Effective asset management is essential in the healthcare industry to organize, purchase, use, distribute, dispose of, and maintain tangible assets used in medical environments. It also helps keep track of inventory by providing a registry of assets to healthcare institutions.
The Global Hospital Asset Management Market was valued at US$ 11.6 Billion in 2022 and is anticipated to reach US$ 55.0 Billion by the end of 2030 with a CAGR of 21.5% from 2023 to 2030 (forecast period).
Hospital asset management encompasses the effective and cost-efficient oversight and upkeep of tangible resources, tools, and apparatus. These include items like pumps, freezers, pipes, wheelchairs, condensers, generators, compressors, mobile beds, and HVAC systems. This practice enhances communication among staff, maximizes asset utilization, optimizes equipment tracking, streamlines inventory management, and ultimately leads to savings in both time and money. Such a system finds widespread application in hospitals and healthcare establishments across the globe, facilitating the seamless functioning of supplies and equipment while elevating patient care.
The hospital asset management system relies on computerized software tools to monitor and safeguard medical equipment. As security concerns escalate, technological solutions are gaining greater traction in the market. Hospitals gain a competitive edge by ensuring the safety and well-illumination of their premises, thereby ensuring compliance with legal stipulations. Healthcare institutions on a global scale are adopting efficient asset management solutions and technologies to enhance staff management, guarantee the safety and well-being of medical personnel, and in turn, reduce recurring expenses and capital asset investments.
Increasing Technological Advancements Pertaining to Asset Management Solutions to Boost Hospital Asset Management Market
The demand for asset management solutions is experiencing rapid growth within medical institutions, propelled by the strides made in technology. This trend is poised to drive substantial market expansion in the forthcoming years. The advent of healthcare information technology has brought about a notable modernization of asset management practices in medical facilities. Traditional approaches, like ink and paper documentation, have given way to more effective wireless connectivity alternatives. This shift empowers healthcare establishments to oversee their assets, patients, and medical personnel in real-time. The wireless framework is versatile, scalable, and mobile, rendering it a well-suited remedy for healthcare settings. It furnishes insights into the availability, whereabouts, usage, and sterilization status of assets, facilitating swift asset identification and classification for healthcare institutions. These technological advancements are anticipated to be the driving force behind market growth from 2023 to 2030.
North America to Spearhead the Hospital Asset Management Market
The North American hospital asset management market is currently undergoing a rapid expansion driven by several key factors. Firstly, the region’s robust clinical and laboratory research infrastructure plays a pivotal role in facilitating the advancement of hospital asset management practices. Secondly, the increased adoption of cost-effective medical systems is contributing significantly to the growth of this market. Thirdly, both governmental bodies and private enterprises in North America are making substantial investments in healthcare infrastructure and research and development. This commitment to innovation is fostering the creation of novel products, equipment, and devices designed for effective hospital asset management.
Furthermore, notable industrial giants such as IBM Corporation, GE Healthcare, Tyco International, and Infor have established a strong presence in the region. This presence translates to advantages for customers, including lowered costs and a broader range of choices. Lastly, the escalating corporate and governmental financial support for the implementation of asset management systems is serving as a powerful catalyst for regional growth. For instance, initiatives like the Cooperative Agreement Notice of Funding Opportunity (NOFO) by the Office of the National Coordinator for Health Information Technology (ONC) are driving the development of requisite technical standards, thereby enhancing the collaborative functionality of hospital IT platforms.
Companies operating within the hospital asset management market have implemented a variety of growth strategies to augment their market share and bolster revenue. Noteworthy competitors in this space encompass AiRISTA Flow, Inc., CenTrak Inc., Novanta Inc., Sonitor Technologies, STANLEY Healthcare, VERSUS TECHNOLOGIES, Zebra Technologies Corporation, General Electric Company, IBM, Siemens Healthcare GmbH, Aeroscout Industrial, Awarepoint Corporation, Radianse, Midmark Corporation, McKesson Corporation, Cerner Corporation, Motorola Solutions, Inc., Infor, Inc., Advantech, Kit Check Inc, Sandoz, Inc., CGI Federal Inc., Sunflower Systems, and more.
Partnerships and Collaborations: Businesses are forging partnerships and collaborations to pool their expertise and resources, thereby accelerating the development of innovative asset management products. These collaborative efforts enable companies to harness their respective strengths for more streamlined product development. An instance is the collaboration unveiled in February 2018 between STANLEY Healthcare and Sonitor Technologies, where the latter’s cutting-edge Sense High-Definition Ultrasound interior tracking technology was integrated into the former’s AeroScout Real-Time Location System (RTLS) platform.
Product Development and Launches: Robust investments in research and development are driving the creation of novel products and enhancements to existing offerings. New product launches expand companies’ portfolios and confer a competitive edge. An illustrative case is Versus Technology’s introduction of a pioneering wrist-worn RTLS badge for patient movement in March 2018, a move that bolstered the company’s leadership position within the hospital asset management sector.
Expansion: Companies are broadening their geographical footprint by venturing into new markets and establishing a foothold in regions exhibiting substantial growth potential. This expansion strategy taps into untapped customer bases and fuels revenue growth. IBM, for instance, expanded its reach in June 2017 with the opening of four new cloud data centers, located in London, California, and Sydney.
Acquisitions and Mergers: Strategic acquisitions and mergers allow companies to access fresh technologies, expertise, and product pipelines. These actions enhance capabilities, widen product offerings, and amplify market share. Notably, Sunflower Systems, a significant provider of asset management software products and services, was acquired by CGI Federal Inc. in September 2019, propelling the business’s revenue growth in the industry.
In summary, these growth strategies are pivotal in enabling companies to enhance their market presence, introduce innovative products, and drive revenue expansion within the hospital asset management domain.