Pharmacy Management System Market
Number of pages: 100 | Report Format: PDF | Published date: July 07, 2023
Historical Years – 2021 | Base Year – 2022 | Forecasted Years – 2023 to 2031
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Report Attribute |
Details |
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Market Size Value in 2022 |
US$ 55.25 billion |
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Revenue Forecast in 2031 |
US$ 126.07 billion |
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CAGR |
9.6% |
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Base Year for Estimation |
2022 |
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Forecast Period |
2023 to 2031 |
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Historical Year |
2021 |
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Segments Covered |
Type, Deployment, and Region |
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Regional Scope |
North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa |
According to the deep-dive market assessment study by Growth Plus Reports, the global pharmacy management system market was valued at US$ 55.25 billion in 2022 and is expected to register a revenue CAGR of 9.6% to reach US$ 126.07 billion by 2031.
Pharmacy Management System Market Fundamentals
A pharmacy management system is a software application or computerized system designed to streamline and automate various tasks and processes in running a pharmacy or a pharmaceutical store. It is a comprehensive solution to efficiently manage inventory, sales, prescriptions, customer information, and other related operations within a pharmacy setting. The main purpose of a pharmacy management system is to enhance the overall efficiency and accuracy of pharmacy operations while ensuring regulatory compliance and providing better customer service. It replaces manual and paper-based processes with electronic data management, allowing pharmacists and staff to handle tasks more effectively. By implementing a pharmacy management system, pharmacies can streamline operations, reduce manual errors, enhance efficiency, improve customer service, and ultimately contribute to the overall quality of patient care.
Pharmacy Management System Market Dynamics
Medication errors have severe consequences for patient health and safety. According to the National Center For Biotechnology Information, in the U.S. alone, 7,000 to 9,000 people die each year due to a medication error. Pharmacy management systems provide functionalities like drug interaction checking, allergy alerts, and proper dosage guidance, which help reduce medication errors and improve patient safety. Healthcare providers focus on enhancing medication safety and increasing pharmacy management systems’ market demand. Pharmacy operations have become more complex due to factors such as a larger volume of prescriptions, expanding product portfolios, and stringent regulatory requirements. Pharmacy management systems help simplify and automate these operations, ensuring efficient inventory management, prescription processing, and regulation compliance. The integration of pharmacy management systems with electronic health records is gaining prominence. This pharmacy management system industry trend allows seamless data exchange between pharmacy systems and EHRs, improves communication and collaboration between healthcare providers, enhances medication reconciliation, and ensures accurate patient information. There is a growing shift towards cloud-based pharmacy management systems. Cloud-based solutions offer advantages such as easy accessibility, scalability, data security, and cost-effectiveness. They allow pharmacies to access and manage their systems and data remotely, enabling efficient multi-location management. Pharmacy management systems offer features like inventory optimization, automated billing, and accurate sales tracking, enabling pharmacies to manage costs more effectively and maximize revenue. By minimizing inventory wastage, reducing errors in billing processes, and identifying profitable product lines, these systems contribute to cost efficiency and revenue generation for pharmacies. Pharmacy management systems are increasingly incorporating patient engagement tools. These tools enable pharmacies to provide personalized medication information, medication adherence support, and medication therapy management, thus propelling the pharmacy management system market growth.
However, pharmacy management systems involve significant upfront costs for implementation, including hardware, software licenses, and training. Additionally, ongoing maintenance and updates require investments in time, resources, and expenses, restricting the pharmacy management system market growth. Adequate technical expertise is necessary to successfully implement, customize, and maintain pharmacy management systems. However, there is a shortage of skilled IT professionals or pharmacists with in-depth knowledge of the system, hindering the growth of the pharmacy management system.
Pharmacy Management System Market Ecosystem
The global pharmacy management system market is analyzed from four perspectives: type, deployment, and region.
Pharmacy Management System Market by Type
Based on the type, the global pharmacy management system market is segmented into inventory management, data management, supply chain management, revenue cycle management, and compounding software systems.
Inventory management accounted for the largest revenue share of the pharmacy management system market, with a 36% market share. Inventory management is critical for pharmacies to ensure they have the right medications in stock while minimizing excess inventory or stockouts. Pharmacy management systems provide features such as automated inventory tracking, stock alerts, and real-time updates on stock levels. These capabilities help pharmacists efficiently manage their inventory, reduce costs associated with overstocking or expiring medications, and improve operational efficiency. Inventory management systems within pharmacy management systems streamline the order-processing workflow. Pharmacists can easily generate purchase orders, track order status, and automate order replenishment based on predefined thresholds. This automation reduces manual errors, eliminates paperwork, and improves the efficiency of the procurement process. Inventory management is closely linked with prescription processing in pharmacies. Pharmacy management systems integrate inventory management with prescription processing modules, enabling seamless coordination between these functions. Many pharmacy management systems are designed to handle inventory management across multiple pharmacy locations. This scalability and multi-location management capability are particularly valuable for pharmacy chains and organizations with a wide geographic presence. Centralized inventory management through the system enables efficient inventory distribution, reduces duplications, and facilitates consistent inventory control across all locations.
