Medication Management System Market Report

Medication Management System Market Analysis By Software, By Mode of Delivery (On-premise, Web-based, Cloud-based), By End Use, By Region (North America, Europe, Asia Pacific, Latin America, MEA), And Segment Forecasts, 2018 - 2025

  • Published Date: Dec, 2017
  • Base Year for Estimate: 2016
  • Report ID: GVR-2-68038-268-6
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2015
  • Number of Pages: 104

Industry Insights

The global medication management system market size was valued at USD 1.20 billion in 2016 and is projected to grow at a CAGR of 20.5% over the forecast period. Growth can be attributed to rise in investment by hospitals to improve workflow, rapid advancement in medical technology, and increase in focus on reducing medication errors. Additionally, global adoption of IT in the healthcare sector is a factor that will fuel market growth over the forecast period.

U.S. medication management systems market

Medication management software enhances inventory management, dispensing of medicines, and controls Adverse Drug Events (ADE). In recent times, there has been a significant shortage of healthcare professionals and pharmacists. Thus, to ensure efficient workflow, there has been a rise in adoption of medication management software. 

Rapid rise in number of prescriptions globally is expected to further boost the adoption of medication management solutions in healthcare facilities. According to a report published by the U.S. Department of Health and Human Services, the total number of prescriptions in U.S. increased from 3.5 billion in 2010 to 3.9 billion in 2014, indicating a rise of 11%. In addition, the American College of Clinical Pharmacy estimates that around 5 billion prescriptions will be dispensed by 2021. Rise in number of prescriptions increases the burden on pharmacists, which will boost the adoption of automated solutions in workflow management.

Rise in number of hospitals that are investing in the purchase of new software for efficient management of healthcare processes and reduce medication errors is also expected to propel market growth. For instance, in September 2015, Hospital Israelita Albert Einstein (Brazil) signed an agreement with Swisslog Healthcare Solutions to automate medication management in their pharmacy.

Furthermore, key players are increasingly adopting strategies such as mergers and acquisitions to gain market share. Many large players are acquiring smaller players and new entrants to gain rights of their technologies to enhance and expand their overall product offerings. For instance, in April 2017, McKesson Corporation acquired CoverMyMeds LLC, which is one of the fastest growing healthcare technology companies in U.S.

Key trends:

• Lack of pharmacists and healthcare professionals is encouraging the use of medication management software for efficient workflow
• Hospitals are purchasing new and/or upgrading existing software to efficiently manage healthcare processes and reduce medication errors

Software Insights

The inventory management segment dominated the medication management market in 2016. Medication and its associated cost account for a major portion of hospital and pharmacy budgets. Healthcare systems are striving to minimize wastage of resources and reduce spending. Thus, growing need for standardization of workflow, streamlined processes, and efficient procurement of inventory is anticipated to contribute to the growth of this segment.

Increase in integration of IT software in healthcare systems can be attributed to the introduction of the Health Information Technology for Economic and Clinical Health (HITECH) Act. This act is designed to help providers improve care performance. Thus, government regulations that encourage integration of IT in healthcare are also a major driver for market growth.

Which software segment will record the fastest growth rate?

The clinical decision support system solutions segment is expected to exhibit the fastest CAGR of 21.3% over the forecast period. This is can be attributed to benefits such as accurate diagnosis and prevention of ADE.

Mode of Delivery Insights

The cloud-based solution segment dominated the medication management system market with a share of 47.8% in 2016. A number of players are developing cloud-based deployment solutions for easy information sharing with clients and other stakeholders. Easy access to information in remote locations using such solutions is likely to be a key factor driving demand for commercially-available cloud solutions. In addition, focus on patient data protection and introduction of laws pertaining to it are likely to boost the market in the coming years. 

Deployment of cloud-based technology is gaining significant traction due to various security lapses in web-based and on-premise deployment. Cloud service providers also offer solutions that cover various risks and provide assurance against data losses and thefts. Thus, this segment makes up for a significant share in the market.

In 2016, web-based solutions held the second-largest share in the medication management systems market. This can be attributed to increase in preference by doctors for web-based technologies due to its cost effectiveness as compared to cloud-based technologies.

Key mode of delivery facts:

• In 2016, the market was dominated by cloud-based solutions
• Cloud-based technology is preferred over web-based variants due to security lapses in the latter

End-use Insights

Hospitals held the largest share in the medication management market in 2016 and are one of the key end users of IT solutions. In recent years, hospitals have started investing massive capital in purchase and upgradation of their IT systems. They are focusing on improving workflow efficiency, dispensing medication safely, and simplifying complex clinical processes. These practices have enabled hospitals to garner the largest market share.

Pharmacy is a significant end user of IT solutions and the segment is expected to witness a CAGR of 21.3% over the forecast period. Increase in number of prescriptions along with shortage of pharmacists are some of the key factors responsible for the growth of medication management solutions in pharmacies.

Adoption of automated solutions in pharmacies is expected to minimize workload on pharmacists and assist in efficiently managing prescriptions of patients. In addition, rising burden of chronic and infectious diseases is likely to increase the number of prescriptions dispensed by pharmacies. These are anticipated to increase the demand for automated management solutions.

Key application facts:

• Hospitals lead the market with growing focus on improving workflow efficiency and simplifying complex clinical processes
• Pharmacies to gain prominence with rise in chronic and infectious diseases and increase in prescriptions dispensed

Regional Insights

North America dominated the medication management market in 2016. High adoption of IT in healthcare, technological advancement, increase in incidence of infectious and chronic diseases, and rise in number of prescriptions in the region were key factors behind the region’s dominance.

Global medication management systems market

U.S. is the largest medication management systems market in the region as well as across the globe. This can be attributed to high awareness about new technologies, presence of a large number of small- and medium-scale players offering medication management solutions to various hospitals and pharmacies, and shortage of primary care physicians. According to a study published in the Journal of American Medical Association, shortage of physicians in U.S. is expected to reach nearly 91,500 by 2020.

Medication management system market in Asia Pacific is anticipated to exhibit the fastest growth over the forecast period with a CAGR of 20.9%. Improved infrastructure and healthcare facilities in the region, rise in healthcare expenditure, presence of a large patient pool, and increase in number of hospitals are factors expected to boost the market over the forecast period.

Competitive Insights

Key players in the medication management systems market are Allscripts, Becton, Dickinson and Company (CareFusion), GE Healthcare, Talyst, LLC., McKesson Corporation, Cerner Corporation, QuadraMed Affinity Corporation, and Omnicell, Inc. Launch of new products and services and mergers and acquisitions are key strategies adopted by players to gain a competitive edge.

Report Scope

Attribute

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2015

Forecast period

2017 - 2025

Market representation

Revenue in USD Million and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, MEA

Country scope

U.S., Canada, Germany, U.K., Japan, China, Brazil, Mexico, South Africa

Report coverage

Revenue forecast, competitive landscape, growth factors and trends

15% free customization scope (equivalent to 5 analyst working days)

If you need specific market information, which is not currently within the scope of the report, we will provide it to you as a part of customization


Segments Covered in the Report

This report forecasts revenue growth and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the medication management market on the basis of software, mode of delivery, end use, and region:

  • Software Outlook (Revenue, USD Million, 2014 - 2025)

    • Computerized Physician Order Entry (CPOE)

    • Clinical Decision Support System Solutions

    • Electronic Medication Administration Record

    • Inventory Management Solutions

    • Other Software

  • Mode of Delivery Outlook (Revenue, USD Million, 2014 - 2025)

    • On-Premise Solution

    • Web-based Solution

    • Cloud-based Solution

  • End-use Outlook (Revenue, USD Million, 2014 - 2025)

    • Hospitals

    • Pharmacies

    • Other Healthcare Institutions

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

    • Asia Pacific

      • Japan

      • China

    • Latin America

      • Brazil

      • Mexico

    • MEA

      • South Africa

Key questions answered by the report
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