According to a new market report published by Transparency Market Research "Radiofrequency Identification (RFID) Market (Tags, Readers, Middleware, Printers and Cabinets) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 - 2020" the global radiofrequency identification (RFID) market was valued at USD 1.9 billion in 2013 and is expected to grow at a CAGR of 13.9% from 2014 to 2040, to reach an estimated value of USD 5.3 billion in 2020.
Radiofrequency identification (RFID) is a system based on wireless technology which utilizes radio waves for collecting data from a tag attached to an object, for various purposes like automatic identification and tracking of objects. An RFID system mainly comprises tags, which are attached to objects that need to be tracked, readers, which collect radio signals emitted by tag and middleware or software which convert this data into user friendly format. RFID printers and cabinets have made RFID application easier, especially in healthcare sector. RFID printers can print useful information on RFID tags. Printing patient information on patient's wrist band tags and shipment details on boxes in logistics are currently prominent application areas for RFID printers. RFID cabinets are metal cabinets used for storing blood bags, medical samples, medicines, or documents that need strict monitoring. These RFID enabled cabinets also find application in logistics industry. Advanced RFID cabinets employed in cold chain logistics also maintain a log of temperature, humidity and other vital parameters.
Although healthcare application accounts for a very smaller share of the overall RFID market, rapid growth is expected throughout the forecast period. Increasing scrutiny due to incidences of drug counterfeiting, medical device theft in hospitals, and need for more efficient supply chain management in pharmaceutical companies, hospitals and clinical trial management are other reasons driving the market growth. Barcode technology has been applied in various sectors for record maintenance, asset identification and billing systems. This technology is cost effective and easier to master as compared to RFID. Threat from barcode technology has largely impeded the RFID market growth, especially in middle and low income countries. Economic crises in 2008 have trimmed hospital expenses in European countries. Anticipating gradual recovery in major countries such as United Kingdom and Germany the Europe RFID market will gain momentum in the near future. Smaller hospitals in Asia Pacific and Rest of the World (RoW) perceive RFID as an un-necessary expenditure, as smaller number of medical devices, medical samples, and patients can be managed otherwise. Further, only fewer members of the distribution channel have updated technology from barcode to RFID. Hence integrated record maintaining is not possible unless manufacturers, suppliers, distributors and other dealers accept RFID as prime method for asset tracking. In spite of these hurdles, RFID market in healthcare is expected to grow rapidly with a double digit growth rate owing to obvious advantages of automation, effective asset tracking and proven cost advantage in the long run.
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