Pharmacy Inventory Management Software Solutions And Cabinets Market Share & Trends Analysis Report By Type (Cabinets/Systems), By Mode Of Operations, By End-use, By Region, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The global pharmacy inventory management software solutions and cabinets market size was valued at USD 6.10 billion in 2023 and is projected to grow at a CAGR of 7.9% from 2024 to 2030. The market growth can be credited to the increased adoption of automation solutions including dispensing cabinets with barcode and RFID technology. As the healthcare sector expands rapidly, it faces an alarming rise in the volume of prescriptions. Healthcare providers have increasingly sought automated pharmacy inventory management systems to reduce medication errors.

In addition, pharmacies have increasingly adopted advanced medication management systems to ensure updated inventory and monitor slow-moving inventory and the expiry of medicines. The implementation of analytical tools advanced with artificial intelligence (AI), the Internet of Things (IoT), and blockchain have significantly enhanced the functionality of the pharmacy management system, leading to meticulous inventory acquisition and usage tracking. The pharmacy inventory management system assists in handling the intricacies of overseeing drug inventory, point-of-sale transactions, and dispensing medication.

Moreover, healthcare professionals have faced mounting pressure to reduce costs. Inventory management software and cabinets help manage medication inventory efficiently, minimizing excess stock and lowering expenses. For instance, Intermountain Healthcare reported that 60%-70% of its pharmacy budget was allocated to inventory management.

Furthermore, incorporating e-commerce and digitalization through pharmacy management systems has helped pharmaceutical vendors offer patients an effective way to find and buy their needed medications. In a business-to-customer (B2C) setting, patients can purchase and receive their prescription medications without leaving their homes. In the (business-to-business) B2B setting, thorough pharmaceutical e-commerce platforms have let providers analyze various fluctuating factors in drug purchasing, such as availability and prices of other drugs, for informed spending. These factors have further augmented the pharmacy inventory management software solutions & cabinets market.

Type Insights

The cabinets/systems segment dominated the market in 2023 with a 77.3% share 2023, pertaining to the increased use of automated dispensing cabinets (ADCs) that help streamline medication dispensing by automating the process. They reduce manual errors, improve workflow, and enhance overall efficiency in hospitals and clinics. These cabinets incorporate barcode scanning and RFID technology. For instance, McKesson Corporation’s ExpressRx Track ensures accurate medication administration, optimizes inventory levels and minimizes waste. Furthermore, pharmacists have increasingly adopted compact robotic dispensers to manage high prescription volumes efficiently. These systems often work seamlessly with inventory management software, providing real-time data and analytics.

The software solutions segment is expected to register the fastest CAGR during the forecast period owing to technological advancements, including AI, which is used for predictive analytics, demand forecasting, and inventory optimization. The increasing number of prescriptions worldwide has driven the need for efficient inventory management software solutions. Factors including efficient inventory management, expiry date tracking, automated reordering, and improvement in the functioning of the pharmacy staff have contributed to the market growth.

Mode Of Operations Insights

The decentralized segment secured the dominant market share in 2023 owing to the growing demand for point-of-use dispensing of medications.  Pharmacies have increasingly adopted automation solutions, including decentralization software to optimize medication dispensing, faster prescription processing, and increased savings on inventory costs. Decentralized dispensing systems, with features including barcode scanning and RFID technology, ensure accurate medication administration, minimizing adverse events. Furthermore, the trend of using decentralized software in long-term care centers is rising. These systems provide point-of-care convenience, improving accessibility and reducing patient wait times.

The centralized operations are projected to grow at a CAGR of 7.0% over the forecast period as these encourage collaboration among pharmacy units within a healthcare system. This model helps pharmacies share inventory data and optimize stock levels collectively, improving efficiency and reducing costs. They also facilitate bulk purchasing and negotiating with suppliers, saving costs. In addition, centralized operations benefit from automation and robotics with optimized inventory handling, reduced manual effort, and ensured timely restocking. Furthermore, centralized inventory models allow better resource utilization, minimize waste, and promote eco-friendly practices that align with an increased focus on sustainability.

End-use Insights

The independent pharmacies segment dominated the market with 40.7% of the market share in 2023, owing to the rise in the pharmacy industry and the implementation of automation software to reduce operational costs and improve overall functioning. Independent or retail pharmacies catering to local communities have faced growing prescription volumes, which encouraged them to seek inventory management solutions to streamline their processes. Furthermore, alarming government regulations for storing and dispensing controlled substances have increased the demand for automated dispensing cabinets.

The long-term care (LTC) segment is expected to grow substantially during the forecast period. The growing geriatric population has increased the demand for specialized medication management, including LTC pharmacies. These pharmacies handle various medications, including chronic disease treatments, pain management, and palliative care.

Inventory management systems allow proper monitoring of stocks and timely delivery of medicines to the patients. These systems applied in LTC allow optimized medicine distribution and time management, further boosting segment growth.  

Regional Insights

North America the pharmacy inventory management software solutions and cabinets market dominated with a share of 53.4% in 2023. The market has primarily benefited from a substantial number of market players, leading to increased availability of pharmacy inventory management systems and solutions. Healthcare providers have increasingly adopted these systems to optimize the workflow of pharmacies with ongoing advancements in healthcare IT infrastructure.

U.S. Pharmacy Inventory Management Software Solutions And Cabinets Market Trends

The U.S. pharmacy inventory management software solutions and cabinets market was propelled by the increasing government focus on cost containment in healthcare. Pharmacy inventory management systems contribute to waste reduction and lower inventory costs, leading to an anticipated rise in demand.

Europe Pharmacy Inventory Management Software Solutions And Cabinets Market Trends

Europe pharmacy inventory management software solutions and cabinets market held a lucrative share of over 20% in 2023 owing to the growing adoption of advanced technology, including automated dispensing cabinets (ADCs) and RFID tracking, which enhances efficiency and accuracy in inventory management. Moreover, the rise in retail, mail-order, and long-term care pharmacies has necessitated effective inventory management solutions.

Asia Pacific Pharmacy Inventory Management Software Solutions And Cabinets Market Trends

Asia Pacific pharmacy inventory management software solutions and cabinets market held a significant market share in 2023. The growing prevalence of retail pharmacies, an increasing number of prescriptions, and ongoing enhancements in healthcare infrastructure have collectively driven market growth in the region. Additionally, rising healthcare expenditure and the burden of diseases in recent years are expected to fuel demand for pharmacy inventory management solutions.

Key Pharmacy Inventory Management Software Solutions And Cabinets Company Insights

Some of the key companies in the pharmacy inventory management software solutions and cabinets market are ARxIUM, BD, Clanwilliam IRL, Datascan, and more. Companies have focused on improving the pharmacy inventory management by enhancing the software and optimizing the operation processes.

• ARxIUM is a company specializing in pharmacy solutions for sectors such as pharmacy, hospital inpatient pharmacies, outpatient pharmacies, long-term care facilities and government facilities.

• BD is a medical technology company specializing in the manufacturing and sale of medical devices, reagents, software, instrument systems, and more. The company offers consulting and analytics services, biosciences and integrated diagnostic solutions, and more.

Recent Developments

• In June 2024, McKesson Corporation hosted 2,700 representatives of independent pharmacies at the McKesson idea Share conference. The conference educated the attendees in discovering new ways to innovate and improve with the help of sessions, courses, and peer-to-peer networking.

Pharmacy Inventory Management Software Solutions And Cabinets Market Report Scope

Global Pharmacy Inventory Management Software Solutions And Cabinets 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 pharmacy inventory management software solutions and cabinets market report based on type, mode of operations, end-use, and region.

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

  • Cabinets/Systems

  • Software Solutions

• Mode Of Operations (Revenue, USD Million, 2018 - 2030)

  • Centralized

  • Decentralized

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

  • Independent Pharmacies

  • Hospital Pharmacies

  • LTC

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

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • South Korea

    • Thailand

  • Latin America

    • Brazil

    • Argentina

  • Middle East and Africa (MEA)

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait