Healthcare E-commerce Market

The global Healthcare E-commerce Market is valued at USD 302.3 Billion in 2022 and is projected to reach a value of USD 994.2 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 16.2% between 2023 and 2030.

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In coming years, there is anticipated to be more demand for the Healthcare E-commerce sector as consumer expenditure on medical products rises and internet usage increases. The ability to move to online purchases is being made possible by the high internet penetration rate and growing demand for healthcare items, which is driving up demand for online healthcare products. Centers for Medicare & Medicaid Services figures for 2022 show that U.S. healthcare spending grew to $4.1 trillion, or $12,530 per person, in 2020, a rise of 9.7%. The amount spent on health represented 19.7% of the country's GDP. The COVID-19 pandemic has also contributed to developing the Healthcare E-commerce market as more consumers turn to online purchasing to avoid in-person interactions.

According to WeAreSocial's statistics, released in January 2020, there were 4.54 billion internet users worldwide in 2020, up 298 million or 7% from January 2019. Over the projection period, this scenario is predicted to drive the Healthcare E-commerce market's revenue. A key trend influencing the Healthcare E-commerce industry is the introduction of innovative applications for connecting patients and healthcare professionals directly. MyMedicalShop.com, an online platform for ordering medication and healthcare supplies, e-consultations, and diagnostic tests at home, was introduced in November 2021 by SMV Healthcare, a pharmaceutical company headquartered in Chennai. Therefore, introducing new healthcare applications will likely influence the development of the Healthcare E-commerce market during the forecast period.

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Key Highlights

• By Type, the high demand for the drugs segment will increase the Healthcare E-commerce Market from 2023 to 2030.
• By Application, the telemedicine segment dominated the largest market share globally from 2023 to 2030.
• In 2022, North America dominated the market with the highest revenue share of 30%.

Healthcare E-commerce platforms offer customers a range of products from different healthcare suppliers at competitive prices. The patient experience is critical to the success of a healthcare business, and improving the Healthcare E-commerce process helps to meet patient expectations, enhances productivity, and reduces healthcare costs. The rise of Healthcare E-commerce has helped the healthcare sector reduce expenses and streamline purchasing. For instance, the use of telehealth services increased by 33% in the United States in 2020, according to Entrepreneur Media, Inc. Additionally, telemedicine choices, according to the research of a cardiovascular patient, assisted in lowering monthly healthcare costs by USD 576, and in Houston, the telehealth program decreased emergency visits by 6.7%, saving the healthcare system USD 2,468 for each unneeded visit. Therefore, healthcare organizations must adopt e-commerce practices to improve their services and remain competitive.

Economic Insights

Governments across the globe have recognized the importance of digital health solutions and have implemented various policies and initiatives to promote the adoption of e-commerce in the healthcare sector. For Example, The National Digital Health Mission, launched in 2020, aims to provide every Indian citizen with a unique health ID and digitized health records. The mission also aims to promote e-pharmacies and telemedicine services, enabling easier access to healthcare services for the population. Technological advancements in Healthcare E-commerce have improved accessibility to medical products and services. A report by Accenture estimates that AI applications in healthcare could create $150 billion in annual savings for the US healthcare economy by 2026.

Top Market Trends

1. Growing Demand for Home Healthcare: The Healthcare E-commerce market is experiencing significant growth due to the increasing demand for home healthcare. With the aging population and a rise in chronic diseases, many individuals opt to receive healthcare services in the comfort of their homes. This trend has led to a surge in demand for medical equipment, supplies, and prescription medications that can be ordered online and delivered directly to patient's homes. E-commerce platforms have made it easier for patients to access a wide range of healthcare products and services, regardless of location. Patients can easily compare prices, read reviews, and purchase products online, all from the comfort of their own homes. The convenience of online shopping has also led to a rise in telemedicine, which allows patients to connect with healthcare providers remotely. Overall, the growing demand for home healthcare is driving the growth of the Healthcare E-commerce market, and this trend is expected to continue in the coming years.
2. Increasing Focus on Wellness and Preventive Care to Augment Growth: The healthcare industry has witnessed a shift in focus from curative care to wellness and preventive care in recent years. This shift has led to the growth of the Healthcare E-commerce market as more individuals are seeking online platforms to purchase healthcare products and services. These platforms offer convenience and accessibility to individuals for purchasing healthcare products ranging from diagnostic tests to nutrition supplements. The Healthcare E-commerce market is expected to grow significantly over the next few years due to the increasing demand for convenient and affordable healthcare solutions. Moreover, the COVID-19 pandemic has further accelerated the growth of the Healthcare E-commerce market as more individuals are avoiding physical visits to healthcare facilities and opting for online consultations and purchases. In summary, the Healthcare E-commerce market is poised to grow due to the increasing consumer demand for wellness and preventive care and the convenience and accessibility offered by online platforms.

