RFID spending for pharma to grow 34% annually through 2015, GBI Research says
Biggest barriers to RFID adoption include cost and uncertainty of ROI
New research by business intelligence firm GBI Research (New York) estimates that Radio Frequency Identification (RFID) spending for pharma supply chain will grow 34% annually through 2015. In 2008, the industry was valued at $112 million; by 2015, it’s expected to grow to $884 million.
The growth, GBI says, will be fueled by mandates for e-pedigree implementation—in particular, retailer requirements and a California Board of Pharmacy e-pedigree initiative that was postponed in late 2008 but is expected to require implementation in 2015.
The report also found that current market share is 60% hardware, such as tags, readers and label printers, and 40% software and services, including installation, integration, training, maintenance and IT support.
The report, “Radio Frequency Identification (RFID) in Pharmaceuticals—Supply Chain Security Concerns Provide Impetus for RFID Adoption,” offers analysis on the barriers to RFID adoption, namely its prohibitive cost and a lack of information on ROI.
“There are currently only a few services to accurately estimate the return on investment that RFID can offer,” GBI says. “The uncertainty about ROI and the necessity of high cost implementation prevents companies and supply chain participants from adopting RFID solutions.”
