Pharmacy Automation Market: Global Industry Analysis and Forecast (2023-2029)

Pharmacy Automation Market size was valued at USD 6.39 Bn. in 2022 and the total Pharmacy Automation revenue is expected to grow by 8.5 % from 2023 to 2029, reaching nearly USD 9.92 Bn.
Pharmacy Automation Market Overview:
Pharmacy Automation System is a mechanical-based process that includes medication handling and distribution in hospitals and pharmacies. The primary factors driving the Pharmacy Automation Market are the growing demand for error-free medication and the growing emphasis on infrastructure development in order to provide advanced healthcare solutions in emerging markets. The primary cause of growing rates of injuries and deaths can be attributed to errors made in medical prescriptions, putting constant pressure on the overall healthcare sector to move toward an automation system.

Pharmacy automation includes automated medication handling and dispensing processes. Counting small objects, calculating and mixing powders and liquids for compounding, tracing and updating customer records in the database, and inventory management are also part of the job. The growing need to reduce medication errors, technological advancements by market players, pharmacy decentralization, and an aging population are the key factors expected to drive pharmacy automation market growth. Additionally, the growing pharmaceutical industry in developing regions is expected to drive market growth.
Report Scope:
The report on Pharmacy Automation provides a quantitative analysis of market size, price, M&A, demand, supply chain, investment and expansion plans by key competitors, and predictions. Porter's five forces study explains how buyers and suppliers build supplier-buyer networks and make profit-driven decisions. The present Pharmacy Automation Market potential is assessed through detailed analysis and segmentation. The analysis will provide investors with a full insight into the industry's future, as well as the elements likely to affect the firm favorably or adversely.

The research offers a complete understanding of the market for those investors wishing to invest. This study contains scenarios for the Pharmacy Automation Market from the past and present, along with projected market numbers. The report's thorough analysis of important competitors, including market leaders, followers, and new entrants, covers every aspect of the market. The research contains strategic profiles of the top market participants, a full examination of their key competencies, and their company-specific plans for the introduction of new products, growth, partnerships, joint ventures, and acquisitions. With its clear portrayal of competitive analysis of significant companies by product, pricing, financial condition, product portfolio, growth strategies, and regional presence in the domestic as well as the local market, the research acts as an investor's guide.

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Pharmacy Automation Market Dynamics:
Market Drivers

Growing Expenditure on Healthcare Sector

Pharmacy automation devices, combined with analytics and software, are transforming the retail pharmacy system around the world. Automation has not only increased the industry's efficiency but also made it more profitable. With automation, there is a significant reduction in medication waste, resulting in lower per-dose costs. It has also made it easier for pharmacists to manage workflow, with a greater emphasis on patient satisfaction. In recent years, the annual expenditure on prescription and over-the-counter drugs has skyrocketed. These factors are boosting the pharmacy automation market growth.

According to the American Academy of Actuaries, the annual expenditure on prescription drugs alone cost USD 3,80 billion in 2016, accounting for 18.9% of the US GDP. Another additional cost is the waste of medicines in pharmacies and healthcare systems. Automation in the retail pharmacy sector has been a boon for lowering costs in terms of medication wastage, both viable and expired. According to a Reuters study, wastage of cancer drugs (unused) costs the United States $ 3.5 billion per year. According to an OECD study, approximately 17,650 tonnes of expired or unused medicines were discarded in France in 2018. The amount of medicine wasted has been steadily increasing.

In the same study, 33% of respondents in Germany reported flushing their liquid medications, and 10.5% reported flushing their solid medications as well. Technological advancements in the industry have resulted in significant reductions in inventory management, medication wastage, cost per dose reductions, and improved patient safety. The introduction of technologies such as automated dispensing units or cabinets, tele-pharmacy, automated patient CRM outreach, drug monitoring programs, maintenance, medication reminders, and others has significantly contributed to streamlining industry processes and lowering costs incurred due to wastage or incorrect disposal of medicines.

Increasing need to reduce medication errors

Medication and dispensing errors are widely recognized as leading causes of hospital readmission around the world. Poor order communication between physicians and pharmacists, dangerous storage practices in pharmacies, and confusion caused by similar labels and drug prescriptions during drug preparation, dispensing, or administration are all factors that contribute to medication errors. Automated systems are regarded as one of the most effective means of reducing these errors. Previously, the successful implementation of automated dispensing cabinets (ADCs) and automated dispensing machines (ADMs) in hospitals resulted in significant reductions in the number of dispensing and medication errors.

Market Restraints

High initial capital expenditures

Despite their benefits, some healthcare professionals and providers are hesitant to adopt or accept IT-based pharmacy management approaches in the pharmacy automation market. This is especially noticeable when cultural barriers are present, especially in developing countries economies. As a result, many pharmacists do not want assistance and are hesitant to incorporate pharmacy automation systems into their dispensing regimen. Although the benefits of the automated pharmacy market are substantial, and widespread adoption of technology attests to this until now, only large-volume pharmacies and hospitals could justify the investment. ROIs obtained from the installation of these automated systems.

Pharmacy Automation Market Opportunities

Demand for automated devices in the pharmacy automation market

Automation in the retail pharmacy sector has been around for a while; robotic dispensing can increase prescription volumes while decreasing staff training costs. The cost of installing automated systems may be high at first, but it saves much more once the workflow is streamlined. For example, a pharmacy owner in Colorado reported that the installation of the ScriptPro dispensing robot increased his prescription volume by 50.2%. The CEO of another pharmacy company reported that the installation of the robot increased his prescription volume by 70.5%.

The COVID-19 pandemic has presented the pharmacy automation market with an opportunity to thrive. Due to government-imposed measures to curb the spread of the virus, robotic pharmacies were trending, there was a massive surge in prescription volumes, and due to social distancing norms and staff shortages, the automated systems and devices helped satisfy the growing demand during the pandemic peak, the aforementioned factors have greatly contributed to pharmacy automation market growth.
Emerging market untapped

Emerging economies are expected to drive growth in the pharmacy automation market. Developing countries have a large elderly population. According to the United Nations report on World Population Ageing (2019), Eastern and Southeastern Asia are expected to see a two-fold increase in the number of geriatric people, with the population aged 65 and up expected to grow from 260.6 million in 2019 to nearly 572.5 million by 2050. This demographic trend is expected to increase patient volume in a number of Asian countries, fueling demand for quality patient care and efficient medication dispensing. As a result, demand for pharmacy automation systems is expected to rise in several Asian countries in the forecast years.
Pharmacy Automation Market Segment Analysis:
Based on Product, In 2022, the medication dispensing system segment dominated the industry, accounting for more than 24.5% of global revenue. The high share can be attributed to improved safety and accuracy in medication dispensing provided by these systems, resulting in fewer instances of incorrect medications being dispensed to patients. It also aids in effective inventory management and helps to reduce costs by managing storage. Wrong medications are dispensed to patients, which not only endangers their health but also has significant financial consequences. According to a study published in StatPearls, nearly 9,000 people die each year as a result of medication errors, and the costs associated with medication errors in terms of patient management total more than USD 40 billion per year.

During the forecasted period, the automated medication compounding systems segment is expected to grow the most rapidly. This is because, even with a precise manual compounding system, errors can occur, having a significant impact on how the medications are delivered. As a result, an automated compounding system reduces or eliminates the possibility of these errors in medication mixing. It also eliminates the possibility of contamination by removing potential sources of contamination because the process is carried out in an aseptic chamber. The aforementioned factors are important market drivers.

Based on the End-use, The industry has been further subdivided into hospital and retail pharmacies based on end-users. The retail pharmacy segment held the largest share of the global industry in the end-use segment. In 2022, the segment had a 53.4% market share. This is due to an increase in the number of retail pharmacies in various countries. Automation in retail pharmacies is causing a revolution in cost reduction on multiple levels. According to the OECD library, the number of pharmacies has increased across all OECD countries. Because of increased government efforts, Japan had the highest density from 2000 to 2019.

In 2019, 75% of pharmacists in Canada worked in the community or retail pharmacies, while only 25% worked in healthcare settings. The hospital pharmacy segment has seen the most rapid growth. This is due to the growing need to reduce medication dispensing errors in hospitals and clinics. Furthermore, automation facilitates workflow management and is more efficient than human counterparts. Another benefit of managing the inventory for these hospital pharmacies is that it reduces medicine waste. All of these factors have contributed to the segment's rapid growth.

