Pharmaceutical Software Market
Number of pages: 100 | Report Format: PDF | Published date: March 24, 2023
Historical Years – 2021 | Base Year – 2022 | Forecasted Years – 2023-2031
|
Report Attribute |
Details |
|
Market Size Value in 2022 |
US$ 2.74 billion |
|
Revenue Forecast in 2031 |
US$ 5.69 billion |
|
CAGR |
8.45% |
|
Base Year for Estimation |
2022 |
|
Forecast Period |
2023-2031 |
|
Historical Year |
2021 |
|
Segments Covered |
Deployment, Enterprises, Application, and Region |
|
Regional Scope |
North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa |
According to the deep-dive market assessment study by Growth Plus Reports, the global pharmaceutical software market was valued at US$ 2.74 billion in 2022 and is expected to register a revenue CAGR of 8.45% to reach US$ 5.69 billion by 2031.
Pharmaceutical Software Market Fundamentals
Pharmaceutical software refers to a range of computer programs specifically designed to support the management and operations of pharmaceutical companies, including drug development, clinical trials, regulatory compliance, manufacturing, supply chain management, and sales and marketing. Pharmaceutical software is designed to assist pharmaceutical companies in managing their operations more efficiently and effectively. The software can help with various tasks, including drug research and development, clinical trials management, regulatory compliance, inventory management, and sales and marketing.
In the coming years, pharmaceutical software is expected to be promising as the industry embraces technology to improve drug discovery, development, and patient care. Pharmaceutical companies increasingly use AI and machine learning to analyze large amounts of data and identify potential drug candidates. This technology can also optimize clinical trials and improve patient outcomes. Pharmaceutical software will likely integrate more with other healthcare technologies, such as electronic health records and telemedicine platforms. This will help to create a more seamless and efficient healthcare system.
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Pharmaceutical Software Market Dynamics
The demand for pharmaceutical software is increasing due to the growing need for efficient management of drug development processes, clinical trials, and regulatory compliance. Additionally, the increasing adoption of digital technologies in the healthcare industry contributes to the revenue growth of the pharmaceutical software market. Pharmaceutical software is crucial in efficiently managing drug development processes by providing real-time data analysis, reducing errors, and increasing productivity. With the increasing demand for new drugs and the need to accelerate drug development processes, pharmaceutical software has become an indispensable tool for pharmaceutical companies.
The increased demand for pharmaceutical software in drug development is expected to fuel revenue growth in the pharmaceutical software market. Pharmaceutical software can help streamline the drug development process by automating repetitive tasks, reducing the time and effort required for data analysis, and enabling faster decision-making. Additionally, pharmaceutical software can help manage large volumes of data generated during drug development, such as clinical trial data, chemical structure data, and regulatory data. This can lead to better organization and data analysis and faster identification of potential drug candidates. Pharmaceutical software can improve and ensure compliance with regulatory requirements, such as data privacy regulations and Good Clinical Practice guidelines.
Increased partnerships between healthcare software developers and pharmaceutical manufacturing businesses to provide on-cloud software for pharmaceutical production are projected to fuel revenue growth in the market during the forecast period. For instance, Mankind Pharma teamed up with Accenture in May 2021 to accelerate its digital transformation with a data-driven cloud platform, paving the way for the company to become an intelligent enterprise with improved operational effectiveness, business performance, and agility. Accenture redesigned the pharmaceutical giant’s business processes in crucial areas, including finance, supply chain, sales, and procurement, to enhance inventory management, demand planning, labor productivity, and product availability.
However, the major restraining factor for the pharmaceutical software market is the high cost associated with implementing and maintaining these software solutions. Additionally, concerns related to data privacy and security also pose a challenge to the revenue growth of this market.
Pharmaceutical Software Market Ecosystem
The global pharmaceutical software market is analyzed from four perspectives: deployment, enterprises, application, and region.
Pharmaceutical Software Market by Deployment
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Based on deployment, the global pharmaceutical software market is segmented into cloud-based and on-premise.
The cloud-based segment dominates the global pharmaceutical software market. Cloud-based software allows pharmaceutical companies to manage their operations and data securely and centrally, accessible from anywhere with an internet connection. It can streamline inventory management, regulatory compliance, and team collaboration processes. Moreover, cloud-based pharmaceutical software has revolutionized drug development by enabling seamless collaboration between teams, reducing errors, and increasing efficiency. With real-time data access and analysis, this software has proven to be a game-changer in accelerating drug discovery and improving patient outcomes.
The on-premise segment is expected to register significant revenue growth during the forecast period. On-premise pharmaceutical software offers greater control and security over sensitive data and can customize and tailor the software to specific business needs. Additionally, on-premise solutions may provide faster processing times and greater reliability than cloud-based alternatives.
Pharmaceutical Software Market by Enterprises
Based on enterprises, the global pharmaceutical software market is segmented into large enterprises and small and medium-sized enterprises.
The large enterprises segment dominates the global pharmaceutical software market. Pharmaceutical software can provide large enterprises with real-time visibility into their operations, enabling them to make data-driven decisions and optimize their processes. Additionally, it can help ensure compliance with regulatory requirements and improve patient safety by reducing errors in medication management. Moreover, pharmaceutical software can streamline regulatory compliance processes, ensuring that large enterprises comply with all relevant regulations and standards. This reduces the risk of penalties and fines, helps maintain the company’s reputation, and builds stakeholder trust.
The small and medium-sized enterprises (SMEs) segment is anticipated to register growth at higher revenue CAGR in the forecast years. Pharmaceutical software can help small and medium-sized enterprises to streamline data collection with reduced errors and enhanced productivity. It can also provide real-time data analysis and reporting capabilities that enable businesses to make informed decisions and stay competitive.
Pharmaceutical Software Market by Application
Based on application, the global pharmaceutical software market is segmented into quality assurance, procurement, sales & distribution, inventory management, sales & distribution, production planning & control, and others.
In quality assurance, pharmaceutical software is crucial in ensuring compliance with regulatory standards and minimizing the risk of errors or contamination. It allows for efficient management of data, documentation, and processes, enabling companies to maintain high levels of quality and safety in their products. Moreover, pharmaceutical software in procurement can help streamline the purchasing process by automating tasks, such as inventory management, order processing, and supplier communication. It can also provide real-time data and analytics to help make informed purchasing decisions and reduce costs. Pharmaceutical software in inventory management helps to streamline the tracking of medication stock levels, expiration dates, and batch numbers. This technology can also aid in the identification of potential drug shortages and facilitate the procurement of new supplies. Pharmaceutical software in sales and distribution is designed to streamline the processes of managing pharmaceutical product inventory, sales, and distribution. It helps companies track their inventory levels and work orders and ensure the timely delivery of products to customers. Moreover, pharmaceutical software is expected to be crucial in pharmaceutical applications in the coming years. It will enable efficient drug development, clinical trials, and manufacturing processes, improving patient outcomes and reducing costs.
Pharmaceutical Software Market by Region
Based on the region, the global pharmaceutical software market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
North America dominates the pharmaceutical software market with the largest revenue share. This is majorly attributed to pharmaceutical research and development in North American countries, including the United States and Canada, and an increase in software usage in this sector. The presence of key players and the adoption of advanced technologies also contribute to the market’s revenue growth in the region.
The Europe pharmaceutical software market is characterized by a rise in the demand for software for managing drug development, clinical trials, and regulatory compliance. Moreover, with the increasing demand for personalized medicine and the rising complexity of the pharmaceutical industry, advanced software solutions are becoming essential for companies to stay competitive.
Asia Pacific is predicted to be the fastest-growing region in the pharmaceutical software market over the forecast period. This is attributed to the rapidly growing market in Asia Pacific due to the increasing demand for efficient and accurate drug development and manufacturing processes. The region’s large population and rise in healthcare expenditure also contribute to the revenue growth of the pharmaceutical industry, which drives the demand for pharmaceutical software.
Pharmaceutical Software Market Competitive Landscape
The prominent companies operating in the global pharmaceutical software market are:
Strategic Developments
The global pharmaceutical software market was valued at US$ 2,742.7 million in 2022.
The cloud-based segment accounts for the largest revenue share in the global pharmaceutical software market.
The global pharmaceutical software market is expected to register growth at a revenue CAGR of 8.45% during the forecast period.
BatchMaster Software, Deskera Holdings Ltd., Fishbowl Inventory, and Sage Group plc are among the key players in the global pharmaceutical software market.
Asia Pacific is expected to register the highest revenue growth in the global pharmaceutical software market during the forecast period.
*Insights on financial performance are subject to the availability of information in the public domain