[218 Pages Report] MarketsandMarkets forecasts the pharmacy automation market is estimated to grow from USD 3.63 billion in 2017 to USD 5.38 Billion by 2022, at a Compound Annual Growth Rate (CAGR) of 8.2% during the forecast period. The major factors that are expected to be driving the pharmacy automation market are the growing need to minimize medication errors, rapid decentralization of pharmacies, rising geriatric population and rising labor cost. On the other hand, reluctance among the healthcare organizations to adopt pharmacy automation systems is expected to restrain the overall market growth to a certain extent during the forecast period. The objective of the report is to define, describe, and forecast the pharmacy automation market size based on product, end user, and region.

By product, the automated medication dispensing systems segment accounted for the largest share of the pharmacy automation market

Based on product, the pharmacy automation market is segmented into automated medication dispensing systems, automated packaging and labelling systems, automated table top counters, automated medication compounding systems, automated storage and retrieval systems, and other pharmacy automation systems. Automated medication dispensing systems accounted for the largest share of the pharmacy automation market in 2016. The large share of the segment is attributed to the advantages such as improved medication safety, better inventory management, and improved storage capacity with optimal utilization of space, and potential time and cost savings.

By end user, the retail pharmacies segment to record the highest CAGR during the forecast period

On the basis of end users the market is classified into inpatient pharmacies, outpatient pharmacies, pharmacy benefit management organization and mail order pharmacies, and retail pharmacies. Retail pharmacies is the fastest growing end user segment in the pharmacy automation market during the forecast period. Growing need to minimize dispensing errors, rising number of retail pharmacies, and increasing workload on pharmacists are the factors driving the adoption of pharmacy automation systems in retail pharmacies

North America to account for the largest market size during the forecast period.

North America is expected to hold the largest market size in the pharmacy automation market during the forecast period, followed by the European region. The large share of the North American pharmacy automation market can largely be attributed to the increasing number of drug prescriptions at pharmacies resulting from growth in the aging population. Furthermore, growth in insurance coverage in the U.S. has increased the burden on the country�s healthcare system, which has highlighted the need for improving efficiency and management of work in North America and also the presence of a large number of pharmacy automation companies, such as include Becton, Dickinson, and Company (U.S.), Cerner Corporation (U.S.), Capsa Healthcare (U.S.), Parata Systems LLC (U.S), Baxter International, Inc. (U.S.), Omnicell, Inc. (U.S.), ScriptPro LLC (U.S.), and Talyst System LLC. (U.S.). in this region.

Market Dynamics

Driver: Growing need to minimize medication errors

Medication errors and dispensing errors are recognized as leading causes of hospital readmissions across the globe. A medication error can occur due to a variety of factors such as poor order communication between the physician and pharmacist, dangerous storage practices in pharmacies, and confusion arising out of the use of similar labels. Automated systems are considered to be one of the most efficient solutions to minimize these errors. In the past, the successful implementation of automated dispensing cabinets (ADCs) and automated dispensing machines (ADMs) in hospitals has led to a significant reduction in the number of dispensing and medication errors in hospitals. According to the Australian Commission on Safety and Quality in Healthcare, in 2013, the implementation of ADS in a hospital in the U.K. reduced dispensing error incidence from 0.64% to 0.28%. Thus, to minimize medication and dispensing errors, governments in several countries are promoting the use of automated dispensing and medication tools in pharmacies and hospitals. This is leading to the greater adoption of pharmacy automation systems.

Restraint: Reluctance to Adopt Pharmacy Automation Systems

Despite their benefits, a number of healthcare professionals and providers are reluctant to adopt or accept any IT-based approach for pharmacy management. This is particularly evident when cultural barriers are involved, or in emerging economies. Many pharmacists do not feel the need for assistance and are therefore, reluctant to adopt pharmacy automation systems as part of their dispensing regimen. Although the benefits of automated pharmacy systems are considerable and the extensive adoption of technology verifies this, until now, only large-volume pharmacies and hospitals could justify the returns on investment (ROI) obtained from the installation of these automated systems.

Opportunity: Increasing awareness among pharmacists

The systems for managing medicines have remained largely unchanged for decades, while medications have increased in number and complexity, resulting in potentially greater risks for error. In addition, with the traditional methods of operation within pharmacies, pharmacists have witnessed various issues such as an increase in medication errors and growing patient waiting times, due to the increasing patient load. At present, awareness and concerns regarding medication errors and adverse events are increasing among healthcare professionals.

Challenge: stringency of regulatory procedures

The stringency of regulatory approvals depends on the class to which a particular device belongs; it may vary from one region to another. Several state boards of pharmacies (agencies of a state responsible for the control and regulation of the practice of a pharmacy as well as the licensing of pharmacists in the state) have different requirements for the use of automated dispensing devices (ADDs) in healthcare practices. Thus, manufacturers of automated systems for pharmacies have to adhere to various regulations; ensuring such compliance is a tedious task and can delay product launch.

Scope of the Report

Report Metric Details Market size available for years 2015�2022 Base year considered 2016 Forecast period 2017�2022 Forecast units Million (USD) Segments covered Product, End User, and Region Geographies covered North America, Europe, APAC, MEA, and Latin America Companies covered Becton, Dickinson, and Company (U.S.), Omnicell, Inc. (U.S.), Cerner Corporation (U.S.), Capsa Healthcare (U.S.), Parata Systems LLC (U.S), Baxter International, Inc. (U.S.), ScriptPro LLC (U.S.), KUKA AG (Germany), TCGRx Pharmacy Workflow Solutions (U.S.), RxSafe, LLC (U.S.), ARxIUM Inc. (U.S.) and Talyst Systems, LLC (U.S.)

The research report categorizes the global pharmacy automation market into the following segments and subsegments:

Global Pharmacy Automation Market, By Product

Automated Medication Dispensing Systems Centralized Automated Dispensing Systems Robots/Robotic Automated Dispensing Systems Carousels Decentralized Automated Dispensing Systems Pharmacy-Based Automated Dispensing Systems Ward-Based Automated Dispensing Systems Automated Unit Dose Dispensing Systems Automated Packaging And Labelling Systems Automated Unit-Dose Packaging And Labelling System Automated Multi-Dose Packaging And Labelling System Automated Table Top Counters Automated Medication Compounding Systems Automated Storage And Retrieval Systems Other Pharmacy Automation Systems



Global Pharmacy Automation Market, by End User

Inpatient Pharmacies Acute Care Settings Long Term Care Facilities

Outpatient Pharmacies Outpatient/Fast Track Clinics Hospital Retail Settings

Pharmacy Benefit Management Organization And Mail Order Pharmacies

Retail Pharmacies

Global Pharmacy Automation Market, by Region

North America U.S. Canada

Europe Germany France U.K. Italy Spain Rest of Europe

Asia-Pacific Japan China India Rest of Asia-Pacific

Latin America

Middle East and Africa

Key Market Players

Becton, Dickinson, and Company (U.S.), Omnicell, Inc. (U.S.), Cerner Corporation (U.S.), Capsa Healthcare (U.S.), Parata Systems LLC (U.S), Baxter International, Inc. (U.S.), ScriptPro LLC (U.S.), KUKA AG (Germany), TCGRx Pharmacy Workflow Solutions (U.S.), RxSafe, LLC (U.S.), ARxIUM Inc. (U.S.) and Talyst Systems, LLC (U.S.).

Becton, Dickinson and Company�s leading position in the pharmacy automation market is mainly attributed to its broad product portfolio with major focus on pharmacy automation. The company continuously focuses on R&D and has invested around 7% of its revenue in R&D activities. The company also focuses on the inorganic growth strategy of acquisitions to strengthen its product portfolio as well as its market position. By acquiring CareFusion Corporation (U.S.) in March 2015, the company has positioned itself as a leading player in the pharmacy automation market. BD has a strong product portfolio and focuses on launching various new products in the market. For instance, the company launched a software for Pyxis ES System and BD Cato Medication Workflow in 2015 and 2016, respectively.

Recent Developments

In 2017, Omnicell launched Omnicell VBM 200F. It fills and checks SureMed multiple medication blister cards

In 2017, Omnicell partnered with DCH Health Systems to implement a full suite of IV compounding technology across its health system

In 2017, BD opened its new institute for medication management excellence. This institute is designed to identify and support advancements in medication management to help improve the safety and cost of healthcare

In 2016, Omnicell acquired Ateb, Inc., which provides pharmacy-based patient care solutions and medication synchronization to independent and chain pharmacies

In 2015, BD acquired CareFusion Corporation, a global medical technology company with a comprehensive portfolio of products in the areas of medication management, infection prevention, operating room & procedural effectiveness, and respiratory care

Critical questions the report answers:

Where will all these developments take the industry in the long term?

What are the upcoming trends for the pharmacy automation market?

Which segment provides the most opportunity for growth?

Who are the leading players operating in this market?

What are the opportunities for new market entrants?

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