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Global Pharmacy Management System Market Research Report Forecast to 2030
The Pharmacy Management System Market, with a valuation of USD 48.48 billion in 2021, is projected to reach USD 114.61 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 10.12% during the forecast period (2022-2030). The market’s growth is driven by the increasing applications of pharmacy management systems in healthcare and a rise in the number of strategic initiatives.
A pharmacy management system (PMS) is a unique system that stores, maintains, and organizes pharmacy drug use and processes. It offers benefits such as increased pharmacist efficiency, improved patient health outcomes, and prevention of medication fraud. This technology finds application in hospitals, long-term care settings, and homes, offering features like inventory management, e-prescribing, compounding, medication therapy management, and more.
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USD 48.5 billion in 2020
Solution Type, Component, Deployment Mode, End User, and Geography
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Pharmacy management software is used to automate the workflow in pharmacies. It aids in evaluating physician prescriptions, preparing medications, and managing inventory. The global pharmacy management system market’s growth can be attributed to the increase in strategic initiatives, the associated benefits of pharmacy management systems, and the burden faced by pharmacists due to the rising number of prescriptions. Additionally, the growing demand for these systems in emerging economies presents opportunities for future market growth. However, complex features such as vendor lock-in may hinder market expansion during the forecast period.
Healthcare spending has been steadily increasing worldwide, with various factors contributing to the development of the healthcare sector. Rapid advancements in the application of information technology (IT) have played a significant role in this progress. Over the past few decades, IT has greatly influenced numerous industries, including healthcare, benefiting multiple end users, prescribers, and pharmacists. The adoption of IT solutions enables structured storage of patient records, facilitates electronic prescriptions, reduces paper usage, simplifies administration and drug dispensing processes, and automates supply chain management. These advancements enhance patient safety, improve the quality of care, and optimize the use of medicines.
The market is segmented based on various factors, including solution type, component, deployment mode, end user, and geography.
Segmentation by Solution Type
Pharmacy Inventory Management System
Pharmacy Data Management System
Pharmacy Compounding Software System
Pharmacy Benefits Management System
Pharmacy Revenue Cycle Management System
Segmentation by Component
Segmentation by Deployment Mode
Segmentation by End User
Segmentation by Geography
North America – US, Canada
Europe – Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Belgium, Austria, Rest of Europe
Asia-Pacific – China, Japan, India, South Korea, Australia, Taiwan, New Zealand, Thailand, Philippines, Rest of Asia-Pacific
Rest of the World – Middle East, Africa
The pharmacy management system market can be segmented based on solution type, component, deployment mode, end user, and region. In terms of solution type, it includes pharmacy inventory management system, pharmacy data management system, pharmacy compounding software system, pharmacy benefits management system, pharmacy revenue cycle management system, and others. Among these, the pharmacy inventory management system held the majority share in 2022, driven by factors such as automated reordering to lower inventory costs and improved expiration date tracking.
In terms of component, the market can be categorized into software, hardware, and services. The software segment dominated the market in 2022 due to features like custom workflows, integrated payment processing, and instant communication. Various software solutions, such as pharmacy automation systems and e-prescribing software integration, contributed to the growth of this segment.
Based on deployment mode, the market can be divided into web-based and on-premises systems. The on-premises segment accounted for the largest market share in 2022, attributed to the need for data security, efficient workflow management, and inventory tracking.
In terms of end users, the market is segmented into inpatient pharmacies and outpatient pharmacies. Inpatient pharmacies held the largest market share in 2022, benefiting from closer connections with prescribers, greater influence on prescription decisions, and advantages of having a larger team of pharmacists working together in the same facility.
By region, North America had the largest market share in 2022, driven by technological advancements such as automated expiration date tracking and the increasing number of prescriptions. In Europe, the convenience offered by pharmacy management systems and the digitalization of healthcare services contributed to market growth, with Germany leading in market share and the UK experiencing the fastest growth.
The Asia-Pacific region is expected to witness significant growth during the forecast period. Factors such as improved healthcare infrastructure, increased healthcare expenditure, and a large patient pool are driving market growth. China held the largest market share in the region, while India showed the fastest growth rate.
Leading market players are making significant investments in research and development (R&D) to expand their product portfolios, thereby fostering further growth in the pharmacy management system market. These participants are also undertaking various strategic initiatives to enhance their global presence, such as launching new products, entering into contractual agreements, engaging in mergers and acquisitions, increasing investments, and collaborating with other organizations. In order to thrive in an increasingly competitive and expanding market environment, competitors in the pharmacy management system industry must offer cost-effective solutions that facilitate expansion and sustainability.
One of the primary business strategies adopted by manufacturers in the pharmacy management system industry is local manufacturing, which helps reduce operational costs and serves as a means to benefit clients while expanding the market sector.
McKesson Corporation (US) is a prominent distributor of pharmaceuticals, providing health information technology, medical supplies, and care management tools. The company boasts an extensive distribution network infrastructure that serves the healthcare industry across 14 countries. Its business solutions encompass medical supplies, pharmaceutical distribution, specialty drug distribution, among others. In March 2021, McKesson Corporation formed a collaboration with Vanderbilt Health Rx Solutions (VHRxS) to offer VHRxS’s comprehensive suite of specialty pharmacy consulting services to McKesson’s health system clients. This partnership aims to deliver tailored specialty pharmacy services and growth strategies to hospitals and health systems.
Key companies profiled in this report include Allscripts (US), Cerner Corporation (US), Datascan (US), Epicor Software (US), GlobeMed Group (Lebanon), Liberty Software (US), LS Retail (Iceland), McKesson (US), MedHOK (US), Octal IT Solution LLP (US).
Recent Industry Developments
In July 2022, Pfizer (US) and BioNTech (Germany) entered into a partnership with the Biovac Institute (South Africa) to manufacture their mRNA-based vaccine, Comirnaty, in South Africa. According to Pfizer, Biovac’s Cape Town factory will be responsible for fill-finish and supply chain operations, producing 100 million finished doses annually for the African Union as part of this collaboration.
In June 2022, CerTest Biotec (Spain) engaged in a collaboration with BD (US) for the development of a Molecular Diagnostic Test for Monkeypox. Under this collaboration, the CerTest VIASURE Monkeypox CE/IVD molecular test will be validated on the BD MAX System using the BD MAX open system reagent suite. The BD MAX System is a fully integrated, automated platform that conducts nucleic acid extraction and real-time PCR, delivering results for up to 24 samples across multiple syndromes in under three hours.
In May 2022, ValGenesis Inc. (US), a provider of enterprise Validation Lifecycle Management Systems (VLMS), and Zenovative (US), a technology development and consulting firm, joined forces to offer unique compliance-focused digital validation solutions to pharmaceutical companies worldwide.
Key Questions Answered
What is the valuation of the Pharmacy Management System Market?
What is the size of the Pharmacy Management System Market in the United States?
What is the growth rate of the pharmacy management system market?
Which region held the highest market share in the pharmacy management system market?
Who are the major players in the pharmacy management system market?
Which deployment mode segment dominated the pharmacy management system market?
Which end user had the largest market share in the pharmacy management system market?