The Global Market for RFID in Healthcare.pdf
The Global Market for RFID in Healthcare ular Diagnostics Rures adquireret umbraculi, etiam tremulus matrimonii libere senesceret app May 2010 Kalorama Information A division of MarketResearch.com 38 East 29th Street Sixth Floor New York, New York 10016 212.807 .2660 t 800.298.5603 t 212.807 .2676 f www.kaloramainformation.com RFID IN HEALTHCARE A KALORAMA INFORMATION MARKET INTELLIGENCE REPORT The Global Market for RFID in Healthcare by Kalorama Information. Serving industrial clients worldwide with a complete line of information services and research publications. Kalorama Information reports are specifically designed to aid the action-oriented executive by providing a thorough presentation of essential data and concise analysis. Author: Jeremy S. Dueck Publication Date: May 2010 38 East 29th Street New York, New York 10016 PHONE: (800) 298-5699 Outside the US(212) 807-2657 FAX: (212) 807-2676 Website: http:/www.KaloramaInformation.com E-MAIL: ordermarketresearch.com COPYRIGHT © 2010 Kalorama Information a division of MarketResearch.com, Inc. Copyright © 2010 Kalorama Information Reproduction without prior written permission, in any media now in existence or hereafter developed, in whole or in any part, is strictly prohibited. TABLE OF CONTENTS CHAPTER ONE: EXECUTIVE SUMMARY1 Introduction.1 Scope and Methodology2 Size and Growth of the Market3 Customer Segments.7 Cost of RFID Deployment.9 Industry Initiatives to Promote the Adoption of RFID in Healthcare and Pharmaceuticals .9 CHAPTER TWO: INTRODUCTION.10 Basics of RFID Technology.10 Basic System Components13 Configurations of RFID Systems.13 Parameters for Distinguishing RFID Systems15 Classification of RFID Systems21 Security Aspects and Possible Attacks on RFID Systems23 RFID Infrastructure .24 Key Benefits of RFID in Healthcare27 Applications of RFID in the Pharmaceutical Industry27 RFID Application Areas.33 Drivers35 Challenges36 Application of Identification Technologies .37 Anti-Counterfeiting Applications for RFID in the Pharmaceutical Supply Chain.38 Current Counterfeit Warning from the FDA.41 Pfizers SupplyScape E-Pedigree System41 Pharmaceutical Company Interview.42 Pharmaceutical Distributor Interview 44 Worldwide Implementation of RFID within Pharmaceuticals .44 Building Radio Frequency Identification Solutions for the Global Environment (BRIDGE) Project44 St. Clair Hospital.47 GlaxoSmithKline.47 Refrigerated Drug Cabinets.47 Partners Develop E-Pedigree Solutions for Pharmaceutical Companies.48 Cardinal Health and Californias Drug Pedigree Law48 Faster and More Accurate Shipping Methods49 Worldwide Implementation of RFID Within Healthcare Services Industry.50 Copyright © 2010 Kalorama Information Reproduction without prior written permission, in any media now in existence or hereafter developed, in whole or in any part, is strictly prohibited. Jena Hospital .50 Wayne Memorial Hospital51 Enterprise VISion system from Versus Technology52 CHAPTER THREE: ISSUES AND TRENDS53 Healthcare Establishment Statistics.53 U.S. Healthcare Employment Projections.54 Aging Population.54 RFID Emissions may Affect Certain Medical Devices.59 Affect on Blood Products60 Active RFID and Wi-Fi Networks in Healthcare Applications.60 Hospital Inefficiency62 Counterfeit Drugs62 Global Counterfeiting.63 Benefits of Improving Product Management66 Regulatory Compliance to Control Drug Counterfeiting67 Electronic Pedigree and the National Association of Boards of Pharmacy .68 Return on Investment (ROI)69 Improved Inventory Control74 Prescription Sample Control, Restocking Pharmaceutical Supplies and RFID75 Health and Safety Concerns.76 Clinical Trials.76 Smaller, Faster Chips77 Other Uses of RFID in Healthcare.78 “Never Events” Reimbursement79 Signal Transmissions.79 Existing Technologies80 Uniform Regulation and Standardization.81 Developers Answer to Uniform Standards .83 RFIDs Public Privacy Concerns .83 CHAPTER FOUR: MARKET ANALYSIS85 Overview.85 World RFID Markets by Application88 Military Applications88 Animal Applications89 Retail/Manufacturing/Fashion Applications 90 Transportation Applications91 Documents/Financial Assets/Security (non-military) Applications91 Healthcare Applications .92 Copyright © 2010 Kalorama Information Reproduction without prior written permission, in any media now in existence or hereafter developed, in whole or in any part, is strictly prohibited. Other Applications92 RFID Focus: Healthcare Market .96 Pharmaceutical RFID Market Size and Forecast.99 Staff and Patient RFID ID and Tracking Market Size and Forecast.103 Medical Asset RFID Tracking Market Size and Forecast.107 Implantable Device RFID Tracking Market Size and Forecast110 Other Medical/Healthcare RFID Technology Market Size and Forecast113 Total Healthcare RFID Market by World Region.118 Industry Voices121 Industry Initiatives to Promote the Adoption of RFID in Healthcare and Pharmaceuticals.123 CHAPTER FIVE: IMPLEMENTING AN RFID SYSTEM 125 RFID Infrastructure Deployment125 Pharmaceutical Supply Chain Deployment127 Scaling from Pilot to Implementation Stage.129 Cost of RFID Deployment.130 CHAPTER SIX: CORPORATE PROFILES .133 Introduction.133 3M.134 Alien Technology.136 Blue Vector.137 Hewlett-Packard139 International Business Machines (IBM)141 Intermec, Inc143 Motorola.145 PositiveID (previously VeriChip).147 Solstice Medical .148 SupplyScape.149 Tagsys, Inc151 Versus Technology.153 Zebra Technologies .155 REGULATORY AUTHORITIES AND ORGANIZATIONS 157 Copyright © 2010 Kalorama Information Reproduction without prior written permission, in any media now in existence or hereafter developed, in whole or in any part, is strictly prohibited. LIST OF COMPANIES 159 TABLE OF EXHIBITS CHAPTER ONE: EXECUTIVE SUMMARY1 Table 1-1: World Healthcare RFID Market, 2007-20144 Figure 1-1: World Healthcare RFID Market, 2007-2014 5 Figure 1-2: Global Market for RFID with Segmented RFID Markets in Healthcare, 2009.6 Table 1-2: Major RFID Benefits for Users8 CHAPTER TWO: INTRODUCTION.10 Table 2-1: RFID Terminology11 Figure 2-1: RFID System13 Figure 2-2: Parameters for Distinguishing RFID Systems15 Table 2-2: Classification of Radio Frequency in Terms of Performance Parameters .16 Table 2-3: Applications of RFID with Different Ranges18 Table 2-4: Comparison of Active and Passive RFID in Terms of Different Performance Parameters.20 Figure 2-3: Parameters for Classification of RFID Systems21 Table 2-5: Auto ID Centre Classification of RFID Systems23 Table 2-6: Types of Attacks on RFID Systems and their Countermeasures24 Figure 2-4: Classification of RFID Tags25 Figure 2-5: Value Chain of the RFID Industry.30 Table 2-7: Select Identification Technologies Compared on Different Parameters 32 Table 2-8: Key Differences between Bar Codes and RFID33 Table 2-9: Vertical-wise Application and Benefits of RFID34 Figure 2-6: Classification of Identification Technologies Applications37 Figure 2-7: Example of a Comprehensive Track-and-Trace Process.40 Table 2-10: BRIDGE project RFID Implementation.46 CHAPTER THREE:ISSUES AND TRENDS.53 Table 3-1: Healthcare Statistics53 Table 3-2: International Population Trend Age 65+55 Figure 3-1: International Population Trend Age 65+ 56 Copyright © 2010 Kalorama Information Reproduction without prior written permission, in any media now in existence or hereafter developed, in whole or in any part, is strictly prohibited. Table 3-3: United States Population Trend Age 65+57 Figure 3-2: International Population Trend Age 65+ 58 Table 3-4: Counterfeiting Rates by Region.65 Table 3-5: Estimated Return on Investment (millions) for the Implementation of RFID Pharmaceutical Manufacturers.71 Figure 3-3: Estimated Return on Investment (millions) for the Implementation of RFID Typical Large Pharmaceutical Manufacturer.72 Table 3-6: Estimated Return on Investment (millions) for the Implementation of RFID Pharmaceutical Distributors.73 Figure 3-4: Estimated Return on Investment (millions) for the Implementation of RFID Typical Large Pharmaceutical Distributor.73 CHAPTER FOUR: MARKETS.85 Table 4-1: Total World RFID Market, All Applications, 2007-201486 Figure 4-1: Total World RFID Market, All Applications, 2007-2014.87 Table 4-2: Total RFID Market by Application.94 Figure 4-2: Total RFID Market by Application.95 Table 4-3: World Healthcare RFID Market, 2007-201497 Figure 4-3: World Healthcare RFID Market, 2007-2014 98 Table 4-4: Pharmaceutical and Blood Products RFID Market, 2007-2014 .101 Figure 4-4: Pharmaceutical and Blood Products RFID Market, 2007-2014102 Table 4-5: Staff and Patient Tracking RFID Market, 2007-2014.105 Figure 4-5: Staff and Patient Tracking RFID Market, 2007-2014106 Table 4-6: Medical Asset RFID Tracking Market, 2007-2014108 Table 4-7: Implantable Device RFID Tracking Market, 2007-2014.111 Figure 4-7: Implantable Device RFID Tracking Market, 2007-2014 .112 Table 4-8: Other RFID Tracking Market, 2007-2014114 Figure 4-9: Composite Figure Global Market for RFID with Segmented RFID Markets in Healthcare, 2007-2014 116 Figure 4-10: Global Market for RFID with Segmented RFID Markets in Healthcare, 2009.117 Table 4-9: Healthcare RFID Market by World Region, Estimated 2009 Revenues and Share.119 Figure 4-11: Healthcare RFID Market by World Region, Estimated 2009 Share 120 CHAPTER FIVE: IMPLEMENTING AN RFID SYSTEM .125 Table 5-1: Planning and Implementing RFID Systems126 Copyright © 2010 Kalorama Information Reproduction without prior written permission, in any media now in existence or hereafter developed, in whole or in any part, is strictly prohibited. Table 5-2: Phase-wise Proposed Deployment of RFID in the Pharmaceutical Supply Chain128 Figure 5-1: Cost of Implementation of RFID (2004 and 2010)131 Copyright © 2010 Kalorama Information Reproduction without prior written permission, in any media now in existence or hereafter developed, in whole or in any part, is strictly prohibited. CHAPTER ONE Executive Summary