Medication Management System Market Report 2025

The medication management system market size has grown exponentially in recent years. It will grow from $3.6 billion in 2024 to $4.35 billion in 2025 at a compound annual growth rate (CAGR) of 20.9%. The growth in the historic period can be attributed to data utilization, emergence of telemedicine, patient engagement focus, pioneering solutions, rising chronic diseases, healthcare infrastructure development.

The medication management system market size is expected to see rapid growth in the next few years. It will grow to $8.85 billion in 2029 at a compound annual growth rate (CAGR) of 19.4%. The growth in the forecast period can be attributed to market growth potential, regulatory changes, economic factors, competitive landscape, consumer behavior, global health challenges. Major trends in the forecast period include interoperability demands, data analytics and insights, healthcare cost containment, patient-centric care.

The anticipated rise in medical expenses is set to drive the expansion of the medication management system market in the future. Medical costs encompass expenses incurred by individuals for medical treatment as well as hospitals' expenditures on equipment and maintenance. Hospitals are increasingly adopting medication management systems due to their effectiveness in cost reduction and efficiency improvement. For example, in December 2023, the Centers for Medicare & Medicaid Services, a US government agency responsible for health insurance, reported a 4.1% increase in national health expenditure to $4.5 trillion in 2022, amounting to $13,493 per person and accounting for 17.3% of GDP. Furthermore, national health spending is projected to reach $6.2 trillion by 2028. Consequently, the surge in medical costs is propelling the growth of the medication management systems market.

The growing aging population is anticipated to drive the expansion of the medication management system market in the coming years. The aging population refers to a demographic trend characterized by a higher proportion of individuals in older age groups, typically those aged 65 and above. Medication management systems designed for this demographic improve medication adherence, safety, and overall health outcomes by offering automated reminders, dosage tracking, and real-time monitoring. For example, a report from the Administration for Community Living, a US-based government agency, stated that in 2022, 17.3% of the population was aged 65 or older, and this percentage is projected to rise to 22% by 2040. Thus, the increasing aging population is driving growth in the medication management system market.

Major companies in the medication management system market are prioritizing innovation, particularly in real-time data access for evaluating treatment effectiveness and making informed decisions. Real-time data access refers to the capability to retrieve and analyze data instantly as it is generated or updated, with minimal delay. For example, in June 2024, PatchRx, a US-based medication adherence technology company, introduced PatchRx Connect, a solution designed to integrate real-time medication adherence data into existing care management platforms. This new tool allows clinical teams to gain insights into patients' medication-taking behaviors without interrupting workflows. The solution includes a smart device that tracks medication usage, offering actionable insights for healthcare providers. Additionally, it features patient engagement tools, such as SMS alerts, to improve adherence rates.

Leading companies in the medication management system market are employing a strategic partnership approach by establishing a two-year pharmaceutical informatics fellowship. This strategy involves companies utilizing each other's strengths and resources to achieve mutual benefits and success. For instance, in July 2022, Omnicell Inc., a healthcare technology company in the US specializing in medication management solutions, collaborated with Vanderbilt University Medical Center, a US-based medical facility, to introduce a new two-year pharmaceutical informatics fellowship. Part of the MS-ACI program, this fellowship offers a professional pathway for pharmacy-trained fellows. These individuals will have the chance to engage in various pharmacy and informatics initiatives at Vanderbilt while pursuing a master's degree in applied clinical informatics and collaborating with Omnicell. The primary objective of this strategic partnership is to promote talent development and innovation in pharmaceutical informatics, yielding benefits for both organizations and propelling advancements in the field.

In July 2022, Becton and Dickinson, a US medical technology firm, purchased Parata Systems for about $1.525 billion. This acquisition bolsters BD's medication management capabilities, introducing a range of new innovations across various care environments such as acute care health facilities, retail pharmacies, long-term care, and home settings. Parata Systems, a US company focusing on medication management and pharmacy automation solutions, was the subject of this acquisition.

Major companies operating in the medication management system market include McKesson Corporation, Optum Inc., Cardinal Health Inc., Becton Dickinson and Company, Baxter International Inc., B. Braun Melsungen AG, Cerner Corporation, Epic Systems Corporation, Omnicell Inc., Genoa Healthcare LLC, Allscripts Healthcare Solutions Inc., Swisslog Healthcare (US) Inc., QuadraMed Affinity Corporation, AdhereHealth LLC, Hero Health Inc., ARxIUM Inc., Talyst LLC, Jini Health Inc., CareRight Technologies LLC, eMARneek BIQHS, CARI Health, Healthera Ltd.

North America was the largest region in the medication management system market in 2024. The regions covered in the medication management system market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the medication management system market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Medication management systems are used to organize and manage patient data, especially in practices with high patient volumes and complex prescription needs.

The medication management system market includes solutions used for tracking and validating medicines administered to patients during medical care. These systems aim to reduce dispensing errors and improve operational efficiency. They manage patients' data due to the increasing number of clinical practices and lengthy prescription times. These automated software solutions provide and manage the administration of medicines to patients.

The main types of products in medication management systems are computerized physician order entry, clinical decision support system solutions, electronic medication administration records, inventory management solutions, and others. Computerized Provider Order Entry (CPOE) refers to the process of providers entering and sending treatment instructions, which includes medication, laboratory, and radiology orders. The various delivery modes include web-based, cloud-based, and on-premise. The various types of end-users include pharmacies, hospitals, and others.

The medication management system market consists of sales of web-based ordering systems, perpetual inventory systems, automatic dispensing systems, medication ordering, reporting systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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