PHARMACY MANAGEMENT SYSTEM MARKET ANALYSIS

The global pharmacy management system market was valued at US$ 53 Bn in 2022 and is forecast to reach a value of US$ 114.66 Bn by 2030 at a CAGR of 10.2% between 2023 and 2030. The global pharmacy management system market is experiencing strong growth due to the rising incidence of medication errors and rise in burden on pharmacists. Moreover, rise in adoption of pharmacy management systems and rise in burden of chronic and infectious diseases around the world is expected to boost the growth of the market. However, factors such reluctance for adoption and lack of skilled personals are expected to hamper the market growth.

Global Pharmacy Management System Market: Regional Insights

Based on geography, the global pharmacy management system market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Among regions, North America is expected to gain highest share in the market over the forecast period due to the rise in burden on pharmacists, increasing consumption of over-the-counter (OTC) and prescription drugs, and growing adoption of pharmacy management system in the region. For instance, according to the American Society of Health-System Pharmacists (ASHP), the total drug spending in the U.S. increased by around 8% in 2021, indicating the high demand for prescription drugs in the country. Moreover, according to the Health Policy Institute, in 2021, over 131 million people in the U.S. (66% of adults) consumed prescription drugs.

Asia Pacific is also expected to witness significant growth in the global pharmacy management system market owing to the presence of a large patient pool, increase in the number of hospitals, increasing consumption of OTC and prescription drugs, and outbreak of COVID-19 in the region. For instance, in Uttar Pradesh (India), the number of drug stores saw a considerable rise of over 27% between 2019 and 2022 (till September 2022). Around 21,374 new retail drug stores opened during the pandemic and the number of wholesale pharmacies rose by around 16,371, according to Food Safety and Drug Administration (FSDA).

Figure 1. Global Pharmacy Management System Market Share (%), by Region, 2023

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Global Pharmacy Management System Market Drivers:

Rising incidence of medication errors to drive market growth

One of the key factors expected to augment the growth of the global pharmacy management system market during the forecast period is the rising incidence of medication errors. For instance, rising incidence of medication errors, particularly dispensing errors in hospitals and retail pharmacies, is a burden on pharmacists, which in turn increase demand for automated pharmacy management system. According to the data published in July 2020 by Enliven Health, medication errors harm over 1.5 million people every year in the U.S., and over 7,000 to 9,000 people die due to medication errors. This in turn is driving the market growth.

Burden on pharmacists to underpin market growth

Another factor which is driving the growth of the global pharmacy management system market is the rise in burden on pharmacists owing to increasing consumption or demand for prescription and over-the-counter (OTC) drugs. For instance, pharmacy management system helps pharmacists to dispense medications accurately with minimum wastage. According to Organisation for Economic Co-Operation and Development (OECD), Americans spend, on average, around US$ 1,200 each year on prescription drugs. Moreover, more than 131 million people, 66% adults in the U.S., use prescription drugs. This in turn is also driving the market growth.

Global Pharmacy Management System Market Opportunities:

Rise in adoption of pharmacy management systems across the globe is expected to offer significant growth opportunities for players in the global pharmacy management system market. For instance, pharmacy management system enable pharmacists to streamlines their workflow as well as provide efficient, professional, and personalized care based on patients' needs/requirements. In September 2022, RedSail Technologies launched Axys, a cloud-based pharmacy management system, giving long-term care pharmacies a cutting-edge pharmacy management system that empowers them to expand their business while keeping patients at the centre of care.

Rise in burden of chronic and infectious diseases around the world is expected to offer significant growth opportunities for players in the global pharmacy management system market. For instance, the rising burden of chronic and infectious diseases increase the consumption of prescription drugs. Thus in turn is expected to increase demand for automated management solutions, like pharmacy management systems, driving the growth of the pharmacy management system market. According to the World Health Organization (WHO), chronic and infectious diseases are the leading cause of death and disability across the world.

Global Pharmacy Management System Market Trends:

Inventory management is a recent trend

Pharmacy management system provides a more effective way to manage inventory and focuses on lowering the inventory costs through automated usage-based reordering, improves expiration date tracking (which helps reduce waste), increases pharmacy staff productivity by automating satellite inventory management, and standardize the scales to meet the growing needs of multi-site health systems. Therefore, there is an increase in demand for inventory management system. This trend is expected to continue over the forecast period.

Increase in awareness is another trend

Pharmacy management system enable pharmacists to streamlines their workflow, drug dispensing, and patient medication adherence. These systems also helps in optimizing operational efficiency, leveraging actionable data points, reducing costs, compliance risks, and drug dispensing errors. In addition, the system also helps simplify daily tasks such as inventory (or drug stock) management, customer management, and billing. This trend is also expected to continue over the forecast period, driving the growth of the pharmacy management system market.

