RFID In Pharmaceuticals Market Size, Share & Trends Analysis Report By Component (RFID Tag, RFID Readers), By Type (Chipped RFID, Chipless RFID), By Application, By End-user, By Region, And Segment Forecasts, 2023 - 2030

RFID In Pharmaceuticals Market Size, Share & Trends Analysis Report By Component (RFID Tag, RFID Readers), By Type (Chipped RFID, Chipless RFID), By Application, By End-user, By Region, And Segment Forecasts, 2023 - 2030

RFID In Pharmaceuticals Market Growth & Trends

The global RFID in pharmaceuticals market size is expected to reach USD 8.7 billion by 2030, according to a new report by Grand View Research, Inc. The market is expected to expand at a CAGR of 7.8% from 2023 to 2030. The growth of the market can be attributed to increasing number of incidents involving counterfeit drugs, and regulatory requirements for maintaining a secure drug supply are expected to drive market growth. Furthermore, the use of smart tags and labels in the pharmaceutical industry allows for efficient sorting of stock, ensuring drug quality and minimizing waste. As a result, there is a growing demand for RFID technology in the pharmaceutical industry to improve drug tracking and ensure the well-being of patients and consumers.

The growing incidences of counterfeit drugs is a major factor driving the demand for Radio-frequency identification technology (RFID) technology in the pharmaceutical industry. According to the data from the Pharmaceutical Security Institute, a significant rise in incidents of counterfeiting, with illegal trafficking of medicines increasing by 38% across 137 countries from 2016 to 2020. In 2020, North America had the highest number of counterfeit medicine seizures (32%), followed by Asia Pacific (23%), Latin America, Near East, Eurasia, Europe, and Africa (3%). These incidents are contributing to the growing demand for RFID systems to combat this issue.

The COVID-19 pandemic has had a major effect on the market. Drug manufacturing companies around the world experienced shortages of active pharmaceutical ingredients, leading to counterfeit products being distributed by local players. Even before the pandemic, the World Health Organization (WHO) and the Organization for Economic Cooperation and Development (OECD) estimated that roughly 10% of all medicines sold globally were fake. Europol reported in November 2020 that fake and substandard pharmaceuticals, including COVID-19 vaccines, continued to be widely distributed, some of them sold in the illegal market. RFID tags provide the ability to authenticate products securely, along with more reliable traceability and accountability throughout the supply chain. Thus, the need for RFID technology grew due to a rise in ineffective and counterfeit medicines during the pandemic.

In addition, the market's growth is being propelled by significant product launches from leading industry players. For instance, in May 2022, Murata introduced its compact RAIN RFID Tag at Pharmapack Europe. This tag serves as an identifier, allowing RFID readers to verify the authenticity and identity of healthcare items, thereby minimizing the risk of contamination during drug filling processes. Moreover, these tags can be integrated into various products like pre-filled syringes, cartridges, and vials. This demonstrates the promising capabilities of RFID technologies in improving drug tracing and tracking systems.

RFID In Pharmaceuticals Market Report Highlights

• Based on the component, the RFID tags segment held the largest market share of over 40% in 2022. RFID tags enable easy access to inventory management, faster workflow processing, and real-time drug monitoring and drug usage, and reduce the drug counterfeiting, these factors are also expected to contribute to the segment growth.
• Based on application, the drug tracing segment held the largest market share of over 50% in 2022, owing to the increasing incidences of counterfeit drugs and the widespread adoption of advanced RFID technology in pharmaceutical industry
• Based on end-user, the drug manufacturers segment held the largest market share of over 41% in 2022, owing to the rising adoption of advanced RFID technology to identify counterfeit drugs and the benefits of drug tracking systems in streamlining efficient workflows between pharmaceutical organization, wholesaler, distributors and healthcare organization
• North America held the largest market share of over 48% in 2022, in the global market. This can be attributed to several factors such as increasing risks associated with substandard and falsified drugs and the presence of stringent regulatory frameworks in the region
• Asia Pacific is expected to be the fastest growing market during the forecast period. This growth can be attributed to the increasing number of pharmaceutical companies in the region and their growing demand for efficient supply chain management

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