Pharmacy Automation Market by Product (Automated Medication Dispensing & Storage Systems, Table-Top Counters, Retrieval Systems, Medication Compounding), End User (Inpatient, Outpatient (Fast-Track Clinics), Retail Pharmacies) - Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2022-2030

The global Pharmacy Automation market size was estimated at USD 5.56 billion in 2022 and is expected to surpass around USD 11.9 billion by 2030 and poised to grow at a compound annual growth rate (CAGR) of 9.9% during the forecast period 2022 to 2030.

 Growth in the market is mainly driven by the growing focus on automation to reduce labor costs, and increasing specialty drug dispensing. Moreover, pharmacy automation companies are seeking new opportunities by expanding their presence across emerging economies. However, the high costs of implementing pharmacy automation systems and stringent regulations that delay product launches can inhibit the growth of this market.

COVID-19 Impact on Pharmacy Automation Market

According to our findings, the market is expected to grow at an approximate CAGR of 7.7-8.0% during the next two years. According to our analysis, the below factors are playing a key role in shaping the growth of the global market;

• Due to the COVID-19 outbreak, the pharmaceutical industry registered significant growth in 2020 and 2021, but the industry’s entire supply chain, from raw materials to manufacturing and delivery, was severely impacted.
• The high infection rate of COVID-19 led to an increased demand for medication and drug dispensing in hospitals. The pandemic increased the demand for medications to provide life-saving support to critically ill COVID-positive patients. Approximately 15% of COVID-positive patients required hospitalization and needed constant dispensing of drugs from pharmacies.
• The shift in demand towards automated systems forced key players to strategize their manufacturing capabilities, focus on new product development, and seek out optimum supply chain strategies for COVID-19 essentials.

Report Scope of the Pharmacy Automation Market

 Pharmacy Automation Market Dynamics

Driver: 

Medication errors and dispensing errors are recognized as leading causes of hospital readmission across the globe. Poor order communication between physicians and pharmacists, dangerous storage practices in pharmacies, and the confusion arising from similar labels and drug prescriptions during the preparation or dispensing of drugs or during drug administration are some key factors contributing to medication errors. Automated systems are considered one of the most efficient solutions to minimize these errors. In the past, the successful implementation of automated dispensing cabinets (ADCs) and automated dispensing machines (ADMs) in hospitals led to significant reductions in the number of dispensing and medication errors in hospitals.

Restraint:

Despite their benefits, several healthcare professionals and providers are reluctant to adopt or accept IT-based approaches to pharmacy management. This is particularly evident when cultural barriers are involved, especially in emerging economies. Therefore, many pharmacists do not want assistance and are reluctant to adopt pharmacy automation systems as part of their dispensing regimen. Although the benefits of automated pharmacy systems are considerable and the extensive adoption of technology verifies this, until now, only large-volume pharmacies and hospitals could justify the returns on investment (ROIs) obtained from installing these automated systems.

Opportunity:

Emerging economies are expected to become a focal point for growth in the pharmacy automation market. Developing countries possess a high geriatric population. According to the UN report on World Population Ageing (2019), Eastern and Southeastern Asia are expected to experience a two-fold increase in the number of geriatric individuals, with the population aged 65 years or over projected to increase from 260.6 million in 2019 to nearly 572.5 million by 2050. This demographic trend is expected to increase the patient volume in several Asian countries and drive the demand for quality patient care and efficient medication dispensing. As a result, the demand for pharmacy automation systems in several Asian countries is expected to increase in the coming years.

Challenge: 

The stringency of regulatory approvals depends on the class to which a particular device belongs; it may vary from one region to another. Several state boards of pharmacies (agencies of a state responsible for the control and regulation of the practice of a pharmacy and the licensing of pharmacists in the state) have different requirements for using automated dispensing devices (ADDs) in healthcare practices. Thus, manufacturers of automated systems for pharmacies have to adhere to various regulations; ensuring such compliance is a tedious task and can delay product launches.

The pharmacy packaging and labelling system segment is expected to have the highest CAGR during the forecast period

Based on products, the pharmacy automation market is segmented into automated medication dispensing and storage systems, automated packaging and labeling systems, automated tabletop counters, automated medication compounding systems, and other pharmacy automation systems. The pharmacy packaging and labelling system segment is expected to register the highest growth during the forecast period. This is mainly due to the need to improve dispensing accuracy & productivity and lower the overall cost of the process by helping its users avoid such confusions by providing all medications with clear labels and distinct appearances.

Centralized pharmacies segment accounted for the largest share of the automated medication dispensing and storage systems market in 2021

Based on applications/operations, the automated medication dispensing and storage systems market is segmented into centralized and decentralized pharmacies. Centralized pharmacies accounted for the largest share of the global automated medication dispensing and storage systems market in 2021. This can be attributed to the high adoption of centralized models for end-to-end medication dispensing in hospitals, pharmacies, and nursing units.

The inpatient pharmacies segment accounted for the largest share of pharmacy automation market in 2021

Based on end users, the market is segmented into inpatient pharmacies, outpatient pharmacies, retail pharmacies, and pharmacy benefit management organizations and mail-order pharmacies. In 2021, inpatient pharmacies accounted for the largest share of this market. This is mainly due to the advantage of faster dispensing of medications within hospital facilities as compared to the traditional manual methods.

Regional Insights

North America dominated the industry in 2021 and accounted for the maximum share of more than 54.9% of the overall revenue. The developed healthcare system, advancements in patient management as well as hospital management systems are some of the key drivers of the growth of the region. An article published in Drug Store News stated that 48.4% of the pharmacists, as well as 66% of the prescribers, stated they saw an increase in the use of automation and other technology in the last year and a half. Many technology providers are also stating that pharmacy automation, as well as the adoption of technology, is the future and the growth has been fuelled by the COVID-19 pandemic. Furthermore, the presence of major pharmacy chains and large patient volumes has been driving the growth of the regional market. The need to minimize wastage of medicines as well as to cut down costs has also been pushing the region’s growth.

AsiaPacific is expected to register the fastest CAGR during the forecast period. This growth can be attributed to the rising geriatric population in need of medication for chronic conditions. The need for reduction in costs of medicines, medication errors, and proper management of workflow in hospital pharmacies, as well as stand-alone units, have also contributed to the regional growth. This region has been presenting excellent growth opportunities for the industry owing to huge unmet needs in terms of advanced healthcare systems and management systems. According to the article published by Business Standard Private Ltd. in May 2019, India consistently outranked Singapore in terms of automation with 69% of Singaporeans and 76% of Indians that are willing to try new technologies and ways of working to be more efficient or productive.

Some of the prominent players in the Pharmacy Automation Market include: Becton, Dickinson and Company (US), Omnicell, Inc. (US), KUKA AG (Swisslog Healthcare) (Germany), Baxter International Inc. (US), Capsa Healthcare (US), Cerner Corporation (US), Yuyama Co., Ltd. (Japan), ARxIUM Inc. (US), Parata Systems, LLC (US), RxSafe, LLC (US), ScriptPro LLC (US), Pearson Medical Technologies, LLC (US), Medical Packaging Inc., LLC (US), Tension Corporation (US), Noritsu Pharmacy Automation (US), Euclid Medical Products (US), TouchPoint Medical Solutions (US), Meditech Pharmacy Management Solutions (Belgium), Innovation Associates (US), McKesson Corporation (US), Willach Group (Group), Stäubli International (Switzerland), MedAvail (Canada), Pharmacy Automation System (US), and Deenova SRL (Italy).

 Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Nova one advisor, Inc. has segmented the global Pharmacy Automation market

Global Pharmacy Automation Market, by Product

• Automated Medication Dispensing and Storage Systems
• Automated Medication Dispensing and Storage Systems, by Type
• Robots/Robotic Automated Dispensing Systems
• Carousels
• Automated Dispensing Cabinets
• Automated Medication Dispensing and Storage Systems, By Application/Operation
• Centralized Pharmacies
• Decentralized Pharmacies
• Automated Packaging and Labelling Systems
• Automated Tabletop Counters
• Automated Medication Compounding Systems
• Other Pharmacy Automation Systems

Global Pharmacy Automation Market, by End User

• Inpatient Pharmacies
• Acute Care Systems
• Long Term Care Facilities
• Outpatient Pharmacies
• Outpatient/Fast-Track Clinics
• Hospital Retail Settings
• Retail Pharmacies
• Pharmacy Benefit Management Organizations and Mail-Order Pharmacies

By Geography

North America

• U.S.
• Canada

Europe

• Germany
• France
• United Kingdom
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

Latin America

• Brazil
• Rest of Latin America

Middle East & Africa (MEA)

• GCC
• North Africa
• South Africa
• Rest of Middle East & Africa

Key Points Covered in Pharmacy Automation Market Study:

• Growth of Pharmacy Automation in 2022
• Market Estimates and Forecasts (2017-2030)
•  Brand Share and Market Share Analysis
•  Key Drivers and Restraints Shaping Market Growth
•  Segment-wise, Country-wise, and Region-wise Analysis
•  Competition Mapping and Benchmarking
•  Recommendation on Key Winning Strategies
•  COVID-19 Impact on Demand for Pharmacy Automation and How to Navigate
•  Key Product Innovations and Regulatory Climate
•  Pharmacy Automation Consumption Analysis
•  Pharmacy Automation Production Analysis
•  Pharmacy Automation and Management