The Pharmaceutical Automation Market was valued at $11.16 billion in 2023. This market is expected to reach $25.11 billion by 2031 from an estimated $12.21 billion in 2024, at a CAGR of 10.8% during the forecast period 2024-2031.
Pharmaceutical Automation Market Size & Forecast
The growth of the pharmaceutical automation market is driven by the increasing adoption of robots in pharmaceutical manufacturing, government initiatives to promote industrial automation, and the rising demand for energy-efficient systems. Furthermore, the rising demand for IIoT in pharmaceutical manufacturing is expected to generate growth opportunities for market stakeholders.
Pharmaceutical Automation Market Growth Drivers
Increasing Adoption of Robots in Pharmaceutical Manufacturing
In the pharmaceutical industry, robots are used for various tasks throughout the manufacturing process. Robotic solutions optimize production speed and quality, ensuring that the pharmaceutical products meet stringent standards. Pharmaceutical robots execute repetitive tasks in cleanroom environments, reducing concerns about contamination risks. The integration of robotics in pharmaceutical manufacturing offers several benefits, contributing to the growth of the pharmaceutical sector.
With the growing demand for new drugs and medicines, pharmaceutical companies are focused on increasing productivity. As a result, they are increasingly relying on automated equipment and robotics. These companies are expected to deliver quality products and cater to the growing global demand for medicines, which necessitates improved operating procedures and enhanced production speed.
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Several pharmaceutical manufacturers have started deploying robots in their manufacturing operations to enhance productivity. For instance, in September 2022, Sinocare (China), Asia’s largest blood glucose meters manufacturer, partnered with HAI ROBOTICS to introduce a complete set of Autonomous Case-handling Robot (ACR) Systems in its warehouse in Changsha, China. This partnership promoted deeper integration and development of in-plant logistics in the healthcare industry, delivering higher efficiency and reducing labor costs through ACR systems and whole-process digitalized management. Together with HAI ROBOTICS, Sinocare aimed to build a warehousing system for semi-finished products to unlock higher potential in healthcare warehousing.
Furthermore, several robot manufacturers offer products for pharmaceutical manufacturing to enable automated business processes. For instance, Kassow Robots (Denmark) provides pharmaceutical manufacturers with a wide range of high-performance offerings for all types of pharmaceutical tasks. The company’s robots are reliable and precise, allowing manufacturers to maximize output in labor-intensive tasks 24/7 while minimizing costs. Thus, the increasing adoption of robots to streamline and optimize various aspects of pharmaceutical manufacturing is driving the growth of this market.
Government Initiatives to Promote Industrial Automation
Major economies across the globe are implementing Industry 4.0 technologies, including IoT, artificial intelligence, robotics, cloud, and analytics, to transition to smart manufacturing. Therefore, governments worldwide are encouraging the adoption of disruptive technologies, including industrial automation. Tax benefits, R&D investments, and the development of promotional ventures & platforms are some of the initiatives undertaken by governments worldwide to promote the adoption of industrial IoT technology.
The Japanese government is investing in the Society 5.0 initiative to create a society that integrates digital technology and human capabilities. The initiative envisions the seamless integration of various technologies into everyday life, including AI, IoT, robotics, autonomous systems, and advanced data analytics. These technologies are being adopted in various sectors, including healthcare, transportation, education, and manufacturing.
Furthermore, in January 2021, the European Commission launched the Horizon2020 framework, comprising 24 new robotics projects. The framework covered various research and innovation topics — from manufacturing, commercial, and healthcare use to consumer, transportation, and agri-food robotics. In addition, Poland is becoming a major manufacturing power in Europe due to the demand for new and innovative manufacturing technologies. The Polish government has announced incentives for advanced manufacturing and industrial transformation and also provides grants to support industry research. Such initiatives are supporting the adoption of automation technologies across industries, driving the growth of the pharmaceutical automation market.
Pharmaceutical Automation Market Opportunity
Rising Demand for IIoT in Pharmaceutical Manufacturing
The scope of IIoT is vast and can be applied across different stages of the pharmaceutical value chain. IIoT serves applications in the pharmaceutical industry ranging from research, drug discovery, and the manufacturing supply chain to sales, marketing, and the patient experience. Pharmaceutical manufacturing faces several pressures, such as supply chain disruption, quality control issues, and increased regulatory control, which impact the industry’s ability to bring safe and effective medicines to the market faster. Pharmaceutical manufacturing is increasingly adopting digital technologies and automation, or Pharma 4.0, to solve these problems.
