The global radiofrequency identification (RFID) market is highly fragmented, with a large number of local players dominating the market. Market players prefer to specialize in specific technology in their respective regional markets, finds Transparency Market Research (TMR) in a new study. For instance, Avery Dennison, Intermec, and Invengo are prominent leaders in the North America RFID market in healthcare.
“The presence of a large number of local players are competing fiercely in their respective area of expertise to stay ahead in the market. Large players are increasingly offering advanced products that promise wider scope of applications in order to expand their market share, which further intensifies the competition,” says the author of the report. Capital intensive research and short product life cycle owing to rapidly changing technology have kept the threat of new entrants at a moderate level.
The global RFID market in healthcare was valued at US$2.91 bn in 2015 and is poised to reach US$5.30 bn by 2020, expanding at an impressive CAGR of 13.9% from 2014 to 2020. Geographically, North America was the leading market in 2015 and is estimated to maintain its leadership until 2020. Due to increasing adoption of RFID in supply chain and hospital asset management, this segment will also grow at a significant CAGR of 14.2% from 2014 to 2020.
Increasing Adoption of RFID to Combat Circulation of Counterfeit Drugs to Drive Market
Counterfeit drugs pose a great threat to the life of patients and to the overall revenue generation of pharmaceutical companies. As per the findings by the World Health Organization (WHO), nearly 6% to 9% of pharmaceuticals in the world are counterfeit and in some countries this percentage goes up to 40% to 60%. As a result, companies are increasing the implementation of RFID in combination with electronic pedigrees and Electronic Product Code (EPC) as key elements to minimize the risk of counterfeited, adulterated, or unacceptable drugs.
The increasing adoption of RFID for streamlining processes, equipment tracking, , and automating billing and reporting has led to healthy growth of the global radiofrequency identification (RFID) market in medical devices tracking in hospitals. “Moreover, mother-infant tagging forms an important application of RFID in hospitals,” says a TMR analyst. These factors, collectively, have propelled RFID adoption in hospitals and the pharmaceuticals industry.
Lack of Awareness Regarding Implementation of RFID to Hinder Growth Prospects
Currently, the healthcare application accounts for less than 10% of the overall RFID market. The growth of the global RFID market in healthcare is restrained due to lack of awareness from the customers’ as well manufacturers’ side. Inefficient RFID implementation can lead to increased costs. This factor spreads the perception that these systems are an unnecessary cost expenditure. Moreover, organizations show less interest in investing capital in replacing already existing barcode technology with RFID. This factor is hampering the adoption of RFID across healthcare sector.
However, with the huge scope for development of immature RFID technology in healthcare, the market is expected to receive a boost in the near future. Furthermore, leading players in the RFID market can purchase or form agreements with Chinese manufacturers offering low cost original equipment manufacturing (OEM) services. Such agreements will reduce operating expenses, which will boost the implementation of RFID in healthcare in near future.
RFID Tags to Maintain Dominance Owing to High Efficiency
Based on component, the RFID tags segment dominated the market by revenue in 2015 and is expected to retain its leadership until 2020 with a valuation of US$2.73 bn. Due to RFID tags’ easy implementation and high efficiency, this segment will also expand at the most promising CAGR of 14.6% from 2014 to 2020.
On the basis of application, supply chain and logistics was the leading segment by revenue in 2015 and is anticipated to maintain its position until the end of 2020, with a valuation of US$1.55 bn. However, equipment tracking will grow at a noteworthy CAGR of 14.8% between 2014 and 2020.
The information presented in this review is based on a Transparency Market Research report, titled, ‘Radiofrequency Identification (RFID) Market in Healthcare - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 – 2020.’
Global Radiofrequency Identification (RFID) Market in Healthcare, by RFID Components
Global Radiofrequency Identification (RFID) Market in Healthcare, by Application
Global Radiofrequency Identification (RFID) Market in Healthcare, by Geography
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