Global RFID market to be worth $884m in 2015

By Nick Taylor

- Last updated on GMT

Related tags: Pharma industry, Compound annual growth rate, Rfid

The global market for RFID products and services in the pharma industry will be worth $884m (€631m) in 2015, according to a report, but apprehensions about initial costs and return-on-investment need to be overcome.

Adoption of radio frequency identification (RFID) in the pharma industry has been slower than expected, in part because of the California State Board of Pharmacy’s decision to delay the implementation of ePedigree requirements until 2015.

This has affected the growth of the market. A 2007 report from Kalorama Information​ highlights this. The report, which is by a different company than the recent publication, predicted that the market for RFID solutions in the healthcare industry would be worth $3.1bn in 2012.

Differences in methodology make it difficult to directly contrast this figure with the value in the new report from Companies and Markets.

However, it does highlight that RFID is yet to experience the rapid growth which was expected. Kalorama’s​ report predicted the market would grow from $297m in 2007 to $3.1bn in 2012.

The Companies and Markets ​report says the sector “is hampered by low adoption rates​” that are a consequence of apprehensions over the high initial investment and the lack of a clear business case.

Furthermore, economic uncertainties and cost-cutting measures have made pharma unwilling to invest. In response RFID vendors are offering pilot kits to allow companies to test and evaluate the costs and benefits of the technology.

However, rapid growth is likely to be driven by RFID requirements with retailers, such as Wal-Mart, and regulatory bodies. In addition to California other states and countries are looking to implement ePedigree systems.

This is predicted to help the market grow from $112m in 2008 to $884m in 2015, with a compound annual growth rate (CAGR) of 34 per cent. Of the current market, 60 per cent is believed to be generated by hardware, with the remaining 40 per cent coming from software and services.

Related topics: Globalization, Drug Delivery, QA/QC

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