Pharmacy Automation Devices Market By Product (Automated Medication Dispensing Systems (Robotic Dispensing Systems and Automated Dispensing Cabinets), Automated Packaging Systems, Automated Medication Compounding Systems, Storage & Retrieval Systems, Tabletop Tablet Counters, and Others), By End-user (Hospital Pharmacies, Retail Pharmacies, and Others), Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Pharmacy Automation Devices Market size is expected to be worth around USD 15.0 billion by 2033 from USD 5.9 billion in 2023, growing at a CAGR of 9.8% during the forecast period 2024 to 2033.

The pharmacy automation devices market is poised for significant growth, driven by the rising global disease burden and the increasing use of prescription medications. According to a 2022 KFF tracking poll, approximately 62% of people in the U.S. were taking prescription medicine between September and October 2021, underscoring the growing demand for efficient dispensing solutions.

This surge in prescriptions has accelerated the adoption of automation technology, which plays a critical role in reducing medication errors and enabling faster dispensing. Pharmacy automation devices also contribute to patient safety by preventing product contamination and errors, thereby minimizing liabilities.

Additionally, these systems help reduce medication wastage, leading to long-term cost savings. Omnicell Inc. reports that pharmacy automation can result in zero drug wastage and reduce pharmacy checks by 90%. By digitizing processes and improving workflow, these devices allow pharmacists to focus more on patient care, enhancing outcomes across the continuum of care.

For example, Swisslog Healthcare’s Meds-to-Beds program, launched in March 2020 in partnership with PipelineRx and Savioke, demonstrates how pharmacy automation simplifies tasks, limits unnecessary human intervention, and supports social distancing measures.

Key Takeaways

• In 2023, the market for Pharmacy Automation Devices generated a revenue of USD 5.9 billion, with a CAGR of 9.8%, and is expected to reach USD 15.0 billion by the year 2033.
• The product segment is divided into automated medication dispensing systems, automated packaging systems, automated medication compounding systems, storage & retrieval systems, tabletop tablet counters, and others, with automated medication dispensing systems taking the lead in 2023 with a market share of 27.3%.
• Considering end-user, the market is divided into hospital pharmacies, retail pharmacies, and others. Among these, retail pharmacies held a significant share of 45.6%.
• North America led the market by securing a market share of 40.1% in 2023.

Product Analysis

The automated medication dispensing systems segment led in 2023, claiming a market share of 27.3% owing to the increasing need for enhanced medication safety and accuracy in healthcare settings. As hospitals and clinics seek to reduce medication errors and improve patient outcomes, the adoption of automated dispensing systems is expected to rise.

Additionally, the growing complexity of medication regimens, especially in the treatment of chronic diseases, has created a demand for systems that can manage high volumes of prescriptions efficiently. Technological advancements, such as the incorporation of artificial intelligence to optimize dispensing processes, further contribute to the segment’s expansion. The need for compliance with stringent regulatory requirements regarding medication management is also likely to fuel the growth of this segment.

End-user Analysis

The retail pharmacies held a significant share of 45.6% due to increasing consumer demand for quick and accurate prescription fulfillment. As the volume of prescriptions continues to rise, particularly due to an aging population and the prevalence of chronic conditions, retail pharmacies are expected to invest more in automation technologies.

These technologies enable faster service, reduce the risk of medication errors, and improve overall customer satisfaction. The shift toward more personalized and efficient healthcare delivery in retail settings also drives this trend. Furthermore, the need to manage rising operational costs while maintaining high service standards is likely to encourage retail pharmacies to adopt advanced automation systems, making this segment a significant contributor to market growth.

Key Market Segments

By Product

• Automated Medication Dispensing Systems
  • Robotic Dispensing Systems
  • Automated Dispensing Cabinets
• Automated Packaging Systems
• Automated Medication Compounding Systems
• Storage & Retrieval Systems
• Tabletop Tablet Counters
• Others

By End-user

• Hospital Pharmacies
• Retail Pharmacies
• Others

Drivers

Increasing Occurrence of Medication Dispensing Errors in Pharmacies

Medication dispensing errors, defined as discrepancies between prescribed and dispensed drugs in pharmacy settings, pose significant risks in healthcare. The growing prevalence of chronic diseases, the increasing consumption of medications, and the rise in self-treatment contribute to a higher likelihood of these errors.

The financial and fatal consequences of dispensing errors are substantial, with the National Center for Biotechnology Information (NCBI) reporting in 2023 that 7,000 to 9,000 people in the U.S. die each year due to medication errors. Similarly, a 2021 article from Asian Robotics Review LLC highlighted that the U.S. experiences approximately 51.5 million dispensing errors annually, leading to around 0.1 million deaths.

