SOURCE: MarketResearch.com

MarketResearch.com

May 04, 2010 09:08 ET

RFID Spending for Pharma Supply Chain to Grow 34% Annually Thru 2015

ROCKVILLE, MD--(Marketwire - May 4, 2010) -  MarketResearch.com has announced the addition of GBI Research's new report "Radio Frequency Identification (RFID) in Pharmaceuticals -- Supply Chain Security Concerns Provide Impetus for RFID Adoption," to their collection of RFID market reports. For more information, visit http://www.marketresearch.com/redirect.asp?progid=67618&productid=2578492.

GBI Research, the leading business intelligence provider, has released its latest research, "Radio Frequency Identification (RFID) in Pharmaceuticals -- Supply Chain Security Concerns Provides Impetus for RFID Adoption." It provides key data and analysis of the major factors affecting the market for RFID in the pharmaceuticals industry. This pharmaceutical and healthcare report also analyzes the strengths, weaknesses, opportunities and threats in the RFID market within the pharmaceutical industry and the key market drivers and barriers to the adoption of RFID in the industry.

The report is based on proprietary databases, primary and secondary research, and in-house analysis by GBI Research's team of industry experts.

The global market for Radio Frequency Identification (RFID) products and services in the pharmaceutical industry was valued at $112m in 2008 and is expected to grow to $884m in 2015 at a CAGR of 34% over the same period. The market for RFID hardware is the largest at the initial stages of adoption in the pharmaceutical industry. Service providers are gaining market share by integrating their services with one-stop solutions. The share of hardware in the RFID market is estimated to be 60% in 2008 and includes tags, readers and label printers. The share of software and services in the RFID market is estimated to be 40% in 2008. RFID services include installation, integration, training, maintenance and IT support.

GBI Research's analysis suggests that the RFID technology is in the early stages of adoption within the pharmaceutical industry. The market for RFID in pharmaceuticals is hampered by low adoption rates due to apprehensions over high investments and the lack of a clear business case. However, solutions for the pharmaceutical industry are evolving to address the concerns responsible for the slow growth. RFID vendors are offering pilot kits for the pharmaceutical industry to test and evaluate RFID technology so that clients can understand the technology's costs and benefits. RFID adoption rate will be low initially due to budget restrictions in the pharmaceutical industry as a result of the global recession and subsequent cost cutting measures. However, the adoption rate is expected to increase rapidly due to mandates from retailers like Wal-Mart and from regulatory authorities like the California Board of Pharmacy for the implementation of e-Pedigree in the supply chain. In essence, RFID is the most promising solution for the elimination of counterfeits in the pharmaceutical supply chain. However, realization of the technology's potential benefits is possible only if apprehensions about the initial costs of implementation, return-on-investment and a weak business case are addressed.

GBI Research's report on the market for RFID in the pharmaceutical industry provides a comprehensive analysis of the applications of RFID technology in the pharmaceutical supply chain. The market for RFID hardware, software and services is forecast for seven years and the key factors driving or restraining the market are analyzed. The analysis of regulations and mandates provides valuable insights into the key trends that drive the growth of RFID in the pharmaceutical industry.

GBI Research finds that there is a growing need for the pharmaceutical industry to secure their distribution channels from counterfeit drugs. RFID solutions provide the ideal identification method by which pharmaceutical industry can counter fake drug issues. While pharmaceutical companies, distributors and wholesalers are on a continuous look out for these fake drugs, counterfeiters find innovative ways to introduce fake drugs into legitimate supply chains. The use of RFID solutions can avoid the loss of investor confidence and a consequent decline in share prices due to such counterfeiting incidents. Also, increased supply chain security and operational efficiency will help the pharmaceutical industry improve their reputation in the delivery of safe drugs. Hence, increasing concerns over the safety of supply chains and the health of patients have forced companies to think big and adopt RFID solutions. A steady increase in the adoption of RFID hardware, software and services in the pharmaceutical industry is expected to drive the growth of these solutions.

Topics covered in the report include…

  • Analysis of the opportunities and challenges for Radio Frequency Identification technology providers in the pharmaceuticals industry
  • Market revenues and forecasts for RFID solutions in the global pharmaceutical industry from 2008 to 2015
  • The market for RFID hardware, software and services in the pharmaceutical industry including track-and-trace solutions and e-Pedigree solutions
  • Qualitative analysis of the market drivers, barriers, future outlook and challenges for RFID adoption in the pharmaceutical industry
  • Coverage of key geographies including the US, Germany, the UK, France, Spain, Italy and Japan
  • Analysis of technology adoption framework for RFID hardware, software and services in the pharmaceutical industry
  • Information and analysis on the competitive landscape and the leading market players such as Alien Technologies, SupplyScape, Zebra Technologies Corporation, TAGSYS Inc and IBM

For more information, visit http://www.marketresearch.com/redirect.asp?progid=67618&productid=2578492.

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