| REPORT ATTRIBUTE |
DETAILS |
| Historical Period |
2019-2022 |
| Base Year |
2023 |
| Forecast Period |
2024-2032 |
| US Pharmacy Automation Market Size 2023 |
USD 2.76 Billion |
| US Pharmacy Automation Market, CAGR |
7.78% |
| US Pharmacy Automation Market Size 2032 |
USD 5.49 Billion |
Market Overview:
The US pharmacy automation market is experiencing significant growth, projected to reach USD 5.49 billion by 2032 from USD 2.76 billion in 2023, reflecting a compound annual growth rate (CAGR) of 7.78%.
The US pharmacy automation market is experiencing significant growth driven by several key factors. Pharmacies are increasingly recognizing the importance of efficiency and accuracy in medication dispensing, leading to a heightened demand for automation solutions. These solutions not only streamline workflows and minimize errors but also address labor shortages by automating repetitive tasks, allowing pharmacists to focus on patient care. Moreover, advancements in robotics, artificial intelligence, and machine learning are propelling the development of more sophisticated automation systems, further enhancing efficiency and accuracy while ensuring patient safety remains a top priority. As a result, the landscape of the US pharmacy automation market is evolving, with a diverse presence across major urban areas and a growing trend of adoption in suburban and rural regions, driven by the myriad benefits offered by these technologies.
Several key players, including established healthcare technology companies and niche providers, are shaping the US pharmacy automation market. These players are actively involved in mergers and acquisitions to expand their product portfolios and geographical reach, contributing to market consolidation. Looking ahead, continued growth is anticipated as technology continues to advance and the benefits of automation become more widely recognized. This trajectory promises to revolutionize pharmacy operations across all settings in the United States, leading to heightened efficiency, accuracy, and patient safety within the healthcare system.
Access crucial information at unmatched prices!
Request your sample report today & start making informed decisions powered by Credence Research!
Download Sample
Market Drivers:
Minimizing Medication Errors with Pharmacy Automation:
In healthcare settings, medication errors pose a significant threat to patient safety and incur substantial costs. For instance, medication-related harm affects 1 out of every 30 patients in healthcare, with more than a quarter of this harm regarded as severe or life-threatening. Half of the avoidable harm in healthcare is related to medications. Pharmacy automation systems emerge as a critical solution to mitigate these risks by automating key processes such as dispensing, labeling, and inventory management. By reducing human involvement in these tasks, automation minimizes the potential for errors, enhancing patient safety and driving down healthcare costs. Additionally, the time saved through automation allows pharmacists to allocate more attention to direct patient care, further improving overall healthcare outcomes.
Meeting the Demand for Specialty Drugs:
With the increasing utilization of specialty drugs, characterized by their high-cost and specific handling requirements, the need for effective medication management solutions becomes paramount. Pharmacy automation systems excel in managing specialty medications, ensuring proper storage, dispensing, and tracking. This capability is crucial for maintaining patient adherence and achieving optimal treatment outcomes, particularly in cases where precise medication administration is essential for managing complex conditions. However, studies show that 50 to 60 percent of patients with chronic illnesses miss doses, take the wrong doses, or drop off treatment in the first year. Therefore, the role of pharmacy automation systems in improving patient adherence and reducing medication errors is of utmost importance. As the use of specialty medications grows, these systems will continue to play a critical role in healthcare. For instance, with the rise in the aging population and the prevalence of chronic diseases, the demand for specialty drugs is expected to increase, further emphasizing the need for efficient pharmacy automation systems.
Addressing Labor Shortages and Pharmacist Workloads:
The healthcare industry grapples with a persistent shortage of qualified pharmacists, intensifying the strain on existing resources. For instance, the World Health Organization (WHO) estimates that there is a global healthcare workforce shortage of 7.2 million, which is predicted to grow to 12.9 million by 2035. More than 88 percent of respondents in a survey reported that finding pharmacy techs was their No. 1 problem. Pharmacy automation emerges as a solution to alleviate this pressure by automating repetitive tasks, thereby enabling pharmacists to focus on their core responsibilities and deliver more personalized care to patients. By streamlining workflows and optimizing medication dispensing processes, automation helps healthcare institutions navigate staffing challenges while maintaining quality patient care standards.
Optimizing Workflow Efficiency and Cost Reduction:
In a landscape marked by the constant pursuit of efficiency and cost containment, pharmacy automation systems offer significant benefits. By streamlining workflows, optimizing medication dispensing processes, and minimizing medication waste, these systems contribute to overall cost savings for healthcare institutions. The integration of automation technologies enables healthcare providers to enhance operational efficiency while simultaneously improving patient outcomes, aligning with the overarching goals of the healthcare industry.
Market Trends:
Increasing Need for Efficiency and Workflow Optimization:
Pharmacies are grappling with labor shortages and rising personnel costs, necessitating efficient management of increasing workloads with limited staff. For instance, Moreover, in January 2022, it was reported that the use of automated dispensing cabinets (ADCs) is increasing in healthcare settings, with 93.0% of hospitals using ADCs in their medication-use systems in which 70.2% of hospitals using ADCs as a primary method of dose distribution. Automation solutions emerge as a crucial tool in this context, offering significant labor savings by automating repetitive tasks such as medication dispensing, sorting, and packaging. By alleviating pharmacists’ workload burden, automation enables them to redirect their focus towards higher-value activities like patient consultations and medication reviews, ultimately enhancing overall workflow efficiency and optimizing pharmacy operations. Moreover, automation minimizes the risk of human error in medication dispensing, leading to improved patient safety and medication adherence. Additionally, automated systems streamline inventory management processes, reducing medication waste and further contributing to workflow optimization.
Growing Adoption of Specialty Drugs and Focus on Improved Patient Care:
The rising prevalence of chronic diseases drives the demand for specialty drugs, which often necessitate complex dispensing procedures and specific storage conditions. For instance, in 2020, specialty drugs represented only 2.2% of all prescriptions but accounted for 52.2% of drug spending. In the 10 largest developed or higher-income countries, specialty medicines have reached 48% and 39% of drug spending in 2021, up from 26% and 22% 10 years earlier. In response, pharmacies are increasingly turning to automation systems to ensure accurate dispensing and proper handling of these sensitive medications. Beyond mere efficiency gains, automation enables pharmacies to deliver more personalized services to patients, enhancing patient care and medication adherence. Pharmacists can leverage automation for medication synchronization and reminders, fostering better medication adherence and ultimately improving patient outcomes. Thus, the growing adoption of specialty drugs coupled with automation’s role in enhancing patient care underscores the importance of leveraging technology to meet evolving healthcare needs effectively.
Market Challenges Analysis:
High upfront costs and implementation complexities:
Integrating automated dispensing and medication management systems requires significant upfront investment. These costs encompass not only the initial purchase of hardware and software but also installation, training for staff, and ongoing maintenance. Smaller pharmacies, particularly independent ones, may struggle to justify the initial financial outlay, hindering broader market penetration. Additionally, implementing these systems often involves complex workflows and staff training, requiring pharmacies to dedicate time and resources to ensure seamless integration with existing operations.
Regulatory hurdles and reimbursement concerns:
Pharmacies navigating the complex regulatory landscape surrounding pharmacy automation can face delays and challenges. Obtaining necessary approvals and ensuring compliance with evolving regulations add another layer of complexity. Furthermore, concerns regarding reimbursement for services facilitated by automation may exist. Pharmacies may hesitate to invest in automation if the associated cost savings or increased efficiency are not adequately reflected in reimbursement rates from insurance providers.
Segmentation Analysis:
By Product:
The pharmacy automation market encompasses various product segments, each playing a vital role in streamlining medication management processes and optimizing pharmacy operations. The largest market share is held by Medication Dispensing Systems, renowned for their efficiency in accurately dispensing medications and enhancing workflow. This segment includes automated dispensing robots, carousel systems, and unit-dose dispensing systems, offering pharmacies versatile options to meet their specific needs. Packaging and Labeling Systems automate the labeling and packaging of dispensed medications, minimizing errors and improving overall efficiency. This segment comprises automated labeling machines, blister packing systems, and unit-of-use packaging systems, ensuring standardized and error-free medication packaging. Storage and Retrieval Systems automate the storage and retrieval of medications, optimizing space utilization and expediting workflow. These systems, including automated storage and retrieval units (AS/RS), carousels, and robotic retrieval systems, enhance inventory management and facilitate quick access to medications. Compounding Automation Systems cater to the growing demand for automated compounding of personalized medications, featuring automated dispensing robots, aseptic compounding isolators, and compounding management software to ensure accuracy and safety. Lastly, Inventory Management Systems integrate with other pharmacy automation systems to track inventory levels, optimize ordering processes, and prevent stockouts, contributing to efficient pharmacy operations and cost savings.
By End-Use:
Pharmacy automation plays a crucial role across various segments of the pharmaceutical industry, addressing unique challenges and optimizing operations to meet specific needs. In the Retail Pharmacy segment, automation targets enhancing efficiency and accuracy in dispensing high volumes of medication directly to patients within retail stores. By focusing on reducing wait times and minimizing medication errors, automation in retail pharmacies improves the overall customer experience and ensures timely access to essential medications. In Inpatient Pharmacies located within hospitals and other healthcare facilities, automation facilitates the management of medication administration for hospitalized patients. This automation ensures timely and accurate medication delivery while streamlining workflow for pharmacy staff, ultimately enhancing patient safety and operational efficiency. Outpatient Pharmacies, serving patients outside of hospital settings, benefit from automation to streamline medication dispensing processes, optimize inventory management, and potentially reduce medication waste, improving overall service quality. Lastly, Pharmacy Benefit Management Organizations (PBMOs) and Mail-Order Pharmacies rely on automation to efficiently manage high order volumes, ensure accurate order fulfillment, and potentially reduce operational costs, supporting the seamless delivery of prescription medications to patients via mail-order services.
Shape Your Report to Specific Countries or Regions & Enjoy 30% Off!
Segments:
Based on Product
- Medication Dispensing Systems
- Robots/Robotic Automated Dispensing Systems
- Carousels
- Automated Dispensing Cabinets
- Packaging And Labeling Systems
- Storage And Retrieval Systems
- Automated Medication Compounding Systems
- Tabletop Tablet Counters
Based on End-Use
- Retail Pharmacy
- Inpatient Pharmacies
- Outpatient Pharmacies
- Pharmacy Benefit Management Organizations and Mail-Order Pharmacies
Regional Analysis:
East Coast:
The East Coast region, comprising states like New York, Pennsylvania, Florida, and Massachusetts, holds the larger share of the United States Pharmacy Automation market, estimated to be around 55%. This region’s dominance can be attributed to several factors, including a high concentration of healthcare facilities, research centers, and the presence of major industry players.The East Coast is home to several prominent medical institutions, such as the Mayo Clinic, Cleveland Clinic, and Massachusetts General Hospital, which drive the demand for advanced pharmacy automation solutions. Additionally, the region’s focus on improving healthcare efficiency and reducing medication errors has further propelled the adoption of pharmacy automation technologies.
West Coast:
The West Coast region, including states like California, Washington, and Arizona, accounts for approximately 35% of the United States Pharmacy Automation market share. While the demand for pharmacy automation technologies in this region has been relatively lower compared to the East Coast, it is steadily increasing.The West Coast is characterized by a growing healthcare industry, particularly in states like California, which has become a hub for medical innovation and research. The region’s focus on personalized medicine and the increasing adoption of advanced healthcare technologies have contributed to the growth of the Pharmacy Automation market.
Key player:
- Becton Dickson and Company
- Omnicell Inc.
- Baxter International Inc.
- Touchpoint Medical Solutions
- Tension Corporations
- Pearson Medical Technologies LLC
- RxSafe LLC
- Cerner Corporation
- ABB Robotics
- KUKA AG
- Talyst Systems LLC
- Capsa Healthcare
- Yuyama Co Ltd.
- Meditech Pharmacy Management Solutions
- Mckesson Corporation
Competitive Analysis:
The pharmacy automation market features several dominant players, each offering a range of solutions tailored to diverse pharmacy settings. Omnicell stands out as a dominant player, boasting a comprehensive portfolio of automation solutions designed for various pharmacy environments. Their offerings include dispensing robots, automated storage and retrieval systems, and medication packaging equipment, catering to the needs of retail pharmacies, hospitals, and health systems. McKesson Automation also holds a strong presence in the market, providing automated dispensing and medication management systems that serve retail pharmacies, hospitals, and health systems. Swisslog Healthcare specializes in innovative robotic technology for high-throughput medication storage, retrieval, and dispensing, particularly beneficial for large healthcare institutions. Capta offers automation solutions customized to specific pharmacy needs, such as unit-dose packaging and intravenous (IV) robotics, addressing workflow challenges in both retail and hospital settings. Ropack Pharmaceutical Services integrates automation solutions with medication packaging and distribution services, streamlining medication management for pharmacies and healthcare providers. These key players play pivotal roles in shaping the landscape of pharmacy automation, driving innovation and efficiency across the pharmaceutical industry.
Recent Developments:
In October 2023, JVM, an affiliate of Hanmi Science, launched an advanced automated drug dispensing machine with a robotic arm to the European market. This strategic launch seeks to enhance its European presence, transitioning from entry-level to high-end models, and optimizing pharmacy workflow.
In October 2023, Pharmacierge is set to expand in the central London healthcare hub with a 5,500 sqft dispensary featuring a 30ft dispensing robot, the largest of its kind in the renowned Harley Street Medical Area. This project aims to revolutionize the private pharmacy pathway, blending advanced technology and robotics with traditional pharmacy values.
In January 2023, AmerisourceBergen Corporation announced the completion of its acquisition of PharmaLex Holding GmbH. The acquisition of PharmaLex enhances AmerisourceBergen Corporation’s growth strategy by advancing its leadership in specialty services and North America platform of pharma manufacturer services capabilities.
In February 2022, Baxter announced that it had received authorization from the Common Vulnerability and Exposures (CVE) program to be a CVE Numbering Authority.
Market Concentration & Characteristics:
The United States Pharmacy Automation market exhibits a concentrated competitive landscape. While established medical device and technology companies hold a significant share, the market is characterized by a growing presence of smaller firms. These smaller firms are entering the market with innovative pharmacy automation solutions, indicating a shift towards a more competitive environment in the coming years. This blend of established players and emerging innovators is likely to drive advancements and potentially lead to a wider range of solutions catering to diverse pharmacy needs.
Report Coverage:
The research report offers an in-depth analysis based on Product, End Use,, and Region. It details leading market players, providing an overview of their business, product offerings, investments, revenue streams, and key applications. Additionally, the report includes insights into the competitive environment, SWOT analysis, current market trends, as well as the primary drivers and constraints. Furthermore, it discusses various factors that have driven market expansion in recent years. The report also explores market dynamics, regulatory scenarios, and technological advancements that are shaping the industry. It assesses the impact of external factors and global economic changes on market growth. Lastly, it provides strategic recommendations for new entrants and established companies to navigate the complexities of the market.
Future Outlook:
- AI-powered systems for medication management, inventory control, and even robotic dispensing assistants are poised to further optimize pharmacy workflows and improve medication adherence.
- Seamless integration between pharmacy automation systems and electronic health records (EHRs) will enhance patient care coordination and medication safety.
- Automation solutions tailored to the specific needs of specialty pharmacies, handling high-cost and complex medications, will see increased adoption.
- As telemedicine gains traction, automation systems that facilitate remote prescription fulfillment and medication delivery will become more prevalent.
- Technological advancements and potentially lower costs will make automation solutions more accessible for smaller pharmacies, allowing them to compete more effectively.
- As reliance on automation increases, robust cybersecurity measures will be crucial to safeguard sensitive patient data and system integrity.
- Intuitive interfaces and comprehensive training programs will ensure smooth adoption and efficient utilization of automation systems by pharmacy staff.
- Environmentally friendly materials and energy-efficient designs will be prioritized in the development of future pharmacy automation solutions.
- Integration with medication adherence programs and patient engagement tools will become a key feature of advanced automation systems.
- Government policies and regulations that incentivize or mandate the adoption of pharmacy automation technologies could further accelerate market growth.
