Increase in Need to Reduce the Errors Such as Medication and Dispensing Mistakes Are Major Factors Driving the Pharmacy Automation Systems Market

Development of Automated Systems with Technologically Enhanced Features is set to drive the Pharmacy Automation Systems Market. Pharmacy Automation Systems Market size was estimated at $3.98 billion in 2020, projected to grow at a CAGR of 7.89% during the forecast period 2021-2026.

Depending on their use in various pharmaceutical processes, technological developments in pharmacy automation systems result in enhanced functionality, a greater success rate, and additional uses of the device. For example, Becton, Dickinson and Company released Cato Medication Workflow software in 2015, which includes an optional camera-based visual documentation device that allows users to visually document vial, syringe, and IV container information throughout each gravimetric phase. To guarantee exact, accurate, and safer use of prescription pharmaceuticals, there is a high need for technologically sophisticated solutions to dispense, mix, store, and label them.  Moreover, medication and dispensing mistakes are well-known causes of hospital readmissions all around the world. A pharmaceutical mistake can be caused by a number of things, including inadequate order communication between the physician and pharmacist, unsafe pharmacy storage procedures, and confusion caused by the usage of identical labels. Automated systems are regarded as one of the most effective ways to reduce these mistakes. Hospitals that successfully implemented automated dispensing cabinets (ADCs) and automated dispensing machines (ADMs) in the past and saw a significant reduction in the number of dispensing and drug errors. ADS was implemented in a hospital in the United Kingdom in 2013 and reduced dispensing mistake rates from 0.64 % to 0.28 %, according to the Australian Commission on Safety and Quality in Healthcare. As a result, governments in numerous countries are supporting the use of automated dispensing and medication instruments in pharmacies and hospitals to reduce drug and dispensing mistakes. As a result, pharmacy automation systems are becoming more widely used. During the COVID-19 epidemic, several pharmacy automation equipment firms saw a drop in sales income. Omnicell, Inc., a supplier of pharmacy and medicine solutions, for example, had a 3.6% drop in sales revenue in 2020 compared to 2019. Furthermore, BD's sales decreased by 1.0 percent in 2020 compared to 2019. This pandemic, on the other hand, is anticipated to raise awareness about the importance of automation in the healthcare and pharmaceutical industries is expected to boost the pharmacy automation market. In the United Kingdom and Ireland, for example, BD saw a 30.0 percent increase in drug flow for their ROWA automated dispensing system.

Pharmacy Automation Systems offers several benefits, including reduced vulnerability to pharmaceutical shortages, reduced drug waste, lower pharmaceutical cost per dosage, and improved patient safety. In pharmacies, the use of RFID, barcode scanning technologies, a smart dashboard, and data security is poised to boost overall efficiency. Furthermore, these gadgets improve accuracy and efficiency while lowering labor expenses and prescription mistakes. Nonclinical tasks such as inventory management are also made easier with these devices. When pharmacists spend more time with patients, they will have a better experience.

In the pharmacy automation market, North America holds a major share owing to growing quantity of medicine prescriptions at pharmacies as a result of the aging population accounts for a substantial portion of the North American pharmacy automation business. Furthermore, increased insurance coverage in the United States has increased the burden on the country's healthcare system, highlighting the need for improved efficiency and work management in North America. Further, presence of a large number of pharmacy automation companies, such as Baxter International, Inc., Becton, Dickinson, and Company and Parata Systems LLC. Is anticipated to propel regional growth. Another major factor driving the market is technological advancements in medication management in hospitals and pharmacies. For example, Omnicell's XT series automated dispensing system has been installed at five of Duke University Hospital's facilities in the United States. These updated cabinets have a 30% higher capacity and can hold 30% more pharmaceuticals in the same footprint as the previous version. The concerns over insufficient inventory management is expected to drive the expansion of high-volume dispensing cabinets in this region, as inventory keeping has a high cost, that can put a strain on businesses.

Pharmacy automation systems have changed pharmacy operations such as drug filling and capping, drug administration and storage, and prescription labelling. These systems can effectively and securely store and manage more than 200-300 medications and patient information. By lowering long-term operating costs, increased adoption of automated systems is expected to boost productivity and increase the number of prescriptions served by the pharmacy. Moreover, technological advancements and the development of automated systems with improved pharmacy automation systems result in a higher success rate and newer applications of the device, as well as a higher demand for innovative products to compound, dispense, store, and label prescription medications, propelling the pharmacy automations market forward over the forecast period. For example, in March 2020, Swisslog Healthcare, has announced to launch Meds-to-Beds initiative, in collaboration with PipelineRx and Savioke that delivers hospital outpatient pharmacy services during the time of release.

While the number and complexity of medications have increased, the systems for managing them have remained largely unchanged for decades, potentially increasing the risk of error. Furthermore, due to the increasing patient load, pharmacists have seen an increase in medication errors and growing patient waiting times with traditional methods of operation within pharmacies. Healthcare professionals are becoming more aware of medication errors and adverse events, and their concerns are growing. The health care quality is affected by medical errors. According to WHO, in 2017, the cost of drug error has been estimated at USD 42 billion or nearly 1% of global health expenditure. Health providers are therefore focusing on minimizing the cost and quality of healthcare services by reducing medical failures. False label and instructions are one of the most common error types. Around 100 million persons die each year from medical mistakes that occur in hospitals, the National Coordinating Council on Medication Error Reporting and Prevention (NCC MERP). Medicinal errors should be reduced to improve healthcare facilities and services and therefore the safety of the patients, which is very important in the application of a pharmacy automation system to minimize errors relating to storage, medicines, use and retrieval.

Baxter International, Inc. and Ayogo Health Inc., a behavioural science-based digital health company, announced a partnership in July 2020 to develop innovative digital health solutions for home dialysis patients. The two companies want to use digital health solutions to help patients with kidney disease.

In January 2021, Amerisource Bergen and Walgreens Boots Collaboration forged a strategic alliance. Amerisource Bergen purchased Walgreens Boots Alliance Healthcare Business, allowing the company to concentrate on building its retail pharmacy business. Through this strategic cooperation, the two firms are extending and increasing their business arrangements.

The major companies in the Pharmacy Automation Systems Market are, Baxter, CareFusion, Omnicell, Inc., Kirby Lester, ScriptPro, LLC, Pearson Medical Technologies, LLC, Medacist Solutions Group, LLC, Accu Chart Plus Healthcare Systems, Inc., Talyst, LLC, McKesson Corporation, Amerisource Bergen Corporation.

Over the years, companies have mainly focused on offering innovative pharmacy automation systems and have vast geographical presence globally, thereby augmenting their respective positions in the market. Manufacturers in this market are involved into the production of more automation systems which are preferred by healthcare officials. Rising number new manufacturers producing pharmacy automation systems are set to increase in the degree of competition are the major factors set to buoy the Pharmacy Automation Systems market during 2021-2026.