Pharmacy Software Market Outlook
The Global Pharmacy Software Market Size was valued at USD 9,230.5 Million in 2022 and is projected to reach USD 18,765.6 Million by 2031, expanding at a CAGR of 8.4% during the forecast period.
Pharmacy software is a computer-based application that is specifically built to manage several operations in pharmacy. Inventory management, prescription management, sales monitoring, customer management, and billing are some of the tasks that are optimized and automated by using pharmacy software. Pharmacy software includes a wide range of solutions for managing pharmacy operations. Pharmacy software systems are used by pharmacists, pharmacy technicians, and physicians to safely and efficiently supply prescription medication to consumers. This software benefits both the pharmacy and patients.
Pharmacy Software Market Macro-Economic Factors
Healthcare Expenditure
The pharmacy software market is significantly impacted by healthcare spending of a country. High healthcare expenditure leads to the increase in investments in healthcare infrastructure, including the use of modern technology such as pharmacy software. This high spending has led to the adoption of cutting-edge technologies in numerous sectors of the healthcare industry, including pharmacy software.
Government Regulations
Pharma distribution app development companies need to adhere to various laws and regulations to operate in a country. Pharma digital products, such as healthcare apps, must follow these regulatory standards. The purpose of these standards is to protect the confidential medical data of patients and pharmacies. Different countries have their own set of rules to follow.
For instance, since 1996, the Health Insurance Portability and Accountability Act (HIPAA) has been the primary privacy regulatory legislation in the US. It ensures that all healthcare providers, including online pharmacies and e-health apps, follow the laws governing the security and confidentiality of protected health information.
Demographics
The aging population significantly impacts the pharmacy software market. According to WHO, by 2030, one in every six individuals around the world would be 60 years or older. The world's population of people aged 60 years and above is likely to double to 2.1 billion by 2050. The number of people aged 80 years and above is projected to triple between 2020 and 2050, reaching 426 Million. Presence of large aging population increases the prevalence of chronic diseases, such as diabetes, hypertension, arthritis, and dementia, that require long-term medication management and monitoring.
Pharmacy Software Market Dynamics
Drivers
Rising Incidence of Medication Errors
The rising incidence of medication errors has driven the adoption of advanced pharmacy software globally. According to the National Coordinating Council for Medication Error Reporting and Prevention (NCC MERP), as many as 98,000 people die in any given year from medical errors that occur in hospitals. A significant number of those deaths is due to medication errors.
Pharmacy software aims to mitigate these risks by providing features such as electronic prescribing, reducing the likelihood of errors associated with illegible handwritten prescriptions. Moreover, features such as drug interaction checks and allergy alerts help healthcare providers avoid prescribing medications that negatively interact with current health conditions or allergies of a patient. These features help in reducing medication errors, boosting the market.
Growing Healthcare IT Sector
Growing health expenditure has subsequently boosted the healthcare IT sector. In 2020, the global health expenditure (% of GDP) was 10.89% as compared to 9.83% in 2019 and 9.68% in 2018. The growing healthcare IT sector fosters digital transformation in pharmacies, including cloud-based or e-pharmacies. Cloud-based pharmacy software solutions offer benefits such as scalability, flexibility, accessibility, security, and cost-effectiveness. Cloud-based pharmacy software solutions also enable real-time data sharing and collaboration among different stakeholders in the healthcare ecosystem.
High Prevalence of Chronic Diseases
The prevalence of chronic and infectious diseases across the globe has increased the consumption of prescriptive and over-the-counter (OTC) drugs. Pharmacy software helps pharmacists to dispense medications accurately with minimum wastage. This has increased the demand for automated management solutions, such as pharmacy software, driving the growth of the market. For instance, 73% of individuals aged 65+ years have at least one of ten common chronic diseases in Canada.
Increasing Trend of Hospital Pharmacies
The rising trend of hospital pharmacy is driving the global pharmacy software market by creating a demand for advanced tools that streamline prescription management, inventory control, and patient data. Hospitals increasingly embrace digital solutions to enhance efficiency and accuracy. The pharmacy software market responds to meet these evolving needs, contributing to its growth.
