Global Healthcare Group Purchasing Organization Service Market Research Report 2024(Status and Outlook)

Global Healthcare Group Purchasing Organization Service Market Research Report 2024(Status and Outlook)

Report Overview

Healthcare Group Purchasing Organizations (GPOs) are entities that leverage the combined purchasing power of multiple healthcare facilities, such as hospitals, clinics, long-term care facilities, and physician practices, to negotiate contracts and agreements with suppliers, distributors, and manufacturers. GPOs act as intermediaries between healthcare providers and vendors, facilitating bulk purchasing, standardization of products, and competitive pricing to help healthcare organizations reduce costs and optimize their supply chain management.

The Healthcare Group Purchasing Organization (GPO) service market is witnessing significant trends. Data-driven optimization is enabling GPOs to leverage advanced analytics for better contract negotiations, demand forecasting, and inventory management, leading to substantial cost savings. Technological integration and digital transformation are streamlining procurement processes and enhancing decision-making through AI and cloud-based platforms. GPOs are focusing on cost containment and value-based purchasing, negotiating lower prices, and implementing value-based models to improve patient outcomes and reduce costs. Additionally, GPOs are expanding their service offerings and geographic reach, addressing diverse healthcare needs and exploring international markets. Provider turnover trends highlight the increasing hiring of Advanced Practice Providers (APPs) to adapt to healthcare delivery changes.

The global Healthcare Group Purchasing Organization Service market size is projected to reach US$ 6,614.84 Million by 2030 from US$ 4,014.82 million in 2023 at a CAGR of 7.31% during 2024-2030. The Healthcare Group Purchasing Organization (GPO) service market is driven by several key factors. Rising healthcare costs push hospitals to seek cost-saving measures, making GPOs vital for negotiating better contract terms and discounts through collective purchasing power. Technology integration and strategic sourcing enhance procurement efficiency and transparency, ensuring high-quality, innovative products for healthcare providers. Regulatory compliance and quality standards are crucial, with GPOs helping navigate complex regulations and ensuring reliable, compliant supply chains. Additionally, operational efficiency and resource optimization are major drivers, as GPOs streamline purchasing processes, reduce administrative burdens, and improve supply chain management, leading to economies of scale and better resource utilization. These drivers collectively enhance the financial and operational effectiveness of healthcare organizations.

At the same time, the Healthcare Group Purchasing Organization (GPO) service market faces challenges such as limited supplier options and healthcare fragmentation, and navigating complex regulatory and compliance hurdles.

Segment by Type, the Healthcare Group Purchasing Organization Service can be split into Horizontal GPOs, Vertical GPOs, etc. In 2023, the global Healthcare Group Purchasing Organization (GPO) service market reached a total value of USD 4,014.82 million. Horizontal GPOs dominate the market with an 84.80% share, totaling USD 3,404.52 million. Vertical GPOs, though smaller, account for 15.20% of the market, with a value of USD 610.30 million. Horizontal GPOs not only hold the largest market share but also exhibit significant growth potential with a projected CAGR of 7.20% from 2024 to 2030. On the other hand, Vertical GPOs, despite having a smaller share, are expected to grow at a slightly faster rate with a CAGR of 7.94% over the same period. This indicates that while Horizontal GPOs will continue to lead, Vertical GPOs are poised for rapid expansion, potentially reshaping the market dynamics in the coming years.

Segment by Application, the Healthcare Group Purchasing Organization Service can be split into Medical Equipment, Pharmaceuticals, Food, Medical Service, etc. In 2023, Pharmaceuticals hold the largest share, accounting for 60.00% of the market at USD 2,408.79 million. Medical Equipment follows with a 20.15% share, valued at USD 809.01 million. Food, Medical Services, and Others account for 9.37%, 5.27%, and 5.22% of the market, respectively. Pharmaceuticals dominate the market due to the high demand and cost of medications, making cost-saving measures through GPOs highly beneficial. This segment also shows strong growth potential with a projected CAGR of 7.50% from 2024 to 2030. The fastest-growing segment, however, is Others, with an impressive CAGR of 8.18%. This rapid growth can be attributed to the increasing diversification of healthcare services and the inclusion of ancillary services that are becoming essential in comprehensive healthcare delivery. This trend indicates that while Pharmaceuticals will continue to lead in market share, the Others category is set to expand rapidly, reflecting the evolving needs of healthcare providers.

On basis of geography, the Healthcare Group Purchasing Organization Service market is segmented into North America, Europe, Asia-Pacific, South America, Middle East and Africa, etc. North America holds the largest market share, accounting for 72.41% with revenues of USD 2,907.28 million. Europe follows with a 17.51% share, valued at USD 703.04 million. Asia-Pacific, South America, and the Middle East and Africa account for 5.56%, 2.02%, and 2.50% of the market, respectively. North America's dominance is driven by the region's well-established healthcare infrastructure, large number of healthcare facilities, and high adoption of GPO services to reduce costs. However, the fastest growth is projected in the Asia-Pacific region, with a CAGR of 12.29% from 2024 to 2030. This rapid growth is due to the increasing healthcare expenditure, expansion of healthcare facilities, and rising awareness of the benefits of GPOs in managing procurement costs and improving supply chain efficiency. As healthcare systems in Asia-Pacific continue to develop, the demand for GPO services is expected to surge, reflecting the region's growing importance in the global market.

