Medication Management Market Share Analysis by Software (Computerized Physician Order Entry, CDSS, Inventory Management, Assurance System Software, Administration Software, Automated Dispensing Systems), Service (Medication Analytics, Point-of-Care Verification, ADE Surveillance), End User (Hospitals, Pharmacies), Mode of Delivery (On-Premises, Web-Based, Cloud-Based) - Global Industry Revenue Estimation and Demand Forecast to 2030

Market Overview

The medication management market size stood at $2,361.9 million in 2021, and it is expected to grow at a CAGR of 10.7% during 2021–2030, to reach $5,911.5 million by 2030. The demand for software and services for medication management is extensively growing by the increasing geriatric population, the surging need to cut medical care expenditures, the high incidence of chronic illnesses, and improved Medicare services.

Moreover, players in the healthcare sector have increased investments to improve workflow, rapid and advanced development of medical technology, and greater emphasis on lowering prescription errors. Thus, investments in healthcare information technology (HIT) gained a high pace, along with other government measures, which have increased the adoption rate of drug distribution systems globally.

Over the course of the forecast period, the demand will increase, as a result of the widespread adoption of IT in the medical care industry. The COVID-19 epidemic had a favorable effect on the market. Patients with chronic illnesses could not access medical centers for standard care and prescription administration. Retail and online pharmacies provided emergency services to patients with convenient and rapid access. The participation of community pharmacists at hospitals’ outdoor centers during the pandemic required a strict inventory of drugs, where such software and control systems helped in easing the pressure on the overloaded medical handling systems.

The IT sector for healthcare software and services also benefited from strategies adopted by players such as mergers and acquisitions. For instance, McKesson Corporation acquired OncoHealth and Prescribing Support Services in May 2022. Also, the company made investments in a number of sectors, such as healthcare IT, pharmacy IT, and life sciences platforms and tools. The usage of medicine distribution control software is being encouraged by the shortage of pharmacists and primary-care workers in order to improve workflow.

Additionally, significant opportunities for market players are projected in the near future because of the rising potential in developing countries and the increasing emphasis on value-based medicines.

North America Is the Largest Market for Health Management Systems

In 2021, North America accounted for the largest revenue share, around 45%, in the market. This is attributed to the penetration of IT in the medical sector, advanced technological developments, a rise in the prevalence of infectious and chronic diseases, and an increase in the number of prescriptions, in the region.

The U.S. held a larger market share, over 90%, in the region in 2021. This is attributed to high awareness and application of new technologies in health management, the presence of a large number of small to medium-scale players offering administration solutions to various hospitals and pharmacies, and the shortage of primary care physicians in the country. For instance, according to the data published in 2020 by the Association of American Medical Colleges, the U.S. could see a shortage of 54,100–139,000 physicians by 2033. The shortfall is expected to span both primary- and specialty-care fields.

On the other hand, the APAC market is predicted to grow at the highest rate during the forecast period. This can be ascribed to the presence of a huge patient pool, rising number of hospitals, improving healthcare infrastructure, and surging medical care expenditure, in the region. Moreover, the growing aging population, increasing demand for mHealth technologies, rising prevalence of chronic diseases, and initiatives taken by government associations to strengthen regulatory norms are other factors driving the demand for medication management software and services in APAC.

Surging Demand for Advanced Healthcare Technologies Drives the Market

Health control technologies offer effective remote patient monitoring and are cost-effective in nature. Therefore, the increasing penetration of mobile devices has led to the adoption of these technologies. In addition, these have a number of applications in the treatment and management of diseases.

HITs including drug management systems and their software help in compiling services related to medication, care, and rehabilitation. They improve communication between patients and doctors, in order to reduce drug administration errors and provide better-coordinated care. Moreover, these technologies help to improve health quality by computerizing patient safety practices, enhancing clinical decision support systems (CDSS), and reducing the burden on practitioners.

There are several decision-makers for the treatment of an individual with a particular illness. The lack of coordination among health professionals and patients has negatively impacted the quality of healthcare and its cost, which led to the fragmentation of essential information, such as diagnosis, medical history, patient demographics, billing, and administrative data. This, in turn, drives the need for HITs, including medicament handling systems, such as CDSS, CPOE, and ADS.

Massive Unexplored Medication Management Markets Provide Newer Opportunities

Massive unexplored drug control medication management markets across the globe have created abundant opportunities for major players. With the significant development in emerging economies, the demand for drug distribution systems is expected to increase rapidly in the coming years. Also, the high growth in the end-user categories, such as hospitals and pharmacies, has been witnessed in developing nations. This provides immense growth opportunities for players offering medicine management solutions.

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Hospitals Are Largest End Users in the Market

Hospitals are the largest end users of medicine control systems, accounting for the highest revenue share, around 70%, in 2021. This is because, in recent years, hospitals have begun making significant financial investments in the adoption and modernization of their IT systems. Also, healthcare organizations are concentrating on enhancing workflow effectiveness, safely delivering medication, and streamlining intricate clinical procedures.

In addition, the pharmacies category is expected to witness significant growth in the coming years. Some of the major causes of the expansion of management solutions in pharmacies are a surge in the number of prescriptions due to the increased burden of chronic and infectious diseases, and the lack of pharmacists. The implementation of automated pharmacy systems is projected to reduce the workload for pharmacists and help them manage patient prescriptions effectively. Thus, with the rise in cases of infectious and chronic diseases and the increase in the number of prescriptions written, pharmacies will become more prominent in the market.

Cloud-Based Mode of Delivery Is Most Widely Used in Industry

In 2021, the cloud category dominated the market, with around 60% revenue share. For simple information exchange with clients and other stakeholders, a number of firms are offering cloud-based deployment solutions. The need for commercially available cloud solutions is likely to be significantly influenced by the ease with which information may be accessed in remote locations using such solutions. In addition, the demand is projected to grow in the coming years, due to the emphasis on patient data privacy and the adoption of regulations related to it.

Moreover, due to several security flaws in web-based and on-premises deployment, cloud-based technology deployment is gaining rapid popularity. Cloud service providers also offer solutions that address different threats and protect against data loss and theft. As a result, the category leads the market.

Key Players in the Medication Management Market Are:

• Allscripts Healthcare Solutions Inc.
• Becton, Dickinson and Company
• McKesson Corporation
• Omnicell Inc.
• B. Braun Melsungen AG
• ARxIUM

Market Size Breakdown by Segment

The study offers a comprehensive market segmentation analysis along with revenue estimation for the period 2017-2030.

Based on Software

• Computerized Physician Order Entry
• Clinical Decision Support System
• Inventory Management
• Assurance System Software
• Administration Software
  • Electronic medication administration record (EMAR)
  • Barcode medication administration (BMA)
• Automated Dispensing Systems

Based on Service

• Medication Analytics
• Point-of-Care Verification
• ADE Surveillance

Based on End User

• Hospitals
• Pharmacies
• Others

Based on Mode of Delivery

• On-Premises
• Web-Based
• Cloud-Based

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.