Pharmacy Automation Devices Market Size, Share & Trends Report

Pharmacy Automation Devices Market Size, Share & Trends Analysis Report By Product (Medication Dispensing Systems, Automated Medication Compounding Systems), By End Use, And Segment Forecasts, 2021 - 2028

  • Published Date: Feb, 2021
  • Base Year for Estimate: 2020
  • Report ID: 978-1-68038-239-6
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2019
  • Number of Pages: 150

Report Overview

The global pharmacy automation devices market size was valued at USD 4.8 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 9.3% from 2021 to 2028. Pharmacy automation devices provide advantages such as reduced vulnerability to the shortage of medications, decreased medication waste, reduced medication cost per dose, and enhanced patient safety. The introduction of RFID, barcode scanning technology, smart dashboard, and data security in pharmacies for seamless workflow is expected to further enhance their overall efficiency. Moreover, these devices reduce labor costs and medication errors and enhance accuracy and speed. These products further save pharmacists’ time in nonclinical functions, such as inventory management. Pharmacists can spend more time with patients, thereby enhancing the patient experience.

Global pharmacy automation devices market size, by product, 2016 - 2028 (USD Billion)

The complex and unprecedented challenge of maintaining corporate compliance in a digital world has increased external pressure on organizations to improve transparency and adopt innovative technologies. Recent technological advancements in the pharmacy automation sector are providing benefits of various automating solutions. These advantages include faster prescription processing, reduction in medication errors and inventory discrepancies, and an overall decline in pharmacy expenditure. In June 2020, Swisslog Healthcare launched The Open Pharmacy platform to help transform pharmacies into health hubs. It enabled community pharmacies to face challenges and adapt to new trends and expectations. These aforementioned factors are expected to raise the demand for these automation devices in the coming years.

Many pharmacy automation devices companies witnessed a decrease in sales revenue during the COVID-19 pandemic. For instance, Omnicell, Inc., a provider of pharmacy and medication solutions, witnessed a decrease in sales revenue by approximately 3.6% in 2020 from 2019. Moreover, BD witnessed a decline in sales revenue by 1.0% in 2020 from 2019. However, this pandemic is expected to increase awareness about the importance of automation in the healthcare and pharmaceutical industry, which, in turn, is likely to drive the pharmacy automation market in the coming years. For instance, in the U.K. and Ireland, BD witnessed a 30.0% increase in medication flow for its ROWA automated dispensing system in September 2020.

COVID19 pharmacy automation devices market impact: 1.4% decrease in sales

Pandemic Impact

Post COVID Outlook

The pharmacy automation devices market increased by 1.4% from 2019 to 2020, as per earlier projections the market was expected to be over USD 4.8 billion in 2020.

The pharmacy automation devices market is estimated to witness a y-o-y growth of approximately 8% to 9% in the next 4 years.

Pharmacy automation players witnessed a decline in revenue in the second quarter of 2020. Omnicell Inc. witnessed a decline in its revenue by -0.13% in the second quarter of 2020.

The pandemic has exposed gaps and challenges across the pharmaceutical supply chain, making more sophisticated automation and intelligence capabilities critical to effectively manage medications in the post-COVID world.

Financial pressures on health systems due to COVID-19 resulted in delaying or differing purchasing decisions and installations of pharmacy automation devices during the first half of 2020.

Major pharmacy chains, such as Walgreens Boots Alliance, are investing in the pharmacy automation device industry thereby increasing market potential.

 

Digitizing processes and improving workflow are helping the end-users better manage costs and improve efficiency across the continuum of care, driving better outcomes and performance and allowing them to reallocate time to focus on patient care. For instance, in March 2020, Swisslog Healthcare announced the launch of the Meds-to-Beds program, an initiative to provide hospital outpatient pharmacy services at the time of discharge, by partnering with PipelineRx and Savioke. The program includes automatic robotic delivery of prescribed medication and consulting to expand pharmacy capacity. This, in turn, is anticipated to drive the adoption of these solutions to simplify tasks by limiting unnecessary human intervention, while adhering to social distancing norms.

Increasing mergers & acquisitions and a rise in the number of agreements among various companies for the extension of their product capabilities are some of the key factors expected to drive the market. For instance, in November 2020, Omnicell, Inc. announced the latest innovations to the company’s industry-leading portfolio of medication management solutions across three key areas, including intelligence that offers actionable insights to improve pharmacy supply chain management and better understand medication usage; automation solutions designed to digitize and streamline workflows; and technology-enabled services to support regulatory compliance, improved efficiency, and patient outcomes. These advanced capabilities are designed to support hospitals and other health systems to expand the visibility of their medication inventory and supply chain management capabilities, supporting improved operational, clinical, and financial goals.

Product Insights

In 2020, medication dispensing systems accounted for the largest revenue share of 25.1%. The increasing number of deaths due to medication and dispensing errors, coupled with stringent government policies, is creating pressure on healthcare institutes and pharmacists to include various medication dispensing systems for improving patient care services. According to a survey conducted by Pharmacy Purchasing and Products on pharmacy automation devices in 2019, 84.0% of the hospital pharmacies have adopted or planned to adopt automated dispensing cabinets.

The automated medication compounding systems segment is anticipated to witness the fastest growth during the forecast period. Rising applications in sterile compounding is a major parameter driving this segment. For instance, in December 2018, ARxIUM launched the RIVA IV compounding system for 503B outsourcing, central-fill, and hospital pharmacies. In addition, automated robotic sterile compounding solutions empower technicians and pharmacists with tools for improving dosage accuracy and making Intravenous (IV) pharmacy compounding safer, while reducing costs and enabling compliance.

End-use Insights

The retail pharmacy segment accounted for the largest share of 52.7% in 2020. Increasing applications of these solutions in prescription filling, cutting down costs and errors, inventory tracking, and streamlining operations are driving the adoption of these solutions in retail pharmacies. For instance, automated robotic storage and retrieval systems offered by RxSafe enable retail pharmacies to experience speed, space savings, accuracy, and convenience delivered by the combination of real-time inventory tracking, prescription dispensing, and workflow optimization solutions.

Global pharmacy automation devices market share, by end use, 2020 (%)

The hospital pharmacy segment is anticipated to witness the fastest growth during the forecast period. This can be attributed to the increasing usage of automated dispensing cabinets, barcoded unit dose packaging systems, automated drug storage and retrieval systems, and automated sterile compounding systems to enhance productivity and efficiency. For instance, in December 2020, Omnicell Central Pharmacy Dispensing Service was deployed by Owensboro Health to eliminate medication dispensing errors and improve inventory management.

Regional Insights

North America accounted for the largest revenue share of 54.9% in 2020. Technological advancements in medication management in hospitals and pharmacies are expected to drive the demand for pharmacy automation devices in North America. For instance, Duke University Hospital in the U.S. has implemented Omnicell’s XT series automated dispensing system in five of their hospitals. These redesigned cabinets allow for increased capacity and accommodate 30% more medications in the same outline as the old design. Growing concerns over inadequate inventory management may propel the growth of high-volume dispensing cabinets in the region as it leads to a high cost of holding inventory, which can ultimately put a cost burden on retailers.

Asia Pacific is anticipated to witness the fastest growth during the forecast period. The growing need to minimize medication errors, decentralization of pharmacies, technological advancements by players, and the rapidly rising geriatric population are the key factors expected to fuel the market growth. For instance, according to the Australian Commission on Safety and Quality in Healthcare, 2.0% to 3.0% of hospital admissions in Australia are due to medication errors. In addition, improvements in healthcare infrastructure in emerging countries are expected to create new opportunities for market expansion.

Key Companies & Market Share Insights

Mergers & acquisitions, major investments in R&D, and the development of new products or product modifications are among the key strategies adopted by market players to gain a competitive edge in the market. For instance, in January 2021, Amerisource Bergen and Walgreens Boots Alliance entered into a strategic alliance. Walgreens Boots Alliance Healthcare Business was acquired by Amerisource Bergen, enabling it to increase its focus on growing retail pharmacy business. Through this strategic partnership, the two companies are extending and expanding their commercial agreements. Some prominent players in the global pharmacy automation devices market include:

  • Amerisource Bergen Corporation

  • Accu Chart Plus Healthcare Systems, Inc.

  • Omnicell, Inc.

  • McKesson Corporation

  • Pearson Medical Technologies, LLC

  • Baxter

  • Talyst, LLC

  • ScriptPro, LLC

  • CareFusion (Becton Dickinson And Company)

  • Medacist Solutions Group, LLC

  • Kirby Lester

  • Cerner Corporation

  • iA

  • ARxIUM

  • TouchPoint Medical

  • Deenova S.R.L

  • Parata Systems, LLC

  • Swisslog Healthcare

  • Yuyama Co. Ltd. 

Pharmacy Automation Devices Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 5.1 billion

Revenue forecast in 2028

USD 9.5 billion

Growth Rate

CAGR of 9.3% from 2021 to 2028

Base year for estimation

2020

Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion and CAGR from 2021 to 2028

Report coverage

Revenue, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, end-use, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

U.S.; Canada; U.K.; Germany; France; Spain; Italy; Russia; China; Japan; India; Australia; Singapore; South Korea; Brazil; Mexico; Argentina; South Africa; Saudi Arabia; UAE

Key companies profiled

Amerisource Bergen Corporation; Accu Chart Plus Healthcare Systems, Inc.; Omnicell, Inc.; McKesson Corporation; Pearson Medical Technologies, LLC; Baxter; Talyst, LLC; ScriptPro, LLC; CareFusion (Becton Dickinson and Company); Medacist Solutions Group, LLC; Kirby Lester; Cerner Corporation; iA; ARxIUM; TouchPoint Medical; Deenova S.R.L; Parata Systems, LLC; Swisslog Healthcare; Yuyama Co. Ltd.

Customization scope

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research, Inc. has segmented the global pharmacy automation devices market report on the basis of product, end-use, and region:

  • Product Outlook (Revenue, USD Million, 2016 - 2028)

    • Medication Dispensing Systems

    • Packaging and Labeling Systems

    • Storage and Retrieval Systems

    • Automated Medication Compounding Systems

    • Tabletop Tablet Counters

  • End-use Outlook (Revenue, USD Million, 2016 - 2028)

    • Hospital Pharmacy

    • Retail Pharmacy

  • Regional Outlook (Revenue, USD Million, 2016 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • U.K.

      • France

      • Spain

      • Italy

      • Russia

    • Asia Pacific

      • Japan

      • China

      • India

      • Australia

      • Singapore

      • South Korea

    • Latin America

      • Brazil

      • Mexico

      • Argentina

    • Middle East & Africa

      • South Africa

      • Saudi Arabia

      • UAE

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