Pharmacy Automation Market Size & Growth Report – Industry Analysis, Share, Trends & Forecasts (2024 - 2029)

Market Size and Share Analysis:

By product, the automated storage and retrieval systems segment is expected to grow at a CAGR of 9.65% in the forecast period. In 2024, retail pharmacies within the end user segment are anticipated to dominate themarket, accounting for 65.09% of the share. Market research indicates it will grow to USD 6.28 billion by 2029. Due to the growing need for accuracy and efficiency in medication dispensing, the market is poised for growth.

A study published in the Journal of Medical Systems in April 2023 found that automated dispensing cabinets in Taiwan's intensive care units (ICUs) reduced prescription and dispensing errors. The same study highlighted that dispensing alerts, such as tall-man letters and dosage form notifications, mitigated confusion and emphasized double-checks before delivery. This underscores the pivotal role of pharmacy automation solutions in curbing medication errors, suggesting a bullish outlook for market growth in the near future.

Moreover, as market players continue to launch more products, the availability of advanced solutions is set to rise, fuelling the market's expansion. For instance, in October 2023, JVM, a global leader in pharmacy automation solutions, launched a robotic medication dispensing and packaging system, MENITH, in the European market. MENITH aimed at boosting productivity and efficiency by automating the placement of tablets and inspecting the resulting pouches, all through a single machine. Hence, technological advancements are anticipated to propel the market growth in the coming years.

Overview of Market Segments Covered:

In 2024, automated medication dispensing systems are expected to dominate the product segment, capturing a significant 34.96% market share of pharmacy automation. Projections indicate that this segment will grow to an estimated USD 3.45 billion by 2029. Automated medication dispensing systems play a crucial role in ensuring compliance with regulations. They offer secure and traceable access to controlled substances, coupled with precise record-keeping, underscoring their importance for regulatory adherence. A study published in the Journal of Pharmaceutical Health Care and Services in October 2022 evaluated the safety and efficiency of robotic dispensing systems in Japan. Researchers found that the introduction of robotic dispensing systems significantly reduced both prevented and unprevented dispensing errors, as well as the median time pharmacists spent per prescription. The same study highlighted a near-zero occurrence of critical errors, such as dispensing the wrong strength or drug, underscoring the system's potential to safeguard patient health.

Consequently, by enabling pharmacists to collaborate with automated dispensing robots and pharmacy support staff, the demand for robotic dispensing systems in healthcare facilities has surged. This advancement not only enhances the dispensing process but also bolsters the quality and safety of medications, potentially elevating clinical patient care. Hence, a growing demand for automated dispensing cabinets is anticipated in the coming years.

The pharmacy automation market is segmented by product and end user. By product, the market is segmented into automated medication dispensing systems, automated packaging and labeling systems, automated table-top counters, automated storage and retrieval systems, and other products. By end user, the market is segmented into inpatient pharmacies, outpatient pharmacy, retail pharmacies, and pharmacy benefit management organizations and mail-order pharmacies. To enhance customer satisfaction, retail pharmacies are turning to automation, aiming to cut down prescription wait times, boost accuracy, and optimize workflows.

Regional Market Scope of this Report:

In 2024, North America is expected to dominate the market, capturing a significant 56.66% of global pharmacy automation industry share. Projections indicate that North America pharmacy automation market growth is consistent with its value set to grow to an estimated USD 5.48 billion by 2029, witnessing significant growth. In North America, medication errors pose a significant challenge, resulting in heightened healthcare expenses and negative repercussions for patients. To address this, automation systems are being implemented to improve the accuracy of dispensing and packaging, reflecting the region's commitment to prioritizing patient safety and ensuring high-quality care. Therefore, the rise in the number of medication errors is likely to boost the demand for pharmacy automation systems in the region. For instance, as per the recent data published by SingleCare Administrators in January 2024, every year, the United States Food and Drug Administration receives over 100,000 reports concerning medication errors, which can take place in pharmacies, hospitals, and even at patients' homes. Further, as per the study published in March 2022 by the Canadian Medical Practitioner's Actions, 30,000 Canadians die every year due to medical errors. As a result, the demand for pharmacy automation systems is poised to rise, aiming to reduce medication errors and subsequently fueling the North American market growth during the forecast period.

By geography, global pharmacy automation industry is segmented into North America (United States, Canada, Mexico), Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific), Middle East and Africa (GCC, South Africa, Rest of Middle East and Africa), and South America (Brazil, Argentina, Rest of South America). Regions such as Asia-Pacific, Middle East and South America are bolstering their healthcare infrastructure and ramping up investments in healthcare technology. With the surging demand for healthcare services in these areas, companies have a prime opportunity to introduce affordable and scalable pharmacy automation technologies. The pharmacy automation market growth is expected to be high in the developed regions in the coming years.

Competitive Landscape and Ecosystem Analysis:

Some of the key players in the pharmacy automation industry are ARxIUM , BD, Capsa Healthcare, Oracle, Omnicell Inc., Parata Systems LLC, Rxsafe LLC, Scriptpro LLC, Yuyama, MCKESSON CORPORATION, Swisslog Holdings AG, PEARSON MEDICAL TECHNOLOGIES, Accu-Chart Plus Healthcare System Inc., NewIcon Oy, AlixaRx, among others. Companies in the market are continuously innovating, emphasizing system integration, refining user interfaces, and broadening functionalities to cater to varied customer demands. For instance, in July 2024, Capsa Healthcare, a frontrunner in advanced healthcare workflow solutions, announced its plans to introduce an innovative NexPak Automated Packaging System to both retail and institutional pharmacies. This unveiling will take place at the Cardinal Health Retail Business Conference, slated for July 2025 in Chicago. The NexPak system streamlines the production of user-friendly strip packaging, catering to patients' daily medication needs. The pharmacy automation industry is highly fragmented and competitive.