HEALTHCARE ASSET MANAGEMENT MARKET ANALYSIS

The global healthcare asset management market was valued at US$ 14.9 Bn in 2022 and is forecast to reach a value of US$ 34.7 Bn by 2030 at a CAGR of 11.2% between 2023 and 2030. The global healthcare asset management market is experiencing strong growth due to the growing focus on assets management and rising concerns about drug counterfeiting. Moreover, rise in adoption of asset management solutions and rise in implementation of RFID technology is expected to boost the market growth. However, factors such as concerns regarding data privacy and low awareness in low & middle-income countries are expected to hamper the market growth.

Global Healthcare Asset Management Market: Regional Insights

Based on geography, the global healthcare asset management market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Among regions, North America is expected to gain highest share in the market during the forecast period due to the increasing incidences of drug counterfeiting, rising privacy concerns, increasing issues in supply chain management, and growing adoption of asset management techniques in the region. For instance, the U.S. Food and Drug Administration took 130 enforcement actions against counterfeit medications from 2016 through 2021. These counterfeiting operations involved tens of millions of pills, more than 1,000 kilograms (2,200 pounds) of active ingredient powder that could be turned into pills in the U.S. and hundreds of millions of dollars in sales.

Europe and Asia Pacific are also expected to witness robust growth in the global healthcare asset management market due to growing adoption of asset management techniques, growing concerns for patient safety, increasing incidences of drug counterfeiting, and need to increase efficiency in healthcare institutions. For instance, the European Union (EU) has a legal framework for licensing, manufacturing, and distribution of medicines, so that only licensed pharmacies are allowed to offer medicines for sale, including legitimate sale via the internet. The European Medicines Agency is working closely with its partners on the implementation of these laws.

Figure 1. Global Healthcare Asset Management Market Share (%), by Region, 2023

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Global Healthcare Asset Management Market Drivers:

Growing focus on assets management to drive market growth

One of the key factors expected to augment the growth of the global healthcare asset management market during the forecast period is the growing focus on assets management. For instance, Asset management is a systematic approach to the governance of medical assets. It involves tracking and managing medical equipment, supplies, and other assets within a healthcare facility. In November 2022, Vizient, Inc. and Handle Global teamed up to launch a capital asset management system to help healthcare organizations manage their capital expenses and equipment. The system also helps improve equipment lifecycle planning, procurement, and asset utilization.

Drug counterfeiting to underpin market growth

Another factor which is driving growth of the global healthcare asset management market is the increasing concerns about drug counterfeiting worldwide. For instance, counterfeit drugs are now available anywhere in the world and is a worldwide concern. A counterfeit drug is a drug produced and sold with the intent to deceptively represent its origin, authenticity, or effectiveness. According to the World Health Organization (WHO), over 11% of medications sold in developing countries are counterfeit, resulting in 144,000 additional deaths annually from imitation antibiotics and anti-malarial drugs alone. This in turn is driving the market growth.

Global Healthcare Asset Management Market Opportunities:

Rise in implementation of RFID (Radio Frequency Identification) technology is expected to offer significant growth opportunities for players in the global healthcare asset management market. For instance, RFID technology is an extremely attractive, versatile anti-counterfeiting, anti-tampering solution. It adapts easily to the most diverse IT environments, making it ideal even for SMEs. The World Health Organization and the Food and Drug Administration (FDA) suggested the use RFID to enhance both the quality of supply chain to eliminate the counterfeit or fake drugs in the global market. Moreover, RFID tags allows medical facilities or healthcare organizations to effectively manage equipment, inventory, and reduce human error.

Rise in adoption of asset management solutions is expected to offer lucrative growth opportunities for players in the healthcare asset management market. For instance, in May 2023, GE HealthCare launched ReadySee, a new asset management & network supervision solution, and Portrait Mobile Monitoring solution. ReadySee is designed to transform data into actionable insights about devices and infrastructure; eliminate manual efforts to locate such devices; and self-manage cybersecurity protocols to help identify vulnerabilities, and help protect sensitive patient health information. The Portrait Mobile Monitoring solution addresses the needs of wireless and wearable monitoring with a platform that leverages novel technologies that are deployed on a hospital’s IT infrastructure.

Global Healthcare Asset Management Market Trends:

Rise in focus on patient care is a recent trend

Healthcare asset management helps healthcare organizations worldwide improve the way they care for their patients. These solutions help clinicians to provide their patients with a more personalized and precisely targeted experience, ultimately improving the outcomes. Moreover, these combined benefits of asset management can enhance the level of care that healthcare organizations can give to their patients. Asset management help reduce costs and enhance patient outcomes. This trend is expected to continue over the forecast period.

