US Pharmacy Automation Device Market Analysis

US Pharmacy Automation Device Market Executive Summary

US Pharmacy Automation Device Market is at around $2310 Mn in 2023 and is projected to reach $3933.3 Mn in 2030, exhibiting a CAGR of 7.9% during the forecast period.

Prescription medication distribution, packing, counting, and sorting can all be done electronically with the use of pharmacy automation systems. Enhanced productivity, precision, and reduced labour expenses are just a few advantages of pharmacy automation technologies. Chemists can use the dispensing equipment to sync and track patients' medications without having to manually enter them. Pharmaceutical dispensing poses a serious risk to pharmacies due to the potential for multiple mistakes and contaminants. Pharmacies management can benefit from a number of pharmacy automation equipment, including enhanced inventory control, better space savings, more security for drugs, and faster and more accurate processing.

US Food and Drug Administration (FDA) receives over 1,00,000 reports linked to a medication error annually. Moreover, according to the study published in StatPearls in June 2020, entitled “Medication Errors,” approximately 7,000 to 9,000 individuals die in the country on account of medication errors every year. Therefore, these factors are anticipated to fuel the pharmacy automation device market growth. These devices have been shown to improve medication dispensing accuracy by up to 99.9% and reduce medication errors by approximately 70%. Companies and startups involved in this sector include well-established players like Omnicell and BD, alongside emerging firms such as Parata Systems and Capsa Healthcare, contributing to a diverse and competitive market landscape. The market, therefore, is driven by significant factors like Growing need to minimize medication errors, Rising Demand for Pharmaceuticals, and Increasing adoption among end-users. However, High Initial Costs, Technical Complexity and Integration Issues, Regulatory and Compliance Challenges restrict the growth and potential of the market.

Parata Pharmacy Platform, a new software platform from pharmacy automation solutions supplier Parata Systems LLC, was announced in order to manage pharmacy automation systems and enhance patient safety.

Market Dynamics

Market Growth Drivers

Growing Need to Minimize Medication Errors: 10% of deaths worldwide are attributed to medical errors, which are a major cause of death. This concerning number emphasizes how much better pharmaceutical safety is required.  These mistakes are caused by a variety of circumstances, including poor storage techniques, a lack of communication between pharmacists and doctors, and confusion between similar-looking drugs.  This covers any errors made when administering medication, such as using the incorrect drug, dose, or labeling.  These mistakes can also happen when medicines are being prepared, packaged, or stored before they are given to patients.  The danger is increased further by confusing or inaccurate instructions.

Rising Demand for Pharmaceuticals: The prevalence of chronic illnesses like cancer, diabetes, obesity, and asthma is rising globally, which is raising demand for pharmaceuticals. Nowadays, at least one chronic illness affects 60% of adults worldwide, making continued reliance on prescription medications necessary. The aging of the world's population as a result of better access to and infrastructure for healthcare has intensified this tendency even more. Furthermore, the pharmaceutical industry's increased emphasis on R&D has produced innovative, highly focused medications for particular ailments. The global demand for pharmaceutical products is growing, and this is partly due to the advances in drug research.

Increasing Adoption Among End-Users: Pharmacy automation systems are increasingly adopted by hospitals to enhance patient care and cut overall costs. As of 2023, approximately 73% of hospitals in developed countries utilize some form of pharmacy automation to streamline operations. This automation eliminates the need for pharmacy staff to manually count medications in hospital basements, significantly improving efficiency. Hospitals are adapting by designing new floors or retrofitting existing ones to accommodate advanced automation technologies. To optimize space utilization, new dispensing cabinets are being tailored to fit specific hospital floor plans.

Market Restraints

High Initial Costs: Implementing pharmacy automation systems involves substantial upfront costs, encompassing equipment acquisition, installation, and staff training. The price tag for such systems typically ranges from $100,000 to $500,000, posing a significant financial challenge, especially for small and medium-sized pharmacies operating on tight budgets. Beyond the initial investment, ongoing expenses for maintenance and future upgrades contribute to the total cost of ownership. This considerable financial outlay can significantly slow the adoption rate of automation technologies in pharmacies.

Technical Complexity and Integration Issues: The process of merging pharmacy automation systems with current pharmacy management platforms and electronic health records (EHRs) often proves to be intricate and lengthy. This intricacy stems from the necessity to ensure smooth interoperability and efficient data transfer among diverse systems. Many pharmacies may find themselves short on the technical know-how needed for such integrations, potentially leading to disruptions in their day-to-day activities. Additionally, concerns about possible system breakdowns or operational pauses during the integration phase can make pharmacies reluctant to embrace automation technologies.

Regulatory and Compliance Challenges: FDA have strict regulations and rules that pharmacy automation systems must follow. The security, effectiveness, and safety of the devices are guaranteed by these rules. For manufacturers, meeting these standards may be a difficult and expensive procedure that calls for a lot of testing and paperwork. Violations may lead to harsh fines, product recalls, or prohibitions. The regulatory environment is ever-changing, adding another degree of risk and expense that can stifle innovation and impede market expansion.

Regulatory Landscape

The regulatory landscape for the US pharmacy automation device market is shaped by stringent oversight from the FDA, which classifies these devices under medical device regulations. Compliance with standards like the Health Insurance Portability and Accountability Act (HIPAA) is mandatory to ensure patient data security. The market is also influenced by the Drug Supply Chain Security Act (DSCSA), which mandates tracking and tracing prescription drugs. Furthermore, the FDA's Quality System Regulation (QSR) requires manufacturers to establish and follow quality systems to ensure their products consistently meet applicable requirements and specifications. The regulatory environment aims to enhance the safety, efficacy, and security of pharmacy automation systems, thereby promoting innovation while safeguarding public health.

Competitive Landscape

Key Players

Here are some of the major key players in the US 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
• Aesynt, Inc
• Capsa Healthcare
• Cerner Oracle
• ARxIUM
• Touchpoint Medical
• Swisslog Healthcare