Medication Management System Market Size, Share & Trends Analysis Report By Hardware (Automated Dispensing Systems), By Software, By Software Type, By Delivery Mode, By End Use, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The global medication management system market size was estimated at USD 7.07 billion in 2023 and is projected to grow at a CAGR of 8.8% from 2024 to 2030. The increasing demand to decrease medication errors, the rising number of prescriptions, and the growing investment in implementing the medication management system are driving market growth globally. According to the Centers for Disease Control and Prevention (CDC), in the U.S., 60% of adults aged 18 and above reported using at least one prescription drug, while 36% indicated they were taking three or more. Thus, such a rise in the number of prescriptions being dispensed boosts market growth.

The rising investments by market players & hospitals to improve the quality of treatment services is another major factor contributing to market growth. For instance, in January 2024, SmithRx secured USD 60 million in Series C funding. This latest investment follows the company’s USD 20 million Series B round in 2022 and underscores its commitment to addressing the challenges of accessibility and affordability in the prescription drug market. SmithRx aims to disrupt the traditional pharmacy benefit managers (PBMs) model and ensure that patients have access to medications at fair and reasonable prices.

Moreover, many hospitals and healthcare facilities are increasingly incorporating electronic systems for medication management to simplify medication administration processes and enhance patient care. For instance, according to an article by NCBI in June 2022, medication management systems have supported medication safety. This improvement can be attributed to the fact that these systems enable doctors to directly add prescriptions to a structured medication list, thereby enhancing documentation at the point of order. The benefits provided by these medication management systems are anticipated to propel market growth over the forecast period.

The growing technological advancements in healthcare IT infrastructure, including IoT, big data, and AI, significantly propel market growth. For instance, in June 2024, AssureCare announced the acquisition of Cureatr and SinfoniaRx Technology. The acquisition is aimed at further expanding the AssureRx medication management solutions portfolio. Furthermore, medication management software enhances inventory management & dispensing of medicines and controls Adverse Drug Events (ADE). Recently, there has been a significant shortage of healthcare professionals and pharmacists. Thus, to ensure efficient workflow, there has been a rise in the adoption of medication management software.

The number of clinical trials conducted has significantly increased in recent years, contributing to the growth of the medication management market. For instance, according to the U.S. National Library of Medicine, as of January 2024, there were 20,465 clinical trials recruiting patients in the U.S. and 65,474 trials recruiting subjects worldwide. These large numbers of clinical trials have significantly helped drug discovery & development and are likely to continue to drive industry growth over the forecast period.

Market Concentration & Characteristics

The medication management system industry exhibits a moderate level of concentration. Characteristics include rapid technological advancements, such as the integration of artificial intelligence (AI) and remote monitoring & consultancy. The industry showcases continuous innovation and expansion fueled by rising healthcare expenditures, the rise in hospital investment in improving workflow, and the growing adoption of healthcare solutions.

The global medication management system market is characterized by a high degree of innovation, with new technologies and methods being developed and introduced regularly. The Closed-Loop Medication Management (CLMM) system offers an innovative solution by fully integrating automated and smart technologies to optimize hospital patients' medication management & delivery process. This shift to a digital framework enhances patient safety and improves the efficiency of the complete medication management cycle, including prescription ordering, dispensing, and administration stages

Regulations significantly impact the medication management system industry by ensuring patient safety, service quality, and efficacy. Big data analytics can assist healthcare organizations in maintaining compliance with regulatory requirements such as HIPAA and FDA guidelines. Organizations can demonstrate adherence to regulations and mitigate compliance risks by analyzing medication data and ensuring proper documentation

Mergers and acquisitions in the medication management system industry are rising due to the need for research and development, reflecting the industry's dynamic nature. Companies are leveraging M&A activities to innovate and offer advanced solutions that meet the evolving needs of healthcare professionals. For instance, in November 2023, ExactCare announced the acquisition of Tabula Rasa HealthCare, a leading firm in the healthcare industry known for delivering personalized and comprehensive care to value-based organizations

The substitutes for medication management systems are manual tracking, mobile applications, and healthcare provider support. Mobile apps are readily available on smartphones, which most individuals always carry. This accessibility ensures that patients can manage their medications wherever they are without the need for a dedicated medication management system

The medication management system market has a significant global presence, with substantial growth and adoption observed across various regions worldwide. This market’s expansion can be attributed to several factors, including the increasing geriatric population, rising chronic diseases, advancements in healthcare infrastructure, and technological innovations in healthcare. For instance, North America, particularly the U.S., holds a considerable share of the medication management system market. The dominance is primarily due to the region’s sophisticated healthcare infrastructure, enabling early adoption of advanced medication management system

Hardware Insights

The automated dispensing systems segment accounted for the largest share of 51.4% in 2023. The growth is attributed to the rising adoption of automated dispensing systems in healthcare facilities and an increasing number of research studies are expected to fuel market growth. In March 2024, Pinderfields Hospital Pharmacy implemented an automated medication dispensing system to speed up dispensing of controlled drugs and improve patient safety. These systems help reduce errors in dispensing medication, thereby fueling market growth. Moreover, rising product launches and approvals are expected to support market growth. For instance, in October 2023, JVM launched MENITH, a next-generation automated drug dispensing machine with a robotic arm, in Europe.

The delivery workstation segment is anticipated to grow at the fastest CAGR of 13.8% from 2024 to 2030. The rising adoption of automation and digitalization in healthcare operations propel segment growth. As healthcare providers seek to streamline medication management processes and enhance operational efficiency, delivery workstations offer a solution for optimizing medication distribution workflows. By automating tasks such as medication dispensing, inventory management, and documentation, these workstations enable healthcare staff to focus more on direct patient care. Furthermore, the availability of delivery workstations in the market is driving segment growth. For instance, the AccessRx MD medication delivery workstation is intended to aid in closing the gap between pharmacy and patient bedside in medication delivery. Its goal is to decrease errors and prevent common workarounds.

Software Insights

The clinical decision support system solutions (CDSS) segment accounted for the largest market share of 30.6% in 2023 and is expected to grow at the fastest CAGR of 11.1% over the forecast period. Clinical Decision Support System (CDSS) solutions are transforming healthcare by providing a range of benefits that positively impact patient care, clinical workflows, and healthcare outcomes. One of the most significant advantages is the improvement in patient safety. CDSS offers real-time alerts and reminders that help healthcare professionals identify potential medication errors, drug interactions, allergies, and contraindications. This ultimately reduces adverse drug events and improves patient safety. Moreover, it helps enhance the monitoring of ICU patients when avoidance of such combinations is not feasible and reduces the length of patient stay in the ICU. When potential Drug-Drug Interaction (DDI) alerts are tailored to the ICU, the study found a 12% decline in the number of administered high-risk drug combinations per 1,000 drug administrations per patient.

The automated dispensing systems segment held a significant share of the market. The system is designed to minimize the risk of human errors in medication dispensation. It ensures patients receive the right medications in the correct dosages and at the appropriate times. The software integrates advanced algorithms and verification mechanisms to prevent medication errors, such as incorrect dosages or drug interactions. Thus, this technology helps improve patient outcomes and reduces adverse events. Moreover, the increasing complexity of medication regimens and the need for efficient management solutions are driving segment growth.

Software Type Insights

The consolidated/integrated systems segment accounted for the largest share of 69.2% in 2023 and is expected to grow at the fastest CAGR of 8.9% over the forecast period. The growth is attributed to the system's comprehensive solutions for medication management by centralizing various functions, such as prescription processing, inventory management, patient records, and billing, within a single platform. One of the primary benefits of these systems is the seamless coordination and communication among different healthcare stakeholders, including pharmacists, physicians, nurses, and patients. These systems simplify workflows, reduce errors, and enhance efficiency by consolidating disparate processes into a unified interface.

