The global ePharmacy market was valued at USD 60.0 billion in 2022 and is projected to experience significant growth, with an expected compound annual growth rate (CAGR) of 20.4% from 2023 to 2030. Several key factors are driving this market expansion, including the rising penetration of the internet worldwide, the increasing digitalization of healthcare services, and a growing number of tech-savvy consumers. Additionally, consumers' preference for the convenience of online purchases is contributing to this growth, as is the broader adoption of digital technologies and e-commerce within the healthcare sector.
A notable example of innovation in this space is the launch of a digital pharmacy by venture capitalist Mark Cuban in January 2022, which offers over 100 generic pharmaceuticals at reduced prices, aiming for radical transparency. This type of ePharmacy provides easier access to medications, particularly benefiting chronic patients, elderly individuals living in nuclear families, and those unable to travel for their healthcare needs.
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The rising penetration of smartphones is another factor that is facilitating market growth. According to The Mobile Economy 2020, smartphone penetration was 65.0% in 2019 and is anticipated to reach 80.0% by 2025. This increase, coupled with the rapid expansion of the healthcare sector and the pressing need to reduce high operational costs, has underscored the necessity for implementing ePharmacy solutions. Furthermore, the growing prevalence of chronic conditions is driving demand for various healthcare products, including medications, highlighting the increasing acceptance of online drug procurement across the globe.
The COVID-19 pandemic has significantly shifted health system priorities globally, prompting many developing economies to reassess their infrastructure needs, particularly in urban areas. Countries faced the dual challenge of managing the pandemic while progressing toward other healthcare objectives. For instance, India has seized the urgency of combating COVID-19 as an opportunity to build more resilient health systems. This increasing government focus on advancing and enhancing overall healthcare infrastructure is expected to contribute positively to the growth of the ePharmacy market.
Regional Segmentation Insights
In 2022, North America held the largest market share in the ePharmacy sector, exceeding 40.4%. This growth can be attributed to several key factors, including the rising adoption of e-commerce, a growing geriatric population, increasing online sales, a well-developed healthcare infrastructure, and a positive attitude towards embracing new technologies. Notably, nearly 80% of the U.S. population is connected to ePharmacy services, reflecting a notable shift toward the direct-to-patient model of healthcare delivery.
The digital landscape has significantly enhanced consumer experiences, providing access to user-friendly online platforms and advanced services that further drive market growth in North America. For instance, in December 2020, Medicure Inc., a cardiovascular pharmaceutical company, announced a formal agreement to acquire 100% of Marley Drug, Inc. through its wholly-owned subsidiary, Medicure Pharma Inc. This move illustrates the strategic investments being made in the ePharmacy space.
The COVID-19 pandemic has profoundly affected consumer purchasing behaviors, with a growing number of individuals turning to ePharmacy platforms for their medicine and healthcare supply needs. This trend is evidenced by initiatives such as the April 2022 launch of drone delivery services by Walgreens and Wing in the first large urban area in the U.S. as part of a pilot study. Such innovations highlight the ongoing evolution of the ePharmacy market and its adaptation to changing consumer preferences in response to the pandemic.
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