U.S. Healthcare Assets Management Market Size, Share & Covid-19 Impact Analysis, By Product (Radiofrequency Identification (RFID), Real-time Location Systems (RTLS), and Others), By Application (Staff Management, Equipment Tracking, Patient Tracking, and Supply Chain Management), and By End-User (Hospitals, Laboratories, and Others), 2020-2027

The U.S. healthcare assets management market size was USD 5.24 billion in 2019. The impact of COVID-19 has been unprecedented and staggering, with the healthcare assets management expected to witness a positive demand shock across the U.S. amid the pandemic. Based on our analysis, the U.S. healthcare assets management market will exhibit a stellar growth of 44.8% in 2020. The market is projected to grow from USD 7.59 billion in 2020 to USD 50.00 billion in 2027 at a CAGR of 30.9% in the 2020-2027 period.

Growing pressure to improve the management of the existing medical workforce has compelled healthcare organizations in the U.S. to adopt effective asset management technologies and solutions, which is one of the primary factors contributing to this market’s growth. It is very troublesome for the healthcare industry to efficiently manage scores of expensive assets and huge amounts of consumable inventory. Healthcare is experiencing an influx of new asset classes every day, and a growing variety of them. For instance, it is estimated by the World Health Organization (WHO) that between 10% and 20% of a typical hospital’s mobile assets are lost or stolen during their productive life. This accounts for an average cost of nearly USD 3,000 per year. Moreover, the increasing incidence of drug counterfeiting is another significant factor stimulating the demand for asset management solutions across the U.S. These factors are, thus, strongly influencing healthcare organizations to adopt asset management solutions, thereby propelling market growth.  

Increase in Healthcare Assets Management Solution Sales amid COVID-19 to Boost Revenue

The coronavirus pandemic is having an unprecedented impact on the global society and economy, as well as on the healthcare assets management sector. In early 2020, the coronavirus disease (COVID-19) emerged and spread by community transmission. Effective contact tracing of potentially exposed healthcare workers is crucial for the prevention and control of infectious disease outbreaks in any healthcare setting. It is even more difficult when hospitals lack sophisticated tracking technology. A barcode-based system, for instance, lets a hospital know the number of beds, but it might not tell the staff where exactly those beds are positioned on the premises. Hence, there is a rising demand for healthcare assets management systems during the course of the pandemic. For instance, to handle the pandemic situation more effectively, in April 2020, SwipeSense, a healthcare IT company, distributed free asset-tracking tags to its hospital partners. These tags help track the usage of vital equipment and medications too so that the hospitals are able to avoid any shortage of equipment supply. Moreover, these tags help staff know which equipment has come into contact with COVID-infected patients.

LATEST TRENDS

Incorporation of Artificial Intelligence and Machine Learning to Boost Product Demand

Machine learning (ML) and artificial intelligence (AI) are the latest technological innovations that are attracting global attention. The incorporation of AI in asset management software reflects the latest trend of technology adoption as enhanced computing power enables computers to sort through large data sets and crunch numbers to identify patterns and outliers. For example, in November 2019, Deep 6 AI, the leading provider of clinical trials acceleration software, announced the raising of USD 17 million in Series A funding led by Point72 Ventures. The investment is aimed at building an AI-driven platform to optimize and accelerate asset management for healthcare providers.

DRIVING FACTORS

Increasing Hospital Admissions in the U.S. to Drive the Demand for Patient Tracking Asset Management Software

Healthcare asset management solutions are highly significant for the accurate tracking of patients and beds. Most of the time, patients can get skipped and jumbled over by accident. This can lead to confusion between the hospital staff and the patients they treat. The increasing number of hospital admissions in the U.S. is one of the major factors driving the demand for asset management solutions in such medical settings. For instance, the American Hospital Association (AHA) conducts an annual survey of hospitals in the U.S. As per the AHA Annual Survey (FY 2018) report, the total number of patient admissions in all U.S. hospitals was around 36 million for the year 2018. Hence, the above-mentioned factors will strongly drive market growth. 

RESTRAINING FACTORS

High Costs Associated with the Initial Implementation of Software to Hamper Growth

One of the major restraints related to healthcare asset management in hospital settings is that not all hospitals are equipped with the infrastructure for wireless technology. The money and time involved in shifting from wired to wireless technology are very high and prevent many hospitals from adopting it. Hence, hospital managers and CIOs are facing an investment dilemma. For instance, according to various vendors, the incorporation of radio frequency identification (RFID) at a medium-sized hospital costs US$ 200,000 to US$ 600,000 for a facility-wide implementation. This factor will considerably limit the healthcare asset management market growth across the U.S.

SEGMENTATION

By Product Analysis

Radiofrequency Identification Segment to Dominate the Market Driven by Technological Advancements

Based on product type, the market is categorized into radio frequency identification (RFID), real-time location systems (RTLS), and others.  

Among these, the RFID segment held the major market share in 2019. The high growth of the segment is majorly attributable to the technological advancements pertaining to RFID solutions. For instance, in October 2019, Jadak - A Novanta Company announced the availability of novel firmware upgrades to its ThingMagic RAIN/UHF RFID modules. Such upgrades in technology are helping in boosting product demand.

The real-time location systems (RTLS) segment held the second-largest share in 2019. Positive growth of the segment is mainly attributable to the increasing demand for real-time location in healthcare organizations, especially during the COVID-19 pandemic.

By Application Analysis

Equipment Tracking Segment to Hold the Largest Market Share

In terms of application, the equipment tracking segment held the leading market share in 2019. The promising growth of the segment is a result of the surge in the adoption of asset management software across the pharmaceutical industry in the U.S. This is due to the fact that various healthcare organizations reported flaws in equipment tracking, which led to a monetary loss of millions of dollars.

The staff management segment is poised to experience positive growth over the forecast period owing to the increasing demand for real-time location software in healthcare settings for enhanced monitoring of hospital staff for efficient care to be delivered to the patients.

By End-User Analysis

Hospitals Segment to Hold the Largest Market Share

In terms of end-user, the hospitals segment held the leading market share in 2019. Issues pertaining to inadequate asset tracking are predominantly seen in hospitals, which have led to equipment getting lost or stolen. Hence, it is important to implement asset tracking solutions across hospital facilities with the aim to enhance their workflow and improve the management of assets. The aforementioned factors have considerably increased the adoption of such solutions in U.S. hospitals, thereby propelling segmental growth.

The laboratories segment is poised to experience considerable growth in the foreseeable future. The notable growth of the segment is linked to the increasing focus of manufacturers to expand their product portfolio in laboratory-based asset tracking solutions in the U.S. For instance, in February 2018, Agilent Technologies Inc. announced an extension to its digital lab capabilities with the Agilent CrossLab Asset Monitoring, an advanced service for laboratories seeking increased visibility and control over operations through assets management solutions.

COUNTRY INSIGHTS

The market size in the U.S. stood at USD 5.24 billion in 2019. The high growth rate of the market is mainly owing to the fact that the demand for effective management of healthcare assets and workforce has compelled healthcare organizations to adopt advanced asset management solutions and technologies. For example, as per Louisiana State University, USD 6 million worth of state-owned hospital equipment was found missing in the Louisiana State University (LSU) hospital. Wastage of time in searching for lost assets and poor asset management practices can lead to serious consequences, which are likely to boost demand for healthcare assets management equipment in the U.S.  

KEY INDUSTRY PLAYERS

Tech Giants to Dominate the U.S. Market Backed by Robust Product Offerings

The U.S. healthcare assets management market is reasonably consolidated in nature, with major players, such as IBM, GE Healthcare, and Zebra Technologies Corporation, accounting for the major portion in the industry. The market is also witnessing the entry of several startups. Their primary strategies include new product launches, increased focus on research and development with an aim to introduce technologically advanced products, and strategic partnerships with major organizations.

IBM is one of the dominant players operating in the healthcare asset management industry. This is attributable to the fact that its software, the IBM Maximo Application Suite, is the most extensively used asset tracking system across the U.S. Moreover, in September 2019, the company’s IBM Maximo enterprise asset management (EAM) software attained Impact Level 2 of the Federal Risk and Authorization Management Program (FedRAMP) Authorization.

LIST OF KEY MARKET PLAYERS PROFILED IN THIS REPORT:

• IBM (Armonk, U.S.)


• GE Healthcare (Chicago, U.S)


• Zebra Technologies Corporation (Illinois, U.S)


• CenTrak Inc. (Pennsylvania, U.S.)


• Jadak - A Novanta Company (New York, U.S.)


• AiRISTA Flow, Inc. (Virginia, U.S.)


• Sonitor Technologies (Connecticut, U.S.)


• Stanley Healthcare (New Hampshire, U.S)


• Other Prominent Players

KEY INDUSTRY DEVELOPMENTS:

• June 2021 – Midmark RTLS, a provider of RTLS technology announced the launch of cloud-based, Bluetooth Low Energy (BLE) asset tracking solution with an objective to improve patient care and reduce expenditure of the technology.


• February 2021 – Accruent announced the launch of Connectiv 8.2 healthcare Computerized Maintenance Management System (CMMS) solution with a focus to optimize hospital operations.


• November 2020 - Fresenius Kabi announced the incorporation of RFID labels on the packaging of the medications with an aim to replace manual method that is time consuming and have chances of errors.


• July 2020 – Advantech announced the launch of real-time location systems (RTLS) solution-ready package with an aim to track the real-time location of the medical equipment, staff and patients.

REPORT COVERAGE

The U.S. healthcare assets management market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, products, applications, and end-users. Besides this, it offers insights into the current market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation