Radio Frequency Identification (RFID) in Pharmaceuticals - Supply Chain Security Concerns Provide Impetus for RFID Adoption

Summaryservices include installation, integration, training,
The leading business intelligence provider, hasmaintenance and IT support.
released its latest research, "Radio FrequencyGBI Research's analysis suggests that the RFID
Identification (RFID) in Pharmaceuticals - Supply Chaintechnology is in the early stages of adoption within
Security Concerns Provides Impetus for RFIDthe pharmaceutical industry. The market for RFID in
Adoption." It provides key data and analysis of thepharmaceuticals is hampered by low adoption rates
major factors affecting the market for RFID in thedue to apprehensions over high investments and the
pharmaceuticals industry. This pharmaceutical andlack of a clear business case. However, solutions for
healthcare report also analyzes the strengths,the pharmaceutical industry are evolving to address
weaknesses, opportunities and threats in the RFIDthe concerns responsible for the slow growth. RFID
market within the pharmaceutical industry and thevendors are offering pilot kits for the pharmaceutical
key market drivers and barriers to the adoption ofindustry to test and evaluate RFID technology so
RFID in the industry.that clients can understand the technology's costs
The report is based on proprietary databases,and benefits. RFID adoption rate will be low initially
primary and secondary research, and in-house analysisdue to budget restrictions in the pharmaceutical
by GBI Research's team of industry experts.industry as a result of the global recession and
The global market for Radio Frequency Identificationsubsequent cost cutting measures. However, the
(RFID) products and services in the pharmaceuticaladoption rate is expected to increase rapidly due to
industry was valued at $112m in 2008 and ismandates from retailers like Wal-Mart and from
expected to grow to $884m in 2015 at a CAGR ofregulatory authorities like the California Board of
34% over the same period. The market for RFIDPharmacy for the implementation of e-Pedigree in the
hardware is the largest at the initial stages ofsupply chain. In essence, RFID is the most promising
adoption in the pharmaceutical industry. Servicesolution for the elimination of counterfeits in the
providers are gaining market share by integratingpharmaceutical supply chain. However, realization of
their services with one-stop solutions. The share ofthe technology's potential benefits is possible only if
hardware in the RFID market is estimated to beapprehensions about the initial costs of
60% in 2008 and includes tags, readers and labelimplementation, return-on-investment and a weak
printers. The share of software and services in thebusiness case are addressed.
RFID market is estimated to be 40% in 2008. RFID