Healthcare E-commerce - Revolutionizing the way consumers purchase medical products.

calendar_today 06 September, 2022 person_outline Growth Plus Reports

According to the deep-dive market assessment study conducted by Growth+ Reports, the global healthcare E-commerce market was pegged at ~US$ 340 billion in 2021. The market is expected to witness a CAGR of ~16.80% from 2022 to 2030.  

E-commerce is a platform for buying or selling products using digital services and facilities. This segment connects the manufacturers and consumers using telecommunication services (online platforms). The healthcare E-commerce market is gaining worldwide momentum in recent years. This growth is imputed to development in society and the vast adoption of advanced technologies & growing awareness among the population. There is a positive impact on the healthcare E-commerce market because of the growing strategic expansion of medical devices and pharmaceutical products. The growth in investments/funds, improved patient services & facilities, and affordable products also contribute to the market development. 

Ease of accessibility is an important factor in the growth of the E-commerce market in the healthcare industry globally. The introduction of E-commerce in healthcare is a game-changer for this segment. This facility provides consumers with a convenient interface with various advantages for purchasing medical devices and pharmaceutical products. E-commerce service is convenient, fast, and hassle-free, and can be easily accessible by the public thereby upsurging the growth of the healthcare E-commerce market globally.

Increasing the efficacy of E-commerce facilities is also a key factor for the growth of this market. The improvised services of this segment can be profitable for the customers as well as for the suppliers and manufacturers. The E-commerce segment has great efficacy in terms of the procedure for buying and selling the product that provides convenience for both parties. The development in services can be attributed to the rising usage of mobile applications, enhanced customer services, and many more. The interface provided by the E-commerce platform is simple and comfortable for the user and therefore the effectiveness of this facility helps in promoting the market globally.

Moreover, this digital service is comparatively cost-effective against other conventional methods of commerce. Online purchasing costs are nearly 30% lower than offline purchases. This is attributed to various attractive marketing schemes such as sales/offers on purchase along with home delivery services, thus lowering the overall cost of the products on the digital platform, thereby contributing to the overall growth of this market.

However, some challenges can affect the growth of the healthcare E-commerce market. These issues are cybersecurity, stringent business rules, lack of instant gratification, limitation in customer services, and many others. The security and confidentiality of the customer’s data are key factors in this business. Privacy is an essential and primary step in such a platform/facility as it contains sensitive data about the customer. Lack of security means negligence towards the HIPAA (Health Insurance Portability and Accountability Act) policies which could lead to legal issues. Thus, this factor can prove to be a great challenge for the healthcare E-commerce market. 

North America holds the largest revenue share in the global healthcare E-commerce market. This attributes to the large adoption of new services/technologies by the population. Europe holds the second largest share in the market owing to the continuous implementation of enhanced technologies and developed healthcare infrastructure. However, the Asia Pacific is estimated to be the fastest-growing region in the market globally. This can be attributed to the development in various fields such as technology, healthcare infrastructure, and growth in chronic diseases. In addition, emerging pharmaceutical industries, and medical device companies in this region (India, China, South Korea, etc.) have also contributed to the growth of this healthcare E-commerce market. Also, government and private awareness initiatives in society and the adoption of a smart society system further accelerated market growth. Additionally, the COVID-19 pandemic has fueled the growth due to the need for drugs and medical devices for the infected population. These factors have also helped in the market growth in this region. 

Some of the prominent players operating in the global healthcare E-commerce market are eBay Inc., Flipkart Pvt. Ltd., Lloyds Pharmacy Ltd., Walgreens Boots Alliance Inc., Alibaba Group Holding Ltd., Kroger Co.,, Inc., CVS Health Corp., Netmeds Marketplace Limited, Medlife International Private Limited among others.

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