RFID is a system based on wireless technology (non-contact system) which utilizes radio-frequency electromagnetic fields for transferring data from a tag attached to an object, for various purposes like automatic identification and tracking of objects. RFID enables identification from a distance, unlike earlier bar-code technology.
The global RFID in healthcare market is estimated to account for US$ 16,756.6 Mn in terms of value by the end of 2027.
Global RFID in Healthcare Market: Drivers
Concerns over drug counterfeiting in healthcare is expected to hinder growth of the global RFID in healthcare market over the forecast period. Patient safety is affected by counterfeit pharmaceuticals and biologics which is a growing problem. Specific technology is needed to deter this drug counterfeiting. RFID minimizes the risk of counterfeited, unacceptable, adulterated or tampered with and diverted drugs.
Moreover, improved operational efficiency with RFID is also expected to aid in growth of the global RFID in healthcare market. To get an accurate account of inventory, manufacturers, and distributors have to improve visibility throughout the supply chain management. Lack of visibility of customer orders and available stock will lead to increased inventory and locks finances unnecessarily as healthcare practitioners often keep buffer stocks to avoid stocks out situation. As RFID enables increased visibility of the inventory, it will reduce buffer stocks by substituting knowledge of inventory and thereby reducing inventory cost.
North America held dominant position in the global RFID in healthcare market in 2019, accounting for 49.5% share in terms of value, followed by Europe and Asia Pacific, respectively.
Figure 1: Global RFID in Healthcare Market Share (%) Value, By Region, 2019
Global RFID in Healthcare Market: Restraints
High cost of the system is expected to hinder growth of the global RFID in healthcare market. The cost of an RFID tag can range from four cents per tag to upwards of US$ 50.00 per tag depending on the capabilities. The RFID tag readers can range from US$ 1,000.00 to US$ 3,000.00 per reader.
Moreover, lack of standardization in technology is also expected to limit growth of the market.
|Base Year:||2019||Market Size in 2019:||US$ 4,004.0 Mn|
|Historical Data for:||2016 to 2019||Forecast Period:||2020 to 2027|
|Forecast Period 2020 to 2027 CAGR:||19.6%||2027 Value Projection:||US$ 16,756.6 Mn|
Microchip Technology, Accenture plc., Hitachi, IBM, 3M, AeroScout Inc., Know Labs, Inc., Kit Check, Fresenius Kabi, and Siemens Healthcare.
|Restraints & Challenges:||
The global RFID in healthcare market was valued at US$ 4,004.0 Mn in 2019 and is forecast to reach a value of US$ 16,756.6 Mn by 2027 at a CAGR of 19.6% between 2020 and 2027.
Figure 2: Global RFID in Healthcare Market Value (US$ Mn), 2016 – 2027
Market Trends/Key Takeaways
Medication shortages in pharmacies is expected to propel growth of the global RFID in healthcare market. For instance, according to an annual survey published in August 2020 by Kit Check, around 60% of pharmacy staff reported dealing with up to 20 medication shortages at a time. More than 72 of respondents reported spending up to 15 staff hours to reconcile each medication shortage.
Moreover, launch of medical devices with RFID scanners is expected to propel growth of the global RFID in healthcare market. For instance, in August 2020, JADAK, a business unit of Novanta Corporation, launched HS-1RS Secure Access Handheld Barcode Scanner, enabled with software from Imprivata and HID. The HS-1RS integrates 1D and 2D barcode scanning with LF/HF RFID smartcard/contact-less and prox card reading functionality.
Global RFID in Healthcare Market: Competitive Landscape
Major players operating in the global RFID in healthcare market include, Microchip Technology, Accenture plc, Hitachi, IBM, 3M, AeroScout Inc., Know Labs, Inc., Kit Check, Fresenius Kabi, and Siemens Healthcare.
Global RFID in Healthcare Market: Key Developments
Major players in the global RFID in healthcare market are focused on adopting partnership strategies to enhance their market share. For instance, in September 2020, Kit Check announced that Premier Inc. has extended its sole source partnership with the company for its Bluesight for Controlled Substances (BCS) solution as well as its namesake kit and tray processing system.
Radio-frequency identification (RFID) also referred to as RFID transponder is a technology used for automated identification of objects, animals, vehicles, people, and other materials. RFID is a system based on wireless technology (non-contact system) used for automatic identification and tracking of healthcare product such as pharmaceuticals. Increasing RFID application in healthcare such as use in tracing counter fitted pharmaceutical is expected to assist the growth of the global RFID in healthcare market over the forecast period. Furthermore, improved operational efficiency with RFID.
Key features of the study:
Joining thousands of companies around the world committed to making the Excellent Business Solutions.View All Our Clients