Pharmacy Management System Market Size, Share, Trends, Growth 2032

Pharmacy Management System Industry Prospective:

The global pharmacy management system market size was worth around USD 72.56 billion in 2023 and is predicted to grow to around USD 177.61 billion by 2032, with a compound annual growth rate (CAGR) of roughly 10.46% between 2024 and 2032.

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Pharmacy Management System Market: Overview

A pharmacy management system is any software that helps a pharmacy automate its day-to-day business operations. These programs are designed to ease business operations in pharmacies, including carrying out tasks such as preparing medications, reviewing medical prescriptions, and managing inventory. The list of tasks performed with the help of pharmacy management systems is extensive, which is also the main driving force for the tools.

The growing development of modern pharmacy management systems is expected to help the industry players thrive in the coming years, especially in the backdrop of increasing complexities in pharmacy operations. Pharmacy management systems offer several advantages to pharmacy owners, including improving overall pharmacist efficiency, patient health outcomes, and prevention of medicinal fraud.

The demand for efficient pharmacy management systems is projected to improve in the coming years due to increased consumer awareness, favorable government regulations, and growing pressure on pharmacies to improve business operations. One of the major drawbacks of pharmacy management systems is their vulnerability to online fraud and cyber-attacks.

Key Insights:

• As per the analysis shared by our research analyst, the global pharmacy management system market is estimated to grow annually at a CAGR of around 10.46% over the forecast period (2024-2032)
• In terms of revenue, the global pharmacy management system market size was valued at around USD 72.56 billion in 2023 and is projected to reach USD 177.61 billion by 2032.
• The pharmacy management system market is projected to grow at a significant rate due to the growing number of patients worldwide and the increased rate of drug development.
• Based on type, the pharmacy inventory management segment is growing at a high rate and will continue to dominate the global market, as per industry projections.
• Based on deployment mode, the cloud/web-based segment is anticipated to command the largest market share.
• Based on region, North America is projected to dominate the global market during the forecast period.

Pharmacy Management System Market: Growth Drivers

Growing number of patients worldwide and increased rate of drug development to drive market demand rate

The global pharmacy management system market is expected to witness high growth due to the increasing number of patients worldwide. In addition, the development of new medicines and drugs aimed at helping improve the overall patient care ecosystem will further encourage the use of pharmacy management systems. The growing influx of patients suffering from mild to severe medical conditions has resulted in increased pressure on pharmacists to continue meeting the medical needs of patients without any error.

However, the growing burden on pharmacists creates scope for manual errors such as improper inventory management and medication fraud or displacement. The use of pharmacy management systems can speed up the process of medication dispensing with improved accuracy. Growing investments in medical research and improved healthcare expenditure are likely to create excellent growth scope for tools designed for managing pharmacies.

For instance, in March 2023, Pfizer, one of the world’s leading drug developers, announced the acquisition of Seagen for USD 229 per Seagen share. The total enterprise value at the end of the deal was USD 43 billion. Seagen is a global biotechnology company that works on commercializing and developing cancer medicines.

Increasing awareness, favorable government policies, and technology integration in healthcare to generate market revenue

The global pharmacy management system market is expected to be influenced by the increasing rate of awareness among pharmacy companies, owners, and management. End-user awareness of the benefits and functions of applications designed to manage pharmacies is critical to the industry’s overall growth rate.

In addition to this, governments across the globe are formulating new policies aiming to increase transparency in the pharmacy sector, which can further fuel the adoption of digital management systems among pharmacies. The healthcare industry globally has shown an increased rate of adoption of information technology (IT), which is expected to encourage market revenue in the coming years.

Pharmacy Management System Market: Restraints

Expenses associated with the use of the systems will limit the market’s expansion trend

The global industry for pharmacy management systems is projected to be restricted due to the expenses associated with the use of the tools. Pharmacy management systems are comprehensive solution providers with certain applications equipped with highly advanced features. In addition, the deployment of software designed to manage pharmacies must be integrated into the existing IT infrastructure of the facility, which can act as a growth barrier. The lack of trained professionals to optimally use the systems will further complicate the overall growth rate in the industry.

Pharmacy Management System Market: Opportunities

Increasing the launch of new tools with novel offerings will generate more expansion opportunities

The global pharmacy management system industry is projected to generate growth opportunities due to the increasing launch of new tools. In November 2024, a pharmacist in the Christchurch region of New Zealand announced that work was going on to develop a new pharmacy management system under the name Script Sense. The application is expected to become commercially viable by early 2025, according to official reports. The novel tool is powered by Artificial Intelligence (AI) to streamline pharmacy operations.

Additionally, it also aims to reduce manual errors while focusing on improving patient safety. In September 2022, RedSail Technologies announced the launch of Axys® by Integra. It is a new cloud-based pharmacy management system specially designed for long-term care. The site was launched in collaboration with Guardian® Pharmacy of Indianapolis.

In July 2022, Becton, Dickinson, and Company (BD), a leading medical technology company, announced the acquisition of MedKeeper. The latter is a prominent provider of cloud-based pharmacy management applications. The acquisition has helped BD establish its hold in the pharmacy management system sector.

Pharmacy Management System Market: Challenges

Privacy concerns and issues related to software downtime to challenge market expansion

The global pharmacy management system industry is projected to be challenged by growing concerns over data breaches, cybersecurity, and patient privacy. Pharmacy management systems are vulnerable to security breaches caused by computer viruses or malware. Additionally, the downtime caused by technical errors in pharmacy management tools may further inhibit the overall expansion of the industry.

Pharmacy Management System Market: Report Scope

Pharmacy Management System Market: Segmentation

The global pharmacy management system market is segmented based on type, end-user, deployment mode, component, and region.

Based on type, the global market segments are pharmacy revenue cycle management system, pharmacy benefits management system, pharmacy compounding software system, pharmacy data management system, pharmacy inventory management system, and others.

In 2023, the highest growth was listed in the pharmacy inventory management system segment. Generally, pharmacies deal with large volumes of common and rare medicines. Pharmacy inventory should be perpetually updated to ensure the highest level of patient care. For instance, CVS, a popular pharmacy retail chain, offers around 15 vaccines, including COVID-19 and shingles.

Based on end-user, the global pharmacy management system industry is divided into outpatient pharmacies and inpatient pharmacies.

Based on deployment mode, the global market divisions are on-premise and cloud/web-based. In 2023, the highest growth was listed in the cloud/web-based systems. The growing integration of cloud systems across major healthcare facilities including pharmacies is helping the segment thrive. Moreover, cloud systems offer several advantages further helping increase adoption rate. More than 90% of companies worldwide have already adopted cloud-based solutions.

Based on components, the pharmacy management system industry divisions are services, software, and hardware.

Pharmacy Management System Market: Regional Analysis

North America to dominate the industry during the projection period

The global pharmacy management system market is expected to be dominated by North America during the forecast period. In 2023, it held control over 38.01% of the total market share, mainly due to the presence of a large number of pharmacies across the region. According to official estimates, the US has more than 87,000 pharmacies, some of which are a part of major retail chains.

For instance, CVS pharmacies can be located in over 9000 regions, and the number of stores continues to grow. In addition, the healthcare and drug dispensing industries in North America are widely regulated with strict monitoring measures to prevent medication fraud. Favorable government policies aimed at improving patient care across domains are likely to help the region thrive in the coming years.

Europe is a prominent market for pharmacy management system providers. In 2023, the region generated nearly 29.01% of the global revenue. The surge in the number of patients, along with growing investments in improving medical care across Europe, will fuel regional revenue. The increasing number of new tool developers offering scalable and highly efficient systems will be crucial to the future growth rate in European regions.

Pharmacy Management System Market: Competitive Analysis

The global pharmacy management system market is led by players like:

• OptumRx
• EMIS Health
• McKesson Corporation
• Talyst LLC
• Liberty Software
• Rx30
• Allscripts Healthcare Solutions
• Cerner Corporation
• Computer-Rx
• Datascan
• PrimeRx
• Becton Dickinson and Co.
• QS/1
• BestRx
• GE Healthcare Inc.

The global pharmacy management system market is segmented as follows:

By Type

• Pharmacy Revenue Cycle Management System
• Pharmacy Benefits Management System
• Pharmacy Compounding Software System
• Pharmacy Data Management System
• Pharmacy Inventory Management System
• Others

By End-User

• Outpatient Pharmacies
• Inpatient Pharmacies

By Deployment Mode

• On-Premise
• Cloud/Web-Based

By Component

• Services
• Software
• Hardware

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa