Pharmaceutical Manufacturing Software Market

Pharmaceutical Manufacturing Software Market Size (2023 to 2028)

The size of the global pharmaceutical manufacturing software market is estimated to grow at a CAGR of 7.8% from 2023 to 2028 and worth from USD 2890.8 million in 2023 to USD 4208 million by 2028.

MARKET DRIVERS:

The growing adoption of artificial intelligence in the pharmaceutical industry majorly drives global market growth. As digitalization grows faster and is used by every sector of the world, artificial intelligence is the most relevant factor that opens more opportunities in the healthcare industry. Many healthcare authorities vastly use this software to identify targeted therapies for diagnostic purposes and these tools are emerging factors in the healthcare sector. AI can analyze large amounts of data, identify patterns and provide real-time insights to improve operational efficiency. AI tools play a crucial role in accelerating the drug discovery and development process and help in the virtual screening of potential drug candidates, predicting drug-drug interactions, and optimizing formulation design. AI tools further improve the quality control processes as more opportunities and benefits are associated with artificial intelligence tools. The growing adoption of AI in the manufacturing activities of pharmaceutical goods majorly propels global market growth.

The growing awareness among manufacturers regarding the benefits of using pharmaceutical manufacturing software contributes to global market growth. Pharmaceutical manufacturing software improves operational efficiency and helps streamline and automate various manufacturing processes leading to improved operational efficiency. Pharmaceutical manufacturing software enhances quality control and enforces standardized processes and monitors product quality at every stage of production. Pharmaceutical manufacturing software also empowers decision-makers to make data-driven decisions and identifies areas for process improvement and optimizes manufacturing operations. Such awareness has grown rapidly among the manufacturers and resulted in the increased adoption of this software and this trend is likely to continue in the coming years and propel the global market growth.

An increasing number of advancements in pharmaceutical manufacturing software fuels the growth rate of the global market. The most recent technological developments in the pharmaceutical production sector are frequently incorporated into new software releases. Improved data analytics capabilities, integration with cutting-edge technologies like artificial intelligence (AI) and the Internet of Things (IoT), upgraded user interfaces, and sophisticated automation features are a few examples of these developments. Pharmaceutical firms can take advantage of these developments and modernize their manufacturing processes, enabling increased productivity and efficiency due to the release of new software.

Factors such as the rapid adoption of digital technology and tools, the emerging use of software in diagnostic procedures, rising regulatory compliance requirements, rising demand for operational efficiency, and increasing emphasis on data-driven decision-making procedures support the growth of the pharmaceutical manufacturing software market.

MARKET RESTRAINTS:

The errors associated with the software are one of the major factors hampering the global market growth. Software programs, especially those used in the manufacture of pharmaceuticals, are prone to errors or faults that might impair their usefulness or performance. These flaws may cause errors, crashes, or improper data processing, which may interfere with production procedures and produce inefficiencies. If a company is worried about reliability or possible business interruptions, they could be reluctant to employ software solutions. The high manufacturing cost of the software is another notable factor that impedes global market growth. As this software is more relevant in the healthcare sector, the cost of this software is high, so many healthcare authorities refuse to take such type of software. This factor also hampers the overall growth of the market. There is a lack of regulations for pharmaceutical quality management software, which acts negatively on the global market growth.

Impact of COVID-19 on the global pharmaceutical manufacturing software market:

The COVID-19 pandemic situation has positively impacted the global pharmaceutical manufacturing software market. During the COVID-19 pandemic, there was a rising burden on the healthcare sector and software was a more important element and there is a rise in the need for dependence on automation. Software is an important tool to share information with the public by data sharing files. The Internet of Things provides a platform that helps public health agencies to access data required for monitoring the COVID-19 pandemic. The use of various artificial intelligence tools helped during the COVID-19 pandemic to decrease the clinical load of doctors. During the COVID-19 pandemic crisis, phone-based software applications such as COVID-19 symptom tracker collected data from both symptomatic and asymptomatic individuals and tracked how the disease progresses by recording self-reported health information regularly, including symptoms, reverse transcription PCR test outcomes, hospitalization, demographic information, and pre-existing medical condition. Thus, the software was more beneficial in the pandemic to decrease the burden on the healthcare sector. Likewise, the COVID-19 pandemic has favoured the global pharmaceutical manufacturing software market and the growing trend is likely to continue rest of the forecast period.

REPORT COVERAGE:

This research report on the global pharmaceutical manufacturing software market has been segmented and sub-segmented based on the following categories.

Pharmaceutical Manufacturing Software Market - By Product Type:

• Cloud
• On-premises

Based on product type, the cloud segment is estimated to account for the largest share of the worldwide market in 2022 and is anticipated to continue to dominate the market throughout the forecast period. Pharmaceutical firms may access their business systems at any time, from any location, using cloud-based tools. Implementing on-demand pharmaceutical manufacturing software has many advantages that help businesses increase productivity and boost customer engagement, including affordability, simple accessibility from any location or time, quick setup, and scalability. The growing application of mobile software further fuels the growth of the cloud segment in the global market.

The on-premises segment had a considerable share of the worldwide market and is expected to showcase a prominent CAGR in the coming years. Pharmaceutical firms have more control over the security of their data because of on-premises software solutions. Companies sometimes worry about data privacy and protection because pharmaceutical manufacturing involves sensitive information. By storing data within a personalized security infrastructure, on-premises software enables businesses to lower the risks of data breaches and unauthorized access. This factor drives the growth of the on-premises segment in the global market during the forecast period.

Pharmaceutical Manufacturing Software Market – By Application:

• Large Enterprises
• Small and medium-sized enterprises

Based on the application, the large enterprises segment is expected to hold the major share of the global market during the forecast period. As these enterprises often have complex and diverse manufacturing operations, they require software solutions that can handle the scale of their manufacturing processes. Pharmaceutical manufacturing software solutions can effectively manage and track regulatory compliance and automate quality processes, maintaining consistent product quality throughout their operation.

The small and medium-sized enterprises segment is anticipated to account for a considerable share of the worldwide market during the forecast period. Pharmaceutical manufacturing software is crucial to managing the regulatory compliance processes, documentation, and quality control, ensuring adherence to the necessary regulations. Pharmaceutical manufacturing software allows this enterprise to increase data storage capacity and accommodate new manufacturing processes.

Pharmaceutical Manufacturing Software Market – By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

The North American region is expected to hold the major share of the global market during the forecast period. Pharmaceutical manufacturing takes place in a highly regulated setting in North America, primarily the United States. To guarantee product quality, safety, and efficacy, regulatory organizations like the US Food and Drug Administration (FDA) impose severe compliance criteria. Software for pharmaceutical manufacturing is essential in assisting businesses in meeting these legal criteria. The requirement for software programs that simplify regulatory compliance procedures and guarantee adherence to standards is growing rapidly and contributing to the North American market growth.

The Asia-Pacific region is expected to register the fastest CAGR among all the regions in the global market during the forecast period. The pharmaceutical sector is expanding significantly in the Asia Pacific region. Significant pharmaceutical manufacturing hubs are growing in nations such as China, India and South Korea. Pharmaceutical manufacturing software is in high demand in the Asia-Pacific region as it increases operational effectiveness, improves quality control and guarantees regulatory compliance.

The European region is estimated to capture a substantial share of the global market during the forecast period. As there is a stringent regulatory environment in this region, this region emphasizes more on product quality and patient safety, also there is rising technological advancement in the countries under the European region. The growing number of collaborative research and development initiatives across Europe further fuel the growth rate of the European market.

The Latin America region is expected to showcase a steady CAGR during the forecast period. The pharmaceutical manufacturing software market in Latin America is primarily driven by factors such as regulatory compliance and quality control, emphasis on productivity and effectiveness, expenditures in healthcare infrastructure, rising technology adoption and increasing number of collaborations and partnerships.

The Middle East and Africa region is expected to register a steady CAGR during the forecast period.

KEY MARKET PLAYERS:

Oracle Corporation (NetSuite Inc.), BatchMaster Software, Columbus Manufacturing, Aquilon Software, CompuTec S.A. (ProcessForce), Datacor Chempax, DESKERA, ERPAG, Fishbowl, Intellect, SAGE GROUP plc, and VAI - Vormittag Associates, Inc. are some of the major players in the global pharmaceutical manufacturing software market.

RECENT DEVELOPMENTS IN THE MARKET:

• In March 2022, Aizon, a developer of enterprise AI software, and Aggity, a Spanish firm focused on business digital transformation, established a partnership to accelerate digital transformation within manufacturing operations at the world's biggest pharmaceutical and biotech companies.
• In March 2022, Triastek, Inc. and Siemens Ltd., China, agreed to collaborate on digital technologies for the worldwide pharmaceutical business. Triastek's industry-leading 3D printing and digital pharmaceutical technologies, combined with Siemens' global experience in automation and digitalization, result in unique and disruptive pharmaceutical research and manufacturing solutions.