Pharmacy Automation System Market Analysis | 2022-2028

“The Pharmacy Automation System Market was estimated at US$ 5.23 billion in 2021 and is expected to grow at a CAGR of 8.3% during 2022-2028 to reach US$ 7.9 billion in 2028”.

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Market Dynamics

Introduction

A pharmacy automation system refers to a technology-driven solution designed to streamline various processes within a pharmacy, such as medication dispensing, packaging, labeling, storage, and inventory management. These systems enhance accuracy, efficiency, and safety by reducing human errors, optimizing workflow, and ensuring proper medication tracking.

Common components include robotic dispensers, automated storage and retrieval systems, and software for managing prescriptions and inventory. Pharmacy automation is widely used in hospitals, retail pharmacies, and long-term care facilities, contributing to improved patient care, reduced operational costs, and better compliance with regulations.

Market Drivers

The market for pharmacy automation systems is driven by a vision of zero errors in retail pharmacies, the advantages of pharmacy automation in industrial pharmacies over human drug delivery, and the mobility of more advanced parts. The market is driven by the desire to reduce pharmaceutical errors, eliminate manual medicine delivery, and expedite the development of more advanced parts. In addition, the market for pharmacy automation is expanding due to an increase in the elderly population and rising labor costs.

It is crucial to reduce medication errors to further support patient healthcare advantages and confirmation security. In this way, pharmacy automation systems reduce drug, storage, recovery, dispensing, and use-related mistakes. Depending on how they are used in various pharmaceutical procedures, mechanical advancements in the pharmacy automation system led to more highlights, a greater success rate, and more recent employments of the equipment. 

Some of the main factors influencing the expansion are the established healthcare system, improvements in patient management, and hospital management systems in developed countries. According to a Drug Store News article, 66% of prescribers and 48% of pharmacists reported seeing an increase in the usage of automation and other technology over the previous 15 months.

Several investments/guidelines in the industry have been directed in recent years, which would boost the overall market. Some of them are:

• The need for lower drug costs, reduced medication errors, and proper workflow management in hospital pharmacies as well as standalone facilities have all contributed to the expansion of the market. Due to the enormous unmet needs in terms of sophisticated healthcare systems and management systems, regions such as APAC have been offering the industry tremendous growth potential. India regularly outranked Singapore in terms of automation, with 76% of Indians and 69% of Singaporeans, respectively, preferring to test new technologies and ways of working to be more productive or efficient, according to an article published by Business Standard Private Ltd. in May 2019. 

Recent Mergers and Acquisitions

Strategic agreements between hospitals/pharmacies and software companies, as well as mergers and acquisitions of smaller businesses by larger players, are the key drivers of this industry.

For instance:

• In June 2022, BD, a top provider of medical technology worldwide, and Frazier Healthcare Partners, a premier private equity firm that specializes solely in the healthcare industry, would pay $1.525 billion to purchase Parata Systems, a cutting-edge supplier of pharmacy automation systems. An expanding network of pharmacies is powered by Parata's portfolio of cutting-edge pharmacy automation technologies to cut costs, improve patient safety, and enhance the patient experience. The demand for intelligent workflow solutions is being fueled by significant macro trends such as the lack of clinicians, wage inflation, consolidation of pharmacy services, and rising clinical demands on pharmacists. To increase medication adherence, safety, and patient outcomes, pharmacists can spend more of their time on higher-value clinical tasks and patient contacts by using automation and smart technologies.
• In August 2020, Capsa Healthcare, a global developer in healthcare delivery systems for hospitals, senior care facilities, and retail pharmacy suppliers, purchased RoboPharma. RoboPharma now has access to more resources as a key division of Capsa Healthcare, enabling it to advance the development of both its already-available and future pharmacy automation products.
• In 2022, Humanscale Healthcare, a New York-based designer and manufacturer of adaptable technology solutions and computer workstations, was acquired by Capsa Healthcare. By combining its products, Capsa now has the widest range of products available and is better able to provide healthcare partners throughout the world with point-of-care computer solutions that are ergonomically designed.
• In 2022, Capsa Healthcare, announced that it would be adding more automated dispensing cabinets to its NexsysADC line. In two new sizes of Controlled Access Module Drawers, NexsysADC can hold any size of high-value or controlled drugs or supplies.
• In 2021, Innovation Associates unveiled SmartPod, a cutting-edge robot designed for central-fill pharmacy settings. To meet demand, providers can scale and modify their centralized fulfillment systems using SmartPost.

COVID-19 Impact

The COVID-19 epidemic has fueled the expansion of pharmacy automation, according to many technology suppliers, who also claim that technology adoption and the use of technology are the future. Additionally, the market has been expanding due to the presence of significant pharmacy chain stores and high patient volumes. the requirement to reduce drug waste as well as to cut costs.

Segments Analysis

By Product Type

“The automated medicine dispensing systems held the greatest market share in 2021”.

The market is segmented into automated medication dispensing systems, automated storage & retrieval systems, automated labeling systems, tabletop tablet counters, automated compounding devices, and others. 

The pharmacy automation industry's automated medicine dispensing system segment held the greatest market share in 2021. The significant market share is due to benefits including increased pharmaceutical safety, better inventory control, and greater storage capacity with optimal space, time, and cost use.

By End-User Type

“The retail pharmacy segment is the fastest-growing end-user type in pharmacy automation systems”.

The market has been divided into retail pharmacy, hospital pharmacy, and others. The retail pharmacy segment is the fastest-growing end-user type in pharmacy automation systems. Due to the need to reduce dispensing errors, an increase in the number of retail pharmacies, and an increase in the workload on pharmacists, retail pharmacy is the end user segment in pharmacy automation systems that is growing at the quickest rate.

AmerisourceBergen and Walgreens Boots Alliance formed a strategic alliance in January 2021. AmerisourceBergen purchased Walgreens Boots Alliance Healthcare Business, allowing it to concentrate more on expanding the retail pharmacy business. The two businesses are extending and increasing their commercial arrangements through this strategic cooperation.

In addition to that, only 25% of pharmacists in Canada were employed in healthcare settings in 2019, with 75% of them working in community or retail pharmacies. The hospital pharmacy segment has shown the fastest increase. This is a result of the increased pressure on hospitals and clinics to reduce pharmaceutical dispensing errors.

Furthermore, automation is more effective than human equivalents and simplifies workflow management. Another benefit of managing the inventory for these hospital pharmacies is a decrease in medication waste. As a result of all these causes, the segment has experienced rapid expansion.

Regional Analysis

“North America led the market, while the Asia-Pacific region is anticipated to experience the highest CAGR during the forecast period”.

The market is broken down geographically into areas like North America, Europe, Asia-Pacific, and the Rest of the World (RoW). In terms of region, North America dominated the market during the forecast period because of the well-developed healthcare sector, attracting more players in this domain, high propensity for use, etc.

However, Asia Pacific is expected to grow at the highest CAGR during the forecast period due to the increasing healthcare expenditure and growing infrastructure in the region's major countries such as China and India.

Key Players

The following are the key players in the Pharmacy Automation System Market (arranged alphabetically)

• Baxter International Inc.
• BD
• Capsa
• Cerner Corporation
• Danaher Corporation
• Lonza Group
• Omnicell Inc.
• Parata Systems
• Rx Safe
• Script Pro

Note: The above list does not necessarily include all the top players in the market.

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More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles have been leveraged to gather the data.

We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and with industry experts to obtain both qualitative and quantitative insights.

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