Published Date : 05 Apr 2023
The track and trace solutions market has a current business value of about USD 4.9 billion in 2022 and it is expected to grow 19.42% globally to around USD 28.9 billion by 2032.
The track and trace solutions market growth is driven by an increase in the use of sophisticated track and trace technologies, supportive government action, and strict rules and standards for the application of serialization.
Track-and-trace solution marketplaces, contract manufacturing businesses, contract packaging companies, and their supply chain partners help pharmaceutical and biotechnology companies adapt to market changes and comply with rules on drug traceability with integrated serialization solutions. Pharmaceutical and medical device companies are expected to use track-and-trace solutions much more frequently.
Around one out of every 10 medical products sold in low- and middle-income nations are mediocre or fake, according to a 2019 World Health Organization article. As a result, track-and-trace solutions are being adopted by drug producers and other end users more frequently.
Track and Trace Solutions Market Report Scope:
|Market Value in 2032||USD 28.9 Billion|
|North America Market Share||37%|
|Software Market Share||52%|
|Barcode Market Share||81%|
|Serialization Solutions Market Share||56%|
|Forecast Period||2023 to 2032|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America and Middle East & Africa|
North America accounted for the largest market share in 2022 due to strict controls over serialization and aggregation requirements as well as state-of-the-art healthcare infrastructure. Throughout the forecast period, it is expected that this dominance will continue. The FDA advises pharmaceutical and other healthcare industries to use automatic identification technology such as barcoding and RFID. Also, the market is anticipated to be driven by the U.S.'s adoption of this technology and its highly established healthcare infrastructure.
On the other hand, the Asia Pacific market for track and trace solutions has enormous potential and is anticipated to grow at the quickest rate throughout the forecast period due to the implementation of rules to improve the quality and dependability of pharmaceutical products, the development of the pharmaceutical and biotechnology market, and increased pressure to reduce the high prevalence of counterfeit drugs in developing Asian nations like China and India.
Manufacturers are paying more attention to brand protection
Companies that produce medications, medical devices, cosmetics, and pharmaceutical packaging face an increasing threat from counterfeiting. The use of fake medicines and other items has expanded globally as a result of expanding global trade and lax restrictions. Branded and generic products that include inaccurate or fraudulent ingredients, no active ingredients, an erroneous amount of active substances, or fake packaging are considered counterfeit.
The producer expends a lot of effort on building a brand, and counterfeiters leverage this brand identification to market their products. The revenue of the original producer suffers greatly, and the brand's reputation is also damaged. Therefore, it is essential to deploy track and trace technology like barcodes and RFID to stop counterfeiting. To improve product traceability and security, many firms implement a variety of track and trace technologies throughout their supply chain.
High implementation costs for aggregation and serialization
Cost and implementation delay are the market's main worries, according to the European Federation of Pharmaceutical Industries and Associations (EFPIA). The serialization and aggregation of individual objects require significant capital expenditures from the pharmaceutical industry, the medical device industry, contract manufacturers, and the packaging industry. Small and medium-sized firms face a greater burden than larger medicine companies, which may have the financial capacity to handle sterilization's financial commitments. A lot of pharmaceutical companies are aware of the expenses associated with integrating new technologies and procedures.
Technologies like anti-theft and authentication, which are frequently used to protect trademarks, are made to safeguard individual products rather than the entire supply chain. At any step in the supply chain, there is a high possibility that phony items will enter. To detect huge product items and prevent counterfeiting, a system with autonomous and non-line-of-sight capabilities is required.
The demand for technologies with modular designs that cater to corporate demands has grown in recent years. For instance, RFID-based track-and-trace devices keep a digital record of the transactions involving products along the supply chain. The use of this strategy has been proven to be quite successful in thwarting supply chain intrusion, theft, and fraud.
High installation and implementation costs for track and trace technologies
An important barrier to the market's growth is the high cost of establishing and implementing track-and-trace technology. Numerous pharmaceutical companies employ conventional system designs, which require substantial system customization to implement these solutions. As track-and-trace technologies require considerable capital expenditure, many organizations opt not to use them. The implementation of these solutions also results in higher capital costs, disturbed workflow, and more complex manufacturing processes, all of which limit market expansion.
Recent developments, trade laws, import-export evaluation, production analysis, supply chain optimization, market share, the impact of domestic and localized market players, assessments of possibilities in terms of raising revenue pockets, modifications to market laws, strategic market expansion analysis, market size, category market growths, application areas and dominance, product approvals, and product launches are all included in this track and trace solutions market research.
Major Key Players:
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