The south American pharmacy automation market is projected to grow at a CAGR of 6.84% during the forecast period.
Established market companies are grabbing unexplored areas to expand their footprints throughout the world, which is driving growth. The need for pharmacy automation in this region is being fueled by rising e-health usage and a burgeoning telemedicine network. Due to the lack of legal compliance for millions of prescriptions in Brazil, the retail pharmacy automation market is expected to develop rapidly throughout the projected period. Furthermore, a growing population base favoring self-medication and over-the-counter medicines, as well as an increase in counterfeit drug instances, is propelling the automated pharmacy packaging and labeling system market in South America forward.
Growing penetration of chronic diseases and the rising geriatric population to increase market demand.
Furthermore, a growing aging population, increasing number of chronic disease patients, and availability of less storage space are further augmenting the market demand for pharmacy automation systems in South America during the forecast period. As reported by World Health Organization, in Brazil, chronic diseases are projected to account for 72 percent of all deaths.
The rising number of medication errors propel the demand for pharmacy automation solutions.
The pharmacy automation market in the area is increasing due to improved healthcare infrastructure and increased awareness and acceptance of innovative technology. To decrease prescription mistakes, healthcare institutions are turning to pharmacy automation systems as the population ages, urbanization grows, and the number of patients suffering from different lifestyle-related disorders rises.
The rise in healthcare expenditure in the developing countries in the region demands a cost-effective solution through pharmacy automation. As reported in the Health Satellite Account, released in December 2019 by the IBGE, Expenditure on health in Brazil reached R$ 608,3 billion in 2017, which is 9.2% of the Gross Domestic Product. According to the report, Brazilian families spent 39.7 percent more on health in 2017 than the government. Brazilian families spent the most (66.8%) on private health services, including those paid for by employers, of all the costs related to health. They brought in R$ 231 billion in 2017.
Research and Development in the healthcare sector to augment the market growth.
Increasing investment in research and development is further contributing to the growth in the market size of the South American pharmacy automation market. AS reported by World Health Organization, the Brazilian medical device industry has a large framework for research and development operations that are spread out over the country. To create a sustainable development environment for the industrial complex and health innovation, local infrastructure in this sector relies on biomedical engineering experts with high skills and knowledge, academic institutions, and many enterprises. The way the medical device business in Brazil evaluates innovation and new technology has shifted in recent years. Only in the last two years have initiatives directly sponsored by the Ministry of Health totaled more than US$ 100 million.
Moreover, health demands 9% of Brazil’s GDP and 30% of the national efforts in research and development.
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