PUBLISHER: Grand View Research | PRODUCT CODE: 1301238
PUBLISHER: Grand View Research | PRODUCT CODE: 1301238
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.