MARKET OVERVIEW- GLOBAL PHARMACY AUTOMATION DEVICES MARKET
A pharmacy automation structure is used to drive and adapt mechanically to medicines. The most important factors that guide market growth are drug errors to increase and the growing demand for health care. The pharmacy automation equipment market with various pharmacy and other health institutions, functions with a main objective to reduce medical recipe errors and optimize patient safety. Automation systems also help to simplify the workflow, reduce the risk of errors and improve patient safety. The introduction of RFID, smart dashboard, barcode scanning technology and data security in pharmacies for a seamless workflow is driving market growth. Additionally, these devices reduce labour costs and improve process accuracy and speed. Besides, it significantly offers a high level of precision and accuracy. These factors are anticipated to provide ample new growth opportunities for the market.
Medication and dispensing errors are recognized as the leading cause of hospitalization worldwide. Poor organized communication between doctors and pharmacists, unsafe storage practices in pharmacies, and confusion created by similar drug labels and prescriptions when preparing or dispensing drugs or administering drugs are key factors that contribute to medication errors. Automated systems are considered one of the most effective solutions for minimizing these errors. In the past, the successful implementation of automated dispensing cabinets (ADCs) and automatic dispensing machines (ADMs) in hospitals has resulted in a significant reduction in the number of dispensing and medication errors in hospitals.
Annual spending on prescription and over-the-counter drugs has exploded in recent years. According to the American Academy of Actuaries, annual spending on prescription drugs alone cost $ 3.337 billion in 2016, an astonishing 17.9 percent of U.S. GDP. Another additional cost comes in the form of wasted medicines in pharmacies and healthcare systems. Automation in the retail pharmacy industry has been a boon to cost reduction in terms of viable and expired drug waste. A study published by Reuters shows that the waste of (unused) anticancer drugs in the United States results in a waste of $ 3 billion a year. A study published by the OECD found that around 17,600 tons of expired or unused medicines were thrown away in France in 2018. This rise in spending on healthcare products is expected to drive the growth of the market during the estimated time period.
Emerging economies are expected to become a focal point for growth in the pharmacy automation market. Developing countries have a high geriatric population. According to the UN Report on World Population Aging (2019), East and Southeast Asia are expected to see a doubling in the number of geriatric people, with the population aged 65 or older expected to grow from 260.6 million in 2019 to nearly 572.5 million in 2050. This demographic trend is expected to increase patient volume in several Asian countries and drive demand for high-quality patient care and efficient medication delivery. As a result, the demand for pharmacy automation systems in several Asian countries is expected to increase in the coming years. Besides, emerging features and new technologies have gained the major attention of the end user segment and this factor is expected to provide new growth opportunities for the market over the forecast period.
Issues associated with automated dispensing systems such as regular software updates and high system maintenance requirements are expected to limit the market’s growth. Despite their advantages, several healthcare professionals and healthcare providers are reluctant to adopt or accept IT approaches to pharmacy management. This is particularly evident when cultural barriers are at stake, especially in emerging economies. Therefore, many pharmacists don't want help and hesitate to use pharmacy automation systems as part of their dispensing regimen. While the benefits of automated pharmaceutical systems are significant and the wide adoption of the technology confirms this, until now only large pharmacies and hospitals have been able to justify the return on investment (ROI) achieved by installing these systems. This is also expected to be a key element that may restrict the growth of the market over the forecast period.
MARKET GROWTH CHALLENGES
The level of strictness for regulatory approvals depends on the class to which a particular device belongs; it may vary from one region to another. Different state pharmacy councils (agencies in a state responsible for supervising and regulating a pharmacy's practice and licensing pharmacists in the state) have different requirements for using automated dispensing devices (ADDs) in healthcare practices. Therefore, manufacturers of automated systems for pharmacies have to adhere to different regulations; ensuring this compliance is a tedious task and can delay product launches. This is expected to be a major challenge for the market’s growth.
CUMULATIVE GROWTH ANALYSIS
The report provides an in-depth analysis of the global Pharmacy Automation Devices market, market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. With increasing demand for various pharmacy automation devices in various applications has led the increasing demand for market and is expected to witness the growth at a specific CAGR from 2023-2029.
PHARMACY AUTOMATION DEVICES MARKET SEGMENTAL OVERVIEW
The global Pharmacy Automation Devices market comprises of different market segments like product, end users and geography.
PHARMACY AUTOMATION DEVICES MARKET BY PRODUCT
By product, the Pharmacy Automation Devices market includes the key segments of
- Automated Medication Dispensing Systems
- Automated Storage And Retrieval Systems
- Automated Packaging And Labeling Systems
- Tabletop Tablet Counters
- Automated Compounding Devices
The automated medication dispensing systems segment is expected to have the highest growth over the forecast period. The high percentage can be attributed to the accuracy of drug delivery and the increased safety provided by these systems, resulting in fewer cases of administering the wrong drugs to patients. It also helps in good inventory management and helps reduce costs by managing storage space. Drugs administered incorrectly to patients are not only harmful to their health but also have a significant impact on the costs incurred. A research article published in StatPearls reports that nearly 9,000 people die each year from errors in their medications. Costs associated with medication errors in patient management exceed $ 40 billion annually.
The automated medication compounding systems segment is expected to have the fastest growth over the forecast period. An accurate manual compounding system is also prone to errors, which can have a significant impact on the drug outcome. An automated compounding system thus reduces or eliminates the likelihood of these medication compounding errors. It also eliminates the likelihood of contamination by eliminating sources of contamination when the process is performed in an aseptic chamber. The above factors are important drivers for the market.
PHARMACY AUTOMATION DEVICES MARKET BY END USERS
The Pharmacy Automation Devices market has major end users like
- Hospital Pharmacy
- Retail Pharmacy
The retail pharmacy segment is expected to dominate the market. This can be attributed to an increase in the number of retail pharmacies in several countries. Automation in pharmacies is revolutionizing cost reduction on multiple levels.
The hospital pharmacy segment is expected to witness the fastest growth over the forecast period. This is due to the growing need to minimize errors in drug administration in hospitals and clinics. In addition, automation also allows for easy workflow management and is more efficient than its human counterparts. Another aspect is the reduction of drug waste through the stock management of these hospital pharmacies. All these factors have led to the strong growth of the segment.
PHARMACY AUTOMATION DEVICES MARKET BY GEOGRAPHY
The global Pharmacy Automation Devices market is studied for the following regions
- North America
- Rest of the world (RoW)
North America is anticipated to dominate the market over the forecast period. The developed healthcare system, advancements in patient management as well as hospital management systems are some of the major drivers for the growth of the region. Additionally, the presence of large pharmacy chains and large patient volumes have driven the growth of the regional market. The need to minimize drug wastage as well as cut costs has also driven the region's growth.
The Asia-Pacific region is expected to register the fastest CAGR during the forecast period. This growth is due to the growth of the geriatric population which requires medication for chronic conditions. The need to reduce drug costs, medication errors and poor workflow management in hospital pharmacies is also expected to contribute to the growth of the market in the Asia Pacific region. This region offers excellent growth opportunities for the industry due to the huge unmet need for healthcare systems and advanced management systems.
COVID-19 IMPACT ANALYSIS ON GLOBAL PHARMACY AUTOMATION DEVICES MARKET
Axiom MRC provides a 360-degree analysis of micro and macro-economic factors in the global Pharmacy Automation Devices market. In addition, a complete analysis of changes in the global Pharmacy Automation Devices market expenditure, economic and international policies on supply and demand side is provided in this exclusive report. The report also studies the impact of the pandemic on global economies, international trade, business investments, GDP and marketing strategies of key players present in the market.
During the COVID-19 outbreak, the market experienced a considerably positive impact. This can be attributed to the growing rate of infection among healthcare professionals to patients and the growing demand for drugs around the world. This is why healthcare institutions and pharmacies prefer automated systems to reduce the spread of the virus. In addition, there is also a growing demand for prescription drugs, which has created the opportunity to use pharmacy automation systems to overcome the infection rate.
COMPETITIVE LANDSCAPE ANALYSIS
The competitive landscape analysis of Pharmacy Automation Devices market is primarily focused on expanding the global growth of pharmacy automation devices through new product innovation, business expansion, increasing presence of a range of manufacturers operating in pharmacy automation devices sector has led the growing demand for the market. Besides, the market offers a range of products in different applications to fulfil the required demand of consumers, which is further contributing to healthy growth in the market.
The key players studied in market are
- Becton, Dickinson, and Company
- Amerisource Bergen Corp.
- Accu Chart Plus Healthcare Systems, Inc.
- Omnicell, Inc.
- McKesson Co.
- Pearson Medical Technologies LLC
- Baxter International, Inc.
- Talyst LLC
- ScriptPro LLC
- Kirby Lester
- Cerner Corp.
- TouchPoint Medical
- Deenova SRL
- Parata Systems
- Swisslog Healthcare
February 2023: Capsa Healthcare, an innovator in healthcare delivery solutions for hospitals, long-term care facilities, and retail pharmacy providers, announced the acquisition of Humanscale Healthcare, a designer and manufacturer of flexible technology solutions and computing workstations based in New York.
January 2022: AmerisourceBergen and Walgreens Boots Alliance entered into a strategic alliance. Walgreens Boots Alliance Healthcare Business was acquired by AmerisourceBergen, enabling it to increase its focus on growing the retail pharmacy business. Through this strategic partnership, the two companies are extending and expanding their commercial agreements.