For instance, according to a study published by Oxford University Press in 2023, out of the 386 patients analyzed, integrated medicines management resulted in a mean reduction of 1.34 in potential prescribing omissions at discharge compared to 1.57 in the control group. The decentralized/ standalone segment held a significant market share in 2023. These systems are designed to meet healthcare providers' specific needs and preferences, especially those working in smaller practices or specialized settings. These systems provide autonomy and flexibility by allowing organizations to customize solutions according to their unique workflows and requirements.

Delivery Mode Insights

The cloud-based systems segment accounted for the largest market share of 40.3% in 2023 and is expected to grow at the fastest CAGR of 9.0% from 2024 to 2030. The segment growth is attributed to the increasing demand for secure and efficient patient data management. Cloud-based systems are popular because they provide higher protection against theft and robust data security, a major concern in the healthcare industry. Other factors driving the segment growth include the need for easy access to information in remote locations, greater attention to patient data protection, and implementation of data security regulations. These factors have led to a significant increase in demand for cloud-based solutions, which are more secure than traditional on-premises or web-based systems.

The on-premise segment held a significant share in 2023. The healthcare organization uses on-premise solutions to store health data in its own data centers or servers. This gives the organization greater control over data security and enables compliance with regulations (such as HIPAA in the U.S.) and data governance. Several medium- and small-scale enterprises commonly adopt on-premises deployment through in-house data centers and security infrastructure.

End Use Insights

The hospital segment dominated the market with a share of 27.9% in 2023. Hospitals are heavily investing in upgrading their IT systems to improve workflow efficiency, ensure safe medication distribution, and simplify complex clinical processes. This is expected to boost the segment growth. As the segment grows, hospitals emphasize streamlining workflows and simplifying complicated clinical procedures. The shift in trend from volume-based care to value-based care is leading to increased demand for information systems in hospitals. Moreover, the advantages of cloud computing in healthcare include streamlined, collaborative patient care, reduced data storage costs, and better data security than on-premises software. For instance, in July 2023, The National Association of Boards of Pharmacy (NABP) collaborated with IBM Consulting to develop Pulse by NABP, a modern digital platform designed to enhance transparency within the drug supply chain. This initiative aims to safeguard patients by preventing the distribution of counterfeit or inferior-quality prescription drugs.

The ambulatory surgical centers (ASCs) segment is anticipated to grow at the fastest CAGR during the forecast period. It is governed by several authorities, including the Centers for Medicare & Medicaid Services (CMS), various accreditation bodies, the Drug Enforcement Administration (DEA), and The U.S. Pharmacopeia. Due to the complex nature of pharmaceutical regulation in ASCs, a registered nurse should lead the medication management program, ensuring effective collaboration with ASC's consultant pharmacist. Furthermore, ASCs increasingly rely on software for various organizational needs, which is important for enhancing medication management systems.

Regional Insights

The North America medication management system marketdominated the global industry in 2023 and accounted for a revenue share of 44.4%. The increasing prevalence of chronic diseases, such as diabetes, cardiovascular diseases, and cancer, is expected to drive the demand for advanced medication management systems to ensure accurate dosing and adherence to treatment regimens. As per the American Diabetes Association, around 1.2 million Americans are diagnosed with diabetes annually. In 2021, diabetes affected about 11.6% of the American population, which is equivalent to 38.4 million people. Of these, around 2 million people have type 1 diabetes, with around 304,000 of them being children and adolescents.

The medication management system market in the U.S. held a significant share of the North America regional market in 2023. This can be attributed to the increasing adoption of healthcare IT and a growing number of medication errors in the U.S. According to the NIH report published in 2023, between 7,000 and 9,000 people in the U.S. die due to medication errors annually. In addition, numerous patients experience medication complications; however, they do not report them. Hence, the growing emphasis on reducing medication errors and improving patient outcomes is predicted to facilitate market growth over the forecast period.