Growing awareness is another trend

Asset management in hospitals is simply a highly organized and economical method of organising, purchasing, maintaining, using, and disposing of healthcare organization’s equipment and physical assets. Adoption of asset management solutions is increasing due to rising requirement for efficient and precise tracking of medical equipment. Thus, with the growing awareness about the benefits of asset management, the adoption or use of healthcare asset management is also increasing. This trend is also expected to continue over the forecast period.

Global Healthcare Asset Management Market Restraints:

Data privacy concerns to hinder market growth

One of the key factors expected to hinder growth of the global healthcare asset management market is the concerns regarding data privacy. Data breaches can not only expose patient information in the healthcare industry but also put data integrity and availability at risk. The most common threats to data privacy and security include data theft, unauthorized access, improper disposal of data, data loss, hacking IT incidents, and more. Data privacy in healthcare entails correct way of handling and protecting sensitive patient data from various cybersecurity threats.

Lack of awareness to hamper market growth

Another factor which is hampering the growth of the global healthcare asset management market is the low awareness in low & middle-income countries. For instance, when it comes to the usage of the right technology to track and manage their assets, the healthcare industry lags behind other industries. Moreover, lack of awareness, especially in low and middle-income countries, is limiting the use of healthcare asset management. The most significant benefit of hospital asset management is that it helps healthcare organizations improve the way they care for their patients.

Figure 2. Global Healthcare Asset Management Market Share (%), by Technology, 2023

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Global Healthcare Asset Management Market Segmentation:

The global healthcare asset management market report is segmented into Technology, Component, Application, End User, and Geography.

Based on Technology, the market is segmented into Real Time Location Systems (RTLS) and Radio Frequency Identification (RFID) Systems (Active RFID and Passive RFID). Out of which, Radio Frequency Identification (RFID) Systems Segment is expected to dominate the healthcare asset management market over the forecast period and this is attributed to the rise in implementation of RFID technology in healthcare.

Based on Component, the market is segmented into Hardware, Software, and Services. Out of which, Hardware Segment is expected to dominate the market during the forecast period and this is attributed to the increase in adoption of healthcare asset management solutions.

Software Segment is also expected to witness robust growth in the near future and this is owing to increasing concerns about drug counterfeiting.

Based on Application, the market is segmented into Staff Management, Equipment Tracking, Patient Tracking, and Supply Chain Management. Out of which, Equipment Tracking Segment is expected to dominate the market during the forecast period and this is attributed to the growing focus on assets management.

Patient Tracking Segment is also expected to witness robust growth in the near future and this is owing to rise in focus on patient care.

Based on End User, the healthcare asset management market is segmented into Hospitals/Clinics, Laboratories, Pharmaceuticals, and Bio-Technology. Out of which, Hospitals/Clinics Segment is expected to dominate the market during the forecast period and this is attributed to the rise in implementation of healthcare asset management services and solutions.

Laboratories Segment is also expected to witness significant growth in the near future and this is owing to increase in research and development.

Global Healthcare Asset Management Market: Key Developments

In April 2022, GE Healthcare and Medtronic teamed up to concentrate on the distinct requirements and demand for care at office-based labs (OBLs) and ambulatory surgery centres (ASCs), and to improve productivity, workflow, and clinical outcomes.

In March 2022, IBM announced a strategic partnership with Northwell Health to help them better manage its assets, such as medical equipment and supplies, using AI-powered solutions, as well as to improve patient care, reduce costs, and increase efficiency.

In March 2022, Sodexo teamed up with University Hospitals to offer comprehensive primary care and community-based services, including resource & construction management, technical control over healthcare, patient diet, retail food, and management of resources.

In March 2021, AiRISTA Flow launched Sofia, a resource location tracking platform to increase preparedness and reduce errors in healthcare delivery. Its intuitive portal interface and simplified deployment monitors the movement of patients, staff, and equipment to react to the dynamics of care delivery in the moment.

Global Healthcare Asset Management Market: Key Companies Insights

The global healthcare asset management market is highly competitive. This is attributed to the rise in adoption of asset management services/solutions, as a result, players in the market are focusing on launching novel products in the market.

Some of the key players in the global healthcare asset management market are Aeroscout, Inc, Radianse, Motorola Solutions, Infor, Inc., IBM Corporation, GE Healthcare, Airista Flow, Sonitor Technologies, Siemens Healthineers, and Awarepoint Corporation, among others.

*Definition: Asset management in hospitals is a systematic approach to governance over medical assets that a department or group is responsible for, throughout the entire medical asset lifecycle from procurement and operations to disposal.