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Automated Dispensing Machines Market Overview
The global automated dispensing machines market is estimated to generated $1.4 billion revenue in 2018, and is projected to showcase a CAGR of 7.8% during the forecast period. The growth is primarily attributed to rising incidence of medication errors, technological innovations and advancements, growing geriatric population, and increasing government supports.
On the basis of type, the automated dispensing machines market is categorized into centralized and decentralized systems. The centralized systems are estimated to hold the largest share in the market, generating over $0.8 billion revenue in 2018, and is expected to progress at CAGR of 7.6% during the forecast period. Due to increase in patient population in hospitals and ambulatory surgical centers, there has been a high demand for centralized systems that could help to store a large volume of medicines and dispense them with accurate dosage.
Based on application, the automated dispensing machines market is classified into in-patient care and out-patient care. Of the two areas of application, in-patient care is anticipated to be larger as well as faster growing category in the market during the forecast period. With the increase in the prevalence of chronic diseases worldwide, the demand for automated dispensing machines for in-patient care has risen considerably. Furthermore, the category is expected to contribute revenue of around $1.8 billion to the market by 2024.
End users in the automated dispensing machines market include hospitals, pharmacies, and retail drug stores. Hospitals, as an end-user category, are anticipated to hold the largest share in this market, mainly due to increasing number of hospitals, growing patient population, and prevalence of chronic diseases.
Automated Dispensing Machines Market Dynamics
Some of the factors driving the growth of the automated dispensing machines industry are increasing number of medication errors, rising prevalence of chronic diseases, rapid technological advancements and innovations, and growing geriatric population.
A number of patients report adverse drug reactions due to inaccurate medication dosage, which constitutes the most common type of inpatient medication error in hospitals. According to the National Center for Biotechnology Information (NCBI), approximately 7,000–9,000 people die every year in the U.S. as a result of medication errors. In the wake of the increasing incidence of deaths caused by medication errors, government agencies, across the globe, have started encouraging hospitals and pharmacies to implement advanced technologies for dispensing accurate dosage of medicines to manage medical conditions more effectively.
Technological innovations and advancements in artificial intelligence, machine learning, and robotics have led to a drastic increase in the use of automated dispensing machines in the healthcare industry to improve patient safety, optimize workflow, and reduce healthcare cost. Several companies are actively involved in the development of novel, advanced medication management solutions for hospitals and pharmacies. For instance, Omnicell Inc., one of the leading suppliers of medication management solutions to healthcare systems, is involved in the development of advanced, error-free, fully automated medication management systems, with a strong focus on workflow optimization in pharmacies.
Furthermore, the demand for automated dispensing machines is increasing on account of the growing burden of chronic diseases across the globe. The rising prevalence of cancer, and neurological and cardiovascular diseases is leading to increased drug requirements and hospitalization rate. For instance, according to the World Health Organization (WHO), cardiovascular disease (CVD) accounts for 31% of all deaths globally, and cancer is the second-most debilitating disease responsible for an estimated 9.6 million deaths worldwide. Additionally, the rapidly increasing burden of cancer is resulting in the increased demand for oncology treatment solutions, further compelling government organizations and healthcare providers to provide facilities for effective disease diagnosis and treatment.
Besides, growing geriatric population is another major factor driving the growth of the automated dispensing machines market. According to the National Institutes of Health, in 2015, 8.5% of the total population globally was aged 65 years and above, and this is expected to reach 17% by 2050. Moreover, according to the Population Reference Bureau, the total number of Americans aged 65 years and older is anticipated to increase twofold, from 46 million in 2014 to over 98 million by 2060.
Automated Dispensing Machines Market Competitive Landscape
Ongoing product launches in automated dispensing machines market is expected to increase shares of existing key players. For instance, in January 2018, Capsa Healthcare launched a new automated dispensing system, NexysADC. It is the next-generation system that streamlines offsite medication management and can dispense a wide range of medications.
Besides, collaborations and acquisitions among the existing key players are expected to boost the automated dispensing machines market. For instance, in June 2018, Becton, Dickinson and Company collaborated with Helmer Inc. to introduce BD Pyxis ES, an integrated automated dispensing system for dispensing medical-grade refrigerated solutions. It also features locked bins for the secure storage of refrigerated medications. Also, in April 2017, Omnicell Inc. acquired InPharmics, a Mississippi-based technology and service provider, to offer advanced pharmacy informatics solutions to hospital pharmacies. The acquisition was a part of Omnicell Inc.’s strategy to expand the capabilities of its Performance Center.
Some of the key players in the global automated dispensing machines market are Becton, Dickinson and Company; Baxter International Inc.; Omnicell Inc.; ScriptPro LLC; Newlcon Oy; AlixaRx; Talyst LLC; TouchPoint Medical; ARxIUM; YUYAMA Co. Ltd.; TOSHO Inc.; Takazono Corporation; McKesson Corporation; Pearson Medical Technologies LLC; Accu-Chart Plus Healthcare Systems Inc.; and Capsa Healthcare.
The automated dispensing machines industry will generate $2.3 billion in 2024.
Segments in the automated dispensing machines market report include type, application, end user, and geography.
The in-patient care category under the application segment of the automated dispensing machines market will register the faster growth.
The increase in the patient population in hospitals and ASCs is the reason behind the high demand for centralized systems in the automated dispensing machines industry.
The APAC automated dispensing machines market is expected to register the fastest growth in the future.