E-Prescribing Market

Market Overview

The global e-prescribing market size was valued at USD 3.69 billion in 2023. It is estimated to reach USD 26.17 billion by 2032, growing at a CAGR of 24.32% during the forecast period (2024–2032). The growth of the e-prescribing market is being driven by various factors, including the increasing adoption of EHR solutions, government initiatives, and incentive programs, rising focus on reducing the abuse of controlled substances, increasing focus on reducing medical errors, and the need to curtail the escalating healthcare costs.

Highlights

• Hospitals dominate the end-user segment.
• Non-controlled substance dominates the prescription segment.
• Web-based dominates the delivery mode segment.
• North America is the highest shareholder in the global market

Market Overview

E-prescribing, or electronic prescription, epitomizes the ongoing digitization of the global healthcare sector. It revolutionizes the process of generating, transmitting, and fulfilling medical prescriptions by replacing traditional methods such as faxing documents or paper-based systems. This advancement involves various stakeholders, including pharmacists, physician assistants, physicians, and other medical practitioners like nurses, who utilize digital technology to transmit and document information regarding prescribed medications for patients. One of the primary advantages of e-prescriptions is their capacity to enhance accuracy, streamline communication, and ensure legible prescriptions.

Typically, these prescriptions are electronically transmitted from healthcare providers to designated pharmacies. By adopting this modern approach, the healthcare industry aims to mitigate risks associated with traditional prescription methods, such as errors in medication dosage or administration. The rise of e-prescribing has coincided with increased emphasis on electronic medical records (EMRs), with emerging trends indicating heightened advertising and promotion. The e-prescription ecosystem comprises four key components: the prescriber, the transaction hub, the pharmacy center equipped with requisite software, and the pharmacy benefit manager (PBM).

Market Dynamics

Global E-Prescribing Market Drivers

Growing Global Acceptance of Electronic Prescriptions

The global e-prescription market is expected to expand as people become more aware of and accept this digital technology worldwide. Several countries have already mandated the transition from paper-based prescriptions to electronic format due to the numerous benefits associated with e-prescription that benefit all parties involved in the transaction, including patients, medical professionals, and medicine filling agencies.

In 2011, Croatia became one of the first countries to require all stakeholders to switch to e-prescription. Since then, the format has gained popularity in several other European countries, including the Netherlands, Finland, Italy, Poland, Belgium, Germany, and Sweden, the latter two of which are the most recent additions. These regions have developed a supporting infrastructure that has enabled stakeholders to smoothly transition to electronic prescription. These facilities include promoting secure transaction methods, a thriving electronic health record (EHR) system, and standardized compliance rules, thereby avoiding consumer confusion.

In Italy, e-prescriptions can be issued via video conferencing, and each health document is assigned a unique Electronic Prescription Number (EPN). If a prescription is lost or misplaced, EPN allows it to be traced back to the citizen using their health card. As of February 2019, approximately 85% of all pharmaceutical prescriptions in Italy were in digital format. This is expected to propel market growth.

Global E-Prescribing Market Restraint

High Investment and Hesitancy to Change

The growth trajectory of the global e-prescribing market is intricately linked to users' comfort levels with digital technology. This encompasses various stakeholders, including doctors, patients, and pharmacies. However, a significant challenge facing market players is the reluctance of stakeholders to embrace digital technology fully. For the e-prescribing system to function optimally, all parties involved must feel comfortable with the transition. However, a considerable portion of the population may hesitate to adopt software and digital programs for medical prescriptions due to their familiarity with traditional methods.

Moreover, concerns regarding the cost of e-prescription technology present another hurdle, particularly in regions grappling with economic volatility. The initial investment required for implementing e-prescribing solutions, coupled with ongoing expenses associated with training users and maintaining software, may pose significant financial burdens for healthcare providers and organizations. These costs can act as deterrents, impeding the widespread adoption of e-prescribing systems, especially in resource-constrained environments.

Global E-Prescribing Market Opportunities

Increasing Introduction of New and User-Friendly Solutions

The global e-prescribing industry is poised for significant growth with the emergence of new, user-friendly solutions. These innovative platforms prioritize security and ease of use, driving adoption and expanding market opportunities. A noteworthy example is Wales' introduction of its inaugural electronic prescription service in November 2023, projected to eliminate over 40 million paper forms, signaling a shift towards sustainable and efficient healthcare practices. Similarly, in June 2023, a groundbreaking partnership was announced between DrFirst, a prominent health technology provider, and BoomerangFX, an international cloud-based Software as a Service (SaaS) provider specializing in medical spa, cosmetic surgery, women's health, and vision care. This collaboration aims to offer DrFirst customers access to an integrated and unified medication management system. This project, which is anticipated to improve clinical operations and increase patient involvement, shows the industry's dedication to innovation and teamwork.

