RFID IN HEALTHCARE MARKET ANALYSIS

Global RFID in healthcare market is estimated to be valued at US$ 8.22 Billion in 2023 and is expected to exhibit a CAGR of 20.3% during the forecast period (2023-2030).

Analysts’ Views on Global RFID in Healthcare Market:

Improved operational efficiency with RFID and the adoption of various growth strategies such as product launches as well as partnership is expected to fuel the market over the forecast period. Whereas, technological advancement is also expected to propel the growth of the market over the forecast period. For instance, in June 2022, Avery Dennison Corporation, a manufacturer and distributor of pressure-sensitive adhesive materials, apparel branding labels and tags, RFID inlays, and specialty medical products, launched another addition to its expanding dual-frequency (DF) range of RFID inlays, which provides combined NFC (HF-high frequency) and RAIN RFID (UHF-ultra high frequency) functionality for cost-effective item-level tagging in a slimmed-down form factor. The new AD Slim DF EM4425 tag is designed for logistics, medical, and industrial use cases while also offering customer engagement features.

Figure 1. Global RFID in Healthcare Market Share (%), By Product Type, 2023

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Global RFID in Healthcare Market– Drivers

Increasing need for RFID systems in the manufacturing units for improving productivity

Manufacturing facilities need to monitor equipment condition and performance, defects in system failures and processes, and ensure predictive maintenance of equipment and systems through the integration of specialized tools and the adoption of quality management practices. Therefore, the increasing need for RFID systems in manufacturing units for improving productivity is expected to drive the market over the forecast period. For instance, in June 2021, according to a research article published by Informs, Inc., a provider of innovative and customized solutions for managing and tracking products and information for customers throughout the world, Radio frequency identification (RFID) technology has proven to be an extremely effective solution, allowing workers to quickly identify and track assets by location throughout the supply chain. RFID tags could effectively replace barcode labels so that you can easily collect data and improve manufacturing efficiency through warehouse automation. The data transmitted from an RFID tag to a reader allows companies to see real-time inventory information. This helps reduce out-of-stock situations and improve customer experience. RFID technology has the potential to significantly increase inventory accuracy and can reduce cycle count times by up to 50%.

Increasing product launches by the key players

Increasing product launches by the key players is expected to drive the market over the forecast period. For instance, in February 2022, Avery Dennison Corporation, a manufacturer and distributor of pressure-sensitive adhesive materials, apparel branding labels and tags, RFID inlays, and specialty medical products launched its AD Minidose U9 RAIN RFID inlay for pharmaceutical applications, unlocking critical RFID value for healthcare, pharmacies, and laboratory asset management. AD Minidose U9 is one of the smallest products on the market to receive ARC certification (Spec S) from Auburn University’s RFID Lab and to be approved for use by the DoseID industry consortium.

Figure 2. Global RFID in Healthcare Market Share (%), By Region, 2023

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Global RFID in Healthcare Market- Regional Analysis

Among region, North America is estimated to hold a dominant position in the global RFID in healthcare market over the forecast period owing to the increase in healthcare facilities and technological advancement by the key players. Whereas, product launch by the key players is also expected to drive the North America market. For instance, in October 2020, Kit Check, a provider of hospital pharmacy medication tracking and kit restocking automation, in collaboration with Sandoz International GmbH, a developer, manufacturer of generic pharmaceutical products to customers, and global leader in generic pharmaceuticals and biosimilars, has announced that two Radio Frequency Identification (RFID)-tagged injectable generic Sandoz products will be available in the U.S. hospitals in October 2020.

Global RFID in Healthcare Market– Impact of Coronavirus (COVID-19) Pandemic

Since the COVID-19 virus outbreak in December 2019, the disease has spread to over 100 countries across the globe, and the World Health Organization declared it a public health emergency on January 30, 2020.

COVID-19 affected the economy in three main ways: by directly affecting the production and demand of drugs, by creating disruptions in distribution channels, and through its financial impact on firms and financial markets. Due to nationwide lockdowns, several countries such as China, India, Saudi Arabia, the U.A.E., Egypt, and others faced problems regarding transportation of drugs from one place to another.

However, the COVID-19 pandemic had a positive impact on the global RFID in the healthcare market owing to the involvement of tagging patients, hospital personnel, medications, and equipment in order to optimize clinical workflow and expenditure. For instance, in May 2020, according to an article published by PcsInfinity Private Limited, a SaaS provider working on asset tracking and asset management solutions, With the quick spread of the COVID-19 pandemic all over the world, health maintenance services administration divisions are preparing for the unprecedented dramatic increase of activities for the treatment and support of patients who have contracted the infection. Already, some millions are afflicted with coronavirus, and hundreds of thousands have succumbed to the deadly disease. With worldwide concerns over public health and the spread of infections like COVID-19, RFID asset management promises to potentially curb the effects of such circumstances. By utilizing RFID technology, hospitals and clinics can track the locations of crucial assets, e.g. beds, medical gadgets, and sterile equipment. It keeps their exact whereabouts and monitors operations such as sanitizing, cleaning, and maintenance of assets.

Global RFID in Healthcare Market- Segmentation

The global RFID in healthcare market report is segmented into product type and region.

Among Product Type, the global RFID in the healthcare market is segmented into tags (passive, and active), readers, and middleware. Out of which, the tags segment is expected to dominate the global RFID in the healthcare market during the forecast period and this is attributed as they can be used to search, identify, track, and communicate with items and people in hospitals. Essentially, RFID tags are smart labels that can store a range of information from serial numbers, to a short description, and even pages of data.

Among Region, the global RFID in Healthcare Market is segmented into North America, Latin America, Europe, Asia Pacific, Middle East, and Africa. Out of which, North America is expected to dominate the market over the forecast period owing to the increase in healthcare facilities and technological advancement by the key players. Whereas, product launch by the key players is also expected to drive the North America market.

Among all segmentation, the product type segment has the highest potential as they can be utilized in hospitals to search for, identify, track, and communicate with objects and patients. RFID tags are essentially smart labels that can contain a variety of data, including serial numbers, brief explanations, and even pages of information. For instance, in August 2021, Tageos, a designer and manufacturer of RFID (radio-frequency identification) inlays and tags launched its EOS-202 U9 RAIN RFID inlay. With the smallest form factor available for healthcare and pharmaceutical applications, the new inlay has successfully passed the latest tests specified by the Auburn University RFID Lab Spec S. Furthermore, EOS-202 U9 is certified by DoseID as suitable for a broad range of pharmaceutical and healthcare purposes.

Global RFID in Healthcare Market- Cross Sectional Analysis

Among product type, the tags segment held a dominant position in North America region over the forecast period due to product launch by the key placement and increasing technological advancement. For instance, In October 2020, Sandoz International GmbH, a developer, and manufacturer of generic pharmaceutical products to customers announced that its first three injectable medicines with Radio Frequency Identification (RFID) tags will be available this month to US hospitals through its collaboration with Kit Check, Inc., a provider in hospital pharmacy medication tracking and kit restocking automation.

Global RFID in Healthcare Market- Key Developments

On February 08, 2023, HID Global Corporation, a global company in trusted identity solutions announced it has acquired Guard RFID Solutions Inc., a provider of real-time location services (RTLS) hardware and software solutions in the healthcare space. The addition of GuardRFID expands HID’s offering and relevance in the active RFID and RTLS space, including the support for new use cases catered to the needs of healthcare facilities.

In September 2021, Fresenius Kabi AG, a global healthcare company that specializes in lifesaving medicines and technologies for infusion, transfusion, and clinical nutrition, and Health Care Logistics, Inc. (HCL), a company that specializes in the manufacturing, packaging, and distribution of medical instruments announced a collaboration designed to make drug replenishment in hospitals more efficient and improve patient safety throughout the medication-use process. The new collaboration allows customers to utilize Fresenius Kabi’s +RFID smart-labeled medications with HCL’s Stat Stock inventory control solution.

In September 2020, International Medical Industries, Inc., a medical device company, announced that it has joined DoseID, the first member-driven industry consortium for the use of radio-frequency identification (RFID) technology in the healthcare space. DoseID consists of industry innovators who are committed to increasing the interoperability, quality, and performance of RFID-tagged products as they move through the pharmaceutical supply chain from manufacturer to patient.

In October 2021, AmerisourceBergen Corporation, a global healthcare company announced the addition of universal RAIN radio-frequency identification (RFID) tags on medication, which enables health systems to manage and monitor inventory with consistent ease and accuracy. In addition to universal tagging, AmerisourceBergen Corporation is now rolling out a mobile application to complement its medication tray solution, allowing users to scan products from anywhere within the health system without the need for additional equipment.

Global RFID in Healthcare Market- Key Trends

Growing Regulation of Medicine Labeling in the Pharmaceutical Sector to Drive the Market

Growing regulation of medicine labeling in the pharmaceutical sector is also expected to drive the market over the forecast period. According to the Code of Food and Drug Administration of Health and Human Services, in July 2022, any labeling or packaging material meeting appropriate written specifications (such as a receipt, identification, storage, handling, sampling, examination, and testing of labeling and packaging materials) will be approved and released for use. Any labeling or packaging material that does not meet such specifications shall be rejected to prevent their use in operations for which they are unsuitable, followed by the records to be maintained for each shipment received of each labeling and packaging material, whether accepted or rejected. Such specifications and regulations increase the demand for RFID, which, in turn, drives the market.

Global RFID in Healthcare Market: Restraints

High cost of the RFID system

High cost of the RFID system is expected to hinder the growth of the global RFID in healthcare market over the forecast period. So, the use of NFC (near-field communication) can minimize the risk of the high cost of RFID. For instance, on March 09, 2023, according to an article published by PcsInfinity Private Limited, a SaaS provider working on asset tracking and asset management solutions, the RFID subscription basis the complete package standard subscription will cost you approximately US$ 1000– 1200, while the active tags are also the most expensive at US$ 15 to US$ 20 per piece.

Global RFID in Healthcare Market- Key Players

Major players operating in the global RFID in healthcare market include Microchip Technology Inc., Accenture, Hitachi, Ltd., IBM, 3M, Aeroscout GmbH, Know Labs, Inc., Kit Check (Bluesight), Fresenius Kabi AG, and Siemens Healthcare GmbH.

*Definition: 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.