The Global Pharmacy Management System Market was valued at USD 62.60 Billion in 2022 and is projected to reach USD 147.38 Billion by 2030, registering a CAGR of 11.93% for the forecast period 2023-2030.
Market Definition
A pharmacy management system is a crucial instrument that comes with strong, intuitive features. The pharmacy management system helps pharmacists handle the challenges of point-of-sale operations, medication inventories, and medication dispensing. Additionally, it helps to process, track, and dispense medications and prescription drugs with increased efficiency, accuracy, and security. The primary drivers of the global market's growth during the forecast period are the expanding healthcare IT sector, the rise in pharmacies worldwide, and the development of healthcare infrastructure in developing nations like China and India. The pharmaceutical industry's growing use of medication management equipment for improved administration in pharmacies is propelling the market's growth. Consequently, a great number of apps have been developed by market participants, significantly growing the IT industry. As a result, the market for pharmacy management systems is expanding. Healthcare facilities can be improved by developing multiple solutions. Businesses can use the pharmacy management program to run their operations more profitably.
Market Size:
- 2022: USD 62.60 Billion
- 2030: USD 147.38 Billion
- CAGR (2023-2030): 11.93%
Pharmacy Management System Market Dynamics
Drivers Propelling the Demand for Pharmacy Management Systems include
Expanding Uses of Pharmacy Management Systems in Healthcare to Accelerate Industry Growth : Most nations in the world have seen a steady increase in healthcare spending. The growth of the healthcare industry in these nations has been attributed to several factors, with one important one being the steady and quick advancement of information technology (IT) applications in this field. In the last few decades, information technology has improved many industrial sectors, including healthcare, and has had a significant impact on the lives of millions of people. Prescribers and pharmacists, among other end users, have embraced automation's advantages. The utilization of IT solutions has made it possible to store patient records in an organized manner. It has also aided in the regularization of electronic prescription implementation, which has reduced the amount of paper used, streamlined the administration and dispensing process, and automated the handling of medications within the supply chain. In the end, it has contributed to increasing patient safety and offering top-notch care so that patients can get the most out of their medications. Government organizations all over the world are implementing a variety of action plans to restructure conventional and modern pharmacies to optimize the use of pharmacists' special skills in conjunction with IT implementation. Additionally, the supply chain for major pharmacy chains like Walgreens, Apollo, and CVS has been streamlined by the digitization and automation of stock and repository management. Therefore, in the upcoming years, it is anticipated that the market for pharmacy management solutions will continue to grow as a result of these developments in healthcare IT, overall, due to this reason fueling the growth of the pharmacy management system market.
For instance, in December 2022, according to Arka Software, the growth of the pharmacy management system can be credited to the increasing progression of medical technology, aggressive focus on reducing medication errors, and rising spending by hospitals to improve their workflows. Some of the leading players in the pharmacy management software are, Allscripts, GE Healthcare, McKesson Corporation, and Cerner Corporation.
Trending Toward Automated Procedures as Pharmacy Operations Become More Complex : Innovations in healthcare IT and the US's uptake of cutting-edge goods and services have been propelled by a consistent increase in healthcare spending. End customers can consistently manage the pharmacy with the help of pharmacy management systems. By automating the billing process, expediting the claim processing, and guaranteeing that patients receive accurate billing information, these systems have completely transformed the pharmaceutical industry. Pharmaceutical drug administration is made safer and more efficient by features like inventory management, prescription processing, patient management, billing and insurance management, reporting, and analytics. Information is still being stored and arranged by these systems. Moreover, IT solutions make it possible to automate drug handling in a supply chain and simplify drug dispensing. Among the US pharmacies that use these management systems are Copper Bend Pharmacy, Spence's Pharmacy, and Avant Pharmacy and Wellness Center. Retail and ambulatory pharmacies are modernizing as a result of developments in healthcare technology. While maintaining the highest level of patient safety, pharmacy operations have become quicker and more efficient thanks to the use of robotic dispensing systems and growing awareness of new health information technology (HIT). Technological advancements have made pharmacy workflows more efficient and well-coordinated, enabling them to maximize operations across the medication delivery cycle. Personalized medication plans are provided by pharmacy management software, which also lowers the possibility of medication errors. Because of the extreme complexity of the US healthcare system, this software has become a necessary tool, overall, due to this factor driving the growth of the pharmacy management system market.
For instance, in July 2022, according to Becton Dickinson, BD Acquired MedKeeper to Offer Cloud-based, Connected Pharmacy Software. The acquisition adds to the company's recent growth in high-technology pharmacy.
Recent Developments
In June 2022, GE Healthcare is proud to provide cutting-edge molecular imaging solutions that enable and increase access to precision health and theragnostic to help improve patient outcomes across care areas, including prostate cancer the most prevalent cancer in men and the third most prevalent cancer overall.
In February 2023, The province of Nova Scotia, in collaboration with Nova Scotia Health Authority (NSHA) and IWK Health (IWK), announced today a new 10-year agreement has been signed with Oracle Cerner to implement an integrated electronic care record across the province for the more than one million Nova Scotians. This technology can help improve the way health professionals use and share patient information.
Restraint
Lack of skilled personnel is a significant restraint on the growth : Without the assistance of qualified staff, pharmacies may find it challenging to adopt and implement these systems due to the complexity of PMS. To configure the system, integrate it with other healthcare systems, and instruct other staff members on its use, pharmacists and technicians must possess the necessary knowledge and skills. For PMS to function as best they can and securely, they need constant support and maintenance. Technicians and pharmacists must possess the ability to update software, troubleshoot issues, and give continuing assistance to other employees. A multitude of data produced by PMS can be utilized to enhance patient care, lower expenses, and streamline pharmacy operations. To evaluate this data and draw actionable conclusions, technicians and pharmacists must possess certain abilities. The integration of PMS with other healthcare systems and electronic health records (EHRs) is growing. Pharmacists and technicians must possess a solid understanding of PMS and EHRs to perform this integration. The shortage of qualified personnel is another issue impeding the expansion of the worldwide pharmacy management system market. One of the primary issues is the dearth of trained specialists; as a result, the system won't operate or perform well without expert support. Furthermore, it is anticipated that the demand for pharmacy management systems will be hampered by low awareness, particularly in developing and underdeveloped nations, and high initial capital expenditure. Players in the market are putting a lot of effort into stunning these barriers and raising market demands, this factor hinders the growth of the Pharmacy Management System market.
Challenges
Several problems with the Pharmacy Management System industry : Reluctance to adopt is one of the main factors predicted to impede the growth of the global pharmacy management system market. For example, despite the advantages, a large number of healthcare professionals and providers worldwide are hesitant to adopt and/or accept IT-based management solutions and software (such as pharmacy management systems). This is mostly explained by the substantial initial outlay of funds. Consequently, the market is growing because only big hospitals or pharmacies adopt or accept IT-based management software and solutions. Because they believe PMS to be costly, pharmacists may be reluctant to spend money on a system if they are unsure, it will yield a profit. Pharmacists may be wary of the disruption to their workflow that comes with implementing a PMS because these systems can be complicated. They might be worried about retraining their employees and upsetting their existing procedures. Pharmacists may be unaware of all the advantages PMS has to offer, including increased effectiveness, lower expenses, and better patient care. It can be difficult and time-consuming to integrate PMS with other healthcare systems, such as electronic health records (EHRs). Vendor lock-in, or the fear of being forced to use a specific PMS vendor and being unable to move to another one in the future, is a concern that pharmacists may have.
Opportunities
Rising demand for efficient pharmacy operations
Automating and streamlining repetitive processes like billing, inventory control, and prescription processing are the goals of pharmacy management systems. By increasing workflow efficiency overall, this automation frees up pharmacists to concentrate on patient care rather than administrative duties. Drug traceability, expiration dates, and inventory levels can all be tracked in real-time with PMS. Pharmacies can increase operational efficiency by minimizing stockouts, cutting waste, and guaranteeing that prescriptions are available when needed with the aid of effective inventory management. Pharmacy management systems reduce errors associated with manual data entry by facilitating electronic prescription management. Automated dispensing procedures increase operational efficiency by improving accuracy, expediting the fulfillment of prescriptions, and lowering the possibility of medication errors. Patient data, such as allergies, past prescription history, and pertinent medical data, is centrally stored by PMS. Pharmacists can deliver individualized care and enhance patient outcomes and satisfaction by having a single, easily accessible patient database. Pharmacy management systems with effective billing and insurance processing capabilities make administrative work easier. Automated billing procedures shorten reimbursement cycles, cut down on errors, and help pharmacies run their finances more smoothly. Rising demand for efficient pharmacy operations is a significant opportunity for the Pharmacy Management System market.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 62.60 Billion |
| Market Forecast in 2030 | USD 147.38 Billion |
| Compound Annual Growth Rate (CAGR) | 11.93 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Solution Type, By Component, By Deployment Model, By End-User & By Region |
| By Solution Type |
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| By Component |
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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 Management System Market
The Pharmacy Management System Market is segmented by Solution Type, Component, deployment model, end-user and region.
By Solution Type
The Pharmacy Inventory Management System segment held the largest market share in 2022 : The solution Type is sub-segmented into Pharmacy Inventory Management System, Pharmacy Data Management System, Pharmacy Compounding Software System, Pharmacy Benefits Management System, and Pharmacy Revenue Cycle Management and Others. The Pharmacy Inventory Management System segment accounted for the highest market share in the global Pharmacy Management System market for 2022. Growing pressure on medical professionals to cut costs has a positive impact on the inventory management market, which in turn fuels the expansion of the worldwide pharmacy management systems market. Records from the US non-profit healthcare system Intermountain Healthcare show that the management of medication inventory accounts for between 60 and 70 percent of the budget allotted to the pharmacy department. The demand is boosted by the pharmacy management system's effective reduction of the cost of excess inventory. The need for these systems is also driven by an increase in medication errors, especially those involving the dispensing of medications in hospital and retail pharmacies. The World Health Organization (WHO) states that automated dispensing systems reduce the possibility of prescription errors.
On the other hand, the pharmacy data management system segment has a significant market share over the forecast period, due to the volume of medications and patient data that pharmacies handle increasing, making effective data management essential. With the help of PDMS, pharmacists can simplify operations and make well-informed decisions by having centralized pharmacy data storage, organization, and analysis. Pharmacies must comply with strict regulations regarding patient safety and data management. By tracking medication adherence, keeping accurate medication records, and spotting possible drug interactions, PDMS assists pharmacies in adhering to these regulations.
By Component
The Software segment was the leading segment in 2022 : By Component, which is divided into hardware, software, and services. the software segment accounted for the largest share 55% in the global Pharmacy Management System market in 2022. Pharmacies are under more and more pressure to cut expenses and run profitably. Many manual tasks, like filling prescriptions, labeling, and managing inventory, are automated by PMS software, freeing up pharmacists and technicians to concentrate on patient care. PMS software produces useful data on patient interactions, medication use, and operational metrics. With the use of this data, pharmacies are better equipped to decide on hiring, purchasing, and patient care initiatives. Robust software solutions are required for medication handling, storage, and recordkeeping due to strict regulatory requirements. Pharmacy compliance is maintained and fines are avoided with the use of PMS software. Patients want care that is accessible, easy to use, and personalized. Pharmacies can offer remote patient consultations, electronic prescription refills, and assistance with medication adherence thanks to PMS software.
The services segment is anticipated to register rapid growth in the forecast period, With the help of these services, pharmacies can organize, set up, and customize PMS software to meet their unique requirements and operational procedures. This covers system integration, data migration, and user education. Pharmacies can hire consultants to offer professional guidance on PMS selection, implementation tactics, and pharmacy operations optimization. Consultants provide specialized solutions to handle particular problems and improve productivity. Technical support teams offer continuous help in resolving user inquiries, troubleshooting software problems, and guaranteeing the PMS runs smoothly. Pharmacies may decide to contract with specialized service providers to handle PMS-related duties like data entry, reporting, and system maintenance. This enables pharmacists to concentrate on strategic initiatives and patient care.
By Deployment Model
The cloud/web-based segment was the leading segment in 2022 : By deployment model, which is divided into cloud/web-based, and on-premise. the cloud/web-based segment accounted for the largest share 60% in the global Pharmacy Management System market in 2022. Pharmacy management systems that are hosted on the cloud can be accessed from any location with an internet connection. This convenience fosters flexibility and effective collaboration by enabling pharmacists and healthcare providers to remotely manage prescriptions, oversee operations, and access patient data. Because of their great scalability, cloud-based solutions can meet the requirements of pharmacies of all sizes. Cloud-based solutions are appropriate for a variety of settings, including small community pharmacies and large healthcare systems, because they can be easily scaled up or down to meet the unique requirements of the pharmacy. When it comes to upfront costs, cloud-based models usually require less than on-premises solutions. Pharmacies can allocate resources more effectively and make investments in other crucial areas of their business by avoiding large capital expenditures on hardware, server infrastructure, and maintenance.
On the other hand, the on-premises segment is anticipated to register rapid growth in the forecast period, on-premises higher levels of data security and control are available with on-premises PMS solutions. Having direct control over their data is often a top priority for healthcare providers, especially pharmacies handling sensitive patient data. They can put in place specific security measures and adhere to stringent healthcare data protection laws thanks to on-premises systems. Pharmacies and the healthcare sector as a whole are subject to strict regulations and compliance requirements. With more control over their IT infrastructure, on-premises solutions give healthcare organizations the ability to comply with regulations without having to worry about handling data from third parties.
Regional Analysis
North America occupied the largest market share in 2022 : North America has the largest revenue market share 38% in 2022, North America has a sophisticated and well-established healthcare system, especially in the United States and Canada. There is a significant concentration of pharmacies in the area, ranging from hospital-based pharmacies to big chain pharmacies and independent community pharmacies. In areas with more developed infrastructure, the use of sophisticated healthcare technologies including pharmacy management systems is more common. For healthcare operations, North America has strict regulatory requirements and compliance standards. Pharmacy management systems are essential for helping pharmacies follow these rules because they guarantee accurate record-keeping, prescription management, and adherence to privacy laws about healthcare data. Encouraging the widespread adoption of strong pharmacy management solutions is the requirement for regulatory compliance.
On the other hand, Asia Pacific accounted for a significant share over the forecast period, The Asia Pacific region is home to several nations that are investing in digital health initiatives and concentrating on healthcare reforms. One of the key factors propelling market growth is government support for the use of pharmacy management systems and other healthcare IT. In the Asia-Pacific area, the prevalence of chronic illnesses is rising. Because of this, there is a growing need for sophisticated pharmacy management systems that can effectively manage patient data, prescription tracking, and medication administration to improve healthcare outcomes. Rapid technological advancements and digital transformation have been observed in several industries, including healthcare, in the Asia Pacific region. The region's general trend of technological innovation is supported by the adoption of advanced pharmacy management systems, cloud-based technologies, and digital solutions.
List of the prominent players in the Pharmacy Management System Market:
- Allscripts Healthcare
- LLC
- Cerner Corporation
- DataScan Pharmacy
- Epicor Software Corporation
- GlobeMed Group
- Liberty Software, Inc.
- LS Retail EHF
- McKesson Corporation
- MedHOK, Inc.
- Octal IT Solution LLP
- Safecare Technology
- ScriptPro LLC
- Clanwilliam Health
- Mobile MedSoft
By Solution Type
- Pharmacy Inventory Management System
- Pharmacy Data Management System
- Pharmacy Compounding Software System
- Pharmacy Benefits Management System
- Pharmacy Revenue Cycle Management
- Others
- Hardware
- Software’s
- Services
- Cloud/Web Based
- On-Premises
- Inpatient Pharmacies
- Outpatient Pharmacies
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East and Africa
Impact of the COVID-19 Pandemic on the Pharmacy Management System Market:
The pandemic caused a spike in the demand for tele pharmacy and medication delivery, two services provided by remote pharmacies. The adoption of PMS solutions, which support these services, was prompted by this increased demand. The global supply chain was disrupted by the pandemic, which made it challenging for pharmacies to get necessary medications. Pharmacies can now better manage stock levels and avoid stockouts by utilizing PMS systems with inventory management features. The pandemic raised awareness of patient safety, which resulted in a rise in the use of PMS solutions that promote medication adherence and the avoidance of medication errors. Quick Uptake of Online Pharmacy Services Digital pharmacy services like smartphone apps, online prescription refills, and virtual consultations have become more popular as a result of the pandemic. The pandemic made clear how crucial data-driven decision-making is in pharmacy operations. PMS providers are working on products that give pharmacies access to real-time data insights to support them in managing their inventory, hiring employees, and providing patient care. Cloud-based PMS solutions are in higher demand as a result of the pandemic as pharmacies look for more adaptable and scalable options. Remote access, simpler updates, and lower IT expenses are all provided by cloud-based PMS systems.