Market Segmentation

The global Healthcare E-commerce market can be categorized as Type, Application, and Region. Based on the segment Type, the market can be further categorized into Drug and Medical Devices. Additionally, based on Application, the market can be split further into Telemedicine, Caregiving Services, and Medical Consultation. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Type

Drugs to Accommodate Maximum Market Share Due to the Expansion of Pharmaceutical Companies into the E-commerce Market

In 2022, drugs dominated the market. With the increase in the number of people suffering from chronic diseases, there has been a rise in the demand for prescription drugs. This demand is expected to be met through the online pharmacy industry, which is increasing. The convenience of ordering prescription drugs online and receiving them at the doorstep is one of the major driving factors for the growth of this category. As Healthcare E-commerce platforms integrate electronic prescriptions, telemedicine, and digital health records, they provide a one-stop solution for all prescription drug-related needs. The ease of accessing prescription drugs through e-commerce is set to boost market share in the drugs category.

Based on Application

Telemedicine to Express Dominion Owing to Increasing Demand for Remote Consultations and Diagnosis Due to the COVID-19 Pandemic

Between 2023 and 2030, the telemedicine category is anticipated to grow fastest. The COVID-19 pandemic has fueled the demand for telemedicine services as patients seek to avoid physical visits to healthcare facilities. Telemedicine offers several benefits, including access to healthcare services from remote locations, cost-effectiveness, and convenience. With the increasing adoption of telemedicine services, the Healthcare E-commerce market is expected to witness rapid growth in the coming years. The availability of advanced technologies, such as telehealth software, remote monitoring devices, and videoconferencing tools, is fueling the development of the telemedicine category.

Based on Region

North America to Lead Global Sales Owing to Changing Lifestyles and Increasing Popularity

The healthcare industry of North America is mature and has a well-established digital infrastructure. The region is witnessing significant growth in its Healthcare E-commerce market with the increasing number of internet users, the high adoption rate of smartphones, and the rising preference for online purchases. The growing demand for e-prescriptions, online appointment booking, and online medical consults is driving North America's growth of Healthcare E-commerce market. Additionally, the region is home to some significant players in the e-commerce industry, which invest in Healthcare E-commerce to meet the growing demand for online healthcare services and products. The United States is the largest market for Healthcare E-commerce in North America due to the high investments in digital healthcare infrastructure, increasing demand for online healthcare products and services, and significant players in the e-commerce industry.

In 2022, the market in Asia-Pacific was growing rapidly. The region is projected to be the fastest-growing market for e-commerce in the healthcare sector due to the rising adoption of internet and mobile technologies, increasing demand for online healthcare services, and a growing geriatric population. The region is also home to many emerging economies rapidly adopting advanced technologies to modernize their healthcare systems and improve access to medical care for their citizens. Additionally, the COVID-19 pandemic has further accelerated the Healthcare E-commerce market growth in the Asia-Pacific region, as consumers increasingly turn to online platforms to purchase healthcare-related products and services while avoiding physical contact.

Competitive Landscape

The Healthcare E-commerce market is highly competitive, with numerous players. The major players in the market are Amazon.com Inc. (U.S.), Walmart Inc. (U.S.), Alibaba Group Holding Ltd. (China), Caremark LLC (U.S.), and CVS Health (U.S.). Other players include Medline Industries Inc. (U.S.), Cardinal Health Inc. (U.S.), McKesson Corp. (U.S.), Acelity L.P. Inc. (U.S.), Owens & Minor Inc. (U.S.), and EBOS Group Ltd. (New Zealand). These companies focus on improving their e-commerce platform to provide customers with a better user experience and a wide range of healthcare products. They also undertake various strategic initiatives, such as mergers and acquisitions, partnerships, and collaborations, to expand their market presence, gain a competitive edge, and increase revenue.

The key players in the global Healthcare E-commerce market include - Amazon.com Inc. (U.S.), Walmart Inc. (U.S.), Alibaba Group Holding Ltd. (China), Caremark LLC (U.S.), Medline Industries Inc. (U.S.), Cardinal Health Inc. (U.S.), McKesson Corp. (U.S.), Acelity L.P. Inc. (U.S.), Owens & Minor Inc. (U.S.), EBOS Group Ltd. (New Zealand) among others.

Recent Market Developments

• August 2022: Amazon Pharmacy expanded its prescription delivery service to 48 states in the U.S. and introduced a new feature that allows customers to chat with pharmacists 24/7.
• May 2022: Chinese e-commerce giant, Alibaba Health, expanded its digital health offerings by launching an AI-powered personal health assistant and opening up its platform to third-party medical service providers.
• March 2022: Medline Industries, Inc., a leading manufacturer and distributor of medical and surgical supplies, partnered with Shopify. This partnership will enable Medline to expand its e-commerce capabilities and reach a broader customer base.

Segmentation of the Global Healthcare E-commerce Market