RFID In Pharmaceuticals Market Size

RFID in Pharmaceuticals Market Analysis

RFID in the pharmaceuticals market is projected to register a CAGR of 7% during the forecast period.

• The COVID-19 pandemic and subsequent lockdown restrictions significantly impacted drug manufacturing companies worldwide. Several countries reported a shortage of active pharmaceutical ingredients due to the pandemic, which led to the development and marketing of falsified drugs in the market by local players.
• According to data published by the Authentication Solution Providers' Association (ASPA) in March 2022, incidents of substandard and falsified (SF) medical products increased by almost 47% in India in 2021. The trade-in pharmaceutical counterfeits during this period spiked, particularly for COVID-19-related products such as vaccines, medicines, test kits, antibiotics, face masks, and sanitizers. The increase in counterfeit drugs during the pandemic also increased the demand for Radio Frequency Identification (RFID) technology.
• However, the pharmaceutical industry is incorporating RFID technology into its supply chain to make it more efficient and enhance patient safety while saving time and money. For instance, companies such as AstraZeneca have embraced RFID and have had tremendous accomplishments with dispensing over 30 Million RFID-enabled syringes of Diprivan.
• The increasing adoption of RFID technology in healthcare is expected to boost market growth, as it enables real-time tracking, tracing, and authentication of drugs in the pharmaceutical industry. An article published by PubMed Central in August 2022 highlighted the maturation of applications such as real-time locating systems (RTLS) for patient tracking, medical personnel, and asset tracking, which is expected to contribute to rapid expansion in the RFID industry in the future years.
• Moreover, key product launches by major market players are driving the market's growth. For instance, in August 2021, Tageos launched its EOS-202 U9 RAIN RFID inlay for healthcare and pharmaceutical applications. The increasing strictness in maintaining a secure drug supply, the introduction of innovations and technological advancements, and the rising need for efficient supply chain management are all projected to fuel market growth.
• However, the high cost of RFID system installation significantly hinders the market's growth. Despite this, the aforementioned factors, including the rising adoption of RFID technology and the rising prevalence of counterfeit drugs, are expected to boost market growth. As a result, the studied market is expected to have normal growth as the pandemic has currently subsided.