The global sales of RFID in pharmaceuticals is projected to be worth USD 5,586.2 million in 2024 and expected to reach a value of USD 16,149.8 million by 2034. Sales are estimated to rise at a CAGR of 11.2% over the forecast period between 2024 and 2034. The income created by RFID in pharmaceuticals in 2023 was USD 5,023.6 million. The industry is projected to register a Y-o-Y growth of 11.0% in 2024.
RFID technology has an increasing use in the drug industry. It can improve the supply chain starting from making drugs to sending them out, and even in hospitals & clinics. RFID uses tags with tiny chips and antennas to store & send data without wires to RFID readers.
This tech brings big perks that tackle main issues in the drug world. It helps to fight fake drugs, manage stock better, and follow rules. These benefits are making the RFID market in pharmaceuticals grow.
RFID has an important role in pharmaceuticals to fight copying. Fake drugs pose a growing worldwide threat causing serious health risks and financial losses. Drugmakers put RFID tags in product packaging to give each item a unique ID. These tags hold specific details about the product, like its origin of manufacturing, and its batch number. Scanning the tag lets users to check info against a database right away.
This proves the drug is real, which bodes well for the growth of RFID in the pharmaceuticals market. This transparency helps prevent counterfeit drugs from entering the supply chain and reaching patients.
Moreover, another key advantage of RFID in pharmaceuticals is improved inventory management. Drug companies and hospitals have to keep track of tons of medications, and many of these have strict expiration dates. RFID tags help keep an eye on stock levels in real time, which leads to better and more organized inventory control.
This reduces the chances of stockouts or overstocking and makes sure drugs are used before their expiration dates. Additionally, RFID systems can automate the process of ordering drugs, thereby cutting down on manual work and minimizing human error.
Global RFID in Pharmaceuticals Industry Assessment
| Attributes | Key Insights |
|---|---|
| Historical Size, 2023 | USD 5,023.6 million |
| Estimated Size, 2024 | USD 5,586.2 million |
| Projected Size, 2034 | USD 16,149.8 million |
| Value-based CAGR (2024 to 2034) | 11.2% |
RFID has an essential part in meeting regulatory standards. The drug industry faces tight rules, with strict demands to track and document how medicines move through the supply chain.
RFID tech offers a dependable and effective way to keep these records making it easier to comply with rules like the Drug Supply Chain Security Act (DSCSA) in the USA. By giving a thorough & correct record of each deal, RFID helps drug companies meet legal requirements and steer clear of possible fines or legal troubles.
Governments are increasing investment in pharmaceutical sector which is considerably driving the growth of RFID in the pharmaceutical market. They are recognizing the importance of safe, productive, and strong pharmaceutical supply chain.
Due of this, various governments are investing more money into making this sector modernize and stronger. RFID technology is important to reaching these goals, which makes it an area that governments want to support and invest in.
Government investment has influences the adoption of RFID technology to boost inventory managing in the pharmaceutical industry. Effective inventory management is important to make sure medicines are available when needed during health crises. By investing money into RFID-enabled systems, governments can help drug companies and healthcare providers keep accurate, up-to-date inventory records.
This cuts down on waste, avoids stockouts, and makes sure drugs are used before their expiry date. This ability is key to manage national stockpiles of important medicines and vaccines during pandemics or other big health emergencies.
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The below table presents the anticipated CAGR for the global RFID in pharmaceuticals market over several semi-annual periods spanning from 2024 to 2034. This assessment outlines changes in the RFID in pharmaceuticals industry and identify revenue trends, offering key decision makers an understanding about market performance throughout the year.
H1 symbolizes first half of the year from January to June, H2 spans from July to December, which is the second half. In the first half (H1) of the year from 2023 to 2033, the business is expected to grow at a CAGR of 10.7%, followed by an increased growth rate of 11.4% in the second half (H2) of the same year.
| Particular | Value CAGR |
|---|---|
| H1, 2023 | 10.7% (2023 to 2033) |
| H2, 2023 | 11.4% (2023 to 2033) |
| H1, 2024 | 10.4% (2024 to 2034) |
| H2, 2024 | 11.6% (2024 to 2034) |
Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase slightly to 10.4% in the first half and remain higher at 11.6% in the second half. In the first half (H1) the market witnessed a decrease of 30 BPS while in the second half (H2), the market witnessed an increase of 20 BPS.
Shifting Focus toward Transparency in Supply Chain is an Escalating Trend in RFID in Pharmaceuticals Market
The use of RFID technology is growing to make supply chains more transparent in the drug industry. This is driven due to need of companies to boost the safety, security, and productivity of their drug supply chains. In transparent supply chain, every step from manufacturing to user is monitored consistently.
In pharmaceuticals, where the integrity of products is critical, RFID technology is becoming a key tool to achieve this kind of transparency.
RFID technology lets companies track products in real time. It gives detailed info on where products are how they move, and what condition they're in as they travel through the supply chain. Every product gets its own unique RFID tag, which RFID scanners can read at different points along the way.
This info is stored into central system, enabling stakeholders involved can monitor products movement in real time. This kind of transparency is key to address problems like fake drugs, diversion and theft which are big issues that concerns the drug industry.
Moreover, using RFID to make supply chains more transparent helps company’s adherence to regulations. Majority of governments and regulatory bodies are mandating companies to keep close tabs on medicine products to keep them safe and accountable. RFID tech offers a dependable way to meet these demands making it easier to stick to the rules and lowering the chance of fines or legal trouble.
Various Companies are Combatting Counterfeit Drugs which is fueling the RFID in Pharmaceuticals Market Growth
Combatting Counterfeit Drugs is a big problem for drug companies, and RFID tech has become a key tool to tackle this issue. Fake drugs put patients at risk and undermines public trust in healthcare. They also incur drug companies a lot of money. RFID tech offers a strong fix by making it easier to track and check drug products as they move from manufacturer to user.
RFID tags are incorporated into product packaging and carry unique codes for each item. These tags can keep detailed info like where the product came from when it was made, its batch number, and other key details. RFID readers scan these tags at different spots in the supply chain letting people check this info right away against a main database.
This approach guarantees each product can be tracked from the manufacturer to the end user giving a clear and reliable record of journey. If any discrepancies are found, like incorrect location or tampering with packaging, the system can point out these problems. This stops fake drugs from moving further along the supply chain, driving the growth of RFID in pharmaceuticals market.
RFID's ability to monitor and trace in real time is useful in places where fake drugs are a big risk, like international markets or areas with less strict rules. This helps drug companies and regulators check if products are real and making it less likely that fake drugs will reach people.
Furthermore, RFID tech is now being used with other new tech, like blockchain, to boost security even more. Blockchain's unchangeable record can keep the data from RFID tags adding another layer of security and transparency. This team-up makes it even harder for counterfeiters to sneak fake products into the supply chain, as any try to change the data would be immediately noticeable.
Integration with Internet-of-Things (IoT) Creates Opportunities for RFID in Pharmaceuticals Market
The combination of RFID and IoT is initiating a transformation in the drugs industry. It makes supply chains more productive, trackable, and secure. IoT connects devices that share information with each other. When paired with RFID, it becomes a strong tool to monitor and control drug products in real time, creating opportunities for the expansion of RFID in pharmaceuticals market.
A major advantage of combining RFID and IoT technologies is that it allows for complete and ongoing monitoring of drugs and medical supplies. When RFID tags connect to IoT networks, they can give real time info on location, condition, and movement of drug through the supply chain. This consistent visibility helps make sure products stay in optimal conditions during storage and shipping.
This is important for drugs and vaccines that need specific temperatures. IoT-powered RFID systems can send out warnings if any condition is compromised. This lets people fix problems quickly and cuts down on the chance of drugs spoilage.
Moreover, IoT integration has an impact on the data analytics capabilities of RFID systems. By gathering and evaluating bulk datasets from RFID tags, IoT platforms can deliver important information of supply chain performance, inventory levels, and product usage patterns. This data-driven method allows pharmaceutical companies to enhance their operations, reduce waste, and improve predicting accuracy.
Technical Challenges and Regulatory Uncertainties may affect RFID in Pharmaceuticals Market Growth in the Projected Timeframe
RFID systems use radio waves for communication between tags and readers. Different things can disrupt these signals such as metals, liquids, and other electronic devices. This interference leads to poor tag readability which creates difficulty in tracking products in the supply chain.
RFID tags also need to be tough as they majorly goes through various environmental conditions, including extreme temperatures, humidity, and physical handling. RFID tags must hold up under these conditions without losing functionality.
Incorporating RFID systems into existing supply chains is also complicated and takes time. It needs a lot of money for hardware like tags and readers. It also requires software for managing data. Moreover, staff need training to use the new tech well, hindering the growth of RFID in pharmaceuticals market.
Moreover, lack of clarity in regulations may hinder the industry expansion. Governments worldwide are pushing for better ways to track medicines, like RFID, to keep drugs safe and real. However, rules keep changing, and they're different in various places. This makes it hard for drug companies to follow all the rules.
For instance, USA has the Drug Supply Chain Security Act, while Europe has the Falsified Medicines Directive. Both require strict drug tracking, but the specific requirements and timelines hardly match up. This causes problems for companies working in many countries. They have to figure out different sets of rules and change their RFID systems to fit each one.
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The global RFID in pharmaceuticals market registered a CAGR of 10.3% during the historic period between 2019 and 2023. The growth of RFID in pharmaceuticals industry was progressive as it reached a value of USD 5,023.6 million in 2023 from USD 3,285.5 million in 2019.
The RFID in pharmaceuticals market grew from 2019 to 2023. Stricter rules, the need for transparent supply chains, and company’s initiatives to counter fake drugs led to this growth. In 2019 pharmaceutical companies started to use RFID more as it helped them manage stock better and fight counterfeit medicines. New laws around the world began to make medical products safer, which made more companies use RFID.
The Corona virus outbreak in 2020 sped up how the drug industry started using RFID technology. The global health crisis showed why it's essential to have strong and clear supply chains for vaccines and key medicines.
Governments and drug companies heavily invested into RFID for efficient distribution and keep track of COVID-19 vaccines well. This caused a big jump in market growth, as RFID became a key tool in dealing with the pandemic.
Post pandemic, market continued its upward trajectory with emerging trends regulatory enforcement of drug traceability requirements, compelling more companies to adopt RFID technology. Additionally, the growing focus on cold chain management for temperature-sensitive drugs and vaccines sustained the demand for RFID solutions with integrated sensors, contributing to strong market growth.
In the global RFID in pharmaceuticals market, Tier 1 companies hold a notable market share of 40% to 45%, making them the market leaders. These companies have a huge global presence diverse product offerings, and notably invest into research and development.
They majorly set the standards for the industry and come up with new innovations in RFID technology. Key companies in the tier 1 are AVERY DENNISON CORPORATION, Hitachi, Ltd., Honeywell International Inc, Nedap N.V., and Zebra Technologies Corp.
Tier 2 companies are medium-sized businesses that may not have the same global reach as tier 1 players. However, these firms excel in their niche areas and mainly team up with bigger companies to deliver complete solutions.
Tier 2 companies provide a variety of RFID products and services designed for the pharmaceutical sector, with a focus on new ideas and solutions tailored to each customer. Prominent companies in tier 2 contain Alien Technology, LLC, CCL Healthcare, GAO Group, HID Global Corporation, and KATHREIN Solutions GmbH.
Tier 3 businesses are small sized firms and emerging startups that may lacks the global customer network as compared to tier 1 and tier 2 players. These companies might offer custom RFID products, like tags for specific uses, or focus on providing services such as system integration and advice.
These businesses could specialize in RFID products such as application-specific tags, or they might focus on offering services like system integration and guidance.
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The section below covers the industry analysis for the RFID in pharmaceuticals market for different countries. Market demand analysis on key countries in several regions of the globe, including the USA, Germany, China, India, Brazil, and UK is provided.
The United States is anticipated to remain at the forefront in North America, with a value share of 71.2% through 2034. In East Asia, South Korea is projected to witness a CAGR of 11.1% by 2034.
| Countries | Value CAGR (2024 to 2034) |
|---|---|
| USA | 10.5% |
| Germany | 10.0% |
| China | 11.5% |
| India | 11.9% |
| UK | 10.8% |
North America, spearheaded by the USA which is expected to holds around 77.5% share of the North America RFID in pharmaceuticals industry in 2024. USA RFID in pharmaceuticals market is anticipated to grow at a CAGR of 10.5% throughout the forecast period.
In USA, various initiatives to combat fake drugs are being taken. This includes establishing guidelines to the use of RFDI in the pharmaceuticals and medical industry. In July 2023, GS1 USA, a regulatory firm, unveiled new guidelines.
These guidelines aim to boost RFID use in healthcare. They show how to encode RAIN RFID tags with GS1's Electronic Product Code (EPC) schemes. This helps to capture data and improve supply chain visibility.
China’s RFID in pharmaceuticals market is poised to exhibit a CAGR of 11.5% between 2024 and 2034. Currently, it holds the significant market share in the East Asia market, and the dominance is expected to continue through the forecast period.
China’s rapid expansion of medical industry is creating positive outlook for the market growth. Various pharmaceutical are expanding their manufacturing capabilities to cater the growing demand in country. For instance, in March 2024, healthcare company, Novo Nordisk invested around USD 556 million in its Tianjin facility in China to expand its sterile preparations capacity.
The expansion is crucial for meeting the growing demand for Novo's therapies, particularly semaglutide, which has seen noteworthy market growth.
India’s RFID in pharmaceuticals market is expected to witness a CAGR of 11.9% in the forecast period and hold considerable market share in South Asia & Pacific region through 2034.
As per India Brand Equity Foundation (IBEF), IDnia’s domestic pharmaceutical network includes more than 3,000 drug companies and around 10,500 manufacturing units. Furthermore, increasing presence of pharmaceutical ecommerce companies in country due to favourable policies is creating positive outlook for the industry growth.
The section contains information about the leading segments in the industry. By component, services segment is estimated to grow at a CAGR of 11.5% throughout 2034. Additionally, the by end user, drug wholesalers & distributors segment is projected to expand at 11.6% till 2034.
| Component | Hardware |
|---|---|
| Value Share (2024) | 59.8% |
Hardware segment is expected to acquire share of 59.8% in the market in terms of component in 2024. The growth of hardware such as active RFID tags, passive RFID tags, semi-passive RFID is driven by their ability to efficiently transmit data to centralized system and assistance in robust inventory management.
Furthermore, fixed readers, and handheld readers offers monitoring features which allows real-time tracking of the products, supporting the segment growth.
| End User | Drug Manufacturers |
|---|---|
| Value Share (2024) | 32.5% |
The drug manufacturers segment is expected to capture share of 32.5% in 2024. Drug manufacturers are remarkably using RFIDs to considerably enhance supply chain efficiency and product safety. It also helps them in streamline warehouse operations by automating inventory management, minimizing errors, and optimizing stock levels.
The technology also facilitates better cold chain management for temperature-sensitive medications, ensuring that products remain within required conditions throughout the supply chain.
Key players operating in the RFID in pharmaceuticals market are investing in advanced technologies and also entering into partnerships. Key RFID in pharmaceuticals providers have also been acquiring smaller players to grow their presence to further penetrate the market across multiple regions.
Recent Industry Developments in RFID in Pharmaceuticals Market
In terms of component, the industry is divided into hardware, RFID software/middleware, and services.
In terms of type, the industry is divided into chipped RFID and chipless RFID.
The application is classified by industry as drug manufacturers, drug wholesalers & distributors, hospitals & clinics, pharmacy stores, and others.
Key countries of North America, Latin America, East Asia, South Asia & Pacific, Western Europe, Eastern Europe, and Middle East & Africa (MEA) have been covered in the report.
The global RFID in pharmaceuticals industry is projected to witness CAGR of 7.1% between 2024 and 2034.
The global RFID in pharmaceuticals industry stood at USD 5,023.6 million in 2023.
The global RFID in pharmaceuticals industry is anticipated to reach USD 16,149.8 million by 2034 end.
South Asia & Pacific is set to record the highest CAGR of 11.9% in the assessment period.
The key players operating in the global RFID in pharmaceuticals industry include AVERY DENNISON CORPORATION, Hitachi, Ltd., Honeywell International Inc, Nedap N.V., and Zebra Technologies Corp.
1. Executive Summary 2. End User Introduction, including Taxonomy and Market Definition 3. Market Trends and Success Factors, including Macro-economic Factors, Market Dynamics, and Recent End User Developments 4. Global Market Demand Analysis 2019 to 2023 and Forecast 2024 to 2034, including Historical Analysis and Future Projections 5. Pricing Analysis 6. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Component 6.1. Hardware 6.2. RFID Software/Middleware 6.3. Services 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Type 7.1. Chipped RFID 7.2. Chipless RFID 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by End User 8.1. Drug Manufacturers 8.2. Drug Wholesalers & Distributors 8.3. Hospitals & Clinics 8.4. Pharmacy Stores 8.5. Others 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region 9.1. North America 9.2. Latin America 9.3. Western Europe 9.4. Eastern Europe 9.5. East Asia 9.6. South Asia and Pacific 9.7. Middle East and Africa 10. North America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 11. Latin America Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 12. Western Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 13. Eastern Europe Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 14. East Asia Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 15. South Asia & Pacific Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 16. Middle East and Africa Sales Analysis 2019 to 2023 and Forecast 2024 to 2034, by Key Segments and Countries 17. Sales Forecast 2024 to 2034 by Component, Type, and End User for 30 Countries 18. Competition Outlook, including Market Structure Analysis, Company Share Analysis by Key Players, and Competition Dashboard 19. Company Profile 19.1. AVERY DENNISON CORPORATION 19.2. Hitachi, Ltd. 19.3. Honeywell International Inc 19.4. Nedap N.V. 19.5. Zebra Technologies Corp. 19.6. Alien Technology, LLC 19.7. CCL Healthcare 19.8. GAO Group 19.9. HID Global Corporation 19.10. KATHREIN Solutions GmbH 19.11. Aucxis bv 19.12. Bluesight 19.13. Hans Turck GmbH & Co. KG 19.14. Impinj, Inc. 19.15. Invengo Information Technology Co., Ltd.
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RFID in Pharmaceuticals Market
