The global Pharmacy Automation Market was valued at USD 4.8 Billion in 2022 and is projected to reach USD 9.2 Billion by 2030, registering a CAGR of 8.61% for the forecast period 2023-2030.
Market Definition
The rising demand for advancement in technology in pharmacy sector to drive the market. Pharmacy automation can be defined as the use of technology and machinery for enhancing various pharma operations, with medication dispensing, inventory management, data processing of the patients. It has become the need for the modern age with offering various benefits like efficiency, accuracy, patient safety and many others. The advancement in the technology specially in the medication dispensing with automated dispensing systems like robotic prescription fillers have improved the overall process by accurately counting, labelling, packaging medication, and reducing potential for human errors with ensuring patients receiving correct medications. In addition, pharmacy automation has expanded its reach with gaining patients information with the use of electronic health records (EHRs) and this information helps pharmacists and healthcare providers understand patient’s data quickly. This enables real-time tracking of medication histories, allergy information, drug interactions, improving medication therapy management and supports in decision making. Automated prescription processing and labelling systems development to further drive the market. For instance, in June 22 BD acquired Parata Systems a company with innovative pharmacy solutions provider that offers solutions to growing network by reducing costs, enhance patient’s safety and improve patients experience. This acquisition will help BD for expansion of transformative solutions for hospitals, retail pharmacy, long-term care and home settings.
Market Size:
- 2022: USD 4.8 billion
- 2030: USD 9.2 billion
- CAGR (2023-2030): 8.61%
Pharmacy Automation Market Dynamics
Drivers: Rising demand for improvement in medication process to drive the market
The market for pharmacy automation is driven by several factors but the primary factor to drive the markets growth is the improvement in the patient’s safety and accuracy in medication. Automation systems reduces the risks for medication errors with accuracy, precisely dispensing and verifying medications thereby improving end outcomes. Pharmacy automation increases efficiency, optimizes workflow, enables pharmacists and staff to focus on patient-centric activities like counseling, clinical services which leads to increase in productivity, capacity and ensuring the quality. With more and more automation going on the reduction in labor costs and the manual work required for prescription filling, inventory management is observed.
Automation helps with accurately maintaining the records of medication usage, expiration dates, order history, prevention of stockouts and reduction in wastage. The technological advancements and the increasing costs of labor to further drive the market of pharmacy automation. For instance, according to Pharmaself 24 around 114 doctors and 8 pharmacists died cause of covid-19 and many are infected with the virus. It is crucial to protect these healthcare professionals and pharmacy automation is the solution for the improvement of such medication processes.
Recent Developments
In January 2023, AmerisourceBergen corporation acquired Pharmalex. This acquisition enhances the company’s growth strategy by advancing in specialty services and global platform of pharma manufacturer services capabilities.
Restraint: Initial high cost of these automation systems to restrain the market
Pharmacy automation markets primary factor that restrains the growth is associated to the initial costs required for the implementation of these automation machinery hardware and software. This financial barrier can be seen with the small-scale pharmacies and might find it difficult to further processed it. The initial costs include purchasing, installing, and maintenance of these automation equipment’s. With this the other factors includes resistance to change as many healthcare professionals hesitate to the shift from manual processes to automated systems. The lack of standardization in the pharmacy automation can result in compatibility issues and can increase the costs. With the new development in the automation devices data privacy and security to further restrain the market for pharmacy automation.
Challenges: Hesitation in adoption of these new technologies to put forth challenges for the market
The pharmacy automation market is facing several significant challenges that affect its adoption and expansion. One of these challenges is the resistance to change within the healthcare workforce. Pharmacists and pharmacy technicians may be hesitant to embrace new technology and adapt to changes in established workflows. Overcoming this resistance requires comprehensive staff training, communication, and addressing concerns about potential job displacement. It is a time-consuming and resource-intensive process that can slow down the adoption of automation systems. Pharmacy automation has several challenges, including maintenance and downtime constraints, limited customization options, cybersecurity concerns, restricted access in underserved areas, market fragmentation, and a steep learning curve. However, these challenges are being actively addressed and innovatively tackled to further promote the growth of pharmacy automation. The technology plays a crucial role in improving patient care and pharmacy operations as the healthcare landscape evolves.
Opportunities in the Pharmacy Automation industry
Advancement in technology to offer varied opportunities to grow: The pharmacy automation market is full of potential for growth and progress, driven by evolving healthcare trends and technological advancements. One of the most significant opportunities is the increased focus on patient safety within the healthcare industry. The demand for automation systems that can reduce medication errors and improve prescription dispensing accuracy is growing, which perfectly aligns with the goal of enhancing patient outcomes. The expansion of telehealth and telepharmacy services presents a great opportunity for pharmacy automation. These systems can facilitate remote prescription verification and dispensing, which is particularly beneficial for patients in remote or underserved areas who can now benefit from prescription synchronization services and automated refills. The ability to customize and integrate these systems is also an area with great potential for development. Technology providers can offer innovative, tailor-made solutions that streamline pharmacy workflows and facilitate seamless data-sharing with electronic health records and other healthcare information systems.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 4.36 Billion |
| Market Forecast in 2030 | USD 5.41 Billion |
| Compound Annual Growth Rate (CAGR) | 3.14 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Product, By End-User & By Region |
| By Product |
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| By End-User |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Pharmacy Automation Market
The pharmacy automation market is segmented by product, end-user, and region.
By Product: The medication dispensing systems segment is expected to hold major share in 2022
Based on the product segment the market for pharmacy automation is classified into medication dispensing systems, packaging & labelling systems, storage & retrieval systems, automated medication compounding systems, and tabletop tablet counters. The medication dispensing systems is expected to hold the major share in 2022. This is due to strict government policies on medication, which are pressuring healthcare institutions and pharmacists to adopt various medication dispensing systems to improve patient care services and reduce dispensing errors.
During the forecast period, the automated medication compounding systems segment is expected to experience the highest growth rate. This is due to the increasing pressure on pharmacies caused by reimbursement reductions and the rapidly rising cost of drugs. These factors have led to an inadequate supply chain and poor inventory management, making automated dispensing systems more in demand in the market.
By End-User
The pharmacy automation market based on the segment end-users is classified into inpatient pharmacies, outpatient pharmacies, retail pharmacy, pharmacy benefit management organizations and mail-order pharmacies. The retail pharmacy segment holds a major share in 2022. With the large chains operating due to extensive network of stores and skills for serving wide base customers. The supermarkets pharmacies, chain pharmacies, mass merchandiser, are few of the examples of the retail pharmacy. The increasing automation of various applications within the industry for prescription filling, costs cutting, inventory tracking, smooth operations are few of the factors for the segment’s growth.
Regional Analysis
North America dominated the market in 2022:
North America accounted for largest market share in the pharmacy automation market in 2022. With the advancements in technology in medication management to drive the segments growth. The increased number of drug prescriptions in North America's pharmacies due to the growing aging population is the main factor attributed to the growth of the pharmacy automation system market. Asia-Pacific region on the other hand to grow at a highest CAGR during the forecasted period. The pharmacy automation devices market is growing due to the increasing adoption of automation solutions, investments in healthcare IT infrastructure, and high healthcare spending. Additionally, public and private organizations' efforts to minimize medication errors are expected to fuel market growth in the Asia Pacific region.
Competition Analysis
- Amerisource Bergen Corporation
- Accu-Chart Plus
- Healthcare Systems, Inc.
- Omnicell, Inc.
- McKesson Corporation
- Pearson Medical Technologies
- Baxter
- Talyst
- LLC
- Scriptpro LLC
- Fulcrum Pharmacy Management, Inc.
- Health Robotics S.R.L.
- Medacist Solutions Group, LLC
- Aesynt, Inc
- Pyxis Corporation
- Kirby Lester
Segmentation Analysis of the Pharmacy Automation Market
By Product
- Medication Dispensing Systems
- Packaging & Labelling Systems
- Storage & Retrieval Systems
- Automated Medication Compounding Systems
- Tabletop Tablet Counters
- Inpatient Pharmacies
- Outpatient Pharmacies
- Retail Pharmacy
- Pharmacy Benefit Management Organizations and Mail-Order Pharmacies
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Impact of the COVID-19 Pandemic on the Pharmacy Automation Market:
The pharmacy automation market has been significantly impacted by the COVID-19 pandemic, with both short-term and long-term implications. At the beginning of the pandemic, there was an increase in demand for medication, especially for treating COVID-19 patients and managing related symptoms. Pharmacy automation has played a crucial role in managing this increased workload efficiently, ensuring accurate and prompt prescription filling.
COVID-19 has prompted pharmacies to adopt automation for contactless prescription filling and medication dispensing, reducing virus transmission. Pharmacy automation also supports telehealth and telepharmacy services by enabling secure prescription verification and remote dispensing. Pharmacy automation has been reshaped by the pandemic, with a renewed focus on patient safety and a sustained commitment to reducing medication errors.
