April 20, 2024

Hospital Pharmaceuticals Market Finding Growth Avenues Via Digital Transformation Is In Trends By Application Of Artificial Intelligence And Machine Learning

Hospital pharmaceuticals include a range of essential medicines and drugs used for patient care at hospitals. Some of the key pharmaceutical products supplied to hospitals include analgesics, anti-infectives, cardiovascular medications, central nervous system drugs, anesthesia, respiratory drugs, and emergency medications. These pharmaceuticals play a vital role in patient treatment and management of diseases and medical conditions across various hospital departments and areas such as emergency rooms, surgical suites, critical care units, and more. Increasing healthcare expenditure and demand for quality healthcare services are fueling the need for effective hospital pharmaceuticals around the world. Moreover, implementation of digital technologies such as AI and machine learning in hospitals is positively impacting the hospital pharmaceuticals market.

The Global Hospital Pharmaceuticals Market is estimated to be valued at Us$ 322.91 Mn in 2024 and is expected to exhibit a CAGR Of 5.8% over the forecast period from 2024 To 2030.

Key Takeaways

Key players operating in the Hospital Pharmaceuticals Market are Iofina Chemical, Inc., IOCHEM Corporation, ISR Holding, Qingdao Bright Moon Seaweed Group Co. Ltd., and Algorta Norte S.A. These companies are focusing on strengthening their product portfolios and drive through strategic collaborations.

Growing burden of chronic diseases and rising elder population propel the demand for hospital pharmaceuticals globally. As per WHO, chronic diseases account for over 70% of all deaths worldwide annually, placing immense economic burden on healthcare systems.

Major pharmaceutical companies are expanding their presence across international markets to tap the growth opportunities. Favorable regulatory environment and reimbursement scenarios in developing nations encourage global pharmaceutical giants to invest in new production facilities and product registrations.

Market Key Trends

One of the key trends gaining traction in the hospital pharmaceuticals market is the integration of artificial intelligence and machine learning technologies. Pharmaceutical companies are leveraging AI/ML to expedite drug discovery processes, optimize formulations, drive clinical trials, and enhance drug safety. For instance, AI assists in analysis of huge genomics and patient data to better understand disease pathogens and suitable medication pathways. ML algorithms also help hospitals optimize pharmaceutical inventory management and prevent stockouts. Such digital innovations are expected to significantly boost the market value over the coming years.

Porter’s Analysis

Threat of new entrants: New pharmaceutical companies can enter the market easily as the required resources are readily available. However, it is difficult to compete with established players due to high branding, R&D and regulatory costs.

Bargaining power of buyers: Buyers have high bargaining power as there are many existing suppliers. Hospitals can negotiate on price and demand other discounts. They can also threaten to switch to substitute products easily.

Bargaining power of suppliers: Active ingredients and raw material suppliers have moderate power. Suppliers of advanced technologies and machinery have some control over pricing.

Threat of new substitutes: Substitutes are available for many drugs though they differ in efficacy. Generics pose a threat after patents expire. New advanced treatment methods can replace existing hospital drugs.

Competitive rivalry: The market has strong competition among major pharmaceutical companies. Players compete based on pricing, new product innovations, and quality of treatment outcomes.

Geographical regions of concentration

North America accounts for the largest share in the global hospital pharmaceuticals market owing to advanced healthcare facilities and growing aging population susceptible to various diseases. The United States holds majority of the market share in the region driven by high healthcare spending and presence of leading pharmaceutical companies.

Fastest growing region

Asia Pacific region is poised to witness the fastest growth during the forecast period due to rising medical tourism, improving access to healthcare, increasing healthcare expenditure and growing prevalence of chronic diseases. Rising geriatric population, increasing disposable incomes and focus of global players on emerging Asian countries will further support the market growth in the region.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it