Radio-frequency Identification (RFID) uses electromagnetic fields to automatically identify and track tags attached to objects. RFID-enabled smart cabinets track drugs and devices and alerts the medical team in case any drug has expired.
The global RFID-enabled smart cabinets market is estimated to account for US$ 1,659.8 Mn in terms of value by the end of 2027.
Global RFID-enabled Smart Cabinets Market: Drivers
Need to manage inventory cost of high-value supplies is expected to propel growth of the global RFID-enabled smart cabinets market over the forecast period. RFID-enabled smart cabinets relies on real-time data to automate clinician workflows and streamline communication processes for supply chain management. It eliminates the cost, time and manual efforts spent to store, maintain, track and manage high-value materials in surgical settings of hospitals such as cardiovascular, interventional radiology, oncology, orthopedics and catheterization labs.
Moreover, various benefits of RFID-enabled smart cabinets are also expected to aid in growth of the market. For instance, RFID-enabled smart cabinets offer improved inventory management, return on investment, improved patient safety, and automatic recording of movements.
North America held dominant position in the global RFID-enabled smart cabinets market in 2019, accounting for 55.3% share in terms of value, followed by Europe and Asia Pacific, respectively
Figure 1: Global RFID-enabled Smart Cabinets Market Share (%) Value, By Region, 2019
Global RFID-enabled Smart Cabinets Market: Restraints
Use of conventional lock & key cabinets is expected to hinder growth of the global RFID-enabled smart cabinets market. Most hospitals in developing regions and countries are still utilizing conventional lock & key cabinets and freezers to store devices and medicines. Since the system has been working in most areas, priority to funding is given more to expansion of healthcare specialties, functions and departments.
Moreover, cost of deployment of RFID-enabled smart cabinets also limits the market growth. The installation and maintenance cost varies from US$ 20,000 to US$ 50,000. Hospitals in developing regions cannot be expected to incur such costs.
|Base Year:||2019||Market Size in 2019:||US$ 609.8 Mn|
|Historical Data for:||2016 to 2019||Forecast Period:||2020 to 2027|
|Forecast Period 2020 to 2027 CAGR:||11.8%||2027 Value Projection:||US$ 1,659.8 Mn|
LogiTag, Mobile Aspects, Inc., Solstice Medical LLC, Stanley Innerspace, Invengo Technology Pte. Ltd., Terso Solutions, Inc., and WaveMark Inc. (Cardinal Health)
|Restraints & Challenges:||
Global RFID-enabled Smart Cabinets Market: Opportunities
Efforts to increase consumer awareness is expected to offer lucrative growth opportunities for players in the global RFID-enabled smart cabinets market. There is low penetration of RFID technology in healthcare / hospital sector. Thus, vendors may focus on increasing consumer awareness and developing targeted marketing programs.
Moreover, increasing burden on the healthcare sector due to emergence of Covid-19 is also expected to boost demand for RFID-enabled smart cabinets. For instance, as of 1:57 pm CEST, 14 June 2020, there have been 7,690,708 confirmed cases of COVID-19, including 427,630 deaths worldwide, as to the World Health Organization.
The global RFID-enabled smart cabinets market was valued at US$ 680.3 Mn in 2019 and is forecast to reach a value of US$ 1,659.8 Mn by 2027 at a CAGR of 11.8% between 2020 and 2027.
Figure 2: Global RFID-enabled Smart Cabinets Market Value (US$ Mn), 2016 – 2027
Market Trends/Key Takeaways
Any human contact with endoscopes increases the possibility of transmission of disease. RFID technology can enable scopes to provide alert regarding re-washing, thereby reducing the possibility of transmission of disease.
Need for effective supply chain management is expected to aid in growth of the market. For instance, according to the fourth annual Cardinal Health Hospital Supply Chain Survey in May 2019, clinicians spend more than twice the amount of time they would like to on supply chain-related tasks, which reduces their time with patients and increases stress levels.
Global RFID-enabled Smart Cabinets Market: Competitive Landscape
Major players operating in the global RFID-enabled smart cabinets market include. LogiTag, Mobile Aspects, Inc., Solstice Medical LLC, Stanley Innerspace, Invengo Technology Pte. Ltd., Terso Solutions, Inc., and WaveMark Inc. (Cardinal Health).
Global RFID-enabled Smart Cabinets Market: Key Developments
May 2020: LogiTag announced that the division of cardiology at the Tel Aviv Sourasky Medical Center collected usage data with Snap & Go. The company’s solution will manage more than 2,000 stents, balloons, catheters and other implants used in the center. Moreover, 18 Smart Cabinet and 4 Snap and Go technology will be used to maintain accuracy of charge capture inventory reduction.
RFID-enabled Smart Cabinets uses electromagnetic fields to automatically identify and track tags attached to objects. These cabinets track drugs and devices and alerts the medical team in case any drug has expired. Increasing implementation of standard asset management system across hospitals is expected to propel growth of the global RFID-enabled smart cabinets market over the forecast period. Furthermore, major players in the market are focused on launching new products to expand their product portfolio.
Key features of the study: