The global track and trace solutions market was valued at USD 2.51 billion in 2020 and is expected to grow at a CAGR of 18.9% during the forecast period. The favorable government intervention, strict regulations, and requirements for serialization implementation increase producers' attention on brand safety increase in the number of packaging-related product recall, and progress in the medical device industry are some of the key factors that drive the growth of track and trace solutions market.
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Pharmaceutical firms around the world are anticipating regulations on anti-counterfeiting and medication traceability. Several governments around the globe have chosen to implement serialization regulations. The regulatory enforcement for serialization is increasing, which seems to be a significant focus area for pharmaceutical producers and supply chain partners.
Governments across the world are implementing strict rules for the serialization and aggregation of drug products. For instance, in Australia, new guidelines were issued by Therapeutic Goods Administration (TGA) on product coding in 2019 to counter the menace of counterfeit drugs in the country.
Nearly 75% of the pharmaceutical supply chain has been covered under the track and trace regulation for serialization. More than 40 countries in the world have introduced some regulations, which is expected to give a significant boost to the growth of the global market for track and trace solutions.
The global market will be driven by increased adoption in the pharmaceutical industry for product I.D. verification, packaging, and logistics management. Stringent regulations by governments across the globe for the serialization of drugs by pharmaceutical companies and technological advancement in track and tracing systems are expected to further fuel the track and trace solutions market's growth during the forecast period.
The emergence of COVID-19 is expected to be a favorable factor for the growth of the global market. The pandemic has given rise to the circulation of counterfeit drug products. There is a huge surge in counterfeit drug products related to COVID-19, especially in low- and middle-income countries in the world.
According to WHO, 10% of medical products sold in developing and underdeveloped countries are counterfeit drugs that are substandard in nature. Even developed markets such as the U.S. are facing a similar problem.
In the U.S., over 3.2 million antiviral products, testing kits, and other COVID-19 related products were seized, in 2020, as they are either mislabeled or prohibited for sale in the country. Hence there will be an increased focus to adopt track and trace solutions for COVID-19 related products.
The emergence of new technology such as RFID is expected to increase track and trace systems adoption. Radio-frequency identification (RFID) is expected to enhance security and product handling and reduce time and labor in product handling.
Many new developments are taking place in the market owing to its increased demand. For instance, RFID-tag-equipped labels prefilled syringes and vials were introduced by Fresenius Kabi that will improve the workflow of inventory management in the operating rooms. Zebra Technologies Corp launched zebra MotionWorks Proximity in June 2020. The system will be useful in alerting and contact trace as the system is incorporated with proximity sensing.
The market is primarily segmented on the basis of product, technology, application, end-use, and region.
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The software segment dominated the market for track and trace solutions and generated the highest revenue in 2020, owing to the increasing acceptance in healthcare companies such as biopharmaceutical, pharmaceutical, and medical device companies.
These software solutions are being used to handle production facilities, case and bundle monitoring, product lines, and warehousing and shipping in real-time. The companies producing this software are investing in research and development for new product innovation, which is expected to drive market growth for track and trace solutions.
The hardware solutions market segment of the track and trace solutions industry is expected to have a high growth rate during the forecast period. The market’s largest revenue share was held by the printing and marking solutions segment. This system is critical in the manufacturing and supply chain to ensure product consistency and integrity.
Rising serialization demand and the need to attain regulatory compliance are driving the market growth. Furthermore, advancements in coding technologies like laser marking systems, Thermal Transfer Overprinting (TTO), and Large Character Marking (LCM) are expected to drive market growth for track and trace solutions.
The barcodes segment generated the highest revenue in 2020. The 2D barcode is the largest category of barcode technology and is predicted to remain the same during the analysis duration. The surge of 2D barcodes in pharma and biopharma product packaging significantly contributes to the increased market share. Furthermore, the greater data storage ability of 2D barcodes over linear barcodes, and their increased popularity in the market for track and trace solutions, drive the demand for 2D barcode-based solutions.
The introduction of barcode technology in the healthcare industry was prompted by government legislation and a rise in the sale of counterfeit drugs. The Directorate General of Foreign Trade announced the implementation of such a system for the pharmaceutical products exported from India. As a result, the market for barcode-based technology of track and trace solutions has increased and is anticipated to stay strong over the forecast period.
The serialization solutions segment dominated the market and generated the highest revenue in 2020, owing to the growing attention of regulatory authorities on the incorporation of track and trace solutions. The federal government, state governments, and the healthcare sector are all taking steps to reduce product trafficking and drug counterfeiting.
Furthermore, manufacturers' increased emphasis on brand protection and patient safety is anticipated to accelerate the market segment's growth in track and trace solutions during the forecast period.
Manufacturers are facing difficulties as serialization requirements become more complex and diverse, particularly in the pharmaceutical industry. Manufacturers find it challenging to incorporate serialization in track and trace due to the differences in regulations and standards across nations and the management of large, consolidated datasets. The rising rate of counterfeiting of pharmaceutical products and other health products fuels the acceptance of serialization in the supply chain.
North America is expected to be the biggest region for track and trace solutions during the forecast period due to the increased adoption of advanced results such as RFID and stringent regulatory guidelines in countries like the U.S.
The FDA recalled the CapsoCam Plus video capsule system due to the device mislabeling. Such stringent measures have resulted in the increased use of track and trace solutions in the region. In addition, the region's demand is projected to be driven by the presence of highly established healthcare infrastructure and acceptance of this technology in the U.S.
The Asia Pacific track and trace solutions industry is expected to be the fastest-growing region for the global market due to increased awareness about counterfeit drugs in developing countries such as India. Countries such as China and India have many pharmaceutical industries that will help adopt the technology in the region.
The key companies in the market for track and trace solutions are introducing new products frequently to meet the needs of the pharmaceutical industry. The companies are also investing heavily to develop new advanced solutions. They are looking to penetrate the developing markets with huge revenue potential in the coming years as many emerging economies have implemented strict guidelines on medical products.
Some of the major players operating in the market for track and trace solutions include OPTEL GROUP, Mettler-Toledo International Inc., Systech International Inc., TraceLink Inc., Antares Vision, SAP, Xyntek Inc., SEA Vision Srl, Syntegon, Körber Medipak Systems AG, Siemens AG, Uhlmann Group, JEKSON VISION, Videojet Technologies, Inc., Zebra Technologies Corporation, Axway Inc., ACG Worldwide, Laetus GmbH, and WIPOTEC-OCS.
Market size value in 2020
USD 2.51 billion
Revenue forecast in 2028
USD 9.33 billion
18.9% from 2021 - 2028
2016 - 2019
2021 - 2028
Revenue in USD and CAGR from 2021 to 2028
By Product, By Technology, By Application, By End-use, By Region
North America Europe Asia Pacific Latin America; Middle East & Africa
OPTEL GROUP (Canada), Mettler-Toledo International Inc. (US), Systech International Inc. (US), TraceLink Inc. (US), Antares Vision (Italy), SAP (US), Xyntek Inc. (US), SEA Vision Srl (Italy), Syntegon (Germany), Körber Medipak Systems AG (Switzerland), Siemens AG (Germany), Uhlmann Group (Germany), JEKSON VISION (India), Videojet Technologies, Inc. (US), Zebra Technologies Corporation (US), Axway Inc. (US), ACG Worldwide (India), Laetus GmbH (Germany), and WIPOTEC-OCS (Germany).