Pharmacy Management System Market by Deployment
Based on the deployment, the global pharmacy management system market is segmented into software, hardware, and services.
The software segment accounted for the prominent pharmacy management system market share in 2022. Pharmacy management software offers a comprehensive solution for managing various aspects of pharmacy operations. It typically includes modules for inventory management, prescription processing, sales and billing, customer management, reporting, and more. Pharmacy management software can be customized to meet the specific needs of different types of pharmacies, including retail pharmacies, hospital pharmacies, specialty pharmacies, and more. The software allows pharmacies to configure workflows, set up formularies, tailor alerts and reminders, and adapt the system to their unique requirements. Software-based pharmacy management systems are often designed to handle the needs of single independent pharmacies and large pharmacy chains with multiple locations. These systems can scale up or down depending on the size and growth of the pharmacy, accommodating the changing needs and expanding operations of the pharmacy. Pharmacy management software is designed to integrate with other healthcare systems and platforms, such as electronic health records (EHRs), health information exchanges (HIEs), and telehealth platforms. Software-based systems can be easily updated and enhanced with new features, functionalities, and regulatory compliance requirements. The software providers regularly release updates to address security vulnerabilities, incorporate industry best practices, and introduce new capabilities.
Pharmacy Management System Market by Deployment
Based on the deployments, the global pharmacy management system market is segmented into cloud-based and on-premise.
The cloud-based segment accounted for a significant revenue share of the pharmacy management system market in 2022. Cloud-based pharmacy management systems offer easy accessibility to the system and data from anywhere, anytime, as long as there is an internet connection. Pharmacists and staff can securely access the system from multiple locations, enabling remote pharmacy management and enhancing operational convenience. Cloud-based systems eliminate the need for upfront investments in hardware infrastructure and server maintenance. Instead, pharmacies pay a subscription fee based on their usage, making it a more cost-effective option, especially for small and medium-sized pharmacies with limited IT budgets. Cloud-based systems also reduce ongoing IT maintenance costs, as the responsibility for system updates, backups, and security measures lies with the system provider. Cloud-based systems often employ robust security measures to protect sensitive patients and pharmacy data. System providers invest in advanced security technologies, encryption, regular data backups, and disaster recovery measures to ensure data integrity and minimize the risk of data loss.
Pharmacy Management System Market by Region
Geographically, the global pharmacy management system market has been segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
The North America region held the largest pharmacy management system market size in terms of revenue generation, accounting for around 38.8% market share in 2022. North America has been at the forefront of adopting and implementing healthcare information technology (IT) solutions. There is a growing recognition of technology's role in enhancing patient care, improving operational efficiency, and reducing healthcare costs. Pharmacy management systems are considered essential components of the healthcare IT landscape, driving the demand for these systems in the region. Governments in North America, particularly in the United States, have implemented various initiatives and incentive programs to promote the adoption of electronic health records (EHRs) and healthcare IT systems. These programs encourage pharmacies to implement pharmacy management systems to support seamless integration with EHRs, enhance medication safety, and improve care coordination. North America has a high prescription volume due to its aging population, chronic disease prevalence, and advanced healthcare infrastructure. As prescription volume increases, pharmacies require efficient systems to manage and process prescriptions, track medication usage, and ensure accurate dispensing. According to the National Center For Biotechnology Information, in 2021, overall, U.S. prescription drug spending raised by 4% to 6%, whereas in clinics and hospitals, it increased by 7% to 9% and 3% to 5%, respectively, compared to 2020. The pharmacy management system market in North America benefits from continuous technological advancements. The introduction of cloud-based systems, mobile applications, artificial intelligence (AI), and data analytics capabilities has revolutionized the capabilities of pharmacy management systems.
Pharmacy Management System Market Competitive Landscape
The prominent players operating in the global pharmacy management system market are:
Pharmacy Management System Market Strategic Developments
A pharmacy management system is a software application or computerized system designed to streamline and automate various tasks and processes in running a pharmacy or a pharmaceutical store.
Asia Pacific can be considered the key growth region due to the surge in pharmacy management system industry trends in China, Japan, and the Indian subcontinent.
The prominent players operating in the global pharmacy management system market are McKesson Corporation, Allscripts Healthcare Solution Inc., Becton Dickinson and Company, Cerner Corporation, and GE HealthCare.
The global pharmacy management system market growth is estimated to grow at a revenue CAGR of 9.6% during the forecast period from 2023 to 2031.
The estimated size of the global pharmacy management system market in 2031 is US$ 126.07 billion.
*Insights on financial performance are subject to the availability of information in the public domain