PHARMACY AUTOMATION MARKET ANALYSIS

Pharmacy Automation MarketSize and Trends

Global Pharmacy Automation Market size is projected to reach US$ 9.54 Bn by 2030 from an estimated US$ 5.54 Bn in 2023, exhibiting a CAGR of 8.1%.

Global Pharmacy Automation Market- Drivers

• Growing prescription volumes: The increasing burden of chronic diseases across the globe is leading to a significant rise in prescription volumes worldwide. As per the World Health Organization (WHO), chronic diseases accounted for approximately 60% of all deaths globally in 2020. Conditions like diabetes, cardiovascular diseases, and cancer result in patients needing lifelong prescription medication. As the prevalence of these lifestyle-driven illnesses increase, which is fueled by factors like sedentary routines and unhealthy diets, the number of prescriptions being filled at pharmacies is witnessing a steady surge year-on-year. More prescriptions equate to higher workloads and demand on pharmacists. Manual processes cannot keep up with the rising volumes efficiently. This is driving the need for automation in pharmacies to improve productivity and fulfill demand.
• Increasing need to reduce medication errors: The increasing need to reduce medication errors is one of the key factors promoting rapid adoption of pharmacy automation systems globally. Medication errors can cause severe health issues, extended hospital stays, and even mortality. As per the data by WHO, medication errors affect over 7 million people annually across the world and cost around US$42 Bn in direct health care costs. A majority of medication errors occur during the prescription and drug dispensation process in pharmacies. Healthcare systems and pharmacies around the world are facing huge pressure to enhance patient safety and minimize potential medication errors. Pharmacy automation technologies are helping in reducing human error rates significantly by streamlining critical processes like inventory management, prescription filling and dispensation. Automated systems ensure accurate identification of drugs, proper labeling, and packaging of medications. They also facilitate better tracking of expiration dates and automate replenishment orders to avoid stock-outs. This enhances compliance to safety protocols and minimizes risks of dispensing wrong drugs or expired medications.
• Growing need to minimize manual processes: The growing need of automation across various pharmacy processes is one of the key factors driving the growth of global pharmacy automation market. With increasing prescription volumes and strict regulations, pharmaceutical companies are relying more on automation solutions to minimize manual errors and improve workflow efficiency. Automation helps pharmacies in packing, dispensing, inspection, and distribution of medications at a much faster rate while maintaining high level of accuracy. Some of the major pharmacy processes being automated include dispensing, packaging, labeling, inspection, and storage of medications. Automated dispensing cabinets have gained widespread adoption as they allow drugs to be dispensed securely while tracking their use in healthcare facilities. Similarly, automated packaging and labeling systems help pharmacies to meet stringent packaging requirements for unit-dose medications at scale. These systems ensure that are drugs are packed correctly with accurate labeling which enhances patient safety. Automated inspection and quality control solutions are also being used to verify accurate medication dispensing and minimize errors.

Global Pharmacy Automation Market- Trends

• Integration of robotics and artificial intelligence (AI) technologies: The increasing integration of robotics and artificial intelligence (AI) technologies into pharmacy workflows is driving significant changes in the pharmacy automation market. Robots coupled with advanced software and computer vision are allowing pharmacies to automate tasks like pill counting, dispensing, and sorting with much higher precision and speed than human technicians. This is reducing errors and improving productivity. For example, some automated pill counting machines can count thousands of pills per hour with an accuracy of 99.99%, minimizing the risk of under or over counts which can negatively impact patient safety. The use of robotics and AI is still growing but expected to increase sharply according to the U.S. Food and Drug Administration (U.S. FDA). In their 2021 Drug Supply Chain Security Act (DSCSA) report, the U.S. FDA found that approximately 50% of pharmacies surveyed that are planned to purchase more automated prescription dispensing equipment by 2023 in order to reduce errors, comply with tracking regulations and meet growing volume demands, thereby demonstrating strong future growth projected for this market.
• Adoption of centralized dispensing systems: The adoption of centralized dispensing systems is having a significant impact on the pharmacy automation market. Centralized dispensing involves the consolidation of manual packing and labeling functions into a single automated system located remotely or off-site from the pharmacy. This allows for multiple prescriptions to be filled and packaged at once in a high-volume setup, thus improving efficiency and accuracy. Centralized dispensing has seen increased interest due to the workload pressures on pharmacies. With patient volumes and prescription fulfillment numbers rising each year, pharmacies need to find ways to boost productivity without compromising on quality. Centralized automated dispensing meets this need by consolidating prescription filling into dedicated high-capacity machines staffed by one or two technicians. According to the Canadian Pharmacists Association, centralized prescription processing rose by 36% from 2016 to 2020 among its members to keep up with rising demand. This demonstrates how pharmacies are increasingly seeking automation solutions to cope with growing business volumes.
• Growing demand for packaging and labeling solutions: Growing demand for packaging and labeling solutions is having a significant influence on the global pharmacy automation market. With the increasing workload on pharmacists and pharmacy technicians due to rising prescription volumes, there is a need for automated solutions that can streamline operations while minimizing errors. Packaging and labeling robots allow for a more efficient workflow as they can count tablets, capsules, and arrange them into prescription containers along with printing and affixing labels with accurate patient information and medication instructions. This enables filling large volumes of prescriptions accurately and in a timely manner without compromising on quality. A survey conducted by the American Hospital Association of 500 pharmacies in 2022 found that those using automated packaging and labeling solutions witnessed nearly 30% higher productivity levels as compared to those relying only on manual methods. The automated solutions allowed pharmacists to focus more on critical tasks like medication reconciliation and patient counseling rather than spending time on repetitive packaging and labeling activities. They could fill 50% more prescriptions per day on an average. This clearly demonstrates the operational efficiencies and productivity gains attained from such pharmacy automation solutions.