Additionally, in June 2023, Telecare introduced RXPad, Australia's pioneering standalone platform for electronic prescriptions, marking a transformative milestone in the country's healthcare landscape. Developed by clinicians to enhance the patient experience, RXPad signifies a paradigm shift towards digitized healthcare solutions tailored to meet evolving patient needs. These developments underscore the growing momentum towards digital transformation within the e-prescribing sector. By leveraging advanced technology and strategic partnerships, stakeholders drive advancements that streamline healthcare workflows and enhance patient outcomes and experiences. As user-friendly solutions continue to proliferate and gain traction, the global e-prescribing industry is poised to capitalize on new growth opportunities and shape the future of healthcare delivery.

Regional Analysis

Based on region, the global e-prescribing market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

North America Dominates the Global Market

North America is the most significant global e-prescribing market shareholder and is expected to expand substantially during the forecast period. This growth is driven by key factors, including the widespread adoption of healthcare IT solutions, favorable government initiatives, and the presence of robust healthcare infrastructure. The implementation of the Health Information Technology for Economic and Clinical Health (HITECH) Act has been a major driver of the market's expansion in North America. It has been instrumental in encouraging the use of e-prescribing technology and Electronic Health Records (EHRs) nationwide. This legislative framework has spurred healthcare organizations to embrace digital solutions, driving demand for e-prescribing services.

Furthermore, the region's increasing prevalence of chronic diseases, such as diabetes, coupled with a growing elderly population, underscores the imperative for effective medication management and patient safety measures. This heightened awareness of healthcare challenges has fueled the adoption of e-prescribing solutions, as evidenced by the record growth experienced by major providers like Surescripts in 2021. Surescripts, a leading e-prescribing provider, reported processing over 2.12 billion e-prescriptions through its network in January 2022, marking a significant milestone in the industry's evolution. The company's expansion into new services like real-time prescription benefits and electronic prior authorization reflects North America's growing demand for advanced e-prescribing functionalities.

Moreover, North America's well-developed healthcare infrastructure and high adoption rates of advanced technologies position it as a promising market for e-prescribing solutions. The region accounted for 44.9% of the market share in 2021, a testament to its leadership in driving innovation and digital transformation in healthcare. Therefore, North America's e-prescribing market growth is propelled by a convergence of factors, including government initiatives, healthcare challenges, and technological advancements. As the region continues to prioritize healthcare digitization and patient safety, the demand for e-prescribing solutions is expected to soar, solidifying North America's position as a key driver of global e-prescribing market expansion.

Segmental Analysis

The global e-prescribing market is bifurcated into end-user, prescription, and delivery modes.

Based on end-users, the global e-prescribing market is segmented into office-based physicians, hospitals, and pharmacies.

The hospital segment is expected to possess the largest market share. The hospital segment is poised to claim the largest market share in the e-prescribing market, driven by the widespread adoption of e-prescription-integrated Electronic Health Record (EHR) solutions. This segment is predicted to grow substantially as more hospitals embrace technology to enhance workflow efficiency. The proliferation of multi-specialty hospitals implementing e-prescription solutions underscores the significant momentum driving market expansion. 

For instance, legislative initiatives such as the Health Information Technology for Economic and Clinical Health Act (HITECH) further catalyze the adoption of integrated EHR solutions in hospitals, particularly in the United States. HITECH incentivizes healthcare organizations to invest in information technology, mandating integrated EHR solutions in numerous hospital facilities. Consequently, the regulatory push towards digitization fuels the demand for e-prescription solutions within the hospital segment.

Based on prescription type, the global e-prescribing market is segmented into controlled substances and non-controlled substances.

The non-controlled substances segment dominates the global market. This upward trajectory is fueled by the widespread adoption of e-prescription technology across diverse medical facilities to enhance drug management practices. Healthcare providers' growing recognition of the value of effective medication management is driving up demand for e-prescription solutions in this market. E-prescription technology offers a streamlined approach to medication management, facilitating accurate prescription transmission and enhancing medication adherence among patients with chronic illnesses. Moreover, the global surge in chronic disease prevalence is a key driver amplifying the demand for e-prescription solutions and propelling market growth.

Based on delivery mode, the global e-prescribing market is segmented into web-based and on-premise.

The web-based segment dominates the highest market share. This segment, characterized by electronic prescription solutions accessible via web browsers, offers distinct advantages in accessibility, flexibility, and scalability. One of the key drivers driving the growth of the web-based segment is the increasing adoption of cloud-based technologies in healthcare. Web-based e-prescribing solutions leverage cloud infrastructure to provide healthcare providers access to prescribing functionalities anytime and anywhere, enhancing workflow efficiency and patient care delivery. This accessibility is particularly beneficial in today's dynamic healthcare environment, where remote consultations and telemedicine services are becoming increasingly prevalent. 

Recent Developments

• November 2023- An electronic prescription service was launched in Wales for the first time. The system allows GPs to send prescriptions securely online to a patient's choice of pharmacy without needing a paper form. The service, launched in Rhyl, Denbighshire, on Friday, is said to make the prescribing of medicines easier, safer, and more efficient.
• July 2023- To improve patient care quality, the West Bengal Health Department announced that the e-prescription initiative will start in June at all state-run medical colleges and government hospitals. The department ordered government hospitals and medical colleges to adopt the digitalized method to replace the traditional hand-written method of prescribing medicines.