The market for radio frequency identification (RFID) in healthcare market is expected to grow at a CAGR of around 22.3% from 2020 to 2027 and expected to reach the market value of around US$ 6,435.7 Mn by 2027.
Radio frequency identification (RFID) is a fast developing technology that uses radio waves for data collection and transfer. It can capture data efficiently and automatically without human intervention. RFID is predicted to be the next generation innovation for automatic data collection and asset tracking. According to the Perspective Health Information Management, there is rising adoption of RFID in hospital settings and healthcare systems. Since RFID is expected to reduce cost of hospitals, sales of RFID technology for supply chain application have recorded US$ 1.43 Bn in 2019 with a solid plunge from US$ 94.6 Mn. The benefit associated with the increased security of patient privacy is an important aspect for the future growth of RFID in the hospital industry.
Big calls for "Auto-ID technologies"
Proponents of RFID possess many potential advantages over existing and conventional Auto-ID technologies that involve bar-coding for improvement in supply chain and other process. Barcode labels are normally read only, however, RFID tags have specialties like both read and write capability, making it versatile. Unlike barcode scanning, that requires labels to individually read, groups of RFID tags can be read simultaneously thereby enhancing productivity. The U.S. Food and Drug Administration (FDA) evaluate use of RFID tags for verifying product degree. In June 2013, FDA announced clearance to RFDI to track the safety and efficiency of the nation’s blood supply. The lab was one of the three lead Wisconsin partners in the project that involves Blood Center of Wisconsin and SysLogic Inc., a Milwaukee-based information systems firm. Together, the teams researched, designed, developed, and tested a new RFID-enabled solution namely, "iTrace" for blood centers that will automatically identify, reconcile, and track blood products.
RFID technology possess huge potential for healthcare facilities
RFID cites high potential for healthcare facilities for the improvement in patient safety and reducing cost. Early adoption of RFID directs to tracks medical devices, drugs, staff, and patients. RFID is a technology that uses electronic chips embedded on tags to transmit radio waves. The tag contains the information about products or people, their physical location in real time, and other information such as lot number ad expiration date for medical supplies and drugs, patient allergies or blood type, and others. When transmitted to a reader within the facility, the information can be stored in a database or used by the staff. In the past, majority of the healthcare facilities used to track various resources and patients manually, or by using bar-coding. RFID is a tool that can overcome manual efforts. RFID technology utilization in blood banks, laboratories, and pharmaceutical companies for better workflow management AVERY DENNISON CORPORATION a pioneer in RFID based drug management systems implements Smartrac’s RAIN RFID tags that guarantee integrity of supply chain. Additionally, Hanmi Pharmaceutical Co., one of Korea's largest pharmaceutical companies, employs RFID to increase the efficiency, monitor product movements, and assist in carrying out government regulated quality management. The company already uses RAIN RFID tags to track 60 million product units annually, from packaging to picking and shipping. This enables an automated process from order receipt to the shipment of a packed carton to wholesaler. As pharmaceutical goods are one of the most sensitive and supervised product groups globally, product tracking and management system must be completely reliable and proof against theft, fraud, and counterfeiting.
RFID in inventory management plays a vital role
Incorporation of RFID enables effective management of inventory, prevention of stock, ad overstock situations. These systems enables real-time data management, that leads to prevention of inventory loss and theft. By integration of RFID enabled systems facilitates a better inventory management in situations of less overstock thereby improving operational efficiency. Spacecode's technologies, healthcare inventory management solutions revolutionize inventory management and traceability with their RFID technology resulting in more effective workflow, optimized patient care, and lower costs. Spacecode's BLOODSPACE solution is a blood bank management system for hospitals. It utilizes BLOODSPACE RFID in combination with compatible software to track and trace blood components within the hospitals Critical Control Points (CCP). This ensures safe cold chain control and prevention from adverse effects.
Rising demand from healthcare companies drive the market growth
Surge in demand for this system among medical device manufacturers, pharmaceutical companies, biopharmaceutical companies, hospitals, and other life sciences companies aiming to control inventory cost boosts the market growth during the forecast period. Incorporating such systems enables organizations to manage stocks and prevent stock out and overstock situations. They also enable real-time data management to prevent inventory loss and theft. RFID-enabled systems facilitate better inventory management resulting in improved operational efficiency.
Radio frequency identification (RFID) in healthcare market is segmented by product and application. By product, the market is bifurcated as systems & software and tags. Further, application is segregated as asset tracking, patient tracking, pharmaceutical tracking, blood tracking, and among others.
Based on product, tags segment will hold largest market share in the forecast period. Rising awareness regarding the benefits associated with the devices is projected to drive the growth of this segment. Such tags can be used at any location to track and trace different types of assets, thereby enabling easy access to inventory, faster processing, and real-time asset monitoring.
North America held 44.9% market share in the past
North America will lead the overall radio frequency identification (RFID) in healthcare market and will continue its dominance till the forecast period. Factors that attribute for the growth involve rising number of healthcare services and hospitals, improvement in regulatory framework for patient safety, and tracking medical devices. Presence of developed infrastructure and rising adoption of advanced technologies in healthcare are the prominent factors contributing to regional growth. US is considered as the largest market for RFID in healthcare contributing to the high adoption of this technology in healthcare services. Additionally, high awareness regarding the advantages associated due to incorporation of RFID coupled with rising concerns regarding the risk of medication errors contribute fullest for the regional growth.
Asia Pacific is projected to record fastest growing CAGR in the forecast period. Presence of large number of pharmaceutical companies especially life sciences and surge in adoption of advanced technologies in healthcare contribute fullest for the regional growth in APAC market for radio frequency identification (RFID) in healthcare.
Key companies profiled in this report involve LogiTag, CenTrak, SpaceCode, Impinj, Zebra Technologies Corporation, Biolog-id, Terso Solutions, Cardinal Health, Mobile Aspects, Tagsys RFID, Pepperl+Fuchs, and metraTec GmbH., and among others.
Market By Product
Systems & Software
Market By Application
Market By Geography
Middle East & Africa
The market for radio frequency identification (RFID) in healthcare is expected to reach a market value of around US$ 6,435.7 Mn by 2027.
The radio frequency identification (RFID) in healthcare Market is expected to grow at a CAGR of around 22.3% from 2020 to 2027.
By product, tags is the leading segment in the overall market
High applications of RFID in healthcare companies for inventory management are one of the prominent factors for radio frequency identification (RFID) in healthcare market.
LogiTag, CenTrak, SpaceCode, Impinj, Zebra Technologies Corporation, Biolog-id, Terso Solutions, Cardinal Health, Mobile Aspects, Tagsys RFID, Pepperl+Fuchs, and metraTec GmbH., and among others.
North America is anticipated to grab the highest market share in the regional market
Asia Pacific is expected to be the fastest growing market in the forthcoming years