than it can maintain. There are multiple alternatives in play to assist in determining the future of healthcare in the United States. These continuing strategies will continue to develop until a winning model has been established that improves healthcare by generating quality and cost-effective results. But one thing is for sure: the healthcare future will concentrate on placing customers back in control of their health by enforcing a public requirement to safeguard the results of payers, reduce expenses and boost healthcare.
Healthcare industry players have been comparatively effective at IT adoption, but they continue to struggle to effectively manage the myriad stakeholders, laws, and privacy issues needed to construct a fully integrated healthcare IT system. In its present state, the U.S. IT healthcare system is not effective. With over USD 1.7 trillion invested in IT services annually, present systems still lack the features necessary to compete in today's industry much less to compete in the future where players need to enhance the quality of care and reduce the cost of care.