Automated Dispensing Machines Market Size, Share & Trends Analysis Report By Application (Outpatient, In-patient), By End Use (Hospitals, Retail Drug Stores And Pharmacies), By Operation, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global automated dispensing machines market size was valued at USD 4.76 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 7.2% from 2023 to 2030  owing to the surge in the utilization of technologically advanced medication dispensing systems in healthcare institutes and pharmacies, as a result of the growing support from government initiatives. These initiatives aim to enhance patient safety and reduce medication errors through the deployment of automated dispensing cabinets. Furthermore, there is an increasing awareness regarding the advantages of pharmacy automation, which is expected to contribute to higher adoption rates. The implementation of automated dispensing cabinets offers numerous benefits, including improved patient safety, enhanced inventory accountability, simplified billing procedures, and ultimately, an improvement in nursing efficiency and patient satisfaction.

Automated dispensing machines, electronic devices used in the healthcare sector, are instrumental in the centralized administration of patient prescriptions and unit dose drug orders. They are increasingly employed in numerous hospitals as a means to enhance efficiency and patient safety. These machines facilitate computer-controlled storage, medication tracking, and dispensing, thereby contributing to improved patient safety and operational efficiency. By reducing medication errors, automated dispensing machines play a vital role in promoting enhanced patient care.

The COVID-19 pandemic highlighted the significance of minimizing human contact and mitigating medication errors. Automated dispensing machines emerged as a valuable solution, offering a contactless and efficient approach to medication management. By reducing the risk of infectious disease transmission, these machines promote patient safety. Moreover, as the demand for telehealth and remote healthcare services has risen to limit in-person interactions, automated dispensing machines play a pivotal role in facilitating remote medication management and ensuring prompt medication access. The COVID-19 outbreak introduced fear among individuals regarding visiting healthcare facilities and seeking treatment for various chronic conditions. Additionally, governments implemented regulations mandating the installation of automated dispensing equipment in healthcare settings, leading to a rapid surge in demand for such devices. This strategic approach ensured both social distancing and accurate medication administration to patients, addressing concerns related to the pandemic.

According to the American Society of Health System Pharmacists, hospitals spend about 70% to 75% on their pharmacy department. Based on the estimates of the Institutes for Safety Medication Practices, over 20% of healthcare practitioners reported adverse patient effects due to a lack of proper monitoring of supply levels and inventory management. The rising death rate caused by the consumption of expired drugs and the rapidly growing number of patients is some of the crucial factors increasing the level of complexity in the medication distribution system. Furthermore, the growing global elderly population, the prevalence of numerous chronic conditions, and high rates of hospitalization are all factors contributing to an increase in the burden on hospital and retail drugstore pharmacies. An increase in the number of prescriptions and a shortage of experienced chemists are two further variables that are predicted to improve automation in the drug delivery system.

The increasing demand for technologically advanced medication dispensing systems, including automated dispensing, storage, and retrieval systems, is expected to significantly impact the adoption rate of pharmacy automation systems. This demand is primarily driven by the need to mitigate long waiting times for stock replenishment and improve drug management practices within healthcare settings. By adopting these advanced systems, healthcare providers can streamline their operations, enhance efficiency, and effectively address issues related to stock availability and medication management. According to a report by the Society of Actuaries, measurable drug errors cost the U.S. economy USD 20 billion, whereas the bulk of these errors could have been easily prevented. Increased pharmaceutical dispensing errors are a significant factor driving the frequency of adverse drug reactions, which can lead to serious health problems and even death. For instance, the Institute of Medicine reports that drug errors cause over 7,000 deaths in the U.S. each year.

Application Insights

Based on application, the market has been segmented into outpatient and inpatient. The inpatient segment dominated the market and accounted for the largest revenue share of 72.8% in 2022. The rapidly growing number of patient admissions raises the burden on pharmacy departments and increases the chances of poor inventory management, thereby increasing the demand for automated medication dispensing systems.

The outpatient segment is expected to grow at the fastest CAGR of 8.1% during the forecast period owing to the upsurge in demand for technological advancement and reduction in the overall cost associated with inventory management. Moreover, the growing demand for real-time inventory tracking, automation in medication distribution systems, and proper order management are some of the crucial factors indicating the increasing need for automated dispensing machines to minimize excess inventory and satisfy patient requirements. The increasing number of patients in home- and long-term healthcare systems is one of the crucial factors anticipated to propel growth in the coming years.

End Use Insights

The hospitals segment dominated the market and accounted for the largest revenue share in 2022. Lack of adequate pharmacy inventory management practices in hospitals is one of the factors indicating the increasing risk of medication errors. A key factor impacting market growth is the lack of pharmacists and technicians. For instance, in September 2021, Omnicell, a provider of medication management solutions and adherence tools to health systems and pharmacies, launched its innovative MedX solution at the Clinical Pharmacy Congress at ExCeL London. The XT series automated distribution cabinets are designed to enhance the efficiency and security of pharmaceutical distribution in healthcare facilities. These cabinets offer real-time inventory data to pharmacists and nurses, enabling them to make informed decisions regarding patient care. The cabinets utilize barcode scanning technology to ensure accurate and safe distribution of pharmaceuticals, verifying that medications are appropriately dispensed and reducing the risk of errors. This system provides a reliable and streamlined approach to medication management, ultimately improving patient safety and the overall quality of healthcare delivery.

Additionally, in January 2020, TouchPoint Medical Inc. announced the launch of the next-generation medDispense series, to expand the scope of its automated medication dispensing system. On a single software platform, the new medDispense product range combines security with a number of dispensing choices. Additionally, it offers bulk item storage, single-line item control, and single-dose dispensing through a single software platform called medLogic.

The retail drug store and pharmacies segment is expected to grow at the fastest CAGR during the forecast period from 2023 to 2030. The increasing demand for retail drug stores and growing government initiatives to support retail drug stores and pharmacies are some of the factors indicating the need for automation to minimize the inventory holding cost and proper disposal of expired medication. In 2022 The Centres for Medicare & Medicaid Services (CMS), U.S. stated that it would provide USD 100 million in financing to assist hospitals and other healthcare facilities in the procurement and implementation of automated dispensing machines. This financing is part of CMS's initiative to improve pharmaceutical safety and system efficiency. Hence, the aforementioned factors are anticipated to propel growth in the coming years.

Operation Insights

Based on operation, the market for automated dispensing machines has been segmented into centralized pharmacies and decentralized pharmacies. The centralized pharmacies segment dominated the market with the largest revenue share in 2022.Centralized medication dispensing systems include manually operated unit-dose systems and stationery robotic automated systems, which dispense the drug with the help of bar code technology. The growing demand for reducing costs, ensuring medication availability, and streamlined resource allocation are the factors driving the market.

The decentralized pharmacies segment is expected to grow at the fastest CAGR during the forecast period from 2023 to 2030. Decentralized pharmacies, which operate outside of conventional healthcare establishments like hospitals or clinics, have emerged as providers of accessible and convenient healthcare services. Typically located in retail settings or community centers, these pharmacies offer patients convenient access to medications and related healthcare services. With the placement of automated dispensing machines in decentralized pharmacies, patients can avail themselves of a self-service approach to obtain their prescriptions promptly and with ease. This integration of automated dispensing machines within decentralized pharmacies serves to enhance the efficiency and convenience of medication distribution to meet the needs of patients.

Regional Insights

North America dominated the market and accounted for the largest revenue share of 53.4% in 2022. The U.S. is the most important sector and captured a majority share of the North American segment. The increase in the prevalence of various chronic disorders among both the pediatric and elderly population is one of the factors indicating the growing number of patients being admitted, which is thereby increasing pressure on the traditional pharmaceutical system. The awareness regarding the presently available, technologically advanced systems gaining prominence, and the lack of low-cost skilled professionals are some of the crucial factors expected to boost the market.

Asia Pacific is expected to grow at the fastest CAGR of 8.9% during the forecast period. The supportive initiatives by the government and the growing incidence of medication errors are expected to drive the growth of the market in the region. In 2019, on the Menstrual Hygiene Day, sanitary napkin vending machines were installed at government hospitals in Chennai. Automated dispensing machines adoption is being encouraged by the U.S. government's Agency for Healthcare Research and Quality (AHRQ). AHRQ has created a number of resources, such as a toolkit, a guide, and a series of webinars, to assist healthcare organizations in implementing ADMs.

Key Companies & Market Share Insights

The market is highly competitive, with players undertaking strategies such as product launches, strategic acquisitions, and innovations to expand their global reach. Players in the automated dispensing machines market are concentrating on mergers and acquisitions to strengthen their market positions. For instance, in November 2020, BD announced the acquisition of the medical division of CUBEX LLC, a provider of cloud-based software for enhanced drug administration. The acquisition is expected to offer patient-centric care outside the acute settings.

Additionally, in August 2020, Capsa Healthcare announced the acquisition of RoboPharma B.V., a Dutch developer of pharmacy automated systems. RoboPharma B.V. provides specialized high-speed prescription filling solutions to central fill operations, hospitals, wholesalers, and community pharmacies. As part of the agreement, RoboPharma B.V.'s engineering and managerial teams will remain with the company, ensuring continuity in its innovative momentum, visionary approach, and strategic focus. This acquisition will contribute to Capsa Healthcare's expansion on a global scale, further strengthening its presence in the market. The following are some of the major participants in the global automated dispensing machines market:

• Omnicell, Inc.

• BD

• ScriptPro LLC

• Avery Weigh-Tronix

• PEARSON MEDICAL TECHNOLOGIES

• Accu-Chart

• Baxter

• Capsa Healthcare

Automated Dispensing Machines Market Report Scope

Global Automated Dispensing Machines Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global automated dispensing machines market based on application, end use, operation, and region:

• Application Outlook (Revenue in USD Million, 2018 - 2030)

  • Outpatient

  • Inpatient

• End Use Outlook (Revenue in USD Million, 2018 - 2030)

  • Hospitals

  • Retail Drug Stores and Pharmacies

• Operation Outlook (Revenue in USD Million, 2018 - 2030)

  • Centralized Pharmacies

  • Decentralized Pharmacies

• Regional Outlook (Revenue in USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • Thailand

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait