Medical Adherence Market Insights: Fostering Patient Commitment to Treatment Plans
Posted by Roger on January 19th, 2024
Medical adherence refers to correctly following recommended instructions for prescribed medications and treatment regimen. Adherence to medications and therapies has become increasingly important as non-adherence can exacerbate existing medical conditions and lead to adverse health outcomes. Growing prevalence of chronic diseases such as diabetes, cancer, and cardiovascular diseases has increased the consumption of prescription drugs. However, non-adherence to such long-term medications is a major issue contributing to rising healthcare costs. For example, medication non-adherence is responsible for approximately 10% of hospitalizations and around 125,000 deaths every year in the US.
The global Medical Adherence Market is estimated to be valued at US$ 3.68 Bn in 2023 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
The need to curb rising healthcare expenditure presents a major market opportunity for medical adherence solutions. Non-adherence increases healthcare costs due to disease exacerbations, infections, hospital readmissions and increased physician visits. For instance, in the US, non-adherence amounts to wastage of approximately 0 billion annually in form of avoidable hospitalizations and emergency room visits. Medical adherence solutions aim to improve medication-taking behavior through digital reminders and tracking tools. This can significantly reduce unnecessary healthcare spending by improving patient health outcomes. Positive clinical outcomes and reduced costs attract interest from healthcare payers in adoption of medical adherence solutions.
Porter's Analysis
Threat of new entrants: The medical adherence market has moderate threat of new entrants due to high capital requirement. However, there are low switching costs for customers.
Bargaining power of buyers: The bargaining power of buyers is high due to presence of many solution providers and availability of substitute products. Buyers can easily switch between vendors.
Bargaining power of suppliers: Suppliers have low bargaining power due to fragmented supplier base and availability of substitute raw materials. Suppliers do not have control over prices of raw materials.
Threat of new substitutes: Threat of substitutes is moderate as there are few alternative adherence solutions available in the market.
Competitive rivalry: The competitive rivalry in the market is high due to presence of many global and regional players offering similar medical adherence solutions.
SWOT Analysis
Strengths: Growing need to manage medication among aging population and rise in long-term chronic diseases. Ability to track medication schedules remotely.
Weaknesses: High costs associated with software, hardware, and services. Security and privacy risks of sensitive health data.
Opportunities: Mobile health apps and wearable devices creating opportunities for adherence solutions. Emerging markets in Asia Pacific and Middle East providing scope for expansion.
Threats: Reimbursement issues and lack of awareness in developing nations. Resistance from healthcare professionals and patients to adopt digital therapeutics.
Key Takeaways
The global medical adherence market is expected to witness high growth due to rising geriatric population suffering from chronic diseases globally. The global Medical Adherence Market is estimated to be valued at US$ 3.68 Bn in 2024 and is expected to exhibit a CAGR of 14% over the forecast period 2023 to 2030.
The North America region currently dominates the market owing to supportive government initiatives and presence of major market players in the US and Canada. Asia Pacific region shows robust growth prospects led by rapidly growing pharmaceutical industry in China and India and initiatives to improve healthcare infrastructure. Japan also presents scope for adherence solutions among aging population.
Key players operating in the medical adherence market are AdhereTech, McKesson Corporation, Medminder Systems, Inc., Omnicell, Inc., and DrFirst, among others. AdhereTech offers digital solutions that integrate various technologies and data analytics capabilities across the entire adherence journey. McKesson Corporation provides pharmacy management solutions and medical supplies to improve medication management.