The application of IIoT in pharmaceutical manufacturing is helping increase overall productivity across all manufacturing stages and improving pharmaceutical vigilance and regulatory compliance. From the speedier delivery of high-quality medicines to the market to ensuring the safe transportation of drugs and better feedback monitoring, IIoT is becoming increasingly essential for pharma companies.
IIoT platforms can help pharmaceutical companies address the lack of connectivity. Pharma companies have plenty of process data; however, many lack the capacity to connect to their data or access it remotely. This lack of connectivity makes it extremely difficult to optimize processes, improve quality across multiple manufacturing sites, or implement a global Pharma 4.0 plan.
Several pharmaceutical manufacturing companies have adopted IoT technologies in their manufacturing process at some level. For instance, in January 2022, ACG (India), an integrated pharma service provider, introduced the Smart Connected Product - an IIoT (Industrial Internet of Things) solution that connects production machines at any facility and visualizes information on a single platform. This data can be viewed on any device with a secure connection and is accessible only to authorized users. The technology enables pharmaceutical and nutraceutical companies to remotely monitor production machine settings, performance parameters, machine downtime, and alarms through the Smart Connected dashboard in real time. Thus, the rising adoption of IIoT among pharmaceutical companies is expected to generate growth opportunities for market stakeholders.
Pharmaceutical Automation Market Analysis: Key Findings
By Offering: In 2024, the Solutions Segment to Dominate the Pharmaceutical Automation Market
Based on offering, the pharmaceutical automation market is segmented into solutions and services. In 2024, the solutions segment is expected to account for a larger share of 87.5% of the global pharmaceutical automation market. This significant share can be attributed to the increasing demand for automation to ensure high-quality and reliable manufacturing, the rising need for real-time monitoring and predictive maintenance capabilities, and the growing need for operational efficiency while reducing operational costs and downtime.
Moreover, the solutions segment is projected to register a higher CAGR during the forecast period. Market players are focusing on the advancement of automation solutions to automate operations within the pharmaceutical industry. For instance, in October 2023, SYSPRO ERP (U.K.) partnered with SugarCRM (U.S.) to launch an integrated ERP and CRM solution for pharmaceutical manufacturers and distributors. This solution is designed to enhance inventory management, streamline supply chain and manufacturing operations, and improve overall efficiency. These advances are anticipated to drive the adoption of automation solutions for pharmaceutical processes during the forecast period.
By Mode of Automation: In 2024, the Semi-automatic Systems Segment to Dominate the Pharmaceutical Automation Market
Based on mode of automation, the pharmaceutical automation market is segmented into semi-automatic systems and fully automatic systems. In 2024, the semi-automatic systems segment is expected to account for a larger share of 57.4% of the global pharmaceutical automation market. The large market share of this segment can be attributed to the effectiveness of semi-automatic systems in streamlining processes while still enabling human oversight. This balance is essential for maintaining quality control in the pharmaceutical industry.
However, the fully automatic systems segment is projected to register a higher CAGR during the forecast period. This growth is attributed to the increasing adoption of fully automatic systems by large-scale companies aiming to boost throughput volumes through the automation of feeding and assembly processes.
By End User: In 2024, the Pharmaceutical Industry Segment to Dominate the Pharmaceutical Automation Market
Based on the end user, the pharmaceutical automation market is segmented into the pharmaceutical industry and the biotech industry. In 2024, the pharmaceutical industry segment is expected to account for a larger share of 61.7% of the global pharmaceutical automation market. The growth of this segment is driven by the increasing need for automation in manufacturing facilities, the enforcement of stringent regulations in the pharmaceutical industry, the integration of advanced technologies such as machine vision, spectroscopy, and chromatography in inspection systems, and the growing application of AI technology in pharmaceutical manufacturing.
Moreover, the pharmaceutical industry segment is projected to register the highest CAGR during the forecast period. Major market players are introducing AI-powered automation systems to analyze large datasets, predict outcomes, and streamline processes. For instance, in February 2024, Mareana (U.S.) launched Connect CMC, an AI-powered tool designed to manage and analyze data from drug manufacturing processes specifically for small pharmaceutical and biotechnology companies. These advancements are anticipated to drive the growth of this segment during the forecast period.
