Increasing demand for asset tracking and controlling devices and drugs stockouts in the medication supply rooms are two primary drivers of the RFID kanban systems. Rising demand for streamlining hospital inventory management as a cost curbing measure coupled with growing incidences of clinical errors is expected to propel market growth over the forecast period.
Global RFID kanban systems market, by region, 2012 - 2020 (USD Million)
Continuous R&D initiatives and new product development, growing cases of stock outs, over inventory, clerical errors, and growing demand for real-time asset and inventory tracking are expected to significantly boost demand over the next six years. Furthermore, the cost incurred due to medication expiration coupled with increasing demand for FIFO system and implementation of lean inventory management is anticipated to increase market growth at a rapid pace. Kanban system works on the traditional Japanese kanban system which literally means sign board which is a scheduling system for lean just in time production.
In RFID kanban system colored cards are replaced with RFID tags which automatically send a signal with the help of software which is integrated with hospital information system to purchase department regarding inventory replenishment. Moreover, it has been estimated that RFID kanban systems can reduce inventory levels by nearly 33% and eliminate the risk of stock outs. Healthcare facilities have installed RFID Kanban systems in order to provide efficient and proper patient care. For instance, healthcare organizations have installed Stockbox and RFID Tagging to improve patient outcome by enabling hospitals and other medical facilities to keep the right quantities of medications and pharmaceutical products in stock. The global RFID kanban systems market is expected to grow at a CAGR of over 20.0% during the forecast period, to reach USD 1,089.6 million in 2020.
Key regional segments of RFID kanban systems market include North America, Europe, Asia-Pacific and Row. North America is at the forefront for providing global healthcare services and has a growing requirement for hospital inventory management. Owing to this high growth in the number of hospitals with higher patient capacities, the importance of hospital inventory management has become critical. For instance, a study on the North American Healthcare scenario demonstrates that there are over 6,000 hospitals and the number of medications, equipment and procedures they use are immeasurable.
Europe includes Germany, France and the UK among others. Development in RFID tagging and their incorporation into inventory tracking and management systems have picked up the pace in these countries and have an unmet potential for the growth of RFID kanban systems. The European market was found to be dominated by Germany. This large share can be attributed to the fact that there is a presence of a number of players in the region providing RFID tagging and tracking solutions. With an expected lucrative growth in the RFID kanban system market, it has been observed that many of them have shifted their focus on developing fully implementable RFID enabled kanban systems for use in the healthcare, manufacturing, and automotive industries. Due to these observations, it is expected that there will be a substantial growth in the market through to 2020.
It is observed that a number of inventory management services providers have shifted their focus to the development of integrated RFID kanban systems instead of separately providing either RFID tags, inventory managing software or RFID readers. Growing focus on developing RFID-based hospital inventory management systems in Japan and China is expected to boost the Asia Pacific RFID kanban systems market through 2020. Developments in RFID tagging and inventory control taking place in this region are expected to fuel the overall growth of the Asia Pacific RFID kanban system market. It is expected that with the successful implementation of the prototype RFID kanban systems in healthcare facilities of Japan, RFID kanban solutions and implementation will witness a rise in demand throughout the forecast period.
Key players of RFID kanban systems market include Pepperl+Fuchs, Hurst Green Plastics Ltd., Metra Tec GmbH, Wurth Group, Bollhoff Group, Brooks Automation, Datelka, Grifols, Logi-Tag, and Matteo. In 2013, Pepperl+Fuchs announced the successful launch of industrial RFID kanban system which incorporated RFIT tags in Industrial kanban systems. RFID enabled Kanban systems are expected to significantly reduce inventory in hand. Furthermore, Datelka started the application of a new outpatient drug control system as “Radio frequency control applications”.
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