| Study Period | 2019 - 2032 |
| Market Size in 2024 | USD 6981.9 Million |
| Market Size in 2025 | USD 7386.9 Million |
| Market Size by 2032 | USD 11684.5 Million |
| Projected CAGR | 7.5% |
| Largest Region | North America |
| Fastest Growing Region | Asia-Pacific |
| Market Structure | Fragmented |
|
Explore the market potential with our data-driven report
The pharmacy automation market revenue was USD 6981.9 million in 2024, and it is expected to witness a CAGR of 7.50% from 2025 to 2032, reaching USD 11684.5 million in 2032.
The entire healthcare industry is under massive pressure due to an increase in the number of injuries and fatalities caused by errors in medical prescriptions. Pharmacists and healthcare providers both are on the lookout for more-precise and -effective technologies, to curtail such errors. In addition, as the number of patients and visitors increases and their individual safety requirements diversify, the pharmaceutical delivery system becomes more complex every day. The most-efficient instruments in addressing this significant issue are presently the automated ones, as they aim to minimize patient safety risks and cut down on prescription error rates. Thus, the installation of such platforms assists chemists and healthcare service providers in reducing revenue and life losses and increasing productivity.
In addition, the increasing emphasis on automation to cut labor costs and the rising demand for specialized drugs are the primary factors driving the overall growth. Additionally, pharmacy automation firms are growing their footprint in emerging economies, in an effort to seize new opportunities.
Automation has increased the industry's profitability, while simultaneously increasing its efficiency tenfold. It has also significantly decreased the amount of drugs wasted, which has reduced the cost per dose. Additionally, it has made workflow management simple for pharmacists, while increasing patient satisfaction.
The cost of prescription pharmaceuticals and over-the-counter medicines has soared in recent years. The wastage of pharmaceuticals in hospitals and pharmacies is an additional expense, and the amount of wasted pharmaceuticals has been steadily rising. Therefore, automation in the retail pharmacy field has helped cut these expenses by minimizing the amount of viable and expired medication that is wasted.
Essentially, the technological developments in the sector have resulted in much lower inventory management costs, less medication loss, lower cost per dose, and improved patient safety. Automated dispensing units, automated patient CRM, tele-pharmacy, drug monitoring programs, and medication reminders have all significantly aided in streamlining industry processes and lowering the costs associated with pharmaceutical wastage or improper disposal.
This technology in the retail dispensary industry has existed for quite a while; robotic distribution has been raising the number of prescriptions correctly dispensed, while reducing the spending on training pharmacy staff. Although adding automated systems may be expensive up front, the substantial savings after streamlining the workflow make them feasible.
The medication dispensing & storage system category led the market with a share of around 40%, in 2024. The large share can be ascribed to these systems' better safety features and precision in drug distribution, which reduce the likelihood of patients receiving incorrect medicines. Additionally, they aid in lowering costs and making inventory management more efficient, by regulating storage. Patients who receive the wrong prescriptions not only face health risks, but also huge financial consequences.
Furthermore, in inpatient units, these systems eliminate the need for manual inventory of narcotic drugs at the end of each shift and monitor narcotics and other controlled substances, as well as drug utilization patterns.
During the pandemic, the demand for medicines and, in turn, the necessity for these systems, increased as the prevalence of the infection rose. Moreover, because of the zero-touch trend, healthcare facilities and pharmacies preferred these systems, which has raised the demand for them.
The installation of automated dispensing systems is also growing as a result of the rise in the world's elderly population, the increase in the prevalence of numerous chronic conditions, and the high hospitalization rates. Additionally, system popularity is expected to grow during the projection period due to the expanding network of chain pharmacies and rising usage of AI in developed nations.
The medication compounding system will grow at the higher CAGR of 5.9%, during the forecast period. This can be attributed to the growing demand for patient-specific formulations, and advancements in technology. Additionally, the shift toward small-batch compounding is escalating the demand for medication compounding systems.
