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 signboard 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 the 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 outcomes 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 U.K. 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 the 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 “Radiofrequency control applications”.
Report Attribute |
Details |
Market size value in 2019 |
USD 873 million |
Revenue forecast in 2020 |
USD 1,089.6 million |
Growth Rate |
CAGR of 24.3% from 2014 to 2020 |
Base year for estimation |
2014 |
Historical data |
2012 - 2014 |
Forecast period |
2014 - 2020 |
Quantitative units |
Revenue in USD million and CAGR from 2014 to 2020 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Region |
Regional scope |
North America; Europe, Asia Pacific; RoW |
Country scope |
The U.S.; Canada; Mexico; Belgium; Poland; The Netharlands; Spain; Germany; The U.K.; France; China; India; Japan; Australia; Brazil; Argentina; Chile; and GCC |
Key companies profiled |
Brooks Automation; Grifols; Hurst Green Plastics Ltd.; Wurth Group; Bollhoff Group; Pepperl+Fuchs; Datelka; Metra Tec GmbH; and Logi-Tag; Mattteo |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
b. The global RFID Kanban Systems market size was estimated at USD 873 million in 2019 and is expected to reach USD 1,089.6 million in 2020.
b. The global RFID Kanban Systems market is expected to grow at a compound annual growth rate of 24.3% from 2014 to 2020 to reach USD 1,089.6 million by 2020.
b. North America dominated the RFID Kanban Systems market with a share of 39.0% in 2019. This is attributable to the incorporation of RFID kanban systems and cost reduction incentives in the region.
b. Some key players operating in the RFID Kanban Systems market include Brooks Automation, Grifols, Hurst Green Plastics Ltd., Wurth Group, Bollhoff Group, Pepperl+Fuchs, Datelka, Metra Tec GmbH, Logi-Tag and Mattteo.
b. Key factors that are driving the market growth include increasing cases of stock outs, over inventory, clerical errors and growing demand for real time asset and inventory tracking.
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