Market Overview and Growth Highlights 2019-27
Medication non-compliance is a global problem. Millions of patients every year do not take their medications as prescribed. On an average, patients take half of their prescribed doses whether it is for simple infection or for life threatening conditions. Medication compliance devices have been invented that help the patients to remember when to take their prescribed medicines. Such devices include mobile apps that alert the patients to take their medications and encourage compliance through the use of metrics, smart pill bottles which track when the pill was removed, smart package systems which give reminders to the patients and provide tracking of the dispensed doses, bio ingestible sensors that are embedded onto an oral drug, send an alert on patients smartphone and later to the physician that the medicine has been taken and many more devices have been invented. North America medication compliance device market is anticipated to record a CAGR of around 10.1% over the forecast period i.e. 2019-2027.
Increase in the use of smartphone apps, rise in awareness to non-adherence by way of patient saving programs and growth in the popularity of such systems and software are the trends that are driving the growth of the market. Poor compliance to prescribed medicines is a concern in the health care industry and is associated with negative health outcomes and rise in medical expenses. In the U.S., it has been projected that almost 50% of 4 billion annual prescriptions filled by retailers, are not taken by the patients according to the physicians’ instructions. According to the U.S. Centers for Disease Control and Prevention (CDC), the failure to act in accordance with prescribed treatment regimens has been identified as the cause of 125,000 premature deaths, approximately USD 100-300 billion worth of avoidable annual healthcare expenditure and up to 69% of all re-hospitalizations. Moreover, U.S. pharmaceutical industry is projected to suffer a loss of about 188 million per year, because of low compliance to medications prescribed. Lack of adherence is prevalent among elderly patients who are suffering from chronic diseases such as diabetes, neurological diseases, cardiovascular diseases and respiratory diseases. Studies have shown that 1% improvement in compliance towards medications can help the US healthcare industry to save up to USD 2 billion. Therefore, several strategies are being developed by healthcare providers and pharmaceutical developers to improve the medication compliance. Such initiatives have been supported on account of availability of devices and digital solutions that allow patients to closely improve and monitor drug compliance.
Market Segmentation Synopsis
By Product type
Medication compliance includes hardware centric products, for instance smart pill bottles, smart medical watches, electronic trays, wearable sensors, smart medical alarms etc. and software centric products that include health programs, mobile medication management applications, cloud-based databases, etc. in order to improve medication compliance related to various chronic diseases.
The market is segmented by product type into hardware centric and software centric devices out of which, the hardware centric products are anticipated to witness faster growth and software centric products are anticipated to have leading shares on account of their ease of accessibility and low cost as compared to hardware centric products.
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By Application
The market is further segmented by application into diabetes, cardiovascular disease, central nervous system, oncology, rheumatology, gastrointestinal, respiratory and others out of which, cardiovascular diseases is estimated to have largest share in the market on account of unhealthy lifestyle and rising prevalence of cardiovascular diseases. According to CDC, about 610,000 people die due to heart disease in the U.S. every year i.e. 1 in every 4 deaths. This factor is contributing to the growth of cardiovascular diseases segment in the North America region.
By Geography
The U.S. market is anticipated to have leading share in the North America medication compliance device market owing to the large number of deaths related to non-compliance towards medication and rise in the cardiovascular diseases in the country. Moreover, the presence of well-established healthcare infrastructure and increasing investments in R&D activities are contributing towards the fastest growth of the market in the country. Various laws pertaining to increasing the importance of compliance have been made to improve the health conditions in the region.
Market Drivers and Challenges
Growth Drivers
The growing demand for innovative products, increase in the number of chronic diseases, rise in the geriatric population and expansion in the demand for personalized healthcare technology are the factors responsible for driving the growth of the market. Advanced medication compliance systems with pioneering and progressive applications have wide acceptance among the consumers. The elderly population is more prone to illness and chronic diseases which is driving the medication compliance market. Moreover, rise in the penetration of various communication channels and devices for instance smartphones, tablets, laptops and personal digital assistants are driving the growth of the North America medication compliance devices market.
Restraints
Security and privacy concerns in the electronic healthcare record (EHR), e-prescribing based compliance systems are the factors restraining the growth of the market during the forecast period.
Top Featured Companies Dominating the Market
The key players in the North America medication compliance device market include Cardinal Health Inc., Omnicell Inc. that provide hardware centric products, whereas McKesson Corporation, Philips Medical Adherence Solution that provide software centric products. The major players are getting into launching new innovative products and is expected to increase their medication compliance market share in the near future.
