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Healthcare Asset Management Market - Forecast(2024 - 2030)
Healthcare Asset Management Market Overview
The Healthcare Asset
Management market size is estimated to reach $24.6 billion by 2026, growing at a CAGR of 28.9% during the forecast period 2021-2026. Healthcare
Asset Management involves the management and maintenance of various crucial
healthcare assets such as machinery, equipment, employees, medicines, and
patients of the facility. They ensure that the healthcare facility can function
efficiently by preventing delays, equipment shortages, and personnel shortages
while also reducing expenses. Some of the key tools used for healthcare asset
management include real time location systems (RTLS) and radio frequency
identification devices (RFID). The increase in demand for improving efficiency
and the rising integration of cloud computing, electronic health records, and
other digital systems in hospitals is driving the market. However, low
awareness and innovation in this sector in low and middle-income countries act
as a major challenge for the Healthcare Asset Management Industry.
Report Coverage
The report: “Healthcare Asset Management Market
Forecast (2021-2026)”, by Industry ARC, covers an in-depth analysis of the
following segments of the Healthcare Asset
Management Market.
Key Takeaways
- Geographically, the North American Healthcare Asset Management market accounted for the largest share in 2020 owing to the well-developed healthcare infrastructure and high public and private R&D expenditure.
- An increase in awareness and implementation of healthcare asset management technology in major emerging economies such as China and India is anticipated to drive the market during the forecast period. However, high product costs and implementation expenses of the system are key challenges for the market.
- Detailed analysis on the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Healthcare Asset Management Market Report.
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Healthcare Asset Management Market Segment Analysis-By Product Type
Based on Product
Type, the Healthcare Asset Management Market is segmented into Radio Frequency
Identification Devices (RFID), Real-Time Location Systems (RTLS), Ultrasound
Tags, and Others. The RFID segment held the largest share of
the market in 2020 and is poised to dominate the market during the
forecast period 2021-2026. RFIDs make use of last-seen technology to accurately
record the movement of medical assets within the healthcare facility and
provides an approximate location of the equipment. For an asset to be
tracked, they have to be equipped with an inexpensive and battery-less RFID
tag. The RTLS segment is projected to grow the fastest at a CAGR of 31.5% owing to
their higher tracking accuracy. RTLS provides the reliable and exact location of
assets in real-time whereas, RFID can only determine if an object passed
through certain fixed points within the facility.
Healthcare Asset Management Market Segment Analysis-By Application
The Healthcare
Asset Management Market based on Application can be further segmented into Hospital
Asset Management and Pharmaceuticals Asset Management. The Hospital Asset
Management segment accounted for the largest share of the market in 2020 and is also projected to be the fastest-growing segment during the forecast
period 2021-2026 at a CAGR of 30.7%. The growing need to reduce costs, improve
efficiency and prevent stockouts of essential medication are the chief factors
contributing to the growth of this segment. Moreover, the rise in the influx of
patients into hospitals owing to the Covid-19 pandemic further strengthened the
need for Hospital Asset Management systems to prevent equipment
shortages or treatment delays. The Pharmaceuticals Asset Management segment is
anticipated to witness significant growth owing to the global surge in
counterfeit drugs flowing into the market.
Healthcare Asset Management Market Segment Analysis-By Geography
The Healthcare Asset Management Market based on Geography can be segmented into
North America, Europe, Asia-Pacific, South America, and the Rest of the World. The
North American segment is projected to dominate the Healthcare
Asset Management market during the
forecast period 2021-2026 with a market share of 34% owing to the presence of
highly developed healthcare infrastructure, increasing private and public
R&D investments, high healthcare expenditure, and surge in hospitalization
rates in the region. Moreover, the presence of key industry players such as IBM
Corporation, GE Healthcare, Tyco International, and Infor in the region ensures
lower costs and more options for customers. The Asia Pacific region is
predicted to register the fastest growth owing to the growth in
public healthcare funding in major emerging economies like China and India.
Moreover, the large population and increase in cases of communicable and
non-communicable diseases are further contributing to the growth of this
segment.
Healthcare Asset Management Market Drivers
Increase in Prevalence of Fake Drugs is Projected to Drive Market Growth.
According to the World Health Organization (WHO), around 250,000 children die annually worldwide owing to the consumption of fake malaria and pneumonia medication. It is estimated that the annual global fake drug sales generate between $200 billion and $431 billion in revenue. This is causing the US Biopharmaceuticals industry to lose between $37.6 billion and $162.1 billion in revenues annually. Healthcare Asset Management systems such as RFIDs help ensure that the drugs entering pharmacies and hospitals are legitimate. RFID tags could easily be hidden inside drug labels, which enable tracking the drug's progress throughout the supply chain.
The Covid-19 Pandemic is Anticipated to Boost Product Demand.
The rapid surge in the Covid-19 cases and the emergence
of new variants are increasing the inflow of patients into hospitals. This is
increasing the stress experienced by the healthcare sector as they are facing
shortages of personnel, medications, and other essential assets such as beds,
ventilators, and oxygen. For instance, the average Covid-19 hospitalization in
the US reached 100,000 in August 2021 whereas, around 682 patients died in
India owing to Oxygen shortage in hospitals. The implementation of Healthcare
asset management systems ensure efficient usage of scares resource and prevent
wastages. This allows hospitals to service more patients with limited
resources. For instance, RTLS makes it possible to know the exact locations
of critical medical equipment used for treating Covid-19 in hospitals.
Healthcare Asset Management Market Challenges
The High Cost of Healthcare Asset Management System is Anticipated to Hamper Market Growth.
The implementation of a Healthcare Asset Management system throughout a healthcare facility is highly expensive. This is worsened owing to the pandemic which has led to hospitals diverting funds from other departments for the treatment of Covid-19 patients. The low priority currently given to this sector may lead to postponement or cancellation of planned orders for RFID or RTLS systems. According to the American Hospitals Association (AHA), the pandemic resulted in a loss of $202.6 billion between March and June 2020 alone. The average cost of treating a single Covid-19 patient with ventilator support can exceed $88,000. This makes Healthcare Asset Management Systems highly unaffordable as they may cost at least $2 million for implementation in a large hospital.
Limitations of Asset Management Systems are Projected to Limit Growth Opportunities.
The various limitations of the asset
management systems are predicted to challenge demand generation. For instance, the failure
rate of RTLS can be up to 40% owing to factors such as connectivity issues and
Wi-Fi disruption. Active RFID systems are often unable to accurately identify
if the equipment is on one side of a wall or another owing to the fact that RF
signals can penetrate walls and floors. Moreover, Infra-Red (IR) technology
only functions if there is a clear line of sight between the tag and the
sensor. This means that the signal can be blocked by furniture, clothing, and
other common items. Furthermore, Wi-Fi
RTLS systems have a highly limited range as they can only accurately determine the position of assets up to around 30 feet.
Healthcare Asset Management Market Industry Outlook:
Product launches, mergers and acquisitions, joint
ventures, and geographical expansions are key strategies adopted by players in
the Healthcare Asset Management Market. The top 10 companies of the industry
include:
- Tyco International Ltd
- IBM Corporation
- Zebra technologies corporation
- Infor
- Motorola Solutions Inc
- GE healthcare
- CenTrak
- Siemens healthcare
- Elpas
- AiRISTA Flow
Partnerships/Product Launches:
- In October 2020, Sandoz Inc announced the launch of its first three injectable medicines with RFID tags in the US through its collaboration with Kit Check, Inc. The product aims to increase efficiency, reduce instances of drug expiry, lower risks, and provide real-time inventory reports.
- In July 2020, Advantech announced the launch of its RTLS system for the healthcare sector. It is a complete hardware and software solution that consists of an edge server, location sensors, tags, dashboards, medical-grade tablets, and RTLS management software. The Bluetooth tags of the system provide an accuracy of up to 1.5 meters.