Industry Insight
RFID in healthcare sector has significant applications such as record maintenance and equipment tracking. Increasing need for inventory management of medicines in medical institutions is expected to drive the RFID smart cabinets market over the forecast period. RFID cabinets include two components such as aluminum/steel cabinet and RFID console. The cabinet is used to maintain database such as time and date of last usage, identity of the department or person who has last accessed it and RFID console is an electronic unit used to maintain the cabinet supplies. Technological advancements and increasing use of RFID cabinets for inventory management, asset tracking and many healthcare institutions using RFID cabinets for tracking to increase productivity and to reduce errors in North America is expected to provide positive avenues to market demand over next six years.
Regional Insights
Furthermore, the U.S. created maximum demand in North America for RFID cabinets. Factors such as growing technological advancements and developments in healthcare infrastructure are expected to favor the market demand in North America. North America is expected to be the dominant market over the forecast period. The market has taken command by countries such as Germany and the U.K owing to presence of increasing hospital funding measures taken by the non-government and government organizations which is expected to drive market demand in these regions. Increasing research and development initiatives for using RFID applications in healthcare taken by Germany government has made to be dominant market in Europe. For example, German government invested USD 260 million in 2007 for research and development of RFID technology. Moreover, Germen ministry announced that country’s high technology strategy is achieved by increasing usage of RFID in healthcare sector and telecommunications industry. Additionally, lenient government rules and regulations and cost controlling for different medical institutions establishments is expected to fuel RFID smart cabinet market in Germany region. For example, in 2003, German government implemented diagnosis related group programs for remunerations of hospitals and increasing treatment cost which encouraged hospitals for adopting new technology. Furthermore, the need for effective management of assets, inventory and preventing thefts of inventory is expected to provide positive avenues to market growth over the forecast period. Technological advancements, increased using RFID cabinets for inventory management, asset tracking and many healthcare institutions using RFID cabinets for tracking to increase productivity and to reduce errors in North America is expected to provide positive avenues to market demand over next six years.
Asia-Pacific is expected to emerge as high growth regional market owing to growing demand in countries such as China and India. Growing infrastructure and technological advancements in developing countries of India and China are also expected to witness considerable growth over next six years. For example, implementation of 12 year plan is promising for manufacturers to make investments in China which is expected to drive the market demand. Increasing awareness of patients, growth in telecommunication sector and favorable government rules and regulations is expected to drive the RFID market in India over the forecast period. Increasing retail stores where every product has RFID tag is expected to boost the market demand. Tracking of imports and exports of products is expected to drive RFID market growth in India over next six years.
Competitive Insights
RFID smart cabinets are highly fragmented owing to the increase in presence of suppliers and domestic manufacturers in China. Key industry participants include WaveMark Inc., LogTag, Tagsys RFID Group, Mobile Aspects Inc., Stanley Innerspace, Solstice Medical LLC and Terson Solutions Inc. Market participants enter into mergers & acquisitions to sustain in the market. For example, Tagsys made partnership with Hilden, supplier of linen products for inventory management using Tagsys RFID tags.
