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Pharmacy Management System Market Research Report—Global Forecast till 2030

Pharmacy Management System Market by Solution Type (Pharmacy Inventory Management System, Pharmacy Data Management System, Pharmacy Compounding Software System, Pharmacy Benefits Management System, Pharmacy Revenue Cycle Management System, and Others), by Component (Software, Hardware, and Services), by Deployment Mode (Cloud/Web-Based and On-Premise), by End User (Inpatient Pharmacies and Outpatient Pharmacies), and by Region (Americas, Europe, Asia-Pacific, and Middle East & Africa) - Global Forecast to 2030

ID: MRFR/HC/7091-CR | November 2022 | Region: Global | 110 Pages         

Pharmacy Management System Market

Pharmacy management system market is expected reach USD 114.60 billionat CAGR of 10.12% during the forecast period (2022-2030)

Segmentation

By Solution Type Pharmacy Inventory Management System Pharmacy Data Management System Pharmacy Compounding Software System Pharmacy Benefits Management System
By Component Software Hardware Services
By Deployment Mode Web-Based On-Premise

Key Players

  • 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)

Drivers

  • Necessity for restructuring the workforce management systems in pharmacy settings
  • High investment in research and development for the development of efficient solutions
  • Adherence to compliance of IT in the pharmaceutical sector
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Pharmacy Management System Market Overview


The pharmacy management system market size is expected to reach USD 114.60 billion by 2030 at 10.12% CAGR during the forecast period of 2022 to 2030. The system used in a pharmacy to help automate the pharmacy workflow is known as pharmacy management software. This includes evaluating physician prescriptions and preparing medications, and inventory management. The global market growth of the pharmacy management system is attributed to the rise in the number of strategic initiatives, benefits associated with pharmacy management systems, and burden on pharmacists due to increasing number of prescriptions. Furthermore, the increasing demand for pharmacy management systems in emerging economies provides growth opportunities for the market in the future. However, complex features such as vendor lock-in might hinder the market's growth in the forecast period.


Impact of COVID-19


The coronavirus pandemic (COVID-19) has kept the healthcare industry on its toes since it was identified the first. In a matter of months, the cases had skyrocketed from single digits to millions, requiring health care facilities as well as pharmacies to adapt quickly during a time when the labor, money, and resources grew scarce. The pandemic pushed pharmacists to the forefront of the fight against COVID-19 to a more prominent and proactive role as true frontline healthcare providers. COVID-19 has resulted in additional strain, and pressure on all phases of the supply chain as the demand for critical care and emergency medications skyrocketed. This, in turn, has increased the demand for pharmacy management systems for keeping track of the inventory and alerting the pharmacists regarding the drug shortage.


Market Dynamics


Drivers



  • Rise in the number of strategic initiatives


Pharmacy management systems are significant tools with highly effective and user-friendly management services that support pharmacists in managing tasks, including inventory management, dispensing medicines, and sales function. These systems also allow pharmacists to offer professional care based on patient requirements. An increasing number of strategic initiatives in the form of launches, mergers & acquisitions, collaborations, and joint ventures are driving the pharmacy management system market.



  • Benefits associated with pharmacy management systems

  • Burden on Pharmacists due to Increasing Number of Prescriptions


Restraints



  • Complex features such as vendor lock-in


Vendor lock-in is a crucial constraint to pharmacy management system adoption. It poses integration challenges and prevents pharmacies from switching to other vendors without substantial costs, legal constraints, or technical incompatibilities. Pharmacists sign a long-term services contract with a vendor because of favorable costs, satisfaction with the work, familiarity with its employees, or lack of good competition. When a vendor remains flexible, delivers valued products, and services, and understands the pharmacy's needs, it's a relationship worth keeping.


Opportunity



  • Increasing demand for pharmacy management systems in emerging economies 


Emerging nations such as India, China, South Korea, and Brazil rapidly adopt technological innovations due to developing healthcare infrastructure and increasing demand for process automation. Pharmacy management systems streamline the workflows for medical claims management, drug dispensing, and patient medication adherence. These systems also support pharmacists in optimizing operational efficiency, leveraging actionable data points, reducing costs, compliance risks, and medication dispensing errors. In addition, they also support automating and simplifying daily tasks like drug stock management, customer management, and billing.


Challenges



  • Unavailability of trained professionals    


The pharmacy management system market faces several challenges, a major being the dearth or unavailability of trained professionals. The challenge for healthcare is not just a shortage of people with technical skills, but also a shortage of people with the required skills to integrate technological savvy with business strategy as healthcare is becoming more connected, accountable, and coordinated. The lack of qualified professionals is slowing the industry’s progress towards quality and efficiency despite the investment of billions of dollars in healthcare IT. The pharmacy management system can be complex, and the system won't work properly without the help of a professional.


