New Delhi, July 24, 2024 (GLOBE NEWSWIRE) -- Middle East healthcare logistics market was valued at US$ 4,510.78 million in 2023 and is projected to surpass the valuation of US$ 8,670.18 million by 2032 at a CAGR of 7.95% during the forecast period 2024–2032.

The demand for healthcare logistics in the Middle East is experiencing a significant surge, driven by several key factors. One of the primary drivers is the region's rapidly growing population, which has increased from 411 million in 2010 to approximately 578 million in 2023, necessitating expanded healthcare services. Additionally, the prevalence of chronic diseases such as diabetes and cardiovascular conditions has risen sharply, with diabetes affecting 15.4% of the adult population in the Gulf Cooperation Council (GCC) countries. This has led to a greater need for efficient logistics to manage the distribution of medical supplies and pharmaceuticals. Furthermore, the COVID-19 pandemic highlighted the critical importance of robust healthcare logistics, as the region faced unprecedented challenges in ensuring the timely delivery of vaccines and medical equipment.

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Several factors are driving the increased demand for healthcare logistics market in the Middle East. Firstly, government initiatives aimed at improving healthcare infrastructure are playing a crucial role. For instance, Saudi Arabia's Vision 2030 includes significant investments in healthcare, with a projected increase in healthcare expenditure from $45 billion in 2020 to $71 billion by 2030. Secondly, the rise of medical tourism in the region, particularly in countries like the UAE, which saw a 5.5% increase in medical tourists in 2022, is boosting the demand for sophisticated logistics solutions to cater to international patients. Thirdly, advancements in medical technology and the adoption of digital health solutions are necessitating more complex and efficient logistics networks to handle high-tech medical devices and telemedicine services.

The growth in healthcare logistics market across Middle East is also influenced by several underlying factors. The increasing urbanization rate, which reached 70% in the Middle East in 2023, is leading to higher demand for healthcare services in urban areas, thereby requiring more efficient logistics to manage the supply chain. Additionally, the region's strategic location as a global logistics hub, with major ports and airports facilitating international trade, is enhancing its capacity to handle healthcare logistics. The implementation of advanced technologies such as blockchain and IoT in supply chain management is further improving the efficiency and transparency of healthcare logistics. Moreover, the rising awareness and demand for quality healthcare services among the population, with healthcare spending per capita increasing by 4.2% annually, is driving the need for better logistics solutions to ensure timely and reliable delivery of medical products.

Key Findings in Middle East Healthcare Logistics Market

Dominance of Pharmaceutical Products in Middle East Healthcare Logistics Market: Controls Over 51.67% Market Share

The dominance of pharmaceutical products in healthcare logistics across the Middle East is primarily driven by the region's strategic focus on ensuring the availability and distribution of essential medicines. The COVID-19 pandemic underscored the critical need for robust pharmaceutical logistics, with companies like DP World facilitating the distribution of two billion vaccines through their advanced warehouse facilities in Dubai. The pharmaceutical supply chain's complexity, involving multiple stakeholders such as raw material suppliers, drug manufacturers, and regulatory agencies, necessitates specialized logistics solutions to manage inventory, transportation, and distribution efficiently. This specialization is crucial in addressing supply shortages and ensuring timely delivery of medications, which are often life-saving. According to a report by Astute Analytica, the Middle East pharmaceutical logistics market is projected to grow at a CAGR of 7.1%, reflecting the increasing demand for these services.

Pharmaceutical products are the key end-users of healthcare logistics market in the Middle East due to several factors. The region's healthcare systems have increasingly recognized the importance of logistics in optimizing supply chains without compromising service quality. For instance, the UAE's healthcare expenditure is expected to reach $23 billion by 2025, with a significant portion allocated to pharmaceutical logistics. The pharmaceutical industry's heavy investment in promotional activities and incentives for healthcare professionals further drives demand for efficient logistics services. The Saudi Arabian pharmaceutical market, valued at $8.5 billion in 2023, is expected to grow at 6.5% annually, emphasizing the need for robust logistics solutions. Additionally, the rising demand for over-the-counter medicines and the need for temperature-controlled storage solutions highlight the critical role of logistics in maintaining drug efficacy and safety, with cold chain logistics projected to grow by 8.9% annually. The pharmaceutical logistics market's growth is also fueled by the increasing trade of conventional medicines, with exports from the UAE reaching $1.6 billion in 2023. The emphasis on fast-track assistance in healthcare is evident from the 30% increase in emergency medical shipments across the region.

Ambient Temperature Based Healthcare Logistics Takes Controlling Share of 43% in Healthcare Logistics Market

The dominance of ambient temperature-based healthcare logistics in the Middle East, holding over 43% share, can be attributed to several factors that have enabled its growth. The region's climate, with average annual temperatures ranging between 25°C and 35°C, aligns well with the requirements of many pharmaceuticals and medical devices, which can be safely stored and transported at ambient temperatures without the need for specialized cold chain logistics. This reduces operational costs significantly, as maintaining cold chain infrastructure can be up to 10 times more expensive. Additionally, the rise in chronic diseases has led to an increased demand for medications that are stable at ambient temperatures, such as oral solid dosage forms and certain biologics.

Another critical factor behind this dominance in the healthcare logistics market is the expansion of healthcare infrastructure in the Middle East. The number of healthcare facilities in the Gulf Cooperation Council (GCC) countries has increased by 25 new hospitals and over 3,000 new pharmacies in the past year alone. This expansion necessitates efficient and cost-effective logistics solutions. Moreover, the adoption of advanced tracking technologies, with over 1,500 healthcare logistics providers now using real-time tracking systems, ensures the integrity and timely delivery of ambient temperature-sensitive products. Furthermore, government initiatives aimed at boosting local pharmaceutical manufacturing have led to the establishment of 15 new production plants, reducing reliance on imports and fostering the growth of ambient temperature logistics.