Global Pharmacy Management System Market Restraints:

Reluctance for adoption to hinder market growth

One of the key factors expected to hamper the growth of the global pharmacy management system market is the reluctance for adoption. For instance, many healthcare professionals/providers across the globe are reluctant to adopt and/or accept IT-based management solutions/software (such as pharmacy management system) despite their benefits. This is mainly attributed to the high initial capital investment. Thus, only large hospitals or pharmacies adopt or accept IT-based management solutions/software, driving the growth of the market.

Lack of skilled personals to hamper market growth  

Another factor which is hampering the growth of the global pharmacy management system market is the lack of skilled personals. The lack of qualified specialists is one of the main problems, and thus, the system won't function/work well without a professional's assistance. Moreover, lack of awareness, especially in developing/underdeveloped countries, and high initial capital investment is expected to hamper the demand for pharmacy management system. Market players are working hard to stun these obstacles and increase market demands.

Figure 2. Global Pharmacy Management System Market Share (%), by Solution Type, 2023

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Global Pharmacy Management System Market Segmentation:

The pharmacy management system market report is segmented into Solution Type, Component, Deployment Mode, End User, and Geography.

Based on Solution Type, the market is segmented into Pharmacy Inventory Management System, Pharmacy Data Management System, Pharmacy Compounding Software System, Pharmacy Benefits Management System, and Pharmacy Revenue Cycle Management System and Others. Out of which, Pharmacy Inventory Management System Segment is expected to dominate the pharmacy management system market over the forecast period and this is attributed to the rise in adoption of pharmacy inventory management system.

Pharmacy Data Management System Segment is also expected to witness significant growth in the near future and this is owing to the rise in adoption of pharmacy management system (due to rise in awareness among pharmacist about the benefits of pharmacy management system.

Based on Component, the market is segmented into Software, Hardware, and Services. Out of which, Software Segment is expected to dominate the market over the forecast period and this is attributed to the rise in burden on pharmacists owing to rise in consumption of prescription drugs.

Hardware Segment is also expected to witness significant growth in the near future and this is owing to rising incidence of medication errors.

Based on Deployment Mode, the market is segmented into Cloud/Web-Based and On-Premise. Out of which, Cloud/Web-Based Segment is expected to dominate the market over the forecast period and this is attributed to the rise in adoption of cloud-based management system.

Based on End User, the market is segmented into Inpatient Pharmacies and Outpatient Pharmacies. Out of which, Inpatient Pharmacies Segment is expected to dominate the market over the forecast period and this is attributed to the increase in the number of prescriptions along with a shortage of pharmacists worldwide.

Outpatient Pharmacies Segment is also expected to witness significant growth in the near future and this is owing to rise in burden of chronic and infectious diseases worldwide.

Global Pharmacy Management System Market: Key Developments

In October 2022, Rite Aid collaborated with Google Cloud to transform its pharmacy operations digitally. Modernized applications for personalized digital experiences will enable pharmacists to spend more time directly engaging customers.

In June 2022, GE Healthcare offers state-of-the-art imaging techniques and solutions that simplify and broaden access to precision medicine and theragnostic to assist improve patient outcomes in a variety of care settings, including prostate cancer.

In May 2022, ValGenesis Inc. and Zenovative teamed up to provide pharmaceutical companies with unique compliance-focused digital validation solutions.

In May 2022, Zenovative and Val Genesis Inc. joined forces to offer pharmaceutical companies all over the world special compliance-focused electronic verification remedies.

In March 2022, Walgreens Boots Alliance reported opening its robotic micro-fulfilment centres in its 22 facilities across the United States, to fill customers’ prescriptions.

Global Pharmacy Management System Market: Key Companies Insights

The global pharmacy management system market is highly competitive. This is attributed to the rise adoption of pharmacy management system across the globe, as a result, players in the market are focusing on launching novel products in the market.

Some of the key players in the global pharmacy management system market are DMedHOK, Inc., Safecare Technology, Octal IT Solution, McKesson Corporation, LS Retail ehf., Liberty Software, Inc., GlobeMed Group, Datascan, Cerner Corporation, Allscripts Healthcare, LLC, and Epicor Software Corporation, among others.

*Definition: The pharmacy management system is a system that helps organize and maintain the drug use within pharmacy. The system enables pharmacists to provide efficient, professional, and personalized care based on the patients' needs and requirements and streamlines their workflow.