The global e-prescribing market has been experiencing significant growth in recent years and is expected to continue growing at a rapid pace in the coming years. According to a report, the market reached a value of US$ 2.9 billion in 2022 and is projected to reach US$ 9.4 billion by 2030, with a compound annual growth rate (CAGR) of 16.4% during the forecast period of 2023-2030.
E-prescribing refers to the use of healthcare technology to improve prescription accuracy, enhance patient safety, and reduce costs. It enables secure, real-time, bidirectional electronic connectivity between clinicians and pharmacists. This technology is particularly important in reducing medication errors and adverse drug events, which result in approximately 7,500 fatalities each year, with an estimated annual cost of drug-related morbidity and mortality reaching $75 billion.
Several factors are driving the growth of the e-prescribing market. The rising adoption of electronic health record (EHR) solutions, government initiatives and incentive programs, increasing focus on reducing fraud and drug abuse, and the growing adoption of e-prescriptions by healthcare providers are some of the key factors contributing to the expansion of the market. Moreover, the significant technological advancements in countries like the United States and Canada have led to a rise in demand for e-prescribing solutions in the North American region.
Companies in the e-prescribing market are strategically focusing on product launches, collaborations, and other strategies to drive the growth of the market. For example, Parker Health, a biotechnology company, recently announced a collaboration with FDB Vela, a cloud-native ePrescribing network. This collaboration aims to enable seamless flow of critical medication prescription information, benefits verification, and clinical decision support between prescribers, payers, pharmacies, and other stakeholders.
In addition, DoseSpot, a software-as-a-service (SaaS) platform for e-prescribing, acquired the TreatRx segment of Bravado Health to strengthen and expand its solution set for healthcare providers. These initiatives by organizations are expected to drive market expansion and contribute to the overall growth of the e-prescribing market.
Another key driver of market growth is the growing geriatric population and government efforts to promote e-prescribing. The elderly population, who often have to manage multiple medications on a daily basis, perceive e-prescribing as safer, more convenient, and more efficient than traditional paper-based prescriptions. According to the World Health Organization, by 2030, approximately 1 in 5 people around the world will be aged 60 years or over. The increasing elderly population, along with government efforts to improve medication safety, is expected to drive the adoption of e-prescribing solutions.
However, the market growth is hindered by certain challenges, particularly related to software design. The design elements of e-prescribing software can contribute to errors and hazards to patient safety. For example, drop-down menus, bad screen design, and automatic filling functions can increase the likelihood of errors. Additionally, workflow issues may arise due to the need for human recording and updating of prescriptions, as well as potential follow-up with providers to address gaps or inaccuracies.
The global e-prescribing market is segmented based on system type, delivery mode, component, end-user, and region. Software accounts for the majority share of the market, approximately 51.7%. Software has become essential in the healthcare industry, with e-prescribing being a fundamental feature to enhance functionality and attract healthcare systems to use digital platforms.
Geographically, North America dominates the e-prescribing market, accounting for approximately 45.4% of the market share in 2022. The region is expected to continue its rapid growth due to the increasing adoption of electronic prescribing systems and government initiatives promoting e-prescribing. The presence of established market players in the region, along with the advanced healthcare infrastructure, also contributes to the growth of the North American market.
Major global players in the e-prescribing market include CharmHealth, Cerner Corporation, GE Healthcare, Epic Systems Corporation, Athenahealth, and others. These companies are actively participating in product launches, collaborations, and other strategic initiatives to maintain their market position and drive growth.
The COVID-19 pandemic has had a positive impact on the e-prescribing market, as it has highlighted the inefficiencies of written prescriptions. E-prescribing has the potential to increase patient access to prescription drugs while also improving convenience and reducing contact in healthcare settings. The surge in e-prescribing during the lockdown period demonstrated the need for improvements in the system, such as better error feedback, increased uniformity between practices and pharmacies, proactive patient engagement, and fairer pricing of prescriptions.
In summary, the global e-prescribing market is experiencing significant growth and is expected to continue growing at a rapid pace in the coming years. The rising adoption of EHR solutions, government initiatives, and incentive programs, along with the increasing focus on reducing fraud and drug abuse, are driving the market growth. However, challenges related to software design and workflow issues may hinder the market expansion. Nevertheless, advancements in technology and the growing geriatric population are expected to contribute to the growth of the e-prescribing market.
