The manufacture of drugs and pharmaceutical products passes through various processing steps, each of which requires monitoring to ensure the safety, efficacy, and quality of the manufactured product. Traditional paper-based quality management systems are associated with various drawbacks that can be overcome by software-based quality management systems.
While the pharmaceutical quality management software market is still in its niche stage, the market is anticipated to grow rapidly owing to increasing technology adoption in the pharmaceutical industry, increasing cost of drug manufacturing, and evolving regulations. Currently, a few large pharmaceutical companies have adopted electronic quality management systems in order to automate their processes. With increasing technology adoption in the pharmaceutical industry, going forward, smaller companies are expected to implement software-based systems from the beginning itself.
The COVID-19 pandemic has further accelerated the digital transformation of the pharmaceutical industry. This positive impact is attributed to factors such as travel restrictions and the emerging concept of working and communicating remotely.
The global pharmaceutical quality management software market report highlights that the market was valued at $472.6 million in 2020 and is expected to reach $3,717.7 million by the end of 2030. The market is expected to grow at a CAGR of 22.91% during the forecast period from 2021 to 2030.
Global Pharmaceutical Quality Management Software Market Drivers
The factors driving the growth of the market include the increasing cost of drug manufacturing, constantly evolving regulations, and growing technology adoption in the pharmaceutical industry. Pharmaceutical companies spend up to billions of dollars in the manufacture of a new drug, thereby increasing the demand for automating manufacturing processes. The benefits associated with paper-based quality management systems are overcome by software-based quality management systems, presenting a lucrative market for pharmaceutical quality management software.
Furthermore, increasing demand by pharmaceutical companies to comply with regulatory requirements in order to compete with other players in the market is another factor driving the growth of the market.
Global Pharmaceutical Quality Management Software Market Challenges
The factors restraining the growth of the global pharmaceutical quality management software include security concerns pertaining to on-cloud deployment and the lack of well-established regulations governing pharmaceutical quality management software systems. Data breach incidents cause the pharmaceutical industry to suffer both monetary losses as well as breaches of customer trust. Additionally, while emerging economies in Asia-Pacific and Rest-of-the-World present a huge potential for growth of the pharmaceutical quality management software market, currently, market penetration in the region is challenging owing to factors such as lack of technology integration in the pharmaceutical industry and high upfront costs associated with the purchase of software.
However, the COVID-19 pandemic has countered these challenges and thus, positively impacted the digital transformation of the pharmaceutical industry.