RFID in Healthcare Market

The global market for Radio-frequency identification (RFID) technology in healthcare reached a value of USD 3.95 billion in 2022 and is projected to experience a significant compound annual growth rate (CAGR) of 17.85% from 2023 to 2030. The healthcare sector is poised to witness substantial growth in the adoption of RFID technology in the forthcoming years. Hospitals, biotechnology firms, and pharmacies are increasingly embracing RFID to improve inventory management efficiency and enhance patient security. The market demand is further fueled by the cost-effectiveness and high productivity offered by RFID systems, as well as the growing trend of automation in healthcare facilities. Additionally, factors such as the rising number of patient visits to hospitals and the need for efficient supply chain management contribute to the market's expansion.

The integration of RFID technology in healthcare operations is expected to yield several benefits. It can streamline inventory management, preventing both stock-outs and overstock situations. Real-time data provided by RFID systems aids in reducing inventory loss and theft. Furthermore, in the medical field, RFID tagging of medical supplies can enable staff to easily track essential items used in surgeries, thereby enhancing patient safety. These advantages are anticipated to be key drivers of the market's growth.

Medical institutions, including pharmaceutical companies, blood banks, and hospitals, widely adopt RFID technology for efficient workflow management. Its implementation helps minimize medical errors and enables effective inventory management, leading to optimized utilization of healthcare assets. The market growth is driven by the increasing demand for cost-efficient and innovative therapies, as well as the rising adoption of pharmacy automation in hospitals and pharmacies. Moreover, the growing focus on patient safety and convenience also contributes to the expansion of the market.

In March 2023, the Code of Food and Drug Administration of Health and Human Services mandated that all labeling and packaging materials must adhere to specific standards for various processes, including receiving, identification, storage, handling, sampling, examination, and testing, to gain approval and be released for use. This heightened emphasis on quality control has created a greater demand for RFID technology in the industry.

The COVID-19 pandemic has further accelerated the adoption of RFID technology, particularly in the healthcare sector. Hospitals have increasingly employed this technology to manage patients and personnel in response to the pandemic, leveraging RFID tools that use wireless communication to identify and track assets and equipment. Such uptake in the healthcare sector has significantly improved the efficiency and accountability of care teams during public health emergencies. Additionally, several companies formed partnerships with RFID technology providers during the pandemic to develop COVID-19 test kits. One example is the alliance between SUKU and Smartrac, a subsidiary of Avery Dennison, which utilized Near Field Communication (NFC) RFID tagging technology to authenticate and verify PPE suits and COVID-19 test kits. This collaborative effort ensured the accuracy and reliability of the products while securing the supply chain.

Product Insights

In 2022, the tags segment dominated the market with the highest share of 61.28%. The growing awareness of the advantages offered by these devices is expected to drive further growth in this segment. RFID tracking plays a crucial role in helping medical staff locate patients within the hospital, ensuring their safety and facilitating the care process.

Furthermore, companies are introducing innovative products to enhance efficiency and reduce risks within organizations. For example, in December 2021, AmerisourceBergen launched a service that enables customers across the U.S. to purchase pre-tagged products using RFID technology. These tags are designed to meet global standards set by the RAIN Alliance and can be managed and read by any RAIN RFID technology system, providing customers with access to a wide range of products more efficiently.

Over the upcoming years, the RFID systems & software segment is projected to hold a substantial market share. Hospitals and healthcare facilities commonly employ these systems to track staff, equipment, and inventories. The increasing adoption of patient monitoring systems and the need to combat counterfeit drugs and devices are key factors driving the growth of this segment. Additionally, the rising penetration of these systems and their compatibility with existing hospital Enterprise Resource Planning (ERP) software contribute significantly to their expansion.

Application Insights

In 2022, the asset tracking segment emerged as the dominant force in the market, capturing the largest share of global revenue at 38.28%. This was primarily driven by the increasing demand for efficient medical equipment tracking systems and the growing adoption of RFID technology for tracking patients and staff within healthcare facilities.

The pharmaceutical tracking segment is expected to witness the fastest compound annual growth rate (CAGR) during the forecast period. This is attributed to RFID's capabilities in monitoring and tracing pharmaceuticals throughout the supply chain, minimizing the total cost of business (TCOB) during product recalls, and providing a reliable method for obtaining product information. Pharmaceutical companies are also collaborating with RFID firms to introduce new products using RFID technology, such as the introduction of three injectable medications with RFID tags in the United States by Sandoz Inc. and Kit Check Inc. in October 2020. The goal of this launch was to ensure a consistent supply of high-quality injectable medications to hospitals.

Meanwhile, the patient tracking segment accounted for a significant market share in 2022. The market growth in this segment is fueled by the increasing demand for real-time patient monitoring and better tracking of the treatment process. Additionally, investments by healthcare IT players contribute to the segment's expansion, with RFID tags widely used for patient tracking in hospitals.

Regionally, North America held the largest market share of 44.50% in 2022. The growth in this region is primarily driven by regulations focused on patient safety, mandates for medical device tracking, and the increasing number of hospitals. The well-developed healthcare infrastructure and high adoption of advanced technologies in the healthcare sector further contribute to the region's growth, with the U.S. being the largest market in North America due to its widespread adoption of RFID technology in healthcare services. The region also acknowledges the potential benefits of RFID integration and the importance of reducing medication errors, which further accelerates market growth.

In contrast, the Asia Pacific region is expected to witness the fastest growth rate during the forecast period from 2023 to 2030. Factors such as improving healthcare infrastructure, a large pharmaceutical industry presence, and increasing healthcare expenditure are driving the regional demand. Moreover, the region's significant patient population with infectious and chronic disorders is expected to increase the demand for efficient healthcare services, contributing to the growth of the market.

Key Companies & Market Share Insights

The leading players in the RFID in healthcare market are implementing various strategic initiatives to enhance their market presence. These efforts include forming partnerships, launching new products, and engaging in mergers and acquisitions. One notable example is Avery Dennison's introduction of a dual-frequency RFID inlay in June 2022, specifically designed for healthcare and industrial applications. This cutting-edge inlay offers a cost-effective method to track individual items by combining RAIN RFID (UHF) and NFC (HF) technology into a single, compact design. The dual-frequency feature allows the inlay to update product information in real-time, providing users with a robust and comprehensive solution.

Some of the key players in the global RFID in healthcare market are:

• Alien Technology, LLC
• Zebra Technologies Corp.
• Avery Dennison Corporation
• Impinj, Inc.
• GAO RFID Inc.
• LogiTag Systems
• Mobile Aspects
• CenTrak, Inc.
• Terso Solutions, Inc.
• Tagsys RFID

Global RFID in Healthcare Market Report Segmentation

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global RFID in healthcare market report based on product, application, and region:

• Product Outlook (Revenue, USD Million, 2018 - 2030)
  • Systems & Software
  • Tags
• Application Outlook (Revenue, USD Million, 2018 - 2030)
  • Asset Tracking
  • Patient Tracking
  • Pharmaceutical Tracking
  • Blood Tracking
  • Others
• Regional Outlook (Revenue, USD Million, 2018 - 2030)
  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Italy
    • Spain
    • Sweden
    • Norway
    • Denmark
  • Asia Pacific
    • Japan
    • China
    • India
    • Australia
    • Thailand
    • South Korea
  • Latin America
    • Brazil
    • Mexico
    • Argentina
  • MEA
    • South Africa
    • Saudi Arabia
    • UAE
    • Kuwait