According to our calculations, the two indicators used to measure market concentration, CR5 and HHI, have reached 82.39% and 21.24% respectively in 2023. This means that leading companies occupy a significant market share, but the overall market concentration is not high, and companies in the industry are still in fierce competition. Currently, major players in the Healthcare Group Purchasing Organization Service market include McKesson, Premier, Vizient, Direct Supply, Inc., HealthTrust, Managed Health Care Associates, Inc., Provista, CNECT, LBMC Procurement Solutions, Pandion Optimization Alliance, CommonWealth Purchasing Group, Omnia Partners, Foodbuy, Corcentric, Una, Planergy, National Purchasing Partners, and Treya Partners, etc.

This report provides a deep insight into the global Healthcare Group Purchasing Organization Service market covering all its essential aspects. This ranges from a macro overview of the market to micro details of the market size, competitive landscape, development trend, niche market, key market drivers and challenges, SWOT analysis, value chain analysis, etc.

The analysis helps the reader to shape the competition within the industries and strategies for the competitive environment to enhance the potential profit. Furthermore, it provides a simple framework for evaluating and accessing the position of the business organization. The report structure also focuses on the competitive landscape of the Global Healthcare Group Purchasing Organization Service Market, this report introduces in detail the market share, market performance, product situation, operation situation, etc. of the main players, which helps the readers in the industry to identify the main competitors and deeply understand the competition pattern of the market.

In a word, this report is a must-read for industry players, investors, researchers, consultants, business strategists, and all those who have any kind of stake or are planning to foray into the Healthcare Group Purchasing Organization Service market in any manner.

Global Healthcare Group Purchasing Organization Service Market: Market Segmentation Analysis

The research report includes specific segments by region (country), manufacturers, Type, and Application. Market segmentation creates subsets of a market based on product type, end-user or application, Geographic, and other factors. By understanding the market segments, the decision-maker can leverage this targeting in the product, sales, and marketing strategies. Market segments can power your product development cycles by informing how you create product offerings for different segments.

Key Company

McKesson

Premier

Vizient

Direct Supply, Inc.

HealthTrust(CoreTrust)

Managed Health Care Associates, Inc

Provista

CNECT

LBMC Procurement Solutions

Pandion Optimization Alliance

CommonWealth Purchasing Group

Omnia Partners

Foodbuy

Corcentric

Una

Planergy

National Purchasing Partners

Treya Partners

Market Segmentation (by Type)

Horizontal GPOs

Vertical GPOs

Market Segmentation (by Application)

Medical Equipment

Pharmaceuticals

Food

Medical Service

Others

Geographic Segmentation

North America (USA, Canada, Mexico)

Europe (Germany, UK, France, Russia, Italy, Rest of Europe)

Asia-Pacific (China, Japan, South Korea, India, Southeast Asia, Rest of Asia-Pacific)

South America (Brazil, Argentina, Columbia, Rest of South America)

The Middle East and Africa (Saudi Arabia, UAE, Egypt, Nigeria, South Africa, Rest of MEA)

Key Benefits of This Market Research:

Industry drivers, restraints, and opportunities covered in the study

Neutral perspective on the market performance

Recent industry trends and developments

Competitive landscape & strategies of key players

Potential & niche segments and regions exhibiting promising growth covered

Historical, current, and projected market size, in terms of value

In-depth analysis of the Healthcare Group Purchasing Organization Service Market

Overview of the regional outlook of the Healthcare Group Purchasing Organization Service Market:

Key Reasons to Buy this Report:

Access to date statistics compiled by our researchers. These provide you with historical and forecast data, which is analyzed to tell you why your market is set to change

This enables you to anticipate market changes to remain ahead of your competitors

You will be able to copy data from the Excel spreadsheet straight into your marketing plans, business presentations, or other strategic documents

The concise analysis, clear graph, and table format will enable you to pinpoint the information you require quickly

Provision of market value (USD Billion) data for each segment and sub-segment

Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market

Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region

Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled

Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players

The current as well as the future market outlook of the industry concerning recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions

Includes in-depth analysis of the market from various perspectives through Porter’s five forces analysis

Provides insight into the market through Value Chain

Market dynamics scenario, along with growth opportunities of the market in the years to come

6-month post-sales analyst support

Chapter Outline

Chapter 1 mainly introduces the statistical scope of the report, market division standards, and market research methods.

Chapter 2 is an executive summary of different market segments (by region, product type, application, etc), including the market size of each market segment, future development potential, and so on. It offers a high-level view of the current state of the Healthcare Group Purchasing Organization Service Market and its likely evolution in the short to mid-term, and long term.

Chapter 3 makes a detailed analysis of the market's competitive landscape of the market and provides the market share, capacity, output, price, latest development plan, merger, and acquisition information of the main manufacturers in the market.

Chapter 4 is the analysis of the whole market industrial chain, including the upstream and downstream of the industry, as well as Porter's five forces analysis.

Chapter 5 introduces the latest developments of the market, the driving factors and restrictive factors of the market, the challenges and risks faced by manufacturers in the industry, and the analysis of relevant policies in the industry.

Chapter 6 provides the analysis of various market segments according to product types, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different market segments.

Chapter 7 provides the analysis of various market segments according to application, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different downstream markets.

Chapter 8 provides a quantitative analysis of the market size and development potential of each region and its main countries and introduces the market development, future development prospects, market space, and capacity of each country in the world.

Chapter 9 introduces the basic situation of the main companies in the market in detail, including product sales revenue, sales volume, price, gross profit margin, market share, product introduction, recent development, etc.

Chapter 10 provides a quantitative analysis of the market size and development potential of each region in the next five years.

Chapter 11 provides a quantitative analysis of the market size and development potential of each market segment (product type and application) in the next five years.

Chapter 12 is the main points and conclusions of the report.