The North American pharmacy automation market has grown significantly as the prevalence of various chronic diseases and the number of patients in the region has increased. During the COVID-19 outbreak, there was an increase in the demand for medication and drugs that could be dispensed without cross-contamination or errors. As a result, all of these factors have contributed to an increase in system demand.

Every year, more than 100,000 cases of suspected medication errors are reported in the United States, according to the US FDA. Furthermore, according to a Johns Hopkins University study, medication errors cause more than 250,000 deaths in the United States each year. As a result, it is regarded as one of the leading causes of death in the country. The majority of medication errors occur during the prescription and dispensing process. Automated medication dispensing systems and cabinets are becoming more popular in North America because they reduce dispensing errors while improving inventory stock management, drug traceability, and dispensing speed.

In October 2019, pharmacy automation company Parata Systems announced the release of Max 2, its next-generation vial-filling robot. To improve workflow and meet the demands of busy pharmacies, the pharmacy automation robot automates the labeling, filling, and capping of vials. This aided in the expansion of the pharmacy automation market throughout the region. However, Asia-Pacific is expected to grow significantly during the forecast period, owing to an aging population and rising healthcare costs. The allocation of a significant portion of healthcare expenditure for assisted living facilities and hospitals for the dispensing of medicines to the elderly can drive market demand.
Pharmacy Automation Market Scope: Inquire before buying



Pharmacy Automation Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2022-2029


Historical Data:
2017 to 2022
Market Size in 2022:
US $ 6.39 Bn.


Forecast Period 2023 to 2029 CAGR:
8.5%
Market Size in 2029:
US $ 9.92 Bn.


 Segments Covered:
by Product
• Medication Dispensing Systems
o Robots/Robotic Automated Dispensing Systems
o Carousels
o Automated Dispensing Cabinets
• Packaging And Labeling Systems
• Storage And Retrieval Systems
• Automated Medication Compounding Systems
• Tabletop Tablet Counters


by Automation Mode
•  Fully-Automatic
• Semi - Automatic


by End-use
• Retail Pharmacy
• Inpatient Pharmacies
• Outpatient Pharmacies
• Pharmacy Benefit Management Organizations and Mail-Order Pharmacies



Pharmacy Automation Market, by Region
• North America (United States, Canada and Mexico)
• Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
• Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
• Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
• South America (Brazil, Argentina Rest of South America)
Pharmacy Automation Market Key Players
• Amerisource Bergen Corp.
• Accu Chart Plus Healthcare Systems, Inc.
• Omnicell, Inc.
• McKesson Co.
• Pearson Medical Technologies LLC
• Baxter International, Inc.
• Talyst LLC
• ScriptPro LLC
• Becton Dickinson & Company
• Medacist
• Kirby Lester
• Cerner Corp.
• iA
• ARxIUM
• TouchPoint Medical
• Deenova SRL
• Parata Systems
• Swisslog Healthcare
• Yuyama
• Capsa Healthcare

Frequently Asked Questions:

1] How is automation used in pharmacy?
Ans. Pharmacy automation refers to any task that uses technology to handle and distribute medications. The most common forms of automation are robotics and pill counters. It enables pharmacies to streamline workflows and reduce the risk of errors. Its benefits frequently include increased prescription volume and efficiency.

2] What is automation in the pharmaceutical industry?
Ans. Automation technologies help to improve the efficiency of pharmaceutical development and production by streamlining processes. When compared to human workers, robots can easily perform repetitive tasks such as filling and packing at high accuracy and speed.

3] How has automation improved the pharmacy business?
Ans. Pharmacy automation has transformed the industry, providing numerous clinical, financial, and operational advantages such as improved dispensing accuracy. Improved inventory management. Pharmacy workflows have been streamlined.

4] What is called automation?
Ans. Automation is defined as "the technique of making an apparatus, a process, or a system operate automatically" by the dictionary. Automation is defined as "the development and application of technology to monitor and control the production and delivery of goods and services.".

5] What is the impact of automation and technology on the practice of pharmacy?
Ans. Pharmacy automation also streamlines workflows and frees up time to spend with patients, enabling independent pharmacists and their staff to work more efficiently and effectively.

6] Can pharmacy technicians be fully replaced by automation?
Ans. Users voted '68%' for this occupation to be fully automated within the next two decades. Visitors have indicated that this occupation is very likely to be replaced by robots/AI. This is supported by the automation risk level we calculated, which indicates an 81% chance of automation.