Healthcare Asset Management Market By Product (Radiofrequency Identification Devices, Real-Time Location Systems, Ultrasound Tags), Application (Equipment Tracking, Staff Management, Patient Tracking, Supply Chain Management), & Region for 2024-2031

Healthcare Asset Management Market Valuation - 2024-2031

The rising desire to minimize operational expenses while improving patient care quality is driving the demand for effective asset management solutions. The COVID-19 pandemic has emphasized the significance of strong asset management systems in ensuring the availability and proper usage of healthcare resources. Furthermore, strict regulatory requirements for equipment maintenance and administration in healthcare facilities are encouraging institutions to invest in modern asset management technology. The healthcare asset management market is expected to surpass a revenue of USD 18.31 Billion in 2024 and reach USD 126.13 Billion by 2031.

Furthermore, the incorporation of cutting-edge technologies such as IoT, RFID, and AI has resulted in substantial improvements in the healthcare asset management market. These advancements allow for real-time tracking, monitoring, and management of medical equipment, drugs, and other vital assets, increasing operational efficiency and lowering costs. Improved asset visibility and predictive maintenance capabilities enable quicker interventions and reduce equipment downtime, resulting in better patient care. The market is expected to rise with a projected CAGR of 30.10% from 2024 to 2031.

Healthcare Asset Management Market: Definition/ Overview

Healthcare asset management is the systematic process of maintaining, monitoring, and managing medical equipment and resources in healthcare facilities to guarantee peak performance, safety, and regulatory compliance. This includes tracking asset lifecycles, from acquisition and deployment to maintenance and final disposal. Effective asset management assists healthcare providers in lowering costs, increasing operational efficiency, and improving patient care by ensuring that key equipment is available and functional when needed. It also includes the use of technology, such as asset tracking systems and IoT devices, to collect real-time data for better decision-making and resource management.

Will the Increasing Need for Operational Efficiency Drive the Expansion of the Healthcare Asset Management Market?

The increasing complexity of healthcare operations and the need to cut costs are pushing the use of asset management solutions. According to a World Health Organization (WHO) report, inadequate supply chain management in healthcare wastes approximately 20-40% of health spending. According to the American Hospital Association (AHA), hospitals in the United States spend approximately USD 25 Billion more on supply chain operations than is necessary each year. This inefficiency is driving healthcare companies to use asset management solutions to improve inventories and eliminate waste.

Furthermore, the healthcare industry faces substantial issues from equipment theft and loss, necessitating the use of stronger tracking and management systems. According to research published in the Journal of Healthcare Information Management, equipment theft or loss costs hospitals in the United States $4,000 per bed per year. The FBI believes that medical equipment theft costs the healthcare industry around USD 750 Million each year. These concern statistics are forcing healthcare facilities to invest in modern asset management technologies to protect and track their precious equipment.

How Does the Complexity of the Healthcare Environment Affect the Market?

Medical equipment, instruments, and supplies are regularly transferred between departments, patient rooms, and even various sites within a healthcare system. This mobility complicates tracking these assets, especially when manual methods such as spreadsheets or barcode scanning are used. Automated asset tracking technologies, such as RFID (Radio Frequency Identification) or RTLS (Real-Time Location Systems), help, but their setup and maintenance can be expensive and complicated.

Accurate asset monitoring is critical for inventory management, loss prevention, and regulatory compliance. However, attaining high levels of accuracy and precision is difficult, particularly in large healthcare institutions with enormous inventories and complex layouts. Asset tracking systems create a large amount of data, including asset location, status, and usage history. Integrating this data with other systems, such as electronic health records (EHR) or inventory management software, is critical to improving asset usage and operating efficiency.

Furthermore, integrating dissimilar systems is difficult and needs custom development or adherence to interoperability standards. Healthcare institutions' assets include medical equipment, devices, consumables, medications, and other supplies. Each asset type has distinct tracking, maintenance, and compliance needs, which adds to the complexity of asset management. Compliance with severe regulatory criteria, such as those set by the FDA, Joint Commission, and other governing bodies, is critical in healthcare asset management. These regulations govern several elements of asset management, such as equipment maintenance, calibration, and recordkeeping. Compliance requires the development of rigorous procedures and systems, which are difficult to implement and maintain.

Category-Wise Acumens

How Does the Increasing Demand for Equipment Tracking Accelerate the Growth of the Market?

The equipment tracking segment is estimated to dominate the market during the forecast period. Healthcare institutions use efficient equipment tracking systems to rapidly and precisely find medical devices and equipment. This reduces the time spent searching for equipment, streamlines workflows, and improves overall operational efficiency. Equipment tracking is critical for healthcare institutions to guarantee that medical instruments and equipment are always available, well-maintained, and conveniently located. Medical equipment is often costly and can have a direct impact on patient outcomes. Healthcare firms are increasing their need for equipment tracking solutions as they seek to optimize resource use and reduce downtime.

Furthermore, cost savings are gained because healthcare providers may incur considerable financial losses as a result of equipment downtime, loss, or misplacement. Implementing robust equipment tracking systems helps reduce hazards and wasteful expenditures on replacing lost or misplaced equipment. Furthermore, equipment tracking can help with enhanced maintenance scheduling and asset use, resulting in long-term cost reductions. Healthcare providers maintain regulatory compliance by adhering to tight equipment maintenance, calibration, and tracking regulations that assure patient safety and quality of care. Equipment tracking solutions help healthcare providers comply with regulatory criteria imposed by organizations such as the FDA and Joint Commission, which increases demand for equipment tracking systems in the healthcare sector.

How Does the Rising Utilization of Real-Time Location Systems Drive the Growth of the Market?

The real-time location systems (RTLS) segment is estimated to dominate the healthcare asset management market during the forecast period. Real-Time Location Systems (RTLS) provide real-time tracking and monitoring of healthcare assets, including medical equipment, gadgets, and supplies. Improved visibility allows assets to be discovered quickly and accurately, reducing search times and increasing operational efficiency. Assets' actual location can be always known, maximizing asset usage, reducing loss or theft, and ensuring vital equipment availability when needed.

RTLS greatly improves patient safety and care by ensuring that necessary equipment and supplies are available when needed. For example, tracking the real-time position of infusion pumps, defibrillators, and other vital devices helps to avoid care delays and minimizes the chance of adverse outcomes. Furthermore, RTLS reduces the misplacement or loss of medical supplies, prescriptions, and resources, hence enhancing patient safety and treatment quality.

Furthermore, workflow management is improved using RTLS, which allows healthcare institutions to track worker, patient, and asset movements in real-time. Identifying workflow bottlenecks and inefficiencies promotes more efficient operations, better resource allocation, and increased overall productivity. For example, RTLS efficiently routes workers, quickly locates accessible equipment, and guarantees that patients receive care on time. RTLS automates compliance operations, as regulatory agencies such as the FDA and Joint Commission require precise records for medical equipment and supplies. RTLS solutions provide real-time tracking and monitoring, which ensures regulatory compliance. Automating processes like equipment inventory management, maintenance tracking, and calibration scheduling saves administrative burdens and human error.

Country/Region-wise

How Does Advanced Infrastructure and High Healthcare Expenditure in North America Drive the Market?

North America is estimated to dominate the healthcare asset management market during the forecast period. North America, particularly the United States, has one of the world's largest healthcare expenditures, which drives investment in advanced technologies such as asset management systems. According to the Centers for Medicare & Medicaid Services (CMS), U.S. healthcare spending totaled USD 4.1 Trillion in 2020, accounting for 19.7% of the country's GDP. The American Hospital Association (AHA) claims that there were 6,090 hospitals in the United States in 2019, generating a sizable market for healthcare asset management systems. This substantial healthcare infrastructure and significant investment encourage the use of asset management systems to improve efficiency and save costs.

Furthermore, the growing burden of chronic diseases and an aging population in North America are driving the demand for more efficient healthcare delivery, including improved asset management. According to the Centers for Disease Control and Prevention (CDC), six out of every ten persons in the United States have a chronic disease, with four out of ten having two or more. According to the United States Census Bureau, by 2030, all baby boomers will be over the age of 65, bringing the total elder population to 73 million people. This demographic transition raises the demand for healthcare services, necessitating efficient asset management to accommodate the increasing patient load and equipment consumption.

What are the Factors Propelling the Market Growth in the Asia Pacific Region?

The Asia Pacific region is estimated to exhibit the highest growth within the market during the forecast period. The Asia Pacific region's healthcare infrastructure is rapidly expanding, increasing the need for asset management solutions. According to the World Health Organization (WHO), healthcare spending in Southeast Asia rose from 3.5% of GDP in 2000 to 4.4% in 2018. According to the National Health Commission of China, there were 34,354 hospitals in China by 2020, up from 23,170 in 2012. This rapid increase creates a rising market for healthcare asset management solutions that can efficiently handle the growing quantity of medical devices and equipment.

Furthermore, the Asia-Pacific region is experiencing an increase in digital health use, including asset management systems. According to a McKinsey & Company report, the digital health market in Asia could reach USD 100 Billion by 2025, up from USD37 Billion in 2020. The Indian government's National Digital Health Mission, which began in 2020, aims to digitize the country's healthcare ecosystem, possibly helping more than 1.3 billion people. This digital transformation is accelerating the use of asset management systems to improve operational efficiency and patient care.

Competitive Landscape

In the competitive healthcare asset management market, there is a wide range of organizations offering specialized solutions and services to various industry segments and niches. These stakeholders include major businesses, young startups, and regional suppliers, all of whom bring their distinct offerings and experiences to the market.

Some of the prominent players operating in the healthcare asset management market include:

Stanley Black & Decker, Inc.

Airista Flow

CenTrak, Inc.

GE Healthcare

IBM

Elpas

Sonitor

Versus Technology

Intelligent Insites

IBM Corporation

Zebra Technologies

Novanta Company

Latest Developments

In February 2024, Argosy Healthcare Partners announced a recapitalization and partnership with Command Medical Products. The Company provides contract manufacturing services to produce single-use disposable medical devices for global medical device original equipment manufacturers ("OEMs") and life sciences customers. AHP is honored to partner with Command and support its next stage of growth.

In May 2024, KKR announced acquiring Bengaluru-based medical devices company Healthium Medtech from an affiliate of funds advised by private equity firm Apax Partners. According to sources close to the deal, the value of the acquisition is Rs 6,500-7,000 crore (around USD 839 Million).

Healthcare Asset Management Market, By Category

• Product
• Radiofrequency Identification Devices
• Real-Time Location Systems
• Ultrasound Tags
• Application
• Equipment Tracking
• Staff Management
• Patient Tracking
• Supply Chain Management
• Region
• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa