With the presence of a large pool of both international and local players, the global market for pharmacy automation systems demonstrates a high degree of competition between participants, reports a new study by Transparency Market Research (TMR). The landscape, however, is consolidated, with CareFusion, AmeriSource, and Omnicell driving revenues for the most part. These companies together accounted for a share of nearly 50% in this market in 2011.
The increasing consolidation activities and little scope for product differentiation are likely to increase the rivalry between key players in the near future. The significant rise in the pharmacy automation start-up scenario in Asia Pacific and the Middle East is also expected to intensify this competition over the next few years, notes the study.
According to TMR, the global market for pharmacy automation systems presented an opportunity worth US$4.7 bn in 2011. Expanding at a CAGR of 7.30% during the period from 2012 to 2018, it is likely to notch US$7.8 bn by the end of the forecast period. Hospital pharmacy has emerged as the key end user of pharmacy automation systems and is expected to remain dominant throughout the forecast period. Analysts project this segment to contribute US$4.2 bn to the overall revenue generated in this market by the end of 2018.
North America to Continue to Report High Demand for Pharmacy Automation Systems
The report identifies Europe, Asia Pacific, North America, and the Rest of the World as the main geographical segments of the worldwide market for pharmacy automation systems. North America has been leading the demand for these systems on account of the willingness of pharmacies in this region to invest in technology. The trend is expected to continue in the near future with North America retaining its dominance and contributing US$4.1 bn in terms of revenue to the global market by the end of the forecast period.
Europe and Asia Pacific are also expected to contribute substantially to the increasing demand for pharmacy automation systems across the world in the coming years, states the research report.
Pharmacists Compelled to Deploy Pharmacy Automation Systems Due to Regulations Enforced to Control Medication Errors
The rising death toll due to medication errors is pressurizing pharmacists and healthcare institutes to deploy advanced solutions to minimize the occurrence of these errors. “As pharmacy automation systems are one of the most efficient solutions to curb medication error cases, it is gaining significant momentum in the medical and healthcare industry,” says the author of this study. Apart from this, several governments across the world have enforced various regulations regarding medication errors, which is also compelling pharmacists to include pharmacy automation systems in their settings, leading to a significant surge in the demand for these systems.
Going forward, the market is likely to witness a significant rise in the coming years due to the increasing preference of customers for drug dispensing systems. Owing to the accelerating drug prices and the complex reimbursement scenario, customers are expected to shift towards automated systems in the near future to reduce pharmacy expenses, notes the study.
High Cost Associated with Deployment of Pharmacy Automation Systems to Obstruct Market’s Growth Trajectory
Although the market shows lucrative growth prospects, the high cost associated with the deployment of pharmacy automation systems may obstruct the growth trajectory of this market in the years to come. The dearth of awareness regarding the benefits of pharmacy automation technologies is also projected to limit the demand for these systems over the next few years.
The study presented here is based on a report by Transparency Market Research (TMR) titled “Pharmacy Automation Systems Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2012 - 2018.”
The global market for pharmacy automation systems is segmented into:
- Automated medication dispensing
- Automated packaging and labeling
- Automated storage and retrieval systems
- Automated compounding devices
- Table-top tablet counter
By End Users
- Automation in hospital pharmacy
- Retail Pharmacy
- North America
- Asia Pacific
- Rest of the World
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