REAL TIME LOCATION SYSTEMS MARKET ANALYSIS

A real time location systems (RTLS) is a location tracking solution that helps organizations to identify, track, and manage their essential assets such as personnel, equipment, and tools in real-time. It is comprised of tags or badges that use wireless technologies such as ultrasound, RF signals, infrared, and ZigBee for communication between tags and readers that send signals to location sensors. These sensors then communicate with the middleware platform, which analyzes data and correlates information that helps to enhance the productivity and operational efficiency in enterprise. RTLS finds applications in staff safety, staff tracking, workflow automation, environment sensing, asset tracking, etc.

The global real time location systems (RTLS) market is estimated to be valued at US$ 4,922.8 million in 2021 and is expected to exhibit a CAGR of 31.8% over the forecast period (2021-2028).

Recent Developments:

• In February 2020, Impinj Inc. introduced the Impinj R700 RAIN RFID reader, designed for enterprise-grade RAIN deployments. The Impinj R700 reader delivers industry-leading performance with the best receive sensitivity, fastest network connectivity, and powerful edge processing for IoT solutions.
• In March 2018, Connexient Partners with Vizzia Technologies to Integrate Indoor Navigation, Digital Wayfinding and Real-Time Location Systems (RTLS) for Healthcare Organizations
• In March 2018, CenTrak introduced IRUS - The First Hybrid Ultrasound-Gen2IR Internet of Things (IoT) location and sensing offering. IRUS specifically developed for use cases requiring Clinical-Grade Locating in open spaces, such as infusion areas, preoperative and post-anesthesia care units, and emergency departments.

North America held dominant position in the real time location systems (RTLS) market in 2020, accounting for 43.3% share in terms of volume, followed by Europe and Asia Pacific, respectively.

Figure 1. Global Real Time Location Systems (RTLS) Market Value (US$ Mn), by Region, 2020

Market Dynamics- Drivers

Advanced features cost savings and increased efficiency is expected to drive growth of the global real-time location systems (RTLS) market during the forecast period. Controlling numerous assets throughout indoor and outdoor production environments is a rigorous task. RTLS determines the precise location and removes time-consuming manual searches and audits for tracking assets. Furthermore RTLC simplifies asset management and restructures supply chain and logistics operations, in order to improve enterprise resource planning. For any business, insights play a crucial role that can result in enhanced safety, productivity, and efficiency. Moreover, RTLS provides knowledge through efficient asset tracking and management. For manufacturing industries, RTLS allows flow and efficient management of all critical assets in storage yard or facility itself.

Rising application of RTLS solutions in various industries is expected to propel the global real time location systems (RTLS) market growth over the forecast period. Process optimization and workflow automation are two major parameters that provide an enterprise with the ability of operational excellence and efficient staff productivity. RTLS control and manage personnel/assets and result in streamlined processes. This, in turn, the demand for RTLS solutions is increasing at a rapid pace across numerous industries such as manufacturing, defense, process industries, and retail. RTLS offers various advantages over other technologies such as GPS as signals sometimes do not penetrate some materials used in construction, and GPS receivers are expensive, complex and require higher power than RTLS tags.

Market Opportunities

RTLS finds applications in version industry verticals including healthcare, transportation, logistics, hospitality, manufacturing, process, and retail sectors. The demand for RTLS solutions in the aforementioned industry verticals is due to declining prices of RTLS tags, supportive government initiatives, and rising technological advancements, in order to encourage the deployment of RTLS across numerous industries worldwide. Various departments in the hospitals such as clinical and biomedical engineering and materials management are increasingly following the trend of deploying RTLS. As of 2013 in the U.S., only 12% to 15% of hospitals had adopted RTLS technology and over 75% of hospitals worldwide have not installed RTLS solutions as yet.

Apart from healthcare applications, RTLS solutions are used in various other industry verticals. Although healthcare accounts for major share, staff security and safety are gradually emerging as a major application sector. Thus, industry verticals such as manufacturing and process industries, defense and government are major potential markets for RTLS going ahead.

Market Trends

Most RTLS developers revamp and modify existing technologies to cater to emerging challenges. Earlier, RTLS technologies were either of low precision with high range or high precision with low range. Most companies combine both technologies to achieve both high and low precision, depending upon specific requirements. Companies including Zebra Enterprise Solutions, Centrack, and Versus Technology are developing a solution that is a combination of RTLS technologies so as to achieve both high and low precision.

The potential of UWB and Zigbee technologies are fast gaining popularity in the market and increasing adoption in RTLS solutions is driving market growth, owing to high degree of accuracy in asset tracking and management these technologies offer. ZigBee technology enables monitoring and control capabilities for residential and industrial applications within a range of 100 meters. ZigBee addresses the specific needs of the sensory network and remote control and monitoring applications using the IEEE 802.15.4 standard.

Figure 2. Global Real Time Location Systems (RTLS) Market Share, By Technology, 2020

Key Takeaways of the Graph:

• The RFID segment held dominant position in the market and accounted for 37.5% share in the global real time location systems (RTLS) market in 2020. The segment is expected to reach US$ 12,710.6 million in 2028. This is owing to rising need for on-site personnel tracking systems that uses radio frequency identification (RFID) enabled badges.

Market Dynamics- Restraints

Concerns regarding privacy and operational challenges are expected to restrain growth of the global real time location systems (RTLS) market during the forecast period. Lead-shielded rooms in the hospital pose major challenges for RTLS to operate in these locations along with halls and adjoining rooms. Ability to be connected to cables and access to electric supply could also create problems for RTLS installations as these systems mainly depend on receivers that read signals emitted by tags. New hospital buildings do have spaces above the ceiling that could be accessed for cable and electric drops; however, these modifications are expensive and pose challenges in older hospital buildings.

High initial costs involved in deployment of RTLS solutions is expected to hinder the global real time location systems (RTLS) market growth over the forecast period. Initial deployment cost of hardware components and software is significantly high. Active tags carry a high cost per tag (US$ 50 – US$ 100) as compared to passive technology (US$ 0.25 to US$ 5). However, passive tag readers are expensive and the information exchanged between the tag and reader is limited as compared to active tags Wi-Fi. Furthermore, high hardware costs associated with Bluetooth, Wi-Fi, and active RFID technologies are expected to hinder the market growth in the near future.

Competitive Section

Key players operating in the global real time location systems (RTLS) market are AeroScout, Inc., Motorola Solutions Inc., Skytron LLC, PINC Solutions Corporation, Axcess International, Inc., Ubisense Group plc, Zebra Technologies Corporation, Awarepoint Corporation, and Sonitor Technologies AS.

Key Developments

1. Major companies in the market are focused on product launches, in order to gain a competitive edge in the market. For instance, in April 2019, Motorola Solutions Inc. introduced Analytics, Mapping Enhancements to CommandCenteral Aware Software.
2. Key players in the market are involved in partnerships and collaborations, in order to enhance the market presence. For instance, August 2018, Ubisense Group plc partnered with Quuppa to extend reach of world-class industrial location-aware solutions.