CENTRAL FILL PHARMACY AUTOMATION MARKET ANALYSIS

Market Size and Trends

Global central fill pharmacy automation market is estimated to be valued at USD 654 Mn in 2024 and is expected to reach USD 1,401 Mn by 2031, growing at a compound annual growth rate (CAGR) of 11.5% from 2024 to 2031.

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Factors like growing need to reduce medication errors, increased demand for mail-order prescriptions, and focus on improving workflow efficiency are expected to boost demand for central fill pharmacy automation systems. Central fill operations allow pharmacies to consolidate high-volume prescription fulfillment operations at regional or centralized sites that leverage automation technology. This enables pharmacies to offer faster fulfillment turnaround times to patients and healthcare providers while optimizing costs with streamlined workflow processes. Innovations incorporating artificial intelligence, track-and-trace capabilities, and inventory management can also provide opportunities for key market players.  

Rising demand for specialty drugs

Specialty drugs such as biologics for treating chronic diseases like cancer, rheumatoid arthritis, multiple sclerosis, and others  are usually very expensive and require special storage and handling. These often need to be refrigerated or even frozen. With more patients being prescribed such complex specialty drugs for treating various chronic conditions, pharmacies are finding it challenging to efficiently store, pick, pack and ship these sensitive medications while maintaining their integrity. Central fill pharmacy automation facilitates effective inventory management and strict temperature control of specialty drugs, thus, minimizing wastage. The automated systems ensure drugs are picked, verified and packed accurately in thermostabilized environments by robots based on prescription orders. This reduces the risk of temperature excursions which can compromise the potency of drugs. Central fill pharmacies with automation are equipped to cater the growing need for proper handling of specialty medications across a wide geographic region in a cost-effective manner. For instance, in December 2023, according to the data published by TechTarget, Inc., specialty drugs' rising prominence in healthcare necessitates better cost management and patient experiences. Solutions like Optum's Specialty Fusion integrate management across medical and pharmacy benefits, thus, reducing costs. Strategies such as medication synchronization and flexible programs are vital for managing spending and improving experiences amidst expensive specialty drugs' influx.

Market Concentration and Competitive Landscape

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Increasing focus on enhancing pharmacy workflow efficiency

Pharmacy managers and owners are under constant pressure to improve workflow efficiency and turnaround times as prescription volumes increases. With limited staff and storage space, it is difficult for pharmacies to keep pace with demand while maintaining high accuracy levels. Central fill pharmacy automation addresses this challenge by streamlining the picking, verification, counting and packaging process through robotic and automated solutions. Tasks such as vial capping, tray loading, label verification, and others, which were earlier done manually, can now be rapidly performed 24/7 by machines, freeing up pharmacists and technicians to focus on more complex duties. Automation brings transparency to the filling process and integrates it with inventory and prescription management systems. This improves visibility and allows central fill pharmacies to consistently achieve turnaround targets for dispensing large volumes of orders from partner pharmacies. The systems also optimize pharmacy space utilization through compact designs and vertically-stacked storage of drugs. As a result, central fill pharmacies equipped with automation can fill and ship prescriptions of multiple retail partners simultaneously in an efficient, low error manner. For instance, on February 27, 2024, iA (Intelligent Automation), a company that provides an integrated pharmacy fulfillment platform for retail, health system, and government pharmacies, launched Shared Central Fulfillment, a cloud-based solution enabling pharmacy fulfillment owners to offer centralized services to multiple partners from one center.

Key Takeaways from Analyst

The global central fill pharmacy automation market is poised for growth in the foreseeable future due to increasing demand for automation, driven by pharmacies' pursuit of enhanced efficiencies and workflow. Central fill models leverage automated technology to streamline prescription filling processes by consolidating them from various retail locations into a centralized high-volume facility.

The imperative to reduce labor costs is expected to fuel market expansion. Automated solutions enable pharmacies to handle higher prescription volumes with fewer staff, particularly valuable amidst rising wage pressures. Central fill pharmacies prioritize accuracy enhancement by minimizing human errors through automation, incorporating verification checkpoints to ensure precise drug dispensing.

However, significant upfront capital investment in automation equipment may present a hurdle for some independent pharmacies. Additionally, ongoing maintenance costs and expenses related to software services contribute to the total cost of ownership. Moreover, interoperability challenges between systems from different vendors could complicate integration efforts for pharmacies employing solutions from multiple providers.

Market Challenge – Shortage of trained experts and significant skilled professionals

The lack of skilled professionals and substantial initial capital requirements can hamper the market growth. The competencies of the pharmaceutical workforce have yet to catch up with emerging technologies like automation, computer science, and process modeling, leading to a widening talent gap. Consequently, firms are facing challenges in sourcing these skills from the existing workforce.  Due to factors such as increased tariffs, anti-dumping taxes, non-tariff barriers, and stricter compliance measures, there has been increase in cost of trade. These logistical hurdles can hamper the market growth over the forecast period. The overall budget encompasses expenses such as maintenance, power consumption, servicing, technician fees, and others. The significant upfront investment required for central fill pharmacy automation systems has restrained market expansion in economies with lower income levels.

Market Opportunity – Increased collaboration between pharmacies and pharmaceutical companies

Increased collaboration between pharmacies and pharmaceutical companies can offer beneficial opportunities for the central fill pharmacy automation market. By combining their strengths, including pharmaceutical manufacturing expertise and pharmacy-patient relationships, these can establish integrated central fill systems. These systems ensure timely and cost-effective delivery of accurate prescriptions to patients. Collaborative models also foster innovation in automation, software, analytics, and business models, addressing challenges and serving niche patient populations. Collaborative efforts have improved access to essential medicines in conflict regions, according to the report published by  World Health Organization in 2021.

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Insights, By Product Type- Centralized automation reduces medication errors and boosts productivity

In terms of product type, automated medication dispensing system segment is estimated to contribute the highest market share of 25.3% in 2024, owing to its effectiveness in reducing medication errors and improving workflow efficiency. Automated medication dispensing systems allow medications to be stored and picked from a central location for packaging and distribution to individual patients. This centralized process minimizes the risk of errors that can occur during manual medication preparation at each point of care. Automated dispensing also standardizes dosage levels, confirming that medications are accurately filled for the correct patient before delivery. By automating repetitive tasks like counting, packaging and labeling medications, pharmacies are able to fill higher volumes of prescriptions with fewer personnel. This significantly boosts productivity and improves the pharmacies' return on investment for their automation systems. Centralized medication verification through an automated dispensing system ensures complete compliance with prescription orders as well as pharmacy safety standards. The consistent, automated processes help mitigate human error and promote higher quality care.

Insights, By Application- Inpatient Automation Streamlines Medication Management

In terms of application, inpatient pharmacy segment is estimated to contribute the highest market share of 40.12% in 2024 due to the intricate nature of medication management in hospital settings. Automation streamlines processes, ensuring accuracy and compliance, particularly for patients with complex drug regimens. Central fill systems and automated dispensing cabinets optimize workflow, enhance inventory management, and improve tracking of specialty drugs, ultimately enhancing safety and operational efficiency. Consequently, healthcare providers increasingly invest in automation to meet the demands of modern inpatient care.

Regional Insights

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North America has established itself as the dominant regional market for central fill pharmacy automation with estimated market share of 38.2% in 2024. The region accounts for the largest share of the global market, supported by widespread adoption across the US. North American pharmacies have integrated automation solutions extensively to optimize fill rates and increase productivity. Leading chains and hospitals have automated dispensing systems that allow centralized fill processing for multiple pharmacy locations.

Advanced robotics and automation technology development is strong in the U.S., enabling North American companies to introduce innovative solutions. Leading vendors in the market have headquarters in the region and sell their systems throughout North America and globally. The high labor costs in the U.S. healthcare sector have motivated facilities to automate peripheral pharmacy functions for significant cost savings annually. Additionally, central fill models allowing remote order processing at central pharmacy facilities enable businesses to benefit from economies of scale.

Asia Pacific region has emerged as the fastest growing regional market for central fill automation in recent years. Countries like China, India, Japan, and Australia are witnessing rapid industrialization and expanding healthcare infrastructure. Rising urbanization, growing middle-class populations with increasing healthcare needs, and higher disposable incomes are major factors driving the marketgrowth. Governments are also promoting healthcare modernization through strategic initiatives focused on optimizing efficiency and quality of care.

Market Report Scope

Key Developments

• On March 13, 2024, BD (Becton, Dickinson and Company), a prominent medical technology firm worldwide, announced result of a research investigation assessing the effects of implementing automated dispensing cabinets in long-term care facilities along with an off-site, long-term care pharmacy
• In November 2023, Antares Vision Group's Automated Cart received recognition from ADI Design Index for its emphasis on functional ergonomics for operators. This prestigious award, bestowed annually by ADI, highlights outstanding Italian designs that prioritize functionality and sustainability. Created by Antares Vision Group's Digital Healthcare division in partnership with IRCCS Ospedale San Raffaele, the Automated Cart is a key component of the Medication Management Platform (MMP). It stands as the most sophisticated automated medication dispensing system for healthcare facilities worldwide.
• In September 2020, CFaaS by McKesson, publicly-traded American company that distributes pharmaceuticals and provides health information technology allows pharmacies to utilize central fill automation and expertise from prescription automation without upfront costs. This service eliminates the need for investing in equipment, inventory, or extra staff besides a pharmacist. Instead of a large upfront investment, pharmacies pay a per-prescription fee, significantly reducing dispensing costs. Central Fill as a ServiceTM provides a comprehensive solution to complex market challenges for pharmacies.
• In October 2023, a cutting-edge automated drug dispensing machine, featuring a robotic arm and developed independently by JVM, a subsidiary of Hanmi Science, a biopharma company, was effectively introduced into the European market. The automatic dispensing machine equipped with an articulated robotic arm is designed for large, factory-type dispensing pharmacies in Europe.

*Definition: Central fill pharmacy automation is a completely automated pharmacy dispensing system that reduces the need for manual or human labor by handling the entire inventory system with machines and robots. The central fill pharmacy administers medications, validates, labels, and packages prescription products in a bag, and properly labels the bag so that they may be sorted and delivered to the other branches.

Market Segmentation

• Product Type Insights (Revenue, USD Mn, 2019 - 2031)
  • Automated Medication Dispensing System
  • Integrated Workflow Automation Systems
  • Automated Packaging and Labeling Systems
  • Automated Table Top Counters
  • Automated Medication Compounding Systems
  • Automated Storage and Retrieval Systems
  • Others (fully-automatic vial-filling machine, etc.)
•  Application Insights (Revenue, USD Mn, 2019 - 2031)
  • Inpatient Pharmacy
  • Outpatient Pharmacy
  • Retail Pharmacy
• Regional Insights (Revenue, USD Mn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East
    • GCC
    • Israel
    • Rest of Middle East
  • Africa
    • South Africa
    • North Africa
    • Central Africa
• Key Players Insights
  • Omnicell, Inc.
  • McKesson Corporation
  • ScriptPro LLC
  • Parata Systems, LLC
  • TCGRx (part of Becton, Dickinson, and Company)
  • ARxIUM Inc.
  • Innovation Associates (Part of Parata Systems)
  • Swisslog Healthcare (subsidiary of the KUKA Group)
  • RxSafe, LLC
  • Tension Packaging & Automation
  • Cornerstone Automation Systems, LLC (CASI)
  • PillPick Automation System
  • Sinteco S.p.A.
  • Yuyama Co., Ltd.
  • R/X Automation Solutions
  • Kirby Lester (part of Capsa Healthcare)
  • KUKA AG
  • iA (Intelligent Automation)
  • GSE Scale Systems
  • Manchac Technologies
  • Neuralstem