Number of pages: 100 | Report Format: PDF | Published date: March 29, 2023
Historical Years – 2021 | Base Year – 2022 | Forecasted Years – 2023-2031
Report Attribute |
Details |
Market Size Value in 2022 |
US$ 1.52 billion |
Revenue Forecast in 2031 |
US$ 2.9 billion |
CAGR |
7.7% |
Base Year for Estimation |
2022 |
Forecast Period |
2023-2031 |
Historical Year |
2021 |
Segments Covered |
Type, End Use, and Region |
Regional Scope |
North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa |
According to the deep-dive market assessment study by Growth Plus Reports, the global medication dispensing and storage systems market was valued at US$ 1.52 billion in 2022 and is expected to register a revenue CAGR of 7.7% to reach US$ 2.9 billion by 2031.
Medication Dispensing and Storage Systems Market Fundamentals
Medication dispensing and storage systems are advanced automated systems that manage and track medication distribution in healthcare settings, such as hospitals, clinics, and pharmacies. These systems frequently include hardware and software elements that collaborate to automate medication-related functions, including dispensing, inventory control, and patient tracking. These automated systems can help to reduce errors, improve efficiency, and increase patient safety in healthcare settings. They can also help to improve medication adherence by providing patients with reminders and other tools to help them stay on track with their medication regimens. Internet of Things technology is integrated into medication storage systems to improve monitoring, tracking, and data collection. These systems may include sensors that detect when medication is running low, expiration dates, and temperature control.
The demand for more precise and efficient medication administration is growing, and the future development of innovative drug distribution and storage systems is anticipated to be in demand. There will probably be greater demand for remotely accessible pharmaceutical distribution devices as telemedicine and virtual healthcare become more prevalent. These could include automated devices managed online or through a smartphone app. Pharmaceutical distribution devices can be necessary to deliver personalized doses based on a patient’s particular needs, which could increase as precision medicine gains more popularity.
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Medication Dispensing and Storage Systems Market Dynamics
The key factor boosting revenue growth in the global medication dispensing and storage systems market is the rising demand for medication dispensing and storage systems to reduce medication errors. In 2019, the Food and Drug Administration, or FDA, stated that it received more than 100,000 reports of pharmaceutical errors. Medication errors can significantly impact patients’ general health and quality of life. Medication dispensing and storage systems offer several advantages in improving medication errors. These systems can automate many of the processes involved in medication management and reduce the risk of human error. These systems can be programmed to dispense the correct medication and dosage frequency and alert healthcare professionals. Moreover, medication dispensing and storage systems can improve the accuracy of medication management by reducing the risk of drug interactions. The increased adoption of these systems is projected to influence the global medication dispensing and storage systems market revenue growth. For instance, the demand for smart dispensers by Hero’s medication management service has recently increased. The device can assist with better adhering to the prescription schedule recommended by healthcare professionals. This can assist with keeping track of a patient’s medicine, reminding them of their medication schedule, and assisting them with prescription refills as required.
Top players’ acquisition and collaboration strategies can significantly drive the global medication dispensing and storage systems market in the forecast years. For instance, Becton, Dickinson, and Company, a US-based medical technology company, acquired Parata Systems in June 2022. The acquisition expands BD’s expertise in merging teams to foster future development and innovation. The Parata portfolio was expected to include the services the BD Medical segment’s Medication Management Solutions division provides. The BD and Parata team working together was anticipated to support pharmacy executives in addressing crucial challenges, including clinician shortages, salary inflation, centralization of pharmacy services, and rising clinical demands on pharmacy employees.
However, the global medication dispensing and storage systems market is constrained by the high cost of these systems. Additionally, a lack of awareness and fewer advancements in healthcare settings, especially in developing countries, can limit revenue growth in the market for medication dispensing and storage systems.
Medication Dispensing and Storage Systems Market Ecosystem
The global medication dispensing and storage systems market is analyzed from three perspectives: type, end use, and region.
Medication Dispensing and Storage Systems Market by Type
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Based on type, the global medication dispensing and storage systems market is segmented into the centralized automatic dispenser and decentralized dispenser.
The decentralized dispenser segment has dominated the global medication dispensing and storage systems market. The segment is sub-segmented into ward-based automated dispensing systems, automatic unit dose dispensing systems, and pharmacies-based automated dispensing systems. The advantages of the decentralized dispenser, such as greater patient safety by lowering medication mistakes, improved drug distribution efficiency, and cost savings through waste reduction and inventory management, support the dominance of the decentralized dispenser segment. Moreover, these systems can also deliver real-time information on pharmaceutical availability and consumption, facilitating improved resource allocation and decision-making.
The centralized automatic dispenser segment is expected to increase during the forecast period. The segment is sub-segmented into carousels and robotics. The demand for centralized automatic dispensers is increasing as these systems can reduce the risk of medication errors, improve medication distribution efficiency, and allow for better inventory management. Additionally, they can provide real-time data on medication usage and help to ensure compliance with regulatory requirements. The carousels segment is currently leading. Moreover, carousel-type systems are extremely beneficial for patients with complex medication regimes.
Medication Dispensing and Storage Systems Market by End Use
Based on end use, the global medication dispensing and storage systems market is segmented into hospitals, pharmacies, and others.
The hospitals segment dominates the global medication dispensing and storage systems market. These systems ensure that medications are accurately dispensed and stored safely and securely. They can help reduce medication errors, improve patient safety, and increase hospital efficiency. Moreover, these hospital systems can offer real-time drug consumption and inventory monitoring, reducing waste and improving drug utilization.
The pharmacies segment is anticipated to show lucrative revenue growth in the forecast years. These systems are designed to increase efficiency and accuracy in pharmacy dispensing while ensuring proper storage and tracking of medications. They often utilize barcode scanning technology and automated dispensing cabinets to streamline the workflow for pharmacists and reduce the risk of medication errors.
Medication Dispensing and Storage Systems Market by Region
Based on the region, the global medication dispensing and storage systems market is segmented into North America, Europe, Asia Pacific, Latin America, & the Middle East & Africa.
North America dominated the medication dispensing and storage systems market with the largest revenue share. The increasing rates of medication errors leading to severe health conditions in North America are the key factor in fueling the adoption of medication dispensing and storage systems in the region. Moreover, the market for medication dispensing and storage systems in North America is supported as automated solutions in healthcare facilities are increasingly penetrating. Factors such as technological advancements, a rise in awareness about patient safety, and government initiatives to promote the adoption of these systems are also contributing to the revenue growth of this market.
The Europe medication dispensing and storage systems market is characterized by the presence of many top players in the region and rising disposable incomes. Moreover, several European countries, including the UK, Germany, France, and Italy, are advancing healthcare systems that provide significant opportunities for adopting the medication dispensing and storage systems market. These countries have a high demand for advanced medical technologies, and governments in these regions have implemented policies to support the growth of the healthcare industry.
Asia Pacific is expected to show lucrative revenue growth throughout the forecast period. This is attributed to the increasing adoption of advanced settings in healthcare, particularly in emerging countries like India and China. Additionally, governments of these economies are providing funding to develop advanced technologies in healthcare.
Medication Dispensing and Storage Systems Market Competitive Landscape
Due to new product introductions, mergers, and acquisitions, the medication dispensing and storage systems market has a moderately competitive global market. Launching new devices, securing permission for such items, and participating in other activities, such as awareness initiatives, are some of the primary development tactics many organizations focus on. Furthermore, the market segmented technological advancement and easy accessibility as superior revenue growth strategies.
The prominent companies with the largest revenue share in the global medication dispensing and storage systems market are:
Medication Dispensing and Storage Systems Market Strategic Developments
The global medication dispensing and storage systems market was valued at US$ 1.52 billion in 2022.
The decentralized dispenser segment accounts for the largest revenue share in the global medication dispensing and storage systems market.
The global medication dispensing and storage systems market is expected to register growth at a revenue CAGR of 7.7% during the forecast period.
Becton Dickinson and Company, Capsa Healthcare, Mckesson Corporation, ScriptPro LLC, and Koninklijke Philips N.V. are among the key players in the global medication dispensing and storage systems market.
Asia Pacific is expected to register the highest revenue growth in the global medication dispensing and storage systems market during the forecast period.
*Insights on financial performance are subject to the availability of information in the public domain