The availability of robust supply chain infrastructure supports this dominance in the Middle East healthcare logistics market. For instance, the Middle East has witnessed a 20% increase in warehousing facilities equipped for ambient temperature storage over the last two years. Additionally, the development of major logistics hubs, such as the expansion of the Dubai Logistics Corridor, which now spans over 200 square kilometers, enhances the efficiency of distribution networks. The rise in e-commerce healthcare platforms, with over 500 new online pharmacies established recently, further propels the demand for ambient temperature logistics, ensuring that medications reach consumers swiftly and safely.

Saudi Arabia is at the Center of Healthcare Logistics in Middle East, Accounts for Nearly 37% Market Share

Saudi Arabia's position as the largest consumer of healthcare logistics market in the Middle East can be attributed to its vast geographical size, substantial population, and significant healthcare investments. As the largest country in the region, spanning approximately 2,250,000 square kilometers, the logistics required to service its extensive and often remote areas are immense. With a population exceeding 34 million, the demand for healthcare services is naturally high, particularly in urban centers where most healthcare facilities and professionals are concentrated. This urban-rural disparity necessitates a robust logistics network to ensure the delivery of medical supplies and services to underserved areas.

The Saudi government has made significant investments in healthcare infrastructure, reflected in the country's hospital bed capacity of 69,394, with the Ministry of Health controlling 58.7% of these beds. The introduction of universal health coverage and the ambitious Vision 2030 plan, which includes extensive healthcare reforms, have further bolstered the country's healthcare system. Additionally, the privatization of hospitals and primary healthcare centers aims to improve service efficiency and quality. These strategic initiatives are complemented by the rising demand for advanced medical equipment, making Saudi Arabia the largest healthcare logistics market in the Middle East. However, the country faces challenges such as a shortage of healthcare professionals, prompting efforts to recruit foreign doctors and nurses and establish new medical schools.

Lifestyle diseases like diabetes and obesity significantly contribute to the healthcare demand, with 3.8 million people aged 20-79 suffering from diabetes and 35.4% of adults being obese. The adoption of advanced healthcare technologies has improved service delivery, yet the rising healthcare costs necessitate sustainable financing solutions. The COVID-19 pandemic underscored the importance of effective healthcare logistics and strategic management, driving further investments in this sector. Despite its economic dependency on oil, Saudi Arabia's strategic efforts and reforms have solidified its dominant position.

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Top 5 Players Holds Over 47% Share of the Middle East Healthcare Logistics Market

The Middle East healthcare logistics market is characterized by a significant concentration of revenue among the top five players, who collectively hold over 47% of the market share. DHL Logistics leads the pack with a commanding 12.27% share, leveraging its extensive global network and advanced technological infrastructure to provide efficient and reliable logistics solutions. DHL's dominance can be attributed to its robust cold chain logistics capabilities, crucial for the transportation of temperature-sensitive healthcare products. Additionally, the company's strategic partnerships and continuous investment in innovative solutions have fortified its market position, enabling it to meet the region's growing demand for specialized healthcare logistics services.

Ceva Logistics and Kuehne + Nagel International AG follow closely, each leveraging their extensive expertise in supply chain management to carve out significant portions of the healthcare logistics market. Ceva Logistics has made notable strides by enhancing its service offerings with advanced tracking systems and real-time visibility tools, ensuring the integrity and safety of healthcare products throughout the supply chain. On the other hand, Kuehne + Nagel's strength lies in its comprehensive range of services, from warehousing to distribution, combined with a strong focus on compliance with healthcare regulations. Both companies have capitalized on the increasing demand for efficient and compliant logistics solutions in the Middle East, further solidifying their market positions.

Aramex and DSV round out the top five, each bringing unique strengths to the competitive landscape. Aramex, with its deep understanding of the local market and agile logistics solutions, has managed to capture a substantial share by offering tailored services that meet the specific needs of healthcare providers in the region. DSV, known for its global reach and extensive logistics network, has leveraged its expertise to provide seamless integration of services, from air and sea freight to warehousing and distribution. The latest findings indicate that both companies are investing heavily in technology and infrastructure to enhance their service capabilities, positioning themselves for continued growth in the dynamic Middle East healthcare logistics market.

Middle East Healthcare Logistics Market Key Players

• Agility
• Aramex
• C.H. Robinson
• CEVA Logistics
• DB Schenker
• DHL Logistics (Deutsche Post DHL Group)
• DSV Healthcare
• Hellmann Worldwide Logistics
• Kuehne + Nagel International AG
• NAQEL Express
• NUPCO
• Proceed S.A.
• SMSA Express
• Tranzone
• Vervo Middle East LLC
• Other Prominent Players

Key Segmentation:

By Service & Solutions

• Services
  • Transportation & Freight Services
  • Cold Chain Logistics
  • Warehousing & Distribution Services
  • Inventory Management and Control
  • Order Fulfilment & Last Mile Delivery
  • Reverse Logistics and Waste Management
• Solutions/Technology
  • Inventory Management
  • Aset Tracking
  • Vendor Management
  • Billing & Payments Management
  • Others
• Contract Logistics

By Product

• Pharmaceutical Products
• Medical Device
• Medical Equipment
• Others

By Temperature

• Ambient
• Refrigerated
• Frozen
• Cryogenic

By End User

• Pharmacy
• Healthcare Facilities
• Research and Diagnostic Laboratories
• Others

By Country

• Saudi Arabia
• UAE
• Oman
• Qatar
• Kuwait
• Rest of Middle East

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