Pharmacy Automation Market: Growth, Size, Share, and Trends

According to the National Coordinating Council for Medication Error Reporting and Prevention (NCC MERP), a medication error can be defined as any preventable event that may cause or lead to inappropriate medication use or patient harm while the medication is in the control of a healthcare professional, patient, or consumer. Medication errors and dispensing errors are recognized as leading causes of hospital readmission worldwide. Poor order communication between physicians and pharmacists, dangerous storage practices in pharmacies, and the confusion arising from similar labels and drug prescriptions during the preparation or dispensing of drugs or during drug administration are some key factors contributing to medication errors. In September 2022, the World Health Organization (WHO) highlighted the significant impact of medication errors within the European Region. In Europe, the rate of medication errors in hospitals varies, ranging from 0.3% to 9.1% in prescriptions and from 1.6% to 2.1% at the dispensing stage. Common contributing factors include environmental issues, staffing challenges, and workflow problems. Implementing electronic prescriptions, medication error surveillance, and barcode medication administration systems are identified as crucial strategies to reduce these errors. Additionally, the WHO highlighted that globally medication harm accounts for over half of the overall preventable harm in medical care, with an estimated annual cost of USD 4.63-22.4 billion (€4.5–21.8 billion) in Europe. Automated systems are considered as one of the most efficient solutions to minimize these errors. In the past, the successful implementation of automated dispensing cabinets (ADCs) and automated dispensing machines (ADMs) in hospitals has 0led to significant reductions in the number of dispensing and medication errors in hospitals. In April 2023, according to a study published in NCBI, following the adoption of ADCs, the rate of prescription errors dropped from 3.03 to 1.75 per 100,000 prescriptions, while dispensing errors decreased from 3.87 to 0 per 100,000 dispensations. These findings highlight the effectiveness of ADCs in enhancing medication safety, reducing human errors, and improving overall patient outcomes in critical care settings. Such advancements in medication management technology align with broader efforts to enhance patient safety and streamline healthcare workflows. Thus, to minimize medication and dispensing errors, governments in several countries are promoting the use of automated dispensing and medication tools in pharmacies and hospitals, thus leading to the higher adoption of pharmacy automation systems

One of the biggest barriers to adopting pharmacy automation systems is the substantial upfront costs required for hardware, software, and facility modifications. Implementing automation technologies such as robotic dispensing systems, automated storage solutions, and AI-driven medication management requires significant capital investment, making it financially unfeasible for small & medium-sized pharmacies or healthcare facilities. Additionally, these systems require regular maintenance, software updates, and periodic upgrades, further increasing operational expenses. According to an article published in NCBI, the installation of automated dispensing cabinets in hospitals was priced at USD 34,000–39,000 (EUR 32,500 ± EUR 4,200), including equipment acquisition costs, installation costs, and initial savings (stock-value reductions and non-investment in traditional ward pharmacies). The approximate annual balance of USD 5,400–13,200 (EUR 8,622±3,564) included amortization and maintenance costs, human resources, medication, logistics, and safety savings. This was an estimated 3.8-year (min 2.7–max 6.4) time to recovery and an ROI of approximately USD 39,300 [EUR 36,476 (min EUR 7,964–max EUR 64,988)] after 8 years. Thus, the initial investments for installing automated dispensing systems is high, which is a significant factor restraining the market adoption on a global scale. Limitations of automation in handling specialized medications Automated dispensing systems find it challenging to manage certain medications, such as blood derivatives, cytotoxic drugs, and flammable medications. Many pharmacy robots and automated systems lack the flexibility to handle complex prescriptions that require special handling, refrigeration, or patient-specific customization. For instance, oncology drugs and biologic medications often have strict storage requirements, making for a challenging utilization through automated dispensing systems. Additionally, several compounded medications require manual preparation, making automation less effective in these cases. This limits the applicability of automation in specialty pharmacies, oncology centers, and compounding pharmacies, making full-scale automation difficult in certain healthcare settings. Moreover, pharmacies must comply with strict regulations for handling & storing certain drugs, which may not align with the capabilities of current automation systems. This limitation forces healthcare providers to rely on manual methods, reducing the overall efficiency gains offered by automation

The increasing shift toward online pharmacy services has created a significant demand for automated systems that enhance prescription fulfillment, verification, and delivery. E-pharmacy platforms have gained prominence due to their convenience, allowing patients to order medications remotely. This trend was further accelerated by the COVID-19 pandemic, leading to a surge in online medication orders and home deliveries. Automated systems play a critical role in streamlining online pharmacy operations by ensuring accurate prescription verification, reducing manual errors, and improving efficiency in dispensing. Additionally, automation solutions assist with secure packaging and labeling, minimizing the risk of medication mix-ups during transportation. For instance, in October 2024, Amazon Pharmacy aimed to launch pharmacies in 20 new US cities, doubling its Same-Day Delivery capabilities. Amazon aims to reduce medication delivery times and improve healthcare accessibility by leveraging advanced automation. By the end of 2025, nearly 45% of US customers will be eligible for Same-Day Delivery of their medications, enhancing patient adherence and engagement. Similarly, in January 2025, Walgreens opened its ninth automated micro-fulfillment center to enhance prescription filling efficiency and reduce pharmacist workloads, aiming to establish 22 such centers. Hence, such advancements in pharmacy automation are expected to improve medication accessibility, accuracy, and efficiency to enhance patient care and streamlined pharmacy operations

The stringency of regulatory approvals depends on the class to which a particular device belongs; it may vary from one region to another. Several state boards of pharmacies (agencies of a state responsible for the control and regulation of the practice of a pharmacy and the licensing of pharmacists in the state) have different requirements for using automated dispensing devices (ADDs) in healthcare practices. Thus, manufacturers of automated systems for pharmacies must adhere to various regulations; ensuring such compliance is a tedious task and can delay product launches. Moreover, regulations differ across regions. For example, the US requires products to be FDA-approved, while European countries seek for a CE Mark; both approvals have different regulations that must be adhered to. Moreover, countries have intellectual property (IP) protection laws to protect domestic companies and are sometimes reluctant to allow foreign companies to launch their products in respective domestic markets. Thus, the varied stringency of regulations & procedures for product approval may hamper the growth of this market to a certain extent