Restraint
Strict Government Regulations
Implementation of strict regulatory policies that necessitate adherence to privacy & safety standards, technical issues with software integration, and frequent updates hinders the pharmacy software market. For instance, the Insurance Portability and Accountability Act (HIPAA) sets standards for protecting sensitive health information of patients, known as protected health information (PHI).
Pharmacy software needs to comply with HIPAA regulations to ensure the confidentiality, integrity, and availability of patient data. Pharmacy software used in medication dispensing, tracking, or documentation needs to adhere to the Food and Drug Administration (FDA) regulations and guidelines set for electronic records and electronic signatures.
High Implementation Costs & Data privacy Concerns
Pharmacy software solutions require significant investment in terms of hardware, software, training, and maintenance. The cost of purchasing, installing, and upgrading pharmacy software solutions varies depending on the type, size, and complexity of the pharmacy. Moreover, some pharmacy software solutions require additional hardware or integration with other systems to function properly.
These factors increase the operational expenses and reduce the profitability of pharmacies. Furthermore, pharmacy software collects, stores, processes, and shares large amounts of sensitive data related to patient health records, prescriptions, medications, and transactions.
Opportunity
Integration of AI in Pharmacy Software
Integration of AI in pharmacy software highly eases the management of crucial tasks such as prescription dispensing, medication inventory tracking, and patient data monitoring. Advanced features such as telemedicine support and e-prescribing are allowing pharmacies to offer an elevated level of patient care. The push for digital transformation in the healthcare industry creates a favorable environment for the market.
Additionally, the use of IT solutions has made it possible to store patient records in a structured format and regularize the implementation of electronic prescriptions. This has reduced the amount of paper used in administration, automated the handling of medications during the supply chain, and improved patient safety.
Rising Adoption of E-prescribing by Pharmacies
The use of e-prescribing through electronic health records (EHRs) enhances the accessibility of pharmacy benefits data and patient medication histories. It provides potentially life-saving information that enhances patient safety, lowers costs, and improves prescription accuracy. It helps prescribers a safe way to electronically access patient eligibility, medication histories, and health plan formularies. It also allows them to safely transmit prescription information into the pharmacy computer system.
Electronic health records (EHRs) provide a number of benefits, including clinical notes, laboratory orders & results, and extensive clinical decision support. For instance, Dr First Rcopia is e-prescribing software, in which medication history data access, legend drug & controlled substance e-prescribing (EPCS), and patient medication data are stored that are accessed by pharmacies and clinics.
Scope of Pharmacy Software Market Report
The report on the Global Pharmacy Software Market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Pharmacy Software Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016-2021
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Forecast Period
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2023–2031
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Segmentation
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Type (Medication Dispensing Software, Pharmacy Management Systems, Pharmacy POS Software, And Others), Deployment (On-Premise And Cloud-Based), Application (Hospitals, Retail Pharmacies, Online Pharmacies And Specialty Pharmacies), End-User (Independent Pharmacies, Chain Pharmacies, Hospital-Owned Pharmacies, and Others)
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Regional Scope
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North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered
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MCKESSON CORPORATION, RedSail Technologies, LLC., CompuGroup Medical, CEGEDIM GROUP, DrFirst, Oracle (Cerner Corporation), SuiteRx LLC, Micro Merchant Systems, Outcomes, BESTRX, Interactive Business Systems (WinPharm), VIP Pharmacy Systems, Halemind Inc., Nuchange Informatics.
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Pharmacy Software Market Segment Insights
The Global Pharmacy Software Market is segmented on the basis of type, deployment, application, and end-user.
On the basis of type, the pharmacy software market is segmented into medication dispensing software, pharmacy management systems, pharmacy POS software, and other pharmacy software. The medication dispensing software segment holds a significant market share of the market and is projected to expand at a significant CAGR during the forecast period, due to enhanced automation and seamless integration. Modern solutions leverage artificial intelligence to optimize inventory management, ensuring real-time tracking and minimizing errors.
Based on deployment, the pharmacy software market is segmented into on-premise and cloud-based. The on-premise segment holds a significant share of the market during the forecast period, as some pharmacies opt for on-premise deployment to maintain high control over their data and adhere to specific regulatory requirements. Systems such as BestRx Pharmacy Management Software offer robust on-premise solutions, ensuring that sensitive patient information is stored locally with customizable security protocols.
On the basis of application, the Pharmacy Software market is segmented into Hospitals, Retail Pharmacies, Online Pharmacies, and Specialty Pharmacies. The Retail pharmacies segment is expected to hold a significant market share and is projected to expand at a significant CAGR during the forecast period, as retail pharmacies experience a much higher volume of consumer interactions on regular basis.
The constant flow of prescriptions, dispensing, and billing processes needs effective Pharmacies software solutions to manage workflow and speeding up service. Also, as retail pharmacies needs robust pharmacy software to streamline compliance by automating operations, keeping audit trails, and assuring accurate paperwork, hence pushing the segment's growth.
Based on End-Users, the Pharmacy Software market is segmented into Independent Pharmacies, Chain Pharmacies, Hospital-Owned Pharmacies. The Independent Pharmacies segment is expected to hold a significant market share and is projected to expand at a significant CAGR during the forecast period, as independent pharmacies make for a considerable share of number of retail pharmacy. Pharmacy software improves retail pharmacies' business efficiency and financial performance by assisting with tasks such as evaluating doctor prescriptions, manufacturing medications, maintaining inventory, placing drug orders, managing billing and insurance, counseling, and spotting incompatibilities.
Regional Analysis
Based on region, the Global Pharmacy Software Market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America is expected to hold a significant market share in 2022. The region is expected to maintain its position in the global market during the forecast period, due to the increasing adoption of pharmacy software by pharmacies and hospitals. Additionally, rising healthcare expenditure and the growing demand for efficient healthcare services are also contributing towards the market growth in the region.
Key Benefits for Industry Participants & Stakeholders
- In-depth Analysis of the Global Pharmacy Software Market
- Historical, Current, and Projected Market Size in terms of Value and Volume
- Potential & Niche Segments and Regions Exhibiting Promising Growth Covered
- Industry Drivers, Restraints, and Opportunities Covered in the Study
- Recent Industry Trends and Developments
- Competitive Landscape & Strategies of Key Players
- Neutral Perspective on Global Pharmacy Software Market
Segments
Type
- Medication Dispensing Software
- Pharmacy Management Systems
- Pharmacy POS Software
- Others
Deployment
Application
- Hospitals
- Retail Pharmacies
- Online Pharmacies
- Specialty Pharmacies
End-user
- Independent Pharmacies
- Chain Pharmacies
- Hospital-Owned Pharmacies
- Others
Region
- North America
- Europe
- Germany
- France
- Italy
- U.K.
- Spain
- Russia
- Rest of Europe
- Asia Pacific
- China
- Japan
- South Korea
- India
- Australia
- South East Asia (SEA)
- Rest of Asia Pacific (APAC)
- Latin America
- Brazil
- Mexico
- Rest of Latin America (LATAM)
- Middle East & Africa
- Saudi Arabia
- South Africa
- UAE
- Rest of Middle East & Africa (MEA)
Key Market Players Profiled in the Report
- MCKESSON CORPORATION
- RedSail Technologies, LLC.
- CompuGroup Medical
- CEGEDIM GROUP
- DrFirst, Oracle (Cerner Corporation)
- SuiteRx LLC
- Micro Merchant Systems
- Outcomes
- BESTRX
- Interactive Business Systems (WinPharm)
- VIP Pharmacy Systems
- Halemind Inc.
- Nuchange Informatics
Competitive Landscape
Top players in the market include MCKESSON CORPORATION, RedSail Technologies, LLC., CompuGroup Medical, CEGEDIM GROUP, and DrFirst. These companies are considered key players of Pharmacy Software based on their revenue, product offerings, regional presence, and value chain management system. The players are adopting key strategies such as acquisition, collaborations, and geographical expansion where potential opportunities for Pharmacy Software Market.
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On 4th May 2023, Micro Merchant Systems, Inc., the provider of the PrimeRx pharmacy technology management system, was honored for ‘Achievement in Product Innovation’ and awarded a bronze Stevie Award in the 2023 American Business Awards competition.
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On 4th May 2022, BESTRX has announced that its Pharmacy Management Software now works with ScriptAbility. ScriptAbility is a subsidiary of En-Vision America, Inc., a provider of high-tech products such as a variety of accessible pharmacy labels. The two companies are working together to help independent pharmacies improve treatment for patients who have visual and language difficulties.
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