Hospital Asset Management Market – Global Forecast to 2017 [Pharmaceutical, Wi-Fi RTLS, RFID, IR, Ultrasound, Equipment, Patient Tracking, Staff Safety, Temperature and Humidity Monitoring, Drug Counterfeiting]

MarketsandMarkets, September 2013

The global market was valued at $2.6 billion in 2012 and is poised to reach $6.7 billion by 2017 at a CAGR of 20.9%.

The Hospital Asset Management market reached $2.6B in 2012 and is projected to hit $6.7B by 2017. The biggest growth will come from Real-Time Location Systems (RTLS), which is growing at a compound annual growth rate (CAGR) of 35.4% from 2012 – 2017. Staff Management and safety applications are projected to grow at a 37% CAGR by 2017 as these applications are enhancing the quality of patient care and improving staff productivity.

North America leads the hospital asset management market with close to 44% of global market share in 2012 and is expected to grow at a CAGR of 20.7% from 2012 to 2017. The North American region comprises the major share due to the large number of U.S.-based RFID and RTLS technology providers and ease of access to this region. Asia is projected to grow at the highest CAGR in the next five years, due to the rising awareness and increase in investors in countries such as China, India and Japan.

Major players in the market include AeroScout, Inc. (U.S.), Ekahau, Inc. (U.S.), GE Healthcare (U.K.), Awarepoint Corporation (U.S.), IBM Corporation, (U.S.) and Siemens Healthcare (Germany).

Emerging players, such as RFID Global Solution, have focused on medical equipment asset tracking and management using ultrasound RTLS and passive technologies.

MarketWatch by the Wall Street Journal reports that RTLS solutions using Wi-Fi will be the fastest growing segment of the Asset Management market from 2012 to 2017 at a 36% CAGR. The WSJ also reports that the major drivers of the asset management market in hospitals are “increasing concerns for patient safety, return on investment and cost savings by hospitals; decreasing cost of hardware & software; and technological advancements to improve accuracy levels.”

The hospital asset management market commanded the largest share of global market in 2012, growing at a CAGR of more than 20% from 2012 to 2017. RFID in healthcare dominated the market growing strongly at a CAGR of more than 17% from 2012 to 2017. RTLS has recently attracted market leaders and investors and is expected to grow at the highest CAGR of 35.4% from 2012 to 2017.

Equipment management commanded the largest share of the applications in 2012, while staff management is expected to grow at the highest CAGR of more than 37% from 2012 to 2017 due to focus on enhanced productivity and quality of care. The global RFID tags commanded the largest share of more than 58% of the global tag market in 2012, while the ultrasound tag market is expected to grow at the highest CAGR of more than 17% from 2012 to 2017.

RFID, RTLS, ultrasound and infrared tags comprise the various product categories of the global market. Although RFID was introduced in the 1970s, technology adoption in the healthcare and pharmaceuticals market has majorly taken place since the early 2000’s. RFID in the healthcare vertical has dominated with more than 60% of global market share and is strongly growing in mature markets such as Europe, North America, Japan, South Korea and China, between 2010 and 2020.

Hospital Asset management in healthcare applications such as equipment management, staff management, patient management and temperature and humidity monitoring are being preferred by practitioners. In addition, RFID/RTLS also provides crucial applications in the pharmaceutical vertical, such as drug counterfeiting and supply chain management.

Asset management in the pharmaceutical sector is predominantly driven by the rising incidence of drug counterfeiting. According to the World Health Organization, in 2012, there were 170 drug counterfeit cases in the U.S. and an estimated 10% of all pharmaceuticals across the world are believed to be counterfeit. These estimated cases were expected to cut into annual earnings of over $32 billion globally. Considering the severity of the incidence and enhancing patient safety organizations such as the FDA strongly suggest the use of RFID as an efficient solution.