INTRODUCTION The global pharmaceutical market is now worth approximately $800 billion and the United States accounts for roughly 40-50% of the market. Even during economic recessions the industry moves forward including an expected increase of 5%, at the global level in 2010. The largest therapeutic areas in medicine are: Cardiovascular Disease Neuroscience Infection Cancer Respiratory and Inflammation Gastrointestinal Conditions The global healthcare industry is much larger than pharmaceuticals accounting for an estimated $5.5-$6 trillion in 2009. In the U.S. healthcare expenditures in 2009 were approximately $2.5 trillion. The growth in national health expenditures (NHE) in the United States was higher than the growth in the Gross Domestic Product (GDP) in 2009. A decrease in NHE growth is expected for 2010 (as Medicare spending growth is reduced) but an increase of 4% is still expected for the 2010 year. RFID in Healthcare 2 Copyright © 2010 Kalorama Information Reproduction without prior written permission, in any media now in existence or hereafter developed, in whole or in any part, is strictly prohibited. The healthcare industry is growing but it is also changing. The FDA and state governments are requiring additional oversight in pharamceutical tracking and at the same time the growth of an aging population is increasing demand for medical care. Hospitals and care centers are expected to meet this demand in part with increased efficiency. In order to effectively operate within the changing structure of the industry, providers are working to find suitable technologies to maintain patient safety and to streamline business. There are a number of solutions to help in this effort but radiofrequency identification (RFID) is positioned to be a top solution in manufacturing, asset management, hospital logistics, patient throughput, product distribution, clinical trials, and sample distribution. SCOPE AND METHODOLOGY RFID offers various solutions for the main segments of the healthcare industry hospitals and nursing homes, pharmaceutical manufacturers, distributors, and pharmacies. This report defines the market for RFID opportunities in the healthcare industry focusing on five general market segments: Pharmaceutical manufacturing and distribution/blood product distribution and tracking Medical staff identification and tracking and patient identification and tracking Medical asset tracking and locating Medical device RFID use Other areas including medical documents and patient records This report describes RFID potential and opportunities worldwide, outlines key market trends and dynamics, and provides a number of case studies to show value and return on investment examples. RFID in Healthcare 3 Copyright © 2010 Kalorama Information Reproduction without prior written permission, in any media now in existence or hereafter developed, in whole or in any part, is strictly prohibited. SIZE AND GROWTH OF THE MARKET The healthcare RFID market was worth approximately $750 million worldwide in 2009, growing at a rate of 58.1% over $300 million estimated for 2007. Driving growth over the past few years is the increasing number of hospitals implementing staff and patient identification and tracking RFID systems and the pharmaceutical distribution/tracking and blood products tracking market segments. Staff and patient RFID systems have now increased to account for approximatley 27% of the total healthcare RFID market while steady sales growth in pharmaceuticals and blood have resulted in 33% market share. The forecast years will likely continue to be strong with growth anticipated at 35% average annually to reach $3.4 billion by 2014. A number of factors have suggested this market growth including the growing concerns over healthcare spending, safety, streamlining, and efficient patient care. RFID in Healthcare 4 Copyright © 2010 Kalorama Information Reproduction without prior written permission, in any media now in existence or hereafter developed, in whole or in any part, is strictly prohibited. Table 1-1 World Healthcare RFID Market, 2007-2014 Year Revenues (in millions) Percent Change 2007 $300 - 2008 500 66.7% 2009 750 50.0% 2010 960 28.0% 2011 1,280 33.3% 2012 1,780 39.1% 2013 2,400 34.8% 2014 3,360 40.0% Compound Annual Growth Rate Period CAGR 2007-2009 58.1% 2009-2014 35.0% 2007-2014 41.2% Source: Kalorama Information RFID in Healthcare 5 Copyright © 2010 Kalorama Information Reproduction without prior written permission, in any media now in existence or hereafter developed, in whole or in any part, is strictly prohibited. Figure 1-1 World Healthcare RFID Market, 2007-2014 21.3 8.7 6.9 5.8 4.7 2.7 11.9 15.5 20072008200920102011201220132014 Revenues in $Billion Source: Kalorama Information RFID in Healthcare 6 Copyright © 2010 Kalorama Information Reproduction without prior written permission, in any media now in existence or hereafter developed, in whole or in any part, is strictly prohibited. Fi
