TMR report offers that the largest areas of growth are expected to be in North America, Asia
Nov 10, 2023A report released this week estimates at the beginning of the next decade, the worldwide radio frequency identification (RFID) market in healthcare will grow nearly 10% to over $2.5 billion.
The projection from Transparency Market Research Inc. (TRM) released on Nov. 9 expects the compound annual growth rate (CAGR) to be 9.5% with a valuation of $2.6 billion as anticipated for the market in 2031, up from the most recent valuation of $961.0 million in 2020.
The growth in the RFID healthcare market is correlated with the rise in the number of patients who frequently visit hospitals as well as technological advancements in telemedicine. This has resulted in RFIDs being used for accurate patient care, asset management, patient tracking, pharmaceutical counterfeiting, blood and sample tracking, and supply tracking in the healthcare sector.
Pharmaceutical Factor
Highly advanced technology and the use of integrated technologies in healthcare have increased the popularity of RFID systems in this territory. The report points out that the increasing need for RFID in the pharmaceutical industry are a result of having to manage inventory, specifically the identification of the vast supply of pharmaceutical drugs on a daily basis as well as tracking movement from warehouses and pharmacies to various customers.
In this sector, RFID technology is used to automate inventory tracking, monitor expiration dates, and streamline supply chain management, reducing waste and cost. TRM wrote that "efficient inventory management is crucial in healthcare to prevent shortages or overstock of medications and supplies."
Key Corporations
The key providers cited by TRM include Impinj, Inc., a Seattle, WA-based company, who is promoted as focusing on improving the customer experience, ease of using the technology, and cost-effective solutions to attract more customers. Other companies mentioned are Alien Technology, Applied Wireless Inc., Avery Dennison Corporation, CAEN RFID S.R.L., Honeywell International Inc., Checkpoint Systems, Inc., Invengo Information Technology Co. Ltd, Savi Technology and Motorola Solutions, Inc.
The report cited Honeywell and Avery Dennison as two companies with the largest capacities for growth.
Honeywell currently provides various RFID solutions for healthcare, including asset tracking, inventory management, and patient identification. Honeywell's technology is offered as improving the efficiency of healthcare supply chains and reduce the risk of errors. Meanwhile, Avery Dennison products are concentrated for healthcare supply chain management, including tracking pharmaceuticals and medical supplies. Their solutions help combat counterfeit drugs and improve the visibility of products in the supply chain, according to TRM.
Opportunities in Healthcare
Three areas the report cited where growth opportunities for RFID companies are:
- Accelerating product development for healthcare companies and unlocking revenue opportunities to obtain competitive benefits;
- Ongoing technological advancements in RFID systems, such as developing smaller, more cost-effective RFID tags and improved wireless communication, have made RFID solutions more accessible and practical for healthcare organizations; and
- Increasing application of RFID technology in clinical trials, research, and development in healthcare for tracking and monitoring study participants, specimens, and research equipment that will boost market demand.
North America to Drive Growth
The report offers that the North America market is expected to account for the largest market share of the global market. Reasons cited include increasing advancements in healthcare and rising healthcare expenditures. Growth and advancement in clinical laboratories and the pharmaceutical industry are driving the RFID market in the North American region as well.
The Asia-Pacific region is witnessing significant growth in the RFID healthcare market as adoption is being propelled by the need to improve healthcare infrastructure, enhanced patient safety, and combating counterfeit drugs in the pharmaceutical supply chain. Growing healthcare investments, government initiatives, and a large patient population are expected to contribute to market expansion.
Key Takeaways:
- Transparency Market Research Inc. expects the compound annual growth rate (CAGR) to be 9.5% with a valuation of $2.6 billion is anticipated for the RFID healthcare market in 2031
- The North American region is expected to account for the largest market share of the global market
