Healthcare eCommerce Market in North America, Forecast to 2022

Healthcare eCommerce Market in North America, Forecast to 2022

Drug and Device eCommerce Growth Opportunities in the Changing Paradigm of Healthcare Consumerism

RELEASE DATE
04-Mar-2019
REGION
North America
Research Code: K2AB-01-00-00-00
SKU: HC03137-NA-MR_22908
$4,950.00
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HC03137-NA-MR_22908
$4,950.00
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Description

Healthcare, as an industry, is entering a phase of rapid transformation. Digitization of products, services, and commerce models is democratizing current healthcare systems and unlocking new previously inaccessible segments. The fundamental convergence of healthcare with IT and retail industry continues to shift eCommerce from simple search portals for buying products to the digital marketplace that provides personalized experience and informed purchase decision making. This is manifesting into a new era of healthcare consumerism; today hospital buyers and patients are equally expecting a retail-like buying experience. Furthermore, as tech-savvy millennials are expected to overtake boomers, in terms of population, in 2019, eCommerce models with personalized UX/UI will be the preferred marketing channels for medical products and services. Entailing this, North America’s healthcare eCommerce market for pharma drugs and medical devices is projected to cross $200 billion by 2022, growing at a CAGR of 10% to 15%. Frost & Sullivan defines healthcare electronic commerce (eCommerce) as “the application of communication and information-sharing technologies during the process of marketing, exchanging, servicing, buying, and selling of healthcare products, professional services, funds, and information over an electronic network, primarily by phone and Internet connectivity. It combines business and electronic infrastructure which allows traditional business transactions to be conducted electronically, ignoring the physical or geographic boundaries separating them”.

Furthermore, it’s critical to understand that, eCommerce is not a software or IT platform feature. It is an evolving ecosystem that digitally-led emerging business models such as servicization, amazonization, uberization, and shared-economy among others.

Trends in both, demand (cost and pricing pressures) and supply side (health consumerization), coupled with increasing competition from non-traditional participants (e.g., Amazon, Ali Health, Apple, and so on) are fuelling the adoption of eCommerce. This compels drug/device Original Equipment Manufacturers (OEMs), wholesalers, GPOs, PBMs, distributors, and retailers to operate differently by leveraging on eCommerce to achieve much-needed operational efficiencies, standardize purchasing process, optimize supply chain inefficiencies, and improve end-user experience. Additionally, digital marketplace scalability provides drug/device companies the opportunity to differentiate with value-add services, such as free shipping, same-day delivery, online payment, product quality certificate, discounts, customer feedback on services, as well as the ability to connect 24x7, which is an important element in the overall buying experience. There is no one-size-fits-all eCommerce strategy for healthcare products. Drug and device OEMs and other supply chain participants should prioritize their eCommerce strategy based on the maturity of their buyers by using a suitable mix of available digital tools for educating, researching product information, and management of order and payment. Apart from drug/device types and purchase volumes, factors such as market positioning, target end user, and reimbursement play a critical role in eCommerce channel selection and success.

Research Scope

This research service analyzes the key trends and developments around healthcare eCommerce with specific focus on the eCommerce market for pharma drugs and medical devices in North America. The study also provides market projections, opportunity analysis by supply chain participants, strategic imperatives, and select industry best practices or case studies, both for pharma drugs and medical device segments.


Key Issues Addressed

  • What are the macro to micro factors driving healthcare eCommerce trends?
  • What is the current and expected eCommerce market penetration (percentage) by drug and device sales ($) for the North American region?
  • What product (drug and device) segments and supply chain participants will be the most impacted by eCommerce?
  • What are the key factors considered to succeed in the eCommerce strategy by key commerce models for select healthcare products and services?
  • What will be the impact of Amazon on the healthcare industry? How will the convergence of retail, IT, and healthcare industries disrupt traditional commerce models?
  • What are the key eCommerce opportunities for drug and device companies? Which are some of the industry best practices (examples/case studies)?

Aurhor: Kamaljit Behera

Table of Contents

Macro to Micro Visioning—Healthcare eCommerce

Healthcare eCommerce—Drug and Device Market Overview

Medical Device eCommerce—Strategic Priorities and Preferred Channels

eCommerce Opportunity Analysis by Medical Device Portfolio

Pharma Drug eCommerce—Strategic Priorities and Preferred Channels

eCommerce Opportunity Analysis by Pharma Drugs and Therapeutic Types

Research Objective and Methodology

Research Scope and Definition

The Difference Between eCommerce and eBusiness

Demand- and Supply-side Trends Driving eCommerce in Healthcare

Increasing Cost and Pricing Pressure

Healthcare Interactions—Patients as Consumers

Business Model Shifts

Technology Shifts

Healthcare Digital Transformation Attractiveness Luring New Entrants

Growth Opportunity—Emerging Business Models in Healthcare

Heat Map—Emerging Business Models in the Healthcare Space

Amazonization Implication for Traditional Segments and Participants

Amazon—Well Positioned to Disrupt the Home-health Space

Possible Business Model—Direct-to-consumer Healthcare

Revenue Forecast by Sales Channel—Medical Device eCommerce Market

Revenue Forecast Assumption—Medical Device eCommerce Market

Medical Device eCommerce Channels Preference by Device Type

Medical Device eCommerce Channels Preference by Service Scope

Revenue Forecast by Sales Channel—Pharma Drugs eCommerce Market

Revenue Forecast Assumption—Pharma Drugs eCommerce Market

Pharma eCommerce Channels Preference by Drug Type

Pharma Drugs eCommerce Channels Preference by Service Scope

US Medical Device eCommerce Evolution Timeline

Supply Chain Evolution Factors for Medical Device Industry

Traditional Medical Device Distribution Model by Major Stakeholders

Classification of Medical Device eCommerce Strategy by Supply Chain Participants

Medical Device Manufacturer Challenges and Role of eCommerce

Case Example—Medical Device eCommerce and Scope of Process Optimization

Select Global Medical Device Manufacturer eCommerce Play

Select Global Medical Device Manufacturer eCommerce Play (continued)

GPO Market Challenges and Role of eCommerce (US)

Select GPOs Manufacturer eCommerce Play (US)

Select Medical Supplies Distributors eCommerce Play (US)

Digital Marketplace Models Reshaping the US Medical Device Industry

Case Study—Guthrie Health System Partners With OpenMarkets to Improve Capital Equipment Procurement Process

Providers and Suppliers—Current Commerce Model Pain Points

eCommerce Platforms to Optimize Supply Chain Inefficiencies

Medical Device eCommerce—Adoption by Digital Channels Types

Limitation With EDI and Benefits of Digital B2B eCommerce

eCommerce Opportunity Analysis by Medical Device Portfolio

eCommerce Strategy by Medical Device Type

Classification of eCommerce Strategy by Medical Device Types for Hospital Buyers

Case Study—Amazon’s B2B Play: The Ecommerce Expert’s Strategies

Case Study—Abbott: Direct to Consumer Medical-grade CGM

Case Study—Valedo: Gamifing Back Pain Therapy for Home Care

Case Study—Syncera: Rep-free Orthopedic Supply Chain Model

Case Study—WestCMR’s Reverse eCommerce Play

Case Study—SikkaSoft’s Cloud-based App Platform

Case Study—Medline Industries eCommerce Play

Case Study—Stryker Performance Solutions JointCOACH

Case Study—OPM: On-demand 3D Printed Medical Implants

Case Study—Cohealo: Medical Equipment Collaborative Consumption

Concluding Thoughts—Why Medical Device Manufacturers Need eCommerce?

Drug Supply Chain Analysis (US)

Classification of B2B Pharma eCommerce Strategy by Stakeholder

Pharma eCommerce—From Patient Communication to Engagement

Baxter’s SHARESOURCE Telehealth Platform for Home Dialysis Patients

Wholesalers—Shifting Momentum Toward Specialty Pharma

Cardinal Health—Stepping up to Support Pharmacies in eCommerce Revolution

Pharmacies—Diversifying Services and Delivering Care

CVS Health Specialty Medication eCommerce Platform

Pharmacy Benefit Managers—Managing Risk to Stay Relevant

Select PBM eCommerce Play—Recalibrating Toward Value-based Healthcare

Amazonization Implication for Pharma Supply Chain Participants

Key Challenges Facing the Pharmaceutical Industry

Addressing the Challenges Through eCommerce

Regulatory Trends

Pricing Trends (US)

Therapeutic Trends

eCommerce Opportunity Analysis by Pharma Drugs and Therapeutic Types

Opportunity Analysis Framework—Emerging eCommerce Models

eCommerce Strategies to Address the Existing Challenges

Key Success Factors for eCommerce by Pharma Drug Types

Classification of Pharma eCommerce Strategy by Drug Type

Strategic Imperatives—Pharma Drugs eCommerce

Case Study—Mango Health: Gamifing Health

Case Study—Digital Pharmacist Inc.: Omni-channel Patient Communication Platform

Case Study—Capsules: From Commodity to Experience Delivering

Case Study—GoodRx and Sproxil: Transparency in Supply Chain to Prices

Case Study—Addicaid: Engaging Addiction Care Program

Case Study—GlaxoSmithKline Australia

Concluding Thoughts

Legal Disclaimer

List of Acronyms and Explanations

Revenue Forecast Assumption—Total Medical Device and Pharma Drugs Market, North America, 2018

Evolving Medical Device Service-based Business Model

Evolution of Pharmaceutical Landscape—Risk-based Everything

MedTech eCommerce Strategy for Patient Centricity

List of Exhibits

List of Exhibits (continued)

List of Exhibits (continued)

List of Exhibits (continued)

List of Exhibits (continued)

Related Research
Healthcare, as an industry, is entering a phase of rapid transformation. Digitization of products, services, and commerce models is democratizing current healthcare systems and unlocking new previously inaccessible segments. The fundamental convergence of healthcare with IT and retail industry continues to shift eCommerce from simple search portals for buying products to the digital marketplace that provides personalized experience and informed purchase decision making. This is manifesting into a new era of healthcare consumerism; today hospital buyers and patients are equally expecting a retail-like buying experience. Furthermore, as tech-savvy millennials are expected to overtake boomers, in terms of population, in 2019, eCommerce models with personalized UX/UI will be the preferred marketing channels for medical products and services. Entailing this, North America’s healthcare eCommerce market for pharma drugs and medical devices is projected to cross $200 billion by 2022, growing at a CAGR of 10% to 15%. Frost & Sullivan defines healthcare electronic commerce (eCommerce) as “the application of communication and information-sharing technologies during the process of marketing, exchanging, servicing, buying, and selling of healthcare products, professional services, funds, and information over an electronic network, primarily by phone and Internet connectivity. It combines business and electronic infrastructure which allows traditional business transactions to be conducted electronically, ignoring the physical or geographic boundaries separating them”. Furthermore, it’s critical to understand that, eCommerce is not a software or IT platform feature. It is an evolving ecosystem that digitally-led emerging business models such as servicization, amazonization, uberization, and shared-economy among others. Trends in both, demand (cost and pricing pressures) and supply side (health consumerization), coupled with increasing competition from non-traditional participant
More Information
No Index No
Podcast No
Author Kamaljit Behera
Industries Healthcare
WIP Number K2AB-01-00-00-00
Is Prebook No
GPS Codes 9600-B1,9566-B1,9A47-B1,9A4B-B1,9568-B1,9611-B1,9614-B1