The market for Real-Time Location Systems (RTLS) in the healthcare sector in the United States is projected to grow significantly, reaching approximately US$ 2,346.82 million by 2027, up from US$ 574.76 million in 2019. This growth represents a compound annual growth rate (CAGR) of 19.2% from 2020 to 2027.
Several factors are driving the expansion of the US RTLS for healthcare market, including the numerous benefits that RTLS offers within healthcare settings and the increasing acceptance of these systems. However, concerns regarding data security and privacy remain significant obstacles to market growth.
Healthcare facilities, such as hospitals and clinics, provide a wide range of services within a single location, including diagnostic rooms, patient wards, operating theaters, imaging centers, and more. Consequently, managing patient records over extended periods can be quite complex. The implementation of RTLS in healthcare has alleviated many of these operational challenges, leading to a rise in the adoption of RTLS technologies nationwide. Numerous healthcare centers have integrated RTLS solutions, and this trend is anticipated to continue. According to the '2022 Hospital Vision Study' by Zebra Technologies Inc., the percentage of hospitals utilizing RTLS for patient tracking is expected to increase to 96% in 2022, up from 58% in 2017. Similarly, the use of RTLS for tracking specimens is projected to rise to 98% from 47%, while medical device tracking is expected to grow to 98% from 44%. Equipment tracking will see an increase to 96% from 41%, and staff record tracking is anticipated to rise from 40% to 97%.
Additionally, sectors such as pharmaceuticals, biotechnology, research institutions, contract research organizations, and manufacturing entities are also contributing to the growing adoption of RTLS. These organizations require meticulous record-keeping for their operations and workforce management. They are subject to audits by regulatory authorities, including the Centers for Disease Control and Prevention (CDC), the Food and Drug Administration (FDA), state regulatory bodies, the National Institute of Standards and Technology (NIST), and the US Pharmacopoeia (USP).
The COVID-19 pandemic has significantly impacted the socio-economic landscape of many countries, including the United States. While the pandemic led to widespread job losses, with the unemployment rate peaking at approximately 14.7% in mid-April 2020 according to the Commonwealth Fund, it also created unique opportunities for certain sectors, including RTLS in healthcare. The pandemic prompted many states to implement lockdowns, which resulted in the closure of numerous businesses and a slowdown in economic activity. However, the demand for RTLS solutions surged during this period, primarily due to the need for social distancing measures. RTLS technology facilitated the monitoring of environmental conditions such as temperature and air quality, thereby enhancing compliance with hand hygiene protocols. Furthermore, RTLS systems have proven invaluable in scheduling, managing, and overseeing workflows, which is expected to lead to an increase in RTLS installations within healthcare facilities.
From a technological perspective, the US RTLS for healthcare market is categorized into several segments, including RFID, Wi-Fi, Ultra-Wideband (UWB), Bluetooth, GPS, and others. In 2019, the RFID segment dominated the market and is anticipated to maintain its leading position throughout the forecast period. Additionally, UWB technology is expected to experience rapid growth in the coming years.
When considering facility types, the US RTLS for healthcare market is divided into hospitals and healthcare facilities, as well as senior living environments. The hospitals and healthcare facilities segment accounted for the largest market share in 2019 and is projected to exhibit the highest CAGR during the forecast period.
In terms of applications, the market is segmented into inventory and asset tracking, patient and staff tracking, access control and security, environmental monitoring, supply chain management, operational automation, and others. In 2019, inventory and asset tracking held the largest share of the market and is expected to continue to do so in the future.
Key sources consulted in the preparation of this report on the US RTLS for healthcare market include the Centers for Disease Control and Prevention (CDC), the National Institute of Standards and Technology (NIST), the Food and Drug Administration (FDA), and the World Health Organization (WHO).