Medication Adherence: Systems, Technologies and Global Markets
- October 2017 •
- 166 pages •
- Report ID: 5152399
• The global market for medication adherence reached $1.7 billion in 2016 and should reach nearly $4.0 billion by 2021 at a compound annual growth rate (CAGR) of 18.0% from 2016 through 2021.
• United States market for medication adherence is expected to grow from $954 million in 2016 to nearly $2.1 billion at a CAGR of 17.5% from 2016 through 2021.
• Asian market for medication adherence is expected to grow from $225 million in 2016 to $555 million in 2021 at a CAGR of 19.8% from 2016 through 2021.
Chapter 1: Introduction
Medication adherence refers to the conformance of patients to take the medication prescribed by their healthcare providers at the correct dosage and timing. Medication non-adherence is an important public health concern, affecting health outcomes and overall healthcare costs for several chronic diseases, such as diabetes and asthma.
Half of all patients do not take their medications as prescribed and more than one in five new prescriptions go unfilled. As per estimates, total potential savings from adherence and related disease management could be $300 billion annually in the U.S. alone, which is 13% of health spending.
Improved adherence can be achieved through better education, value-based insurance designs, use of patient incentives and adoption of medication adherence systems including hardware-based medication adherence systems (e.g., smart pill bottle, smart caps, automated pill dispenser, electronic tray, smart cabinets, smart medical watches, smart medical alarms, wearable health sensors, packaging system and other pharmacist-led medication therapy management systems) and software applications (e.g., mobile apps, sensor enabled software solutions, mobile medication management applications, patient portals, health programs, web portals and others). E-prescribing is another intervention with the potential to improve medication adherence and decrease total healthcare costs, and is becoming more widely used as electronic medical records are integrated into medical practices.
Study Goals and Objectives
This study, Medication Adherence: Systems, Technologies and Global Markets, provides an overview of hardware-based medication adherence systems, software-based internet applications (apps) and their uses in medication adherence and management. In addition, it gives a detailed analysis of the competitive environment. It covers a wide variety of hardware-based systems and software-based internet applications that greatly improve the medication adherence in the treatment of diseases and disorders.
This study includes information about emerging medication adherence technologies, market players, issues, and trends, and offers other information affecting the healthcare, pharmaceutical and medical device industry.
The study meets the criteria above by analyzing the global healthcare, pharmaceutical and medical device industry in light of the most recently available information. In addition to looking at current and future markets, this report analyzes the technological, demographic and economic developments that may have a long-term impact on the size and structure of the healthcare, pharmaceutical and medical device market. The future of medication adherence is also discussed with forecasts.
More specific objectives are to:
• Identify and segment the key medication adherence systems and technologies used for improving medication adherence.
• Analyze current and future device technologies by market segments. PHM182A Medication Adherence: Systems, Technologies and Global Markets | 2
• Identify and evaluate the impact of demographic, economic and other factors that will drive future demand for the medication adherence systems and technologies market.
• Identify promising new medication adherence systems and software applications still in the development and testing stages, and assess the probability that they will be commercialized successfully in the next five years.
• Forecast the potential market based on pipeline devices, taking into account the estimated probability that they will be commercialized.
This study will provide the reader with the knowledge to adequately view and assess smart pills and provide insights into their market potential.
Reasons for Doing This Study
Medication non-adherence remains a common healthcare problem across developed and developing nations. It is one of the major public health concerns that adversely impacts patient outcomes, increases healthcare utilization and associated costs. According to the CDC, about 20% to 30% of medication prescriptions are never filled, and about half of all prescribed medications are not continued as prescribed.
More than 80% of patients leave a physician’s office with a prescription in hand, but as many as half of all patients do not take their medications as prescribed. Poor adherence causes approximately 30% to 70% of medication-related hospitalizations and accounts for more than $300 billion in annual healthcare costs in the U.S. alone. Patients are considered adherent when they take their prescribed medications at doses and times recommended by their healthcare provider.
Pharmaceutical, medical device and healthcare providers are turning to medication adherence systems and software application to deal with the current challenges associated with medication non-adherence.
Dispensing cabinets & dispensers automate the management and dispensing of medications while smart pill bottles help in dispensing the right medication at the right time, in the right quantity with the right instructions.
Increasing acceptance of medication therapy management systems, smart pill bottles, smart caps, automated pill dispensers, electronic trays, smart medical watches, smart medical alarms, wearable sensors, specialized packaging systems and software-based internet applications (cloud-based databases, web portals and mobile application) are helping patients, payers and providers with management, dispensing and monitoring of medications.
Overall, medication adherence systems offer improved drug adherence, real-time data monitoring, logical calculations, and network communication. Medication adherence systems can be categorized into two major segments: hardware-based medication adherence systems and software-based internet applications (apps). The growth of the medication adherence systems market is being driven mainly by factors, such as the growing elderly population, the rising prevalence of chronic diseases, the widespread adoption of smartphones and other technological advancements within the life sciences industry.
The U.S. dominates the global medication adherence market, followed by Europe, Asia and the rest of the world (ROW). The large market shares of U.S. and Europe can be attributed to a greater accessibility of advanced technologies and the presence of a large number of leading market players.
This report is the first edition to cover medication adherence systems and technologies in order to improve medication adherence, with analysis of its key growth areas and quantitative market projections of technologies and devices. This study attempts to provide the reader with information about and analysis of medication adherence systems and their applications in dealing with today’s current challenges associated with medication non-adherence.
Scope of Report
Medication adherence include hardware-based systems (e.g., smart pill bottle, smart cap, automated pill dispenser, electronic trays, smart medical watches, smart medical alarms, wearable sensors, and other packaging systems) and software based internet applications (e.g., cloud-based databases, health programs, patient web portals, mobile medication management applications, etc.) to improve medication adherence associated with various chronic diseases. This report is an analytical business tool whose primary purpose is to provide a thorough evaluation of the global market for medication adherence.
The format of this study includes the following:
• Detailed description of medication adherence systems and technologies including software applications (apps).
• Demographics and cost burden of targeted chronic diseases.
• Market characterization, unmet need, market size, and segmentation.
• Market drivers and restraints.
• Detailed market projections through 2021.
• Competition and market shares.
• Key marketed and pipeline (R&D) products along with information about their regulatory status
• Strategic landscape (Merger and acquisitions).
• Regulatory structure.
• Pricing and reimbursement.
• Observations and conclusions on the future of medication adherence systems and technologies.
• Profiles of market participants and associations.
This report has been written for vendors of the healthcare, pharmaceutical and advanced medical equipment sector seeking to understand the potential market for their products and their competitors’ products in key markets, as well as for governmental and international agencies seeking to understand the commercial and medical potential of medication adherence systems and software technologies
This study is especially intended for readers in the:
• Healthcare, pharmaceutical and medical device industry.
• Executive management and marketing community.
• Medical research institution community.
• Investment community.
• Financial and business analyst community.
Methodology and Information Sources
The findings and conclusions of this report are based on information gathered through primary and secondary data collection methods. Primary methods included interviews with key executives, product managers, clinical specialists, and other related key personnel involved in the healthcare, medical device and diagnostics industry. Secondary sources included published literature, investment reports, trade publications, trade associations, company literature, online databases, and various business journals on related medical devices and diagnostic areas. All of these sources were used to produce the market estimates contained in this report.
Market forecasts were developed for 2016 to 2021, using 2016 as a baseline. These projections were based on a consensus of primary contacts together with the expertise of BCC Research in the area of key market drivers and their impact from a historical and analytical perspective. The analytical methodologies used to generate the market estimates are described comprehensively in the section on detailed market projections. All dollar projections presented in this report are in 2016 constant dollars.
In this report, the geographic regions considered for market analysis are limited to:
• North America.
• Rest of the World (ROW).
Global Market for Medication adherence, by Region
Global Market for Smart Pills, by Product Segments
Medication Adherence Systems
Medication Adherence by Application
Chapter 2: Summary and Highlights
The global market for medication adherence (hardware-based automation and adherence systems and software-based applications) was worth nearly $1.7 billion in 2016. The market is expected to reach over
$3.9 billion by 2021, increasing at a CAGR of 18.0% from 2016 through 2021. This steep increase is fueled by a burgeoning demand for advanced medication adherence systems and a growing number of people worldwide with chronic diseases.
In 2016, the U.S. accounted for about 55% of the global market, or $954 million. The U.S. market should reach $2.1 billion by 2021, increasing at a CAGR of 17.5% from 2016 through 2021. Geographically, the
U.S. is expected to maintain dominance in the global market of medication adherence systems and software applications (apps).
Those wishing to invest in the medication adherence market ought to strongly consider high-growth application areas such as medication adherence systems and software applications. Double-digit growth rates are expected for most of these applications in the next five years. This growth is due to an increasing geriatric population, greater prevalence of chronic diseases, continuous technological advancements (e.g., digital health, smart medication adherence systems, smart pills, etc.), increasing adoption of smartphones and software applications, transformation of the retail pharmacy industry and other healthcare reforms.