Medication adherence market size (2022 – 2030)

The Global Medication Adherence Market was valued at USD 2,999.70 Billion and is projected to reach a market size of USD 6,267.24 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 11.1%.

INDUSTRY OVERVIEW

The medication adherence system reflects how closely a patient adheres to medical recommendations given by a healthcare professional. The framework examines whether the patient's medication regimen conforms to a predetermined medication regimen recommended by the medical care provider in terms of scheduling, measurement, and recurrence. To assist with patient admittance and drug endorsement, clinical personnel can employ a medication adherence system and programming. Non-adherence by patients with chronic illnesses such as asthma, diabetes, and cardiovascular disease frequently necessitates emergency treatment and hospitalization, resulting in increased treatment expenses.

Medication adherence systems encourage people to stick to a medication schedule advised by their doctor and monitor whether they take their prescriptions as prescribed. Medication adherence systems examine whether a patient's medication-intake behavior is consistent with the time, dose, and frequency of medications prescribed by a healthcare professional. Medication adherence hardware and software assist hospital professionals in ensuring that patients take their medications as recommended, reducing the risk of illness progression and mortality while also lowering healthcare expenditures. To address the present issues associated with prescription nonadherence, pharmaceutical companies, medical device companies, and healthcare practitioners are turning to medication adherence systems and software applications. Smart pill bottles assist in delivering the appropriate medication at the right time, in the correct proportion, and with the proper instructions, while dispensing cabinets and dispensers streamline prescription management and dispensing.

All chronic illnesses need drug administration, treatment, monitoring, and enforcing adherence to the medication plan. One of the main reasons for the medication adherence market's growth is the growing awareness of medication and therapy acceptance. The medication adherence market is made up of companies (organizations, single traders, and partnerships) who sell medication adherence hardware devices and software applications to patients. Medication adherence systems, in general, provide enhanced drug compliance, real-time data monitoring, analytical computations, and network connectivity. Hardware-centric medication adherence systems and software-centric internet applications are the two main types of medication adherence systems. The expanding older population, increased frequency of chronic illnesses, extensive usage of smartphones, and other technological improvements in the life sciences industry are driving the growth of the medication adherence systems market.

COVID-19 IMPACT ON MEDICATION ADHERENCE MARKET

Poor drug adherence has enormous consequences, costing the healthcare system an estimated $177 billion per year in indirect and direct expenditures, but the cost of non-adherence during the COVID-19 pandemic might be substantially greater. Because pharmaceutical non-adherence contributes to 50 per cent of therapeutic failure and up to 25% of hospitalizations each year, it's more critical than ever for doctors, pharmacists, and insurance companies to collaborate to ensure that patients follow their prescriptions. During the COVID-19 crisis, such elements are fueling the global expansion of the drug adherence sector.

MARKET DRIVERS: 

The Increasing occurrence Of Chronic Diseases across the globe is a major driver for Medication Adherence Market growth

During the forecast period, the rising incidence of chronic illnesses such as asthma, COPD, diabetes, and cancer is likely to drive the medication adherence market. For example, 49% of America’s population would be impacted by chronic diseases by 2050. Sedentary lifestyles, poor air quality, and growing pollution levels, among other causes, are all contributing to the rise in chronic illness occurrence. The rising prevalence of chronic conditions mandates the usage of prescription medications, driving consumers to invest in medication adherence solutions to avoid skipping doses. During the projected period, this will have a favorable influence on the market for medication adherence.

The growing unhealthy lifestyle habits and rising geriatric population is a major reason propelling the market growth

An increase in consumption of tobacco and alcohol, a rise in unhealthy and sedentary lifestyles and environmental conditions are contributing to the rise in hospitalization. Other factors like rising in the elderly population, increased awareness of patients’ medication adherence, the surge in vaccine usage coupled with other therapies and an increase in investments from private and government funding in the research and development of vaccines have also created a positive trend in the market. Furthermore, technological advancements in healthcare sectors have led to the development of new medical treatments. The rapid urbanization resulting in rising in health care services and expenditure, and increased adoption of preventive and therapeutic vaccines are the major factors that drive the growth of the market.

MARKET RESTRAINTS:

The High cost associated with medication is a prime reason hampering market development

The rise in patient cost-sharing will harm medication adherence beyond a certain point. A lack of drug insurance coverage, pricey drugs, and formulary tiers all make it difficult for patients to receive prescriptions at reduced or lower prices. For example, over a quarter of all Americans are unable to afford prescription medications because of high out-of-pocket costs. Uninsured patients are more likely to seek cost-cutting methods than those who are insured. Thus, the aforementioned reason would constrain the medication adherence market's expansion over the forecast period.

The unavailability of necessary health infrastructure in developing countries is hampering the market growth

The healthcare infrastructure in some growing and developing economies, is weak, which is projected to be a negative influence on the market expansion. Countries in the Africa and South Asia region and developing nations like India, China, and Indonesia still do not have adequate health infrastructure. The low disposable income of people in these regions prevents patients from adopting or using advanced medical treatment procedures thus, this may act as a decelerating force for the growth of the medication adherence market.

This research report on the Medication Adherence market has been segmented and sub-segmented based on Product, Medication and By Region.

MEDICATION ADHERENCE MARKET- BY PRODUCT

• Software Centric

  • Mobile apps

• Hardware Centric

  • Devices

    • Automated dispensing systems

    • Smart pill bottles

    • Electronic trays

  • Packaging

    • Multidose

    • Unit dose

Based on the Product, the Medication adherence market is broadly segmented into Software and hardware. Among these, the medication adherence market in 2021 was dominated by the software-centric category. The segment captured over 60% of the market share in 2021. Medication adherence solutions that are based on software and programming are a collection of applications that monitors, record and remind the individual and his or her caregiver about treatment adherence. In comparison to hardware-centric items, these products are in more demand since they are less expensive and more easily available. Moreover, as new mobile apps develop over time, it is estimated that mobile-app-based medication adherence products would grow at a faster rate than other software-centric solutions throughout the projection period. The Hardware segment is also poised to expand significantly. The hardware segment includes automated dispensing systems and smart pill bottles that are widely used in medical setup for streamlining drug delivery and medication adherence by medical staff. The market is anticipated to expand at a CAGR of over 15% over the forecast period.

MEDICATION ADHERENCE MARKET- BY MEDICATION

• Cardiovascular

• Central Nervous System (CNS)

• Diabetes

• Oncology

• Respiratory

• Gastrointestinal

• Musculoskeletal

• Others

Based on medication, the Medication adherence market is segmented into Cardiovascular, Central Nervous System (CNS), Diabetes, Oncology, Respiratory, Gastrointestinal and Musculoskeletal among others. Drug adherence products were the most widely used for cardiovascular disorders among the different medication uses in 2021.  The rise in unhealthy and sedentary lifestyles and environmental conditions are contributing to the surge in cardiovascular ailments. As a result, this category is also predicted to expand the quickest in the medication adherence market throughout the forecast period. To minimize morbidity and mortality, diseases and illnesses including heart failure and myocardial infarction require long-term therapy. Due to the high frequency of medication non-adherence among cardiac patients, adherence tools are widely used to guarantee correct medication schedule compliance.

MEDICATION ADHERENCE MARKET- BY REGION

• North America

• Europe

• Asia Pacific

• Latin America

• The Middle East 

• Africa

Based on region, the Medication adherence market is grouped into North America, Europe, Asia Pacific, Latin America, The Middle East, and Africa. In 2021, the North American region emerged as a market leader in the medication adherence industry accounting for 40% of the market share. The North American region's dominance in the medication adherence sector is mostly due to increased R&D expenditures, an ageing population, rising healthcare costs, and an increase in the incidence of chronic illnesses. As per the Centers for Disease Control and Prevention, chronic diseases accounted for 7 of the top 10 causes of mortality in the United States in 2020 whereas heart disease and cancer together accounted for approximately 46 per cent of all fatalities in the United States in 2020. The region has seen a large increase in its elderly population, which has positively influenced market growth in the area. As per the UN Department of Economic and Social Affairs (UNDESA) study on the world population, Northern America is poised to have a considerable increase in its elderly population by 2050, which will boost the market for medication adherence.

The Asia Pacific region is poised to contribute substantially to market expansion and is projected to expand at a CAGR of 13% over the forecast period. Because of the rising disposable income of the population, the Asia Pacific region offers attractive potential for medication adherence market participants, allowing people to access effective treatment alternatives even at a high cost. Collaborations between manufacturers are projected to boost the market in the Asia-Pacific region in the future, to establish different programmes to encourage innovation in the systems and software used for medication adherence.

MEDICATION ADHERENCE MARKET- BY COMPANIES

The medication adherence market is consolidated with a few companies holding a major market share. Market players in the Medication Adherence Market are constantly evolving their operating models to the new normal by focusing on the digitization of processes and embracing developing robotic automation and artificial intelligence technologies. The key market players are focusing on innovation, mergers and product launches to capture market share and increase their product portfolio. In the short to medium term, investing in R&D and technology to develop product lines would be the primary growth driver for the Medication Adherence Industry market, despite the current challenging conditions. Prominent market participants operating in the medication adherence market include:

1. CareFusion (Becton Dickenson)

2. Proteus Digital Health

3. DrFirst.com, Inc.

4. AdhereTech Inc.

5. MedMinder

6. Caredose

7. Fruitech Ltd.

8. PHC Holdings Corporation

9. Kakehashi Inc.

10. MedAdvisor International Pty Ltd.

NOTABLE HAPPENING IN THE MEDICATION ADHERENCE MARKET

• INVESTMENT- In September 2020, uMotif Limited, a patient-centric data collection software business, received USD 6.4 million in a Series A funding round led by current investor AlbionVC. The money will be utilised to support the company's patient-centric and decentralized clinical trial strategy, as well as expand into additional study kinds and high-demand regions.
• INVESTMENT- In January 2019, HealthBeacon Limited has raised $12 million in a Series A funding round, increasing the total investment to over USD15 million. Oyster Capital and Elkstone Partners lead the fundraising round. The money will be deployed to establish the Smart Sharps system in the United States and enhance the company's variety of high medication adherence technologies.