Canada Pharmacy Automation Device Market Analysis

Canada Pharmacy Automation Device Market Executive Summary

Canada Pharmacy Automation Device Market is at around $440 Mn in 2023 and is projected to reach $852 Mn in 2030, exhibiting a CAGR of 9.9% during the forecast period.

Modern healthcare greatly benefits from pharmacy automation, which makes it possible for prescription drugs to be readily provided and administered in both hospital and retail settings. Medication errors are decreased when the pharmacy is automated. mistakes that can happen during the manual process are avoided, including those related to prescription mistakes, missing patient information, pharmaceutical information, formulation dispensing, therapy tracking, and more. Prescription errors must be decreased in order to enhance healthcare facilities and services, guarantee patient safety, and save costs. For this reason, the pharmacy automation system plays a crucial role in reducing errors related to storage, inventory, usage, and retrieval. Pharmacy automation is a perfectly acceptable and helpful way to improve the accuracy and efficiency of pharmacies.

The penetration of pharmacy automation devices in Canada is steadily increasing, with an estimated adoption rate of around 30-40% in community pharmacies. These devices significantly boost efficiency and effectiveness, enhancing prescription accuracy by approximately 70-80% and reducing medication dispensing errors by up to 90%. McKesson, ScriptPro, and Innovation Pharmacy Solutions are driving growth, alongside emerging firms like MedAvail Technologies. These innovations not only streamline workflows but also improve patient safety and reduce operational costs, fostering a more efficient healthcare system. The market, therefore, is driven by significant factors like the Adoption of Electronic Health Records, Reducing Human Errors, and Rising Demand for Pharmaceuticals. However, High Costs, Security Concerns, Regulatory and Compliance Challenges restrict the growth and potential of the market.

Healthmark Services Ltd., a division of Richards Packaging Inc., is partnering with JFCRx as the exclusive supplier of adherence pouch packaging, inspection, and semi-automated vial filling pharmacy automation equipment.

Market Dynamics

Market Growth Drivers

Reducing Human Errors: Automation technologies have the potential to greatly increase production and scalability in pharmacies by lowering human error and increasing efficiency. Studies show that automation can reduce dispensing errors by up to 85%, leading to better patient outcomes from quick prescription filling and inventory level monitoring. Accurate dosage delivery and task simplification have the potential to drive these systems' global adoption and market expansion, presenting a positive outlook for the future.

Adoption of Electronic Health Records: The increasing use of electronic health records and the proactive efforts of the government to encourage the implementation of pharmacy automation systems have propelled the market. In fact, government incentives have led to a 25% increase in automation adoption rates over the past five years. The innate expansion of these systems and, by extension, the market as a whole is being driven by the rising demand for high-quality healthcare and the growing awareness of the advantages of automation systems.

Rising Demand for Pharmaceuticals: The increasing prevalence of chronic illnesses, including cancer, diabetes, obesity, and asthma, is causing a global increase in the need for medications. Currently, about 60% of adults have at least one chronic illness. Patients with these illnesses are reliant on the medications prescribed by their doctors. Additionally, as more advanced healthcare facilities become available, the global population is aging. The introduction of innovative and efficient drugs targeted at particular illnesses, as a result of increased research and development, also contributes to the rising demand for pharmaceuticals.

Market Restraints

High Cost: Pharmacy automation solutions need hefty initial payments, which cover equipment, installation, and training costs. For instance, the typical price range for putting in place a pharmacy automation system is between $100,000 and $500,000. Given their tight budgets, small and medium-sized pharmacies in particular can find it difficult to justify the expense. The cost of ownership encompasses not just the acquisition price but also possible upgrades and maintenance. The adoption rate may be slowed by this high initial cost, which might be a strong barrier. Furthermore, the capital expenditure needed for automation may be unaffordable in areas with smaller healthcare.

Regulatory and Compliance Challenges: Pharmacy automation devices must comply with stringent regulatory standards and guidelines set by health authorities. These regulations ensure the safety, efficacy, and security of the devices. Meeting these requirements can be a rigorous and costly process for manufacturers, involving extensive testing and documentation. Non-compliance can result in severe penalties, product recalls, or bans. The regulatory landscape is constantly evolving, adding an additional layer of uncertainty and cost, which can deter innovation and slow market growth.

Security Concerns: Pharmacy automation devices handle sensitive patient data and medication information, making them potential targets for cyberattacks. Ensuring the security of these systems is paramount to protect against data breaches and ensure patient privacy. The risk of cybersecurity threats, coupled with the need for robust security measures, can be a deterrent for pharmacies considering automation. Implementing and maintaining high-level security protocols can be costly and resource-intensive, adding to the overall burden. Security concerns may lead to hesitancy in adopting automation technologies, especially in environments where cybersecurity infrastructure is not well-developed.

Regulatory Landscape

Pharmacy automation device market operates within a stringent regulatory framework overseen primarily by Health Canada. Devices used in pharmacies, such as automated dispensing systems and robotic medication management systems, must comply with Health Canada Medical Devices Regulations, ensuring safety, efficacy, and quality standards are met before they can be marketed and sold. These regulations aim to protect public health by ensuring that pharmacy automation devices perform as intended and pose minimal risk to patients and healthcare providers. Companies entering the Canadian market must navigate these regulatory requirements to obtain necessary approvals and certifications, which can include clinical evaluations and compliance with specific labeling and manufacturing standards set by Health Canada.

Competitive Landscape

Key Players

Here are some of the major key players in Canada Pharmacy Automation Device Market:

• Amerisource Bergen Corporation
• Accu-Chart Plus Healthcare Systems, Inc.
• Omnicell, Inc.
• McKesson Corporation
• Pearson Medical Technologies
• Baxter
• Talyst, LLC
• Scriptpro LLC
• Becton Dickinson and Company
• Fulcrum Pharmacy Management, Inc.
• Medacist Solutions Group, LLC
• Aesynt, Inc
• Capsa Healthcare
• Cerner Oracle
• ARxIUM
• Touchpoint Medical
• Swisslog Healthcare