These alarming statistics underscore the urgent need to prevent medication dispensing errors, particularly given the shortage of skilled clinical pharmacists and nurses. As a result, there is an increasing demand for pharmacy automation devices in both retail and hospital settings. These devices not only enhance patient safety by minimizing errors but also help control costs associated with drug distribution.

A 2022 study published in the Journal of Medical Systems demonstrated that after the implementation of automated dispensing cabinets (ADCs) in the ICUs of National Cheng Kung University Hospital (NCKUH) in Taiwan, the rate of errors dropped from 3.87 to 0 per 100,000 dispensations. Such initiatives highlight the critical role of pharmacy automation in improving patient care and reducing the incidence of medication errors.

Restraints

High Cost of Installing Pharmacy Automation Devices

Despite the potential benefits of pharmacy automation systems, many healthcare professionals remain hesitant to adopt these devices due to the significant capital investment required for installation compared to manual setups. Concerns over the return on investment (ROI) also hinder adoption by hospitals and pharmacies.

In addition to the initial installation costs, the ongoing maintenance expenses associated with these systems are substantial. Advanced software is integral to regulating the routine workflow of a pharmacy, but it often requires regular updates for optimal performance, further driving up costs. For example, a November 2023 article by eBizneeds reported that developing basic pharmacy management software can cost between USD 50,000 and USD 100,000, while more comprehensive solutions with advanced functionalities can exceed USD 200,000.

Moreover, while automation reduces some manual tasks, it still requires human oversight, and staff members must undergo extensive training to operate these devices effectively. Inadequate training and education among healthcare professionals can lead to incorrect programming of the machines, potentially resulting in the dispensing of incorrect medications or dosages.

Opportunities

Growing Prevalence of Chronic Diseases like Cancer and Diabetes

The growing prevalence of chronic diseases such as cancer and diabetes significantly drives demand for pharmacy automation devices. As the number of patients requiring ongoing medication management continues to rise, healthcare providers increasingly seek efficient solutions to handle the growing volume and complexity of prescriptions.

Automation technologies play a crucial role in streamlining medication dispensing, reducing errors, and enhancing patient safety, which is particularly important in managing chronic conditions. Additionally, the aging global population is expected to further escalate the burden of these diseases, thereby increasing the demand for advanced automation solutions.

These trends are anticipated to create substantial growth opportunities within the healthcare sector. As reported by the National Cancer Institute in May 2024, there were approximately 20 million new cancer cases in 2022, leading to around 9.7 million deaths globally. By 2040, the number of annual cancer cases is estimated to rise to 29.9 million, with cancer-related deaths projected to reach approximately 15.3 million.

Impact of Macroeconomic / Geopolitical Factors

Macroeconomic and geopolitical factors significantly influence the pharmacy automation devices market. Economic downturns or recessions may lead to reduced healthcare spending, potentially slowing the adoption of new technologies. Geopolitical instability can disrupt global supply chains, causing delays and increasing costs for manufacturers.

However, economic growth in emerging markets creates expansion opportunities, as rising incomes and improved healthcare infrastructure boost demand for automation solutions. Additionally, favorable government policies and increased focus on healthcare innovation in developed nations support market growth, making the long-term outlook for pharmacy automation devices increasingly positive.

Latest Trends

Growing Demand for Robotic Dispensing Devices Across Retail Pharmacies and Hospitals

The robotic dispensing system (RDS) plays a vital role in automating the storage, counting, and dispensing of various medication pills, enabling centralized pharmacies to efficiently manage high-volume prescriptions with enhanced safety. The increasing demand for drug barcoding, dispensing, and intravenous compounding in acute care settings reflects the high accuracy and efficiency of these robotic systems.

Additionally, leading industry players are increasingly focused on launching technologically advanced robotic dispensing systems, further driving growth in the pharmacy automation market. According to a March 2023 article by the National Center for Biotechnology Information (NCBI), robotic dispensing systems have become a standard solution for addressing medication errors during the dispensing process, with these devices filling over 90,000 patient prescriptions per day in central pharmacy systems.

The adoption of automation in outpatient and institutional pharmacy settings is also on the rise, driven by the need to reduce medical errors and meet the growing demand for specialty drug dispensing, which requires more complex techniques than traditional prescriptions. For instance, in March 2022, Wirral Hospitals NHS Trust reported a 50% reduction in medication dispensing errors within four months of implementing a pharmacy robot.

Moreover, a study published by BioMed Central Ltd in October 2022 highlighted that the combination of robotic dispensing systems with pharmacy support staff enhances clinical care, ensuring the quality and safety of medications provided by pharmacists.

Regional Analysis

North America is leading the Pharmacy Automation Devices Market

North America dominated the market with the highest revenue share of 40.1% owing to the increasing need for efficient medication management in healthcare settings. The rise in healthcare spending, alongside a heightened focus on minimizing medication errors, has led to widespread adoption of advanced automation technologies in pharmacies across the region.

An aging population and the growing prevalence of chronic diseases have further driven the demand for streamlined pharmacy operations to handle higher prescription volumes. Regulatory support in the United States, encouraging the use of technologies that enhance patient safety and operational efficiency, has also played a pivotal role in this market expansion.

The integration of artificial intelligence and machine learning into pharmacy systems has notably improved the accuracy and speed of dispensing processes. Notably, in December 2022, Baxter introduced ExactaMix Pro, an advanced automated nutrition compounder certified by the U.S. FDA, with UL 2900-2-1 cybersecurity standard recognition, exemplifying the region’s commitment to technological innovation in pharmacy automation.

The Asia Pacific region is expected to experience the highest CAGR during the forecast period

Asia Pacific is expected to grow with the fastest CAGR owing to rapid urbanization and significant investments in healthcare infrastructure in countries such as China, India, and Japan. The increasing prevalence of chronic diseases and an aging population are likely to boost demand for efficient and reliable medication management systems.

Government initiatives aimed at enhancing healthcare services and reducing costs are expected to further propel the adoption of automated pharmacy solutions. Additionally, the expanding pharmaceutical industry in the region, spurred by rising healthcare needs and economic development, provides a favorable environment for the growth of pharmacy automation technologies.

The growing awareness among healthcare providers about the advantages of automation in improving operational efficiency is anticipated to accelerate market adoption. As an indication of the region’s potential, a May 2021 report by Industry Advisors highlighted that India alone had approximately 0.9 million retail pharmacy stores, underscoring the scale of opportunity for automation solutions.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherland
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
• Rest of Latin America
  • Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The major players in the Pharmacy Automation Devices market are actively engaged in the development and introduction of innovative products, as well as implementing strategic initiatives aimed at enhancing their competitive positioning. Key players in the market focus on expanding their product portfolios through acquisitions and mergers, enabling them to offer more comprehensive solutions.

They invest heavily in research and development to innovate and introduce advanced technologies, such as AI-driven systems and robotic automation. Strategic partnerships and collaborations with healthcare providers help them enhance market penetration and access to new customer segments. Additionally, they emphasize geographic expansion, targeting emerging markets to capitalize on growing healthcare infrastructure.

Top Key Players in the Pharmacy Automation Devices Market

• Talyst, LLC
• Pharmacierge
• Pearson Medical Technologies
• Omnicell, Inc.
• McKesson Corporation
• JVM
• Capsa Healthcare
• Baxter
• Amerisource Bergen Corporation
• Accu-Chart Plus Healthcare Systems, Inc.

Recent Developments

• In January 2022: Omnicell, Inc. acquired U.K.-based Hub and Spoke Innovations Limited to enhance its technology portfolio for retail pharmacies in the U.K. This acquisition supports the expansion of Omnicell’s comprehensive solutions, which aim to improve pharmacy workflows and provide patients with 24/7 access to their medications. The integration of Hub and Spoke Innovations’ technology into Omnicell’s offerings directly contributes to the growth of the pharmacy automation devices market by advancing the capabilities of retail pharmacies to manage medication dispensing more efficiently and consistently.
• In August 2021: Capsa Healthcare acquired Specialty Carts Inc. to broaden its long-term care (LTC) medication management solutions. This acquisition enables Capsa to offer a more diverse range of medication carts, catering to the specific needs of extended care facilities. By expanding its product portfolio, Capsa strengthens its position in the pharmacy automation market, addressing the growing demand for specialized equipment that enhances medication management in long-term care settings.
• In October 2023: JVM, an affiliate of Hanmi Science, introduced an advanced automated drug dispensing machine equipped with a robotic arm to the European market. This strategic launch is designed to increase JVM’s presence in Europe by transitioning from entry-level to high-end models, thereby optimizing pharmacy workflows. This move is relevant to the growth of the pharmacy automation devices market as it demonstrates the continuous innovation and adoption of advanced technologies that enhance the efficiency and precision of medication dispensing processes in pharmacies.
• In October 2023: Pharmacierge announced its expansion into central London’s healthcare hub with a new 5,500 sqft dispensary featuring a 30ft dispensing robot, the largest in the renowned Harley Street Medical Area. This expansion aims to revolutionize the private pharmacy experience by combining cutting-edge technology and robotics with traditional pharmacy values. The introduction of such advanced automation technology significantly impacts the pharmacy automation devices market by setting new standards for efficiency, accuracy, and patient care in high-demand healthcare environments.

Report Scope