Geographical Analysis
By Geography: In 2024, Europe to Dominate the Pharmaceutical Automation Market
In 2024, Europe is expected to account for the largest share of 32.9% of the global pharmaceutical automation market. Europe’s significant market share is attributed to the rising digitalization and adoption of Industry 4.0 in pharmaceutical manufacturing, the increasing need to enhance pharmaceutical production through automation and intelligent process technologies, and the growing demand for pharmaceutical automation to improve efficiency, reduce waste, and enhance product quality.
However, the market in Asia-Pacific is projected to register the highest CAGR of 11.8% during the forecast period. Factors such as the rapid transformation of manufacturing facilities, increasing investments in innovative technologies, growing focus of pharmaceutical companies on increasing production, increase in investment by pharmaceutical companies, technological advancements, and a growing emphasis on robotics and automation are expected to drive the growth of the pharmaceutical automation market in Asia-Pacific during the forecast period.
Pharmaceutical Automation Market: Key Companies
The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios & geographic presence and the key growth strategies adopted by them over the past 3–4 years. Some of the major companies operating in the pharmaceutical automation market are Siemens AG (Germany), Emerson Electric (U.S.), Mitsubishi Electric Corporation (Japan), ABB Ltd (Switzerland), FANUC CORPORATION (Japan), Honeywell International Inc. (U.S.), KUKA AG (Germany), Schneider Electric SE (France), Rockwell Automation, Inc. (U.S.), YASKAWA Electric Corporation (Japan), Yokogawa Electric Corporation (Japan), General Electric Company (U.S.), OMRON Corporation (Japan), Advantech Co., Ltd. (Taiwan), and Fuji Electric Co., Ltd. (Japan).
Pharmaceutical Automation Industry Overview: Latest Developments from Key Industry Players
- In June 2023, Siemens AG (Germany) collaborated with Intrinsic Innovation LLC (U.S.) to explore new AI-based robotics and automation solutions for advanced interoperability and more efficient interfaces between robotics systems.
- In December 2023, ABB Ltd. (Switzerland) partnered with XtalPi Inc. (China) to produce a range of automated laboratory workstations for the chemical and life sciences sectors in China. The automated laboratories will boost the productivity of R&D processes in biopharmaceuticals, chemical engineering and chemistry, and new energy materials.
Pharmaceutical Automation Market Research Summary
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Particulars
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Details
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Number of Pages
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320
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Format
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PDF
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Forecast Period
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2024–2031
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Base Year
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2023
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CAGR (Value)
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10.8%
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Market Size (Value)
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USD 25.11 Billion by 2031
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Segments Covered
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By Offering
- Solutions
- Enterprise-level Controls
- Product Lifecycle Management (PLM)
- Enterprise Resource Planning (ERP)
- Manufacturing Execution Systems (MES)
- Plant Instrumentation
- Motors & Drives
- Robots
- Articulated Robots
- Cartesian Robots
- SCARA
- Collaborative Robots
- Other Robots
- Sensors
- Machine Vision Systems
- Cameras
- Optics and LED Lighting
- Relays & Switches
- Other Plant Instrumentation Solutions
- Plant-level Controls
- Supervisory Control and Data Acquisition (SCADA)
- Distributed Control Systems (DCS)
- Programmable Logic Controllers (PLC)
- Other Plant-level Controls
- Services
- Integration & Installation Services
- Maintenance & Support Services
- Advisory, Training, & Consulting Services
- Safety & Security Services
By Mode of Automation
- Semi-automatic Systems
- Fully Automatic Systems
By End User
- Pharmaceutical Industry
- Biotech Industry
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Countries Covered
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North America (U.S., Canada), Europe (Germany, U.K., Italy, Netherlands, Sweden, France, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Singapore, Rest of Asia-Pacific), Latin America (Brazil, Mexico, Rest of Latin America), Middle East & Africa (South Africa, UAE, Saudi Arabia, Rest of Middle East & Africa)
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Key Companies
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Siemens AG (Germany), Emerson Electric (U.S.), Mitsubishi Electric Corporation (Japan), ABB Ltd (Switzerland), FANUC CORPORATION (Japan), Honeywell International Inc. (U.S.), KUKA AG (Germany), Schneider Electric SE (France), Rockwell Automation, Inc. (U.S.), YASKAWA Electric Corporation (Japan), Yokogawa Electric Corporation (Japan), General Electric Company (U.S.), OMRON Corporation (Japan), Advantech Co., Ltd. (Taiwan), and Fuji Electric Co., Ltd. (Japan).
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Key questions answered in the pharmaceutical automation market report:
