Pharmaceutical Storage and Material Handling Equipment Market (2023-2030)

The main purpose of using a pharmaceutical storage and material handling system is to ensure that the material in the right amount is carefully delivered to the desired destination at the right time. The growing demand for pharmaceutical storage and material handling systems is primarily attributed to a drug manufacturer’s strong focus on quality, safety, and drug efficacy by reducing costs and improving manufacturing efficiencies.

The growth of this market is driven by factors such as the rapid growth in the pharmaceutical market, rising focus on automation in the pharmaceutical industry, the focus of manufacturers to reduce production costs, and government support to promote the pharmaceutical sector. Additionally, a shift toward the use of robotics, developing economies, and the rising adoption of generic drugs are creating opportunities for market growth. However, the cost setting up of efficient material handling systems in the pharmaceutical industry may restrain the growth of this market to a notable extent.

Growth in the geriatric population and the associated burden of chronic and infectious diseases, growing investments in pharmaceutical R&D, rising income levels, and expanding medical infrastructure have boosted pharmaceutical production. As per data published by the United Nations, in 2020, nearly 727 million people (9.3% of the global population) were over the age of 65. This number is projected to increase to over 1.5 billion people (16% of the global population) by 2050. Consistent growth in the aging population is increasing the burden of chronic diseases. Common conditions affecting the geriatric population include osteoarthritis, diabetes, heart diseases, chronic obstructive pulmonary disorders, depression, and dementia. The rising prevalence of these conditions is increasing the demand for pharmaceuticals, thereby driving the pharmaceutical storage and material handling equipment market.

Additionally, pharmaceutical companies are investing in building and expanding their pharmaceutical manufacturing facilities to meet the changing market requirements. Moreover, increasing R&D investments in the pharmaceutical industry are also expected to drive the commercialization of new drugs. According to the International Federation of Pharmaceutical Manufacturers and Associations (IFPMA), pharmaceutical R&D investments in the U.S., Europe, and other markets have grown considerably. As of 2020, the number of drugs in development for cancer, immunology, neurology, and infectious diseases was estimated at ~6,900. As these drugs will move from the development to the manufacturing phase, these drugs will further need to be stored. Hence these factors drive the pharmaceutical storage and material handling equipment market.