Pharmacy Inventory Management Software Solutions and Cabinets Market Size, Share & Trends Report

Pharmacy Inventory Management Software Solutions and Cabinets Market Size, Share & Trends Analysis Report By End Use, By Mode of Operation (Centralized, Decentralized), By Region, And Segment Forecasts, 2018 - 2025

  • Published Date: Jul, 2018
  • Base Year for Estimate: 2017
  • Report ID: GVR-2-68038-420-8
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 128

Industry Insights

The global pharmacy inventory management software solutions and cabinets market size was valued at USD 3.67 billion in 2017 and is projected to exhibit a CAGR of 8.6% over the forecast period. Technological advancements, an increase in the number of prescriptions, and the rising adoption of pharmacy automation solutions are among the key factors driving the market. According to various sources, about 4.45 billion medical prescriptions were dispensed in the U.S. in 2016.

Increasing pressure on healthcare professionals to reduce healthcare costs is a major factor that has spurred the adoption of inventory management software and cabinets by pharmacies. For instance, Intermountain Healthcare, a non-profit healthcare system in the U.S., revealed that approximately 60%-70% of the budget assigned to the pharmacy department is consumed for the management of medication inventory. These systems are effectively involved in reducing the cost of excess inventory, thereby propelling demand for the same.

U.S. pharmacy inventory management software solutions market

Rising incidence of medication errors, particularly dispensing errors in hospital and retail pharmacies drives demand for these systems. According to WHO, automated dispensing systems minimize the risk of medication errors. In addition, growing government concerns over patient safety contribute to market growth. For instance, in 2017, the Australian Commission on Safety and Quality in Health Care released a report focusing on the barcode and other scanning technologies used in dispensing software to improve patient safety in hospitals.

Rising number of retail, mail order, and long-term care pharmacies requires effective systems and solutions for high volume dispensing of medications, which in turn increases their demand. For instance, as of January 2018, nearly 10,947 licensed pharmacies were present in Canada. Moreover, the trend of using barcode and RFID technology in dispensing processes may propel the demand for barcode- or RFID-assisted software and cabinets in the market. For instance, in 2014, NSW Health released an information bulletin in which it strongly recommended public hospital pharmacies to use barcode verification in dispensing processes.

Technological advancements in designs of dispensing cabinets are expected to boost the market. A case in point would be ExpressRx Track, a pharmacy automation system manufactured by McKesson Corporation, which includes a barcode and RFID scanner, counting and imaging technologies, and tote or puck conveyance solutions. This is an update to its existing portfolio in solutions for managing high volume inventory. The system helps reduce overall dispensing costs, enhances patient care, and increases the overall efficiency of pharmacies.

Mode of Operations Insights

In 2017, decentralized systems accounted for the largest revenue share owing to the growing demand for point-of-use dispensing of medications. Increasing savings on inventory costs and faster prescription processing are major factors driving demand for these systems. The rising trend of using decentralized software in dispensing medications in long-term care centers may further boost demand.

These systems have been preferred over centralized ones to minimize the risk of medication errors and the management of controlled substance inventory. Decentralized cabinets allow nurses to enhance hospital workflows and increase prescription processing for inpatient medication dispensing in hospitals. These help pharmacists reduce time spent on non-core activities and improve time spent on effective patient care.

Decentralized software solutions are projected to exhibit a lucrative CAGR of 11.1% over the forecast period. An increase in the number of hospital consolidation tends to propel the demand for these systems for effective inventory management. Moreover, a growing number of advanced software applications and reduction in patient waiting time will contribute toward the growth of this segment.

End-use Insights

In 2017, the retail or independent pharmacies segment accounted for the largest revenue share in the pharmacy inventory management software solutions and cabinets market. The rising number of retail pharmacies and increasing demand for reducing overall operational costs are among few important factors that may propel demand. In addition, the increasing workload on pharmacists and demand for effective patient counseling drives the adoption of these solutions.

Rising usage for high volume dispensing of medications is also expected to contribute toward segment growth. Increasing government regulations for storage and dispensing of controlled substances also increases the demand for automated dispensing cabinets. Moreover, the growing burden of non-communicable diseases and increasing number of prescription volume tend to impel demand.

Global pharmacy inventory management software solutions market

Pharmacy inventory management software in long-term care centers is projected to register the highest CAGR of 11.0%. Rise in investments in long-term care by pharmacies and an increasing number of long-term care facilities is expected to boost demand over the forecast period. According to the 2017 NCPA Digest, about 44.0% of independent community pharmacies served long-term care facilities in 2016.

Regional Insights

North America held the largest revenue share in 2017. The presence of a large number of market players in the region increases the availability of these systems and solutions and this is expected to enable the region to retain its lead throughout the forecast period. Increasing developments in healthcare IT infrastructure and technological advancements in cabinets are among other factors that are likely to contribute toward the adoption of these systems in this region.

Rising government pressure to curb healthcare costs is also one of the significant factors driving the market. Pharmacy inventory management enables a reduction in wastage and inventory costs owing to which, demand for the same is expected to rise. For instance, Great River Medical Center had reported a reduction in dispensing time from 1.5 hours to 30 minutes and annual savings of around USD 300,000.

Asia Pacific is expected to expand at the highest CAGR of 11.3% over the forecast period. The rising number of retail pharmacies, increasing number of prescriptions, and continuous improvement in healthcare infrastructure are among some key factors contributing to market growth in the region. Rising healthcare expenditure and growing disease burden in recent years is expected to spur demand for pharmacy inventory management.

Pharmacy Inventory Management Software Solutions and Cabinets Market Share Insights

Omnicell, Inc.; BD; ARxIUM; Talyst, LLC; and Oracle are some of the key players operating in this market. This market is currently dominated by multinationals but many small players are increasingly investing in this segment. Increasing geographical presence of players such as Omnicell, Inc.; BD; and McKesson Corporation contribute toward market growth. However, the high cost of installation and maintenance of these systems may hinder its penetration in developing countries.

Report Scope

Attribute

Details

Base year for estimation

2017

Actual estimates/Historical data

2014 - 2016

Forecast period

2018 - 2025

Market representation

Revenue in USD Million and CAGR from 2018 to 2025

Regional scope

North America, Europe, Asia-Pacific, Latin America, Middle East Africa

Country scope

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

Report coverage

Revenue forecast, company share, competitive landscape, growth factors, and trends

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

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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 2014 to 2025. For the purpose of this study, Grand View Research, Inc. has segmented the global pharmacy inventory management software solutions and cabinets market report on the basis of end use, mode of operation, and region:

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

    • Independent Pharmacies

      • Software Solutions

      • Cabinets

    • Hospital Pharmacies

      • Software Solutions

      • Cabinets

    • Long Term Care Centers

      • Software Solutions

      • Cabinets

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

    • Centralized Dispensing Systems

      • Software Solutions

      • Cabinets

    • Decentralized Dispensing Systems

      • Software Solutions

      • Cabinets

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

    • North America

      • The U.S.

      • Canada

    • Europe

      • The U.K.

      • Germany

    • Asia-Pacific

      • China

      • Japan

    • Latin America

      • Brazil

      • Mexico

    • Middle East Africa

      • South Africa

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