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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
04-Mar-2019
North America
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)
| 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 |