Europe Medication Management System and RF Ablation Market Trends

The European medication management system market is witnessing growth fueled by the growing adoption of IT in the healthcare sector. In addition, the rising awareness among healthcare providers regarding the benefits of digital health solutions and the need for streamlining medication processes are expected to fuel market growth in Europe. For instance, healthcare stakeholders, including patients, health managers, the medical technology industry, and healthcare professionals, have formed an alliance for the digitalization of medication management in hospitals across Europe.

The medication management system market in the UK is one of the major markets in the region. The increasing government and nongovernment initiatives for the development of advanced medication management systems are one of the key factors propelling market growth. In addition, the rising R&D activities are likely to accelerate market growth. For instance, in April 2024, Lancaster University participated in a project to develop a medication management system for individuals receiving home-based care.

The Germanymedication management system market is projected to witness significant expansion over the forecast period owing to the robust healthcare infrastructure and emphasis on quality healthcare delivery. Moreover, there is an increasing adoption of digital health solutions, leading to a rise in e-prescriptions, contributing to market growth. A survey conducted by Doctolib in 2022 revealed that around 66% of patients showed interest in using online appointment booking, 58% in e-prescriptions, and 55% in digital transmission of diagnostic results.

Asia Pacific Medication Management System Market Trends

The medication management system market in Asia Pacific is expected to grow at the fastest CAGR from 2024 to 2030. The Therapeutic Goods Administration (TGA) of Australia, being a member of the Pharmaceutical Inspection Co-operation Scheme (PIC/S), is in the process of transitioning to the newer version of the PIC/S Guide to Good Manufacturing Practice (GMP). The current version of the guide is PE 009-13, and the transition is to the newer PE 009-16 version. This transition reflects the TGA’s commitment to maintaining and enhancing the quality and safety of therapeutic goods in Australia and the Asia-Pacific region.

The China medication management system market is expected to grow at the fastest CAGR from 2024 to 2030. The Chinese government is significantly investing in smart medicine, which includes medication management systems. This investment is driving the market growth in the country. By allocating resources toward the development and implementation of these systems, China is signaling its commitment to improving healthcare outcomes through technology.

The medication management system market in India holds a significant share of the Asia Pacific regional market. The introduction of Soliqua, a complex medication requiring precise dosage and monitoring, is likely to encourage the adoption of digital health solutions for diabetes management. These solutions, such as connected insulin pens, smart glucose monitors, and mobile apps, can help patients track their medication adherence, blood sugar levels, and overall health outcomes. The increased production of generic drugs by Indian pharmaceutical companies has led to a higher demand for medication management systems. These systems are required to manage the increased production, inventory, and distribution of drugs, both within India and for export to the U.S. and other countries.

Latin America Medication Management System Trends

The Latin America medication management system market is experiencing significant growth. The partnership between PAHO (Pan American Health Organization) and St. Jude Children’s Research Hospital in Feb 2024 is aimed at improving access to medicines for childhood cancer in Latin America and the Caribbean. This initiative will drive the regional market growth. The increased access to essential medicines will result in a higher demand for medication management systems. As more children are diagnosed and treated for cancer, healthcare providers will require more advanced systems to manage medications, track patient progress, and ensure appropriate dosages and administration. This increased demand will encourage the development and adoption of medication management systems across the region.

The Brazil medication management system market is experiencing significant growth. The new law in Brazil that strengthens participant protections in clinical trials is expected to drive market growth. This is because the law will likely lead to an increased number of clinical trials conducted in Brazil, which, in turn, will boost the demand for medication management systems. They are essential for ensuring the safety and efficacy of clinical trials and they help track the use of medications, manage adverse events, and ensure compliance with regulatory requirements. As more clinical trials are conducted in Brazil, the demand for these systems will increase, driving market growth.

MEA Medication Management System Market Trends

The medication management system market in MEA is experiencing significant growth due to the increasing adoption of biosimilars in the Middle East and Africa. Biosimilars are highly similar versions of already approved biological drugs, offering cost-effective alternatives while maintaining efficacy and safety. This surge in biosimilar adoption necessitates a robust medication management system to ensure accurate identification, tracking, and administration of these complex drugs.

The Saudi Arabia medication management system market is expected to grow rapidly over the forecast period. In October 2023, the Saudi Food and Drug Authority (SFDA) introduced the Break-Through Medicine Program to expedite the review and approval process for innovative and life-saving medications in Saudi Arabia. This program aims to provide patients with faster access to cutting-edge treatments, which, in turn, drives the market growth.

Themedication management system market in UAE is anticipated to expand over the forecast period due to technological innovations. The introduction of innovative pharmaceutical products in the UAE leads to an increased demand for medication management systems that manage, track, and monitor the use of these products, thereby ensuring their safe and effective use. With the growing number of pharmaceutical products, an efficient medication management system is becoming more critical.

Key Medication Management System Company Insights

The global market is highly competitive. Key companies deploy strategic initiatives, such as product development, launches, and sales & marketing strategies to increase product awareness and regional expansions & partnerships to strengthen their market share. Market players are also involved in conducting clinical testing of their products, patent applications, and increasing product penetration.

Recent Developments

• In February 2024, GUARDIAN RFID, a provider of inmate tracking systems, joined an Amazon Web Services (AWS) Partner Network (APN) and the AWS Public Sector Partner (PSP) Program. The APN encompasses a global network of AWS Partners who utilize various expertise, programs, and resources to develop, promote, & distribute their solutions to customers

• In November 2023, Baptist Health, a Kentucky-based company, collaborated with Omnicell’s Central Pharmacy Dispensing Service. This collaboration aimed to improve pharmacy services and strengthen control over medication supply chain

• In July 2023, Thoma Bravo, an investment firm specializing in software, completed a significant investment in Bluesight. This investment aimed to strengthen Bluesight's capabilities in preventing drug diversion by incorporating Medacist, a drug diversion analytics company, into its operations. Moreover, it aimed to expand Bluesight's solutions in managing inventory and optimizing expenditure

Medication Management System Market Report Scope

Global Medication Management System Market Report Segmentation

This report forecasts revenue growth at country global, regional, and levels and provides an analysis of the latest trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the medication management system market report based on hardware, software, software type, mode of delivery, end use, and region:

• Hardware Outlook (Revenue, USD Million, 2018 - 2030)

  • Automated Dispensing Systems

  • Delivery Workstation

  • Other Hardware

• Software Outlook (Revenue, USD Million, 2018 - 2030)

  • Computerized Physician Order Entry (CPOE)

  • Clinical Decision Support System Solutions (CDSS)

  • Diversion Medication Management

  • Inventory Management & Supply Chain Management Software

  • Administration Software

    • Electronic Medication Administration Record

    • Barcode Medication Administration

  • Automated Dispensing Systems

    • Centralized Automated Dispensing System

      • Robots

      • Carousels

    • Decentralized Automated Dispensing System

      • Pharmacy-based ADS

      • Ward-based ADS

      • Automated Unit Dose Dispensing

    • Assurance System Software

    • Other Software

• Software Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Consolidated/Integrated

  • Decentralized/Standalone

• Mode of Delivery Outlook (Revenue, USD Million, 2018 - 2030)

  • On-Premise

  • Web-based

  • Cloud-based

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

  • Hospitals

  • Pharmacies

  • Ambulatory Surgical Centers

  • Physician's Clinics & Offices

  • Behavioral Health Centers

  • Addiction Treatment/Substance Abuse Centers

  • Long Term Care Facilities

  • Specialty Centers

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

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Norway

    • Sweden

    • Denmark

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

    • Thailand

  • Latin America

    • Brazil

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait