Global Artificial Intelligence (AI) in Pharmacy Market By Application, By Component, By End-User & Region (2024-31)
According to Pheonix Research, the Global AI in Pharmacy market is set to grow at a CAGR of approximately 20.5% during the forecast period.
Artificial intelligence (AI) is disrupting all areas of health care, and the pharmacy is no exception. AI transforms how pharmacists serve care by streamlining workflow, managing medication, and improving patient outcomes. AI helps pharmacy businesses to streamline workflows, minimize errors, and provide more tailored pharmaceutical care. AI uses advanced algorithms & machine learning models to optimize inventory management, automate prescription processing, and enhance patient engagement through tailored recommendations and digital health tools.
The spurring number of pharmacies worldwide and increasing willingness to integrate AI in pharmacy systems due to performance and cost advantages mainly drive the global AI in the pharmacy market. The rise in patient volume and the escalating need for error reduction in prescription processing are other significant factors accelerating market growth. As per IQVIA 2022 report, there are about 1.3 million pharmacies worldwide. This includes both retail and hospital pharmacies across world. As per McKinsey & Company’s 2023 survey, 50% of pharmacy stores owners reported active spending in or planning to invest in AI to improve operational efficiencies and patient outcomes.
AI in pharmacies is witnessing tremendous growth owing to the combination of factors, including the growing need for better prescription management & medication adherence and propelling efforts toward error reduction & cost reduction. As per a recent study by the Journal of the American Medical Informatics Association (JAMIA), AI-integrated pharmacy systems can lower prescription errors by up to 50% and can minimize time spent on manual tasks by up to 30%, enabling pharmacists to handle more prescriptions daily with enhanced precision. As per Deloitte Insights, an AI-driven adherence system can improve medications adherence by up to 20% by personalized reminders and support. Furthermore, AI algorithms can identify prescription errors with up to 95% accuracy, compared to traditional methods with lower accuracy rates. It can lower operational costs by up to 15% owing to reduced manual labor and error correction.
Escalating telepharmacies and increasing patient engagement are estimated to create ample market growth opportunities. AI can enhance telepharmacy services; it enables remote consulting, prescription management, and patient monitoring. The global telepharmacy market is projected to grow at a CAGR of about 20%. This is projected to bring positive attributes for market growth. AI tools, such as chatbots & virtual assistants, are in greater demand as they provide personalized patient interactions. According to Pharmacy Times 2023 report, approximately 30% of telepharmacy services in the US have integrated AI-driven chatbots, while 25% of telepharmacy services globally use virtual health assistants to enhance patient interactions. These tools enhance customer service, provide personalized support, and improve patient adherence, contributing to market growth.
Despite all these positive trends and advantages, some pharmacies find AI integration challenging, particularly smaller pharmacies, due to financial constraints, integration challenges, and expert scarcity. The initial investment incurred for AI systems integration in pharmacies varies significantly depending on the scale and complexity. This may restrict smaller pharmacies from adopting these systems. Moreover, integrating AI with existing pharmacy management systems can be challenging owing to the lack of standardization and potential compatibility issues, which may further hinder market growth. Additionally, a shortage of skilled personnel to manage and operate AI systems can impede the effective use of AI technologies in pharmacies.
Market players are forming strategic alliances with AI technology providers, healthcare IT companies, and research institutions to leverage advanced AI capabilities and improve service offerings. Companies are investing in training programs for pharmacy staff to effectively employ AI tools and systems. Key players also focus on developing AI tools, such as chatbots & virtual assistants, to offer personalized medication advice, reminders, and support. Companies invest in R&D to develop and integrate new AI technologies that cater to emerging needs and improve pharmacy operations.
KEY HIGHLIGHTS OF THE MARKET
The prescription management segment dominated the market due to AI’s ability to automate and streamline prescription processing, reduce errors, and improve accuracy by assisting pharmacists in verifying prescriptions, managing refills, ensuring compliance with regulations, and enhancing overall operational efficiency.
The patient engagement segment is projected to grow rapidly as pharmacies seek to enhance patient interactions and adherence. AI tools such as chatbots & virtual assistants are being increasingly adopted to provide personalized advice, manage medication schedules, and improve patient engagement.
North America holds the largest market share in the AI in Pharmacy market, attributed to its advanced healthcare infrastructure, presence of major pharmacy chains, escalating investments in AI technology, and high rate of technology adoption.
The Asia-Pacific region is projected to grow at the fastest rate in the market, fuelled by expanding healthcare infrastructure in emerging economies, including India and China, rising AI healthcare expenditures, and a booming telemedicine segment.
REPORT SCOPE:
| Base Year | 2023 |
| Historic Year | 2019-2022 |
| Forecast Period | 2024-2032 |
| Key Segments | By Application (Prescription Management, Inventory Management, Patient Engagement, Drug Interaction, and Safety Alerts, Pharmacy Workflow Optimization) By Component (Software, Hardware, Services) By End-User (Retail Pharmacies, Hospital Pharmacies, Online Pharmacies) |
| Companies Profiled | IBM Watson Health, CVS Health, McKesson Corporation, Medsafe, Pillo Health, ScriptPro, Omnicell, Pharmacy OneSource, MedAvail Technologies, Parata Systems, RoboPharma |
RECENT NEWS
August 2024: Walgreens announced a partnership with IBM to integrate AI-powered prescription management systems across its pharmacies, with an aim to improve prescription accuracy and operational efficiency.
July 2024: CVS Health expanded its use of AI by introducing new patient engagement products, including an AI-powered chatbot and virtual assistant, to engage patients better and boost medication adherence.
June 2024: ScriptPro Corporation launched a new AI-based inventory management system that utilizes predictive analytics to help pharmacies optimize stock levels and reduce operational expenses through non-intrusive replenishment techniques.
May 2024: Walmart Pharmacy has implemented a new prescription verification system using AI in all its stores. This system will enhance prescription processing efficiency and reduce the level of errors in pharmacy operations in general.
LIST OF THE PROMINENT PLAYERS
- IBM Watson Health
- CVS Health
- McKesson Corporation
- Medsafe
- Pillo Health
- ScriptPro
- Omnicell
- Pharmacy OneSource
- MedAvail Technologies
- Parata Systems
- RoboPharma
MARKET SEGMENTATION
By Application
- Prescription Management
- Inventory Management
- Patient Engagement
- Drug Interaction and Safety Alerts
- Pharmacy Workflow Optimization
- Others
By Component
- Software
- Hardware
- Services
By End-User
- Retail Pharmacies
- Hospital Pharmacies
- Online Pharmacies
1. Executive Summary
1.1 Overview of AI in Pharmacy
1.2 Key Findings
1.3 Recommendations
2. Introduction
2.1 Background and Rationale
2.2 Scope of the Report
2.3 Methodology
3. Industry Overview
3.1 Current Landscape of Pharmacy
3.2 The Role of Technology in Pharmacy
3.3 Trends Influencing AI Adoption
4. AI Technologies in Pharmacy
4.1 Machine Learning
4.2 Natural Language Processing (NLP)
4.3 Robotics and Automation
4.4 Predictive Analytics
4.5 Computer Vision
5. Applications of AI in Pharmacy
5.1 Drug Discovery and Development
5.2 Personalized Medicine
5.3 Medication Management and Adherence
5.4 Automation of Dispensing Processes
5.5 Patient Interaction and Engagement
5.6 Supply Chain Optimization
6. Market Dynamics
6.1 Drivers of AI Adoption in Pharmacy
6.2 Challenges and Barriers
6.3 Opportunities for Growth
6.4 Regulatory Environment
7. Competitive Landscape
7.1 Key Players in AI in Pharmacy
7.2 Mergers and Acquisitions
7.3 Partnerships and Collaborations
7.4 SWOT Analysis of Major Companies
8. Market Segmentation
8.1 By Application
8.2 By End-User
8.3 By Region
8.4 By Technology
9. Regional Analysis
9.1 North America
9.2 Europe
9.3 Asia-Pacific
9.4 Latin America
9.5 Middle East and Africa
10. Future Trends and Outlook
10.1 Innovations on the Horizon
10.2 Long-term Projections
10.3 The Future Role of AI in Pharmacy
11. Conclusion
11.1 Summary of Key Insights
11.2 Final Thoughts
12. References
12.1 Market Reports and Studies
12.2 Academic Journals
12.3 Industry News
13. Appendices
13.1 Glossary of Terms
13.2 Survey Methodology and Results
13.3 Additional Data and Statistics
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