Medication Management System Market Size, Share & Trends Analysis Report By Software, By Service, By Mode Of Delivery (On-premise, Web-based, Cloud-based), By End-use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global medication management system market size was valued at USD 2.7 billion in 2022 and is projected to expand at a CAGR of 10.7% from 2023 to 2030. Growth can be attributed to a rise in investment by hospitals to improve workflow, rapid advancement in medical technology, and an increase in focus on reducing medication errors. Additionally, the global adoption of IT in the healthcare sector is a factor that will fuel market growth over the forecast period. The outbreak of COVID-19 had a positive impact on the market. The present pandemic is putting a significant burden on healthcare institutions all across the world. To control the spread of the infection, social distance and lockdowns were employed. Patients with chronic diseases unable to access healthcare facilities for routine treatment and medication administration suffered. Retail pharmacy stores provided these patients with convenient and rapid access. During this pandemic, the involvement of community pharmacists at these centers in managing chronic health issues and promoting drug adherence was critical in reducing the load on overburdened health systems throughout the world.

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 the adoption of medication management software.

The increased demand to decrease medication errors and the rising number of prescriptions around the globe are driving the medication management system industry. The medication management system market is expected to grow due to rising IT adoption in the healthcare sector, increased adoption of automated workflow management solutions due to increased workload on pharmacists, and increased investment by hospitals in order to purchase new software for efficient management of healthcare processes.

Medication management services are provided under healthcare reforms, and these management systems have a high adoption rate because they are recognized to reduce medication errors and healthcare expenditures. Additionally, significant player mergers and acquisitions, an aging population, high rates of chronic illness, and rising healthcare spending all benefit the medication management system industry. Furthermore, in the foreseeable future, the market potential in emerging nations and a growing emphasis on value-based medicine provide lucrative prospects for market players.

Rapid rise in the 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 the U.S. increased from 4.2 billion in 2019 to 6.3 billion in 2020. In addition, the American College of Clinical Pharmacy estimated that over 5 billion prescriptions will be dispensed by 2021. Rise in the number of prescriptions increases the burden on pharmacists, which will boost the adoption of automated solutions in workflow management.

The increase in the number of hospitals investing in new technologies to improve healthcare process management and prevent medication errors is also projected to drive market expansion. For instance, in March 2021, announced that it has entered into an agreement with Hospital Orion Ltd. for the transfer and sale of its assets and employees in the rendering of medical/hospital service to Hospital Israelita Albert Einstein.

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 the 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 the U.S. McKesson has made 21 investments with a total of 23 acquisitions, and spent over USD 18.95 billion for acquisition. They invested in various sectors including Healthcare IT, Pharmacy It, Life Sciences Platforms and Tools. 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 market and accounted for revenue share of 28.4% in 2022. Medication and its associated cost account for a major portion of hospital and pharmacy budgets. Healthcare systems are striving to minimize the wastage of resources and reduce spending. Thus, the growing need for standardization of workflow, streamlined processes, and efficient procurement of inventory is anticipated to contribute to the growth of this segment.

An 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 the integration of IT in healthcare are also a major driver for market growth.

Mode of Delivery Insights

The cloud-based solution segment dominated the market and accounted for revenue share of 59.9% in 2022. 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 the 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-premises 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 2021, web-based solutions held the second-largest share in the medication management systems market. This can be attributed to an increase in preference by doctors for web-based technologies due to its cost-effectiveness as compared to cloud-based technologies.

End-use Insights

The hospitals segment held the largest revenue share of 70.6% in 2022 and is one of the key end-users of IT solutions. In recent years, hospitals have started investing massive capital in the purchase and upgrades in 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 11.9% over the forecast period. Increase in the number of prescriptions along with a shortage of pharmacists is some of the key factors responsible for the growth of medication management solutions in pharmacies.

The adoption of automated solutions in pharmacies is expected to minimize workload on pharmacists and assist in efficiently managing prescriptions of patients. In addition, the 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. Hospitals lead the market with a growing focus on improving workflow efficiency and simplifying complex clinical processes. Pharmacies to gain prominence with a rise in chronic and infectious diseases and an increase in prescriptions dispensed.

Regional Insights

North America dominated the market and accounted for the largest revenue share of 52.0% in 2022. High adoption of IT in healthcare, technological advancement, an increase in the incidence of infectious and chronic diseases, and a rise in the number of prescriptions in the region were key factors behind the region’s dominance. The 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, the presence of a large number of small- and medium-scale players offering medication management solutions to various hospitals and pharmacies, and a shortage of primary care physicians.

According to a study published in the Journal of American Medical Association, a shortage of physicians in the U.S. is expected to reach nearly 91,500 by 2020. In Asia Pacific, the market is anticipated to exhibit the fastest growth over the forecast period with a CAGR of 11.5%. Improved infrastructure and healthcare facilities in the region, rise in healthcare expenditure, the presence of a large patient pool, and an increase in the number of hospitals are factors expected to boost the market over the forecast period.

Key Companies & Market Share Insights

The market is competitive and fragmented, with numerous key competitors. Market players are always working on providing customized solutions, mergers, and acquisitions, and developing opportunities in undeveloped commercial areas. Furthermore, as part of a commercialization plan, corporations are investing heavily in developing new products and platforms with upgraded and better capabilities. Launch of new products and services and mergers and acquisitions are key strategies adopted by players to gain a competitive edge. Some of the prominent players in the medication management system market include:

• Allscripts

• Becton

• Dickinson and Company (CareFusion)

• GE Healthcare

• Talyst, LLC.

• McKesson Corporation

• Cerner Corporation

• QuadraMed Affinity Corporation

• Omnicell, Inc.

Medication Management System Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global medication management system market report on the basis of software, service, mode of delivery, end use, and region:

• Software Outlook (Revenue, USD Million, 2016 - 2030)

  • Computerized Physician Order

  • Clinical Decision Support System Solutions

  • Inventory Management Software

  • Administration Software

    • Electronic Medication Administration Record (EMAR)

    • Barcode Medication Administration (BMA)

  • Automated Dispensing Systems

    • Centralized

      • Robots

      • Carousels

    • Decentralized

      • Pharmacy-based ADS

      • Ward-based ADS

      • Automated Unit-Dose Dispensing

  • Assurance System Software

  • Other Software

• Services Outlook (Revenue, USD Million, 2016 - 2030)

  • Medication Analytics

  • Point-of-Care Verification

  • ADE Surveillance

• Mode of Delivery Outlook (Revenue, USD Million, 2016 - 2030)

  • On-premises

  • Web-based

  • Cloud-based

• End-Use Outlook (Revenue, USD Million, 2016 - 2030)

  • Hospitals

  • Pharmacy

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Russia

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • Singapore

    • Thailand

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • MEA

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait