The global market for RFID in pharmaceuticals was valued at USD 4.7 billion in 2022 and is projected to reach USD 8.7 billion by 2030, expanding at a compound annual growth rate (CAGR) of 7.8% from 2023 to 2030. One of the primary growth drivers is the enforcement of stringent regulatory guidelines designed to secure drug supply chains, especially amid rising concerns over counterfeit medications.

There is also a notable increase in demand for efficient supply chain management solutions within the pharmaceutical sector. The deployment of advanced Radio-frequency Identification (RFID) technologies, along with the growing integration of RFID tags for drug authentication, real-time tracking, and traceability, are expected to propel market expansion. The surge in counterfeit drug incidents remains a key factor accelerating RFID adoption across the industry.

The COVID-19 pandemic significantly intensified the issue of counterfeit medical products. For example, according to the Authentication Solution Providers' Association (ASPA), India recorded a 47% increase in cases of substandard and falsified (SF) medical products between 2020 and 2021. A large share of these involved pandemic-related supplies such as COVID-19 test kits, medicines, vaccines, antibiotics, sanitizers, and face masks. Additionally, the World Health Organization (WHO) reported the presence of counterfeit Covishield vaccines in Uganda and India during 2021.

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Further evidence comes from a study published by SAGE Journals, which revealed that the Zambia Medicines Regulatory Authority (ZAMRA) issued 119 alerts between 2018 and 2021, of which 83 (69.7%) were product recalls. The recall rate surged in 2020 (44.6%) and 2021 (22.9%), primarily concerning substandard antiseptics and disinfectants—products that saw elevated demand during the pandemic.

RFID technologies offer robust solutions to monitor, trace, and authenticate pharmaceutical products across the supply chain. They also help reduce the total cost of business (TCOB) during product recalls. As a result, their role in product recall management is expected to significantly contribute to market growth in the coming years.

Key Market Trends & Insights

• By Component:
  In 2022, RFID tags dominated the market with a share of over 40%, driven by increased awareness of their benefits. These tags are widely used across various touchpoints for tracking drugs, vaccines, and other medical items.
• By Type:
  The chipped RFID segment led the market in 2022, accounting for over 64%. Chipped technology allows the embedding of RFID chips into pharmaceutical products, providing a unique identifier and enabling end-to-end supply chain authentication.
• By Application:
  The drug tracking and tracing segment captured the largest market share, exceeding 50% in 2022. This is attributed to the widespread use of RFID in combating counterfeit drugs and enhancing supply chain transparency.

Market Size & Forecast

• 2022 Market Value: USD 4.7 Billion
• 2030 Market Forecast: USD 8.7 Billion
• Growth Rate (CAGR): 7.8% (2023–2030)
• Leading Region (2024): North America
• Fastest Growing Region: Asia Pacific

Competitive Landscape

The RFID in pharmaceuticals market is moderately competitive, with key players focusing on tailored solutions, strategic partnerships, acquisitions, and capacity expansions. For example, in February 2023, Avery Dennison Smartrac announced a USD 100 million investment to expand RFID tag manufacturing in the Americas, with a new facility in Mexico.

Major players in the market include:

• Zebra Technologies Corp.
• CCL Healthcare
• Fresenius Kabi AG
• Avery Dennison Corporation
• Impinj Inc.
• Bluesight
• Terso Solutions Inc.
• GAO RFID Group
• Tageos
• Alien Technology, LLC.

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Conclusion

The global RFID in pharmaceuticals market is on a robust growth trajectory, driven by increased regulatory pressures, rising counterfeit drug incidents, and the growing need for secure and efficient supply chain systems. The adoption of RFID technology offers a critical advantage in drug authentication, tracking, and recall management, especially highlighted during the COVID-19 pandemic. With North America leading the market and Asia Pacific emerging as the fastest-growing region, key industry players are intensifying investments and partnerships to leverage this growth opportunity through innovation and expansion.