Value Chain Analysis


The pharmacy management system plays an important role in automating various processes, keeping track of the inventory, providing enhanced patient care, and reducing medication dispensing errors. The value chain analysis for the pharmacy management system comprises five major components, which start with the input, followed by the software development process, outputs, marketing & distribution, and ends with post-selling services. The pharmacy management system market's value chain analysis is different from the general industry, and it does not need any manufacturing unit or specific raw materials for product manufacturing.


Segment Overview:


By Solution Type



  • Pharmacy Inventory Management Software


Pharmacy inventory management software keeps track of orders, records the supply and consumption of stored medications, and makes pharmacist verification and invoicing easy. The management of drug and pharmaceutical inventories is the focus of this software. Factors influencing the segment’s growth include increasing pharmacy staff productivity by automating satellite inventory management and standardizing scales to satisfy the expanding needs of multi-site health systems.



  • Pharmacy Data Management System


Data management is obtaining, storing, and utilizing secure, efficient, and cost-effective data. Data management aims to help people, organizations, and connected things make the best use of data while staying within policy and legal boundaries. Major market players are improving existing software and addressing data quality and downstream reporting issues.



  • Pharmacy Compounding Software System


Compounding pharmacies deliver tailored drugs and essential services such as recordkeeping and inventory management while adhering to regulatory and compliance requirements. Compounding is a customized module essential for managing pharmacy workflows, medicine dispensing operations, approved medication management, expert patient index management, inventory management, supplier management, pharmacy analytics, formulary database management, and National Drug Code management. Compounding pharmacy software provides the capabilities required to automate software activities and ensure a more efficient pharmaceutical system.



  • Pharmacy Benefit Management


The Pharmacy Benefit Management (PBM) market comprises companies operating as mediators between insurance companies, pharmacies, and medication manufacturers. It assists employers in obtaining low-cost medical services and prescription drugs. Due to the rising prevalence of chronic diseases and rising healthcare costs, there is a growing demand for cost management services. The COVID-19 pandemic has created a huge possibility for pharmacy benefit management systems due to various factors, including drug shortages, supply chain disruptions, drug development & off-label usage of current drugs, and a significant impact on patient treatment regimens.



  • Pharmacy Revenue Cycle Management System


The revenue cycle is crucially significant in the Home Medical Equipment (HME) and pharmaceutical businesses. Revenue cycle management systems help pharmacies decrease losses, control aging, and grow their business by improving the payments, reconciliation, and collections lifecycles. The increased need to manage unstructured healthcare data, the high deployment cost of revenue cycle management solutions, and the infrastructure that supports them contribute to this segment's growth. Furthermore, opportunities are opening the way to a better future for this market, such as increasing demand for AI and cloud-based deployment.



  • Others


Other pharmacy management systems include purchase orders management, supply chain management, regulatory, compliance information, and clinical & administrative performance. Purchase management is a system that creates customized approval rules providing the ability to accelerate approvals and order placement for the timely receipt of inventory stock. The increasing trade volumes, the need to control trade-processing costs, and minimize operational risks drive the pharmacy management system market.


By Component



  • Software


Major factors that fueling the segment's growth are simplifying daily routines with features that include custom workflows, complete prescription refills, fully integrated payment processing, and instant communication. For instance, tailored pharmacy software development, pharmacy automation systems, Revenue Cycle Management (RCM), e-prescribing software integration, document management solutions, benefits management services, post software integration, and others. There are active players in the market due to their comprehensive product offering and widespread availability of commodities.



  • Hardware


There is a growing need to reduce medication errors, rapid pharmacy decentralization, an aging population, and rising labor costs. Furthermore, rising public health awareness, increased government strategic activities, and the presence of key market players all contribute to the growth of the pharmacy management market. Automated devices reduce the time it takes to deliver and verify each prescription manually, lowering the risk of a direct drug interaction.



  • Services


Some core services provided by the pharmacy management system, such as accounts receivable, point of sale, and virtual pharmacists, are driving the market of service segment in the pharmacy management system market. Furthermore, logging and tracking the entire purchase history of a customer, their insurance information, and other relevant information are burgeoning the market's growth. The vast number of customers preferring to get their drugs delivered at home to their doorstep is replacing the sales of traditional pharmacies. Services such as patient services and clinical engagement are available in this segment. These provide comprehensive patient care by offering services that encourage medication adherence, personalized counseling, easy communication, and pharmacy workflow efficiency.


By Deployment Mode



  • Cloud/Web-Based


Cloud computing has emerged as a flexible, scalable, and cost-effective information technology (IT) infrastructure solution for many businesses and institutions. Cloud computing began as a database service provider and has since expanded to include software, applications, platforms, and fully functional IT infrastructures for clients. The benefits of cloud computing to clients, such as reliability, near-zero downtime maintenance, and a much cheaper solution than having their own IT infrastructures, have paved the way for cloud computing to be fully adopted in the enterprise world.



  • On-Premise


Advantages provided by on-premises are keeping track of the large database of patient and staff information, maintaining the highest levels of data security, providing excellent data access from any location, putting in place a solution that will help to streamline the workflow, ensuring a versatile and easy-to-update solution, have an easy-to-use UI, to find a solution that reduces the administrative load, make data and history more accessible, and keep track of the inventory. These add value to the on-premises segment in the global pharmacy management system market.


By End User



  • Inpatient Pharmacies


Increased connection with prescribers and other health professionals, greater influence in prescription decisions about medications and administration, a larger team of pharmacists working together in the same facility, and better access to patients' medical information are advantages of inpatient pharmacy. These benefits of inpatient pharmacies are giving rise to the market of pharmacy management system. Moreover, inpatient pharmacy solutions automate key operations, ensuring that patients receive the proper medication at the right time.



  •  Outpatient Pharmacies


Based on outpatient, the global pharmacy management system market is segmented into fast-track clinics and hospital retail settings. Factors such as drug manufacturer activities that continue to oppose access to the 340B Drug Pricing Program and the enormous growth of the specialty pharmacy industry, which supplies pharmaceuticals for persons with critical health problems that require sophisticated regimens, are contributing to the market growth. The fast-track clinics is augmenting the growth of the pharmacy management system market through its main advantage. For instance, it provides care to individuals presenting to the emergency department with minor ailments such as bruises, allergic reactions, infections, and lacerations. Due to government constraints and societal isolation, this was widely utilized to treat chronic illnesses during the COVID-19 epidemic.


Regional Analysis


The global pharmacy management system market has been segmented, on the basis of region, into Americas, Europe, Asia Pacific, and Middle East & Africa.


GLOBAL pharmacy management system MARKET, BY REGION, 2021 (% SHARE)
pharmacy management system MARKET, BY REGION, 2021 (% SHARE)
Source: Industry Expert, Secondary Research, and MRFR Analysis



  • North America


Americas accounted for USD 20.09 Billion in 2021 and is expected to exhibit an 10.29% CAGR during the forecast period 2022-2030. This is attributed to the increasing technological advancement such as automated expiration date tracking, which helps to reduce waste and saves staff time etc. According to the American College of Clinical Pharmacy, around 5 billion prescriptions will be dispensed by 2021, which will increase pharmacists' burden; hence, the adoption of automated solutions in workflow management is expected. Moreover, insurance coverage to healthcare data analytics for effective treatment plans and the presence of key players in the region such as McKesson, Cerner Corporation, and GE Healthcare, etc., robust research infrastructure, and growing awareness of pharmacy management systems among pharmacists in the region is expected to drive the regional market growth during the forecast period.



  • Europe


The countries included in Europe's pharmacy management system market are Germany, France, the UK, Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Austria, and the rest of Europe. The benefits offered by pharmacy management enable pharmacists to manage medicine in a convenient and hassle-free fashion, right from their computer or mobile phone. In addition, rising internet penetration across the region, improving digitalization of healthcare services, and the growing number of tech-savvy pharmacists are also boosting the market growth.


Competitive Landscape


The global pharmacy management system market is characterized by the presence of many global, regional, and local players. Rising in the number of strategic initiatives, benefits associated with pharmacy management systems, and the burden on pharmacists due to the increasing number of prescriptions make the lucrative market of pharmacy management system. To expand their reach and optimize their operational costs, the major players focus on obtaining regulatory authorizations from government agencies for their products and emphasize acquisitions and product launches to gain a substantial market share.


Key Players


The prominent players in the global pharmacy management system market are Allscripts Healthcare, LLC (US), Cerner Corporation (US), DataScan Pharmacy (US), Epicor Software Corporation (US) GlobeMed Group (Lebanon), Liberty Software, Inc. (US), LS Retail EHF (Iceland), McKesson Corporation (US), MedHOK, Inc. (US), Octal IT Solution LLP (India), Safecare Technology (UAE), ScriptPro LLC (US), Clanwilliam Health (Ireland), Mobile MedSoft (US), and Health Business Systems, Inc. (US).


Recent Developments



  • In April 2021, Clanwilliam Health (Ireland), launched the electronic point of sale (EPOS) system, smart ePOS, at the united drug pharmacy show in the Aviva Stadium. It will provide pharmacists complete control and an overview of their fundamental day-to-day operations

  • In March 2021, McKesson Corporation (US), collaborated with Vanderbilt Health Rx Solutions (VHRxS) to offer VHRxS’s full suite specialty pharmacy consulting services to McKesson’s health system clients. The service will offer customized specialty pharmacy services and growth strategies to hospitals and health systems.

  • In February 2021, Clanwilliam Health (Ireland), announced a strategic partnership with BOI Payment Acceptance (BOIPA). This partnership will provide a payment solution for Smart ePOS. Additionally, the collaboration will enable pharmacies to avail of the best value in card processing and accept card payments directly from their Point of Sale (POS) hardware, Smart ePOS.


Report Overview


The study covers the existing short-term and long-term market effects, helping decision-makers draft short-term and long-term plans for businesses by region. The report covers major regions of Americas, Europe, Asia-Pacific, and Middle East and Africa. The report analyzes market drivers, restraints, opportunities, challenges, Value Chain Analysis, Porter's Five Forces, and impact of COVID-19 on the market.


Market Segmentation


Global Pharmacy Management System Market, by Solution Type



  • Pharmacy Inventory Management System

  • Pharmacy Data Management System

  • Pharmacy Compounding Software System

  • Pharmacy Benefits Management System

  • Pharmacy Revenue Cycle Management System

  • Others


Global Pharmacy Management System Market, by Component



  • Software

  • Hardware

  • Services


Global Pharmacy Management System Market, by Deployment Mode



  • Cloud/Web-Based

  • On-Premise


Global Pharmacy Management System Market, by End User



  • Inpatient Pharmacies

  • Outpatient Pharmacies


Global Pharmacy Management System Market, by Region



  • Americas

    • North America

      • US

      • Canada





  • Europe

    • Western Europe

      • Germany

      • France

      • UK

      • Italy

      • Spain

      • Netherlands

      • Switzerland

      • Belgium

      • Austria

      • Rest of Western Europe



    • Eastern Europe



  • Asia-Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

    • Taiwan

    • New Zealand

    • Thailand

    • Philippines

    • Rest of Asia-Pacific



  • Middle East & Africa

    • Middle East

    • Africa





Report Scope:

Report Attribute/Metric Details
  Market Size   2030: USD 114.60 Billion
  CAGR   10.12%
  Base Year   2021
  Forecast Period   2022-2030
  Historical Data   2020
  Forecast Units   Value (USD Billion)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Solution Type, Component, Deployment Mode, End User, and Region
  Geographies Covered   Americas, Europe, Asia-Pacific, and Middle East and Africa
  Key Vendors   Allscripts Healthcare, LLC (US), Cerner Corporation (US), DataScan Pharmacy (US), Epicor Software Corporation (US) GlobeMed Group (Lebanon), Liberty Software, Inc. (US), LS Retail EHF (Iceland), McKesson Corporation (US), MedHOK, Inc. (US), Octal IT Solution LLP (India), Safecare Technology (UAE), ScriptPro LLC (US), Clanwilliam Health (Ireland), Mobile MedSoft (US), and Health Business Systems, Inc. (US)
  Key Market Opportunities    • Increasing demand for pharmacy management systems in emerging economies
  Key Market Drivers   â€¢ Rise in the number of strategic initiatives • Benefits associated with pharmacy management systems • Burden on pharmacists due to increasing number of prescriptions


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Frequently Asked Questions (FAQ) :

The pharmacy management system enables pharmacists to deliver well-organized professional as well as personalized care based on the needs and requirements of the patients. Tools such as eligibility checking, price updates, prior authorization, prescription monitoring program reporting, clinical updates with drug images and prescriber updates, imprints, remote backup, and many other activities are involved in the pharmacy management system solutions.

The valuation of the pharmacy management system market had reached USD 114.60 Billion in 2030.

The pharmacy management system market is projected to grow at approximately 10.12% CAGR during the forecast period (2022-2030).

Necessity for restructuring the workforce management systems in pharmacy settings.

North America holds the largest share in the pharmacy management system market, followed by Europe and the Asia Pacific, respectively.

Cerner Corporation (US), Allscripts (US), Datascan (US), GlobeMed Group (Lebanon), Epicor Software (US), Liberty Software (US), McKesson (US), LS Retail (Iceland), MedHOK (US), Safecare Technology (UAE), Octal IT Solution LLP (US), ScriptPro (US), Mobile MedSoft (US), Clanwilliam Health (Ireland), and Health Business Systems (US), are some of the major players operating in the pharmacy management system market.