Based on product type, the market has the following categories:
The inpatient pharmacy category held the largest share, around 45%, in 2024. This will be owing to the rising responsibility of healthcare providers to bring down the frequency of pharmaceutical distribution errors and, ultimately, eliminate them altogether. Additionally, compared to manual handling of the task, automation is better at making workflow management simple. Another benefit automating inventory management provides to hospital dispensaries is less medication waste.
The retail pharmacies category will grow at the higher CAGR of 7.3%, during the forecast period. The rise in the popularity of retail dispensaries and the price reduction brought by the automation of their processes are responsible for this. Additionally, the integration of artificial intelligence and robotics, such as robotic dispensing units and automated pill counters, in retail pharmacies is driving the growth of the category in the market.
Based on end user, the market has the following categories:
Drive strategic growth with comprehensive market analysis
In 2024, North America generated more than 45% of the total revenue. The main factors behind the dominance of the continent are its established healthcare system, presence of top players, improvements in patient management methodologies, and deployment of advanced practice management systems.
In addition, the pandemic has fueled the expansion of the sector according to many technology suppliers, who also consider pharmacy automation the future. Additionally, the regional market has been expanding due to the existence of significant drugstore chains and high patient volumes. Likewise, the increasing investment in research and development contributes toward the industry expansion, as does the desire to reduce drug waste and prices.
Each year, more than 100,000 suspected drug errors are reported in the U.S.; they are on one of the major causes of deaths in this region.
Moreover, Europe holds a significant share as well. This can be credited to the booming aged population, growing prevalence of chronic conditions, and high expenditure on the medical infrastructure in the region. Due to these factors, there is an increase in the demand for both better healthcare services and medications. On top of that, the business will grow as drugstores become less centralized and labor costs and disposable income rise.
Additionally, as risks to the healthcare industry expand, providing effective patient security has become a priority in hospitals and retail pharmacies, thus driving the focus on automating pharmacy operations. In order to offer better services and more-efficient products, many companies in this sector in Europe are making considerable investments in innovative technologies.
As per one study done on the impact of robotic dispensing on German drugstores, the technology offers several advantages over traditional storage systems, including a modest increase in the sales of over-the-counter medicines and a slight reduction in labor expenses.
APAC will grow at the highest CAGR, of 9.1%, during the forecast period. The growth of this regional market is due to the rapid urbanization, which is also leading to the increasing healthcare infrastructure investments. The burden of chronic and acute diseases is alarmingly high in China and India due to their massive populations and the high unmet need for treatment.
Based on geography, the market has the following categories:
The market is fragmented with the presence of large multinational companies and small companies, such as Omnicell, McKesson, and Becton Dickinson. Smaller players, such as Parata Systems and ScriptPro, are focusing on the integration of robotic dispensing systems or workflow management solutions to compete with the larger companies. The diversity of end users, such as retail pharmacies, hospitals, and long-term care facilities, leads to varying requirements, opening up opportunities to newer companies as well.
Want a report tailored exactly to your business need?
Request CustomizationLeading companies across industries trust us to deliver data-driven insights and innovative solutions for their most critical decisions. From data-driven strategies to actionable insights, we empower the decision-makers who shape industries and define the future. From Fortune 500 companies to innovative startups, we are proud to partner with organisations that drive progress in their industries.
Working with P&S Intelligence and their team was an absolute pleasure – their awareness of timelines and commitment to value greatly contributed to our project's success. Eagerly anticipating future collaborations.
McKinsey & Company
India
Our insights into the minutest levels of the markets, including the latest trends and competitive landscape, give you all the answers you need to take your business to new heights
We take a cautious approach to protecting your personal and confidential information. Trust is the strongest bond that connects us and our clients, and trust we build by complying with all international and domestic data protection and privacy laws
Customize the Report to Align with Your Business Objectives
Request the Free Sample Pages