Global RFID in healthcare market was valued at USD 646.7 million in 2014 and is expected to reach over USD 3.89 billion over the next seven years. Key influences attributing to this rapid growth include growing occurrences of theft and loss of different medical devices which result in high losses to the pharmacies and hospitals. Healthcare services use radio frequency identification (RFID) and real-time location systems (RTLS) to track, identify, monitor patients, locate, visitors, assets, equipment and staff. Know that, how of these technologies aid in improving safety, enhancing the quality of care, reducing financial waste, and fostering patient satisfaction.
The healthcare market is majorly driven by the cheap availability of highly efficient systems and tags. Improper storage systems and careless handling in pharmaceutical stores have led to rising number of stock outs and expiration of medicines. This, in turn, may impact in loss of revenue and reputation which is anticipated to encourage better usage in the foreseeable future.
Furthermore, one of the high impact rendering drivers for the growth of this market is the development and rising usage of Kanban systems in order to achieve lean inventory. RFID Kanban systems allow organizations to lessen their inventory value by 15-35% according to a study shown by Stanley Healthcare. In addition, with inventory reduction by 50%, the inventory replenishment expenses can be condensed down to a total expenditure of just 5% of overall. Furthermore, these changes are anticipated to cut down on the storage space by 22%. As a result, storage costs are reduced substantially subsequently decreasing energy costs as well.
Implementation of advanced Kanban systems in existing hospital inventory management and timely placement of orders to the supplier directly for requisite medical devices and medication is expected to encourage hospitals and pharmacies to incorporate these systems. RFID systems find widespread applications in the healthcare sector and have an increasing penetration in areas including infection control, injection safety, tracking prescription drugs and radiology. These systems are anticipated to improve market capitalization in coming seven years. For instance, Sanraku Hospital collaborated with BayNexusin an attempt to manage their medical equipment efficiently. Which also, to reduce time taken to inspect medical conditions, Wake Forest Baptist Medical Center integrated RFID tags on the closures of x-ray vests.
On the basis of product type, RFID systems and tags are segmented into two main products. In 2014, RFID systems contributed to over 55% of the overall market share. Key factors contributing to this large share includes high penetration of these devices in the market owing to better awareness levels regarding the advantages of RFID devices such as their ability to embed into existing hospital ERP software systems and reduction in overall operational costs. Systems are further categorized as pharmaceutical tracking, asset tracking, blood monitoring and patient tracking.
In 2014, the pharmaceutical segment constituted for the largest share and is projected to emerge as the dominant market leader in the next seven years. RFID tags cost approximately 4-6 cents which turn to be cost effective and may render as a high impact driver for market growth in the next seven years. Additionally, tags market is also sub divided on the basis of their end-use in varies departments including pharmaceutical tracking tags, asset tracking tags, blood monitoring tags and patient tracking tags.
Asia-Pacific, North America, Latin America, MEA and Europe are key regional markets. In 2014, North America was the dominant market player which captured over 50% of the overall share. Key factors accrediting to its large share include the existence of developed healthcare infrastructure together with high awareness levels about the advantages of these systems.
Further, in November 2013, U.S. president entered into a contract with The Drug Quality and Security Act (DQSA) that outlines essential steps to form an interoperable and electronic system that could trace and ascertain prescription drugs while they are distributed in the United States. The usage of RFID tags and systems in the U.S. is expected to rise owing to the emergence of aforementioned steps over the forecast period.
However, Asia Pacific is projected to grow at a rapid over the forecast period. New multinational hospital chains, continuously improving healthcare infrastructure and favourable government initiatives in the region will considerably propel growth in Asia Pacific market.
Market Share Insights
Key performers functioning in the industry include Terson Solutions, Log Tag, Solstice Medical LLC, Mobile Aspects Inc, Logi Tag, Wave Mark, Hurst Green Plastics Ltd., Pepperl+Fuchs, Tagsys RFID Group, Metra Tec GmbH, Wurth Group, Bollhoff Group, Stanley Innerspace, Brooks Automation, Grifols and Datelka.
RFID in Healthcare Product Outlook (Revenue, USD Million, 2014 - 2022)
• Asset Tracking Systems
• Pharmaceutical Tracking Systems
• Patient Tracking Systems
• Blood Monitoring Systems
• Asset Tracking Tags
• Pharmaceutical Tracking Tags
• Patient Tracking Tags
• Blood Monitoring Tags
RFID in Healthcare Regional Outlook (Revenue, USD Million, 2014 - 2022)
• North America
• Asia Pacific
• Latin America
• South Africa
Research Support Specialist, USA