According to a new report published by Allied Market Research, titled, “Track and Trace Solutions Market, by Product Type, Technology, Application, and End User: Opportunity Analysis and Industry Forecast, 2020–2027,” the global track and trace solutions market was valued at $2.0 billion in 2019, and is projected to reach $6.1 billion by 2027, registering a CAGR of 14.6% from 2020 to 2027.
Track and trace solution companies assist pharmaceutical and biotechnology companies, contract manufacturing organizations along with contract packaging organizations and their supply chain partners to adapt to market changes and comply with regulations on drug traceability with the integrated serialization solutions.
The key factors that drive the growth of the global track and trace solutions market include rise in adoption of advanced track and trace solutions, favorable government intervention, and stringent regulations and criteria for the implementation of serialization.
The global track and trace solutions market is segmented into product type, technology, application, end user, and region. On the basis of product type, the market is bifurcated into hardware systems and software solutions. The hardware systems market is sub-segmented into printing & marking solutions, monitoring & verification solutions, labeling solutions, and others. The software solutions market is further classified into plant manager software, line controller software, bundle tracking software, and others. The hardware systems segment is anticipated to dominate the market during the forecast period. The printing & marking solutions segment fostered the growth of the market among hardware systems in 2019 as this system assists in the production and supply chain to ensure product quality and authenticity.
By technology, the market is classified into barcode and radio-frequency identification (RFID). Barcoding is a common and cost-effective method implemented to facilitate item and case-level tracing, thereby assisting in the dominance of the barcode segment in 2019.
By application, the market is bifurcated into serialization solutions and aggregation solutions. The serialization solutions segment has been further divided into bottle serialization, label serialization, carton serialization, and data matrix serialization.
The aggregation solutions segment is sub-segmented into bundle aggregation, case aggregation, and pallet aggregation. The serialization solutions segment held the dominant revenue share in the track and trace solutions market as of 2019 due to the increasing focus of regulatory bodies on implementation of serialization.
On the basis of end user, the market is classified into pharmaceutical & biotechnology companies, medical device companies, and others. The pharmaceutical & biotechnology companies segment held the largest revenue share in 2019 and is expected to maintain its status quo over the study period. This is due to surge in number of counterfeit drugs, especially in the developing countries coupled with the presence of stringent regulations for the pharmaceutical and biotechnology industry.
Region wise, the track and trace solutions market analyzed across North America, Europe, Asia-Pacific, and LAMEA. The North America market had witnessed supremacy in terms of revenue among other regions in 2019 due to the presence of highly regulated serialization and aggregation standards, advanced healthcare infrastructure as well as the existence of key market participants, namely, METTLER TOLEDO International Inc., TraceLink Inc., Zebra Technologies Corporation, and OPTEL GROUP.
On the other hand, the market in Asia-Pacific is expected to register the highest CAGR in terms of revenue during the forecast period owing to implementation of regulations to enhance the quality and reliability of pharmaceutical drugs, development of the pharmaceutical and biotechnology market, and increase in pressure to curtail high incidence of counterfeit drugs in the developing Asian countries such as India and China.
The market players are adopting growth strategies such as product launches, mergers and acquisitions (M&As), product developments, and partnerships and collaborations in order to gain competitive advantage.
The key players operating in the market are METTLER TOLEDO International Inc., Axway Software SA, TraceLink Inc., OPTEL GROUP, Adents International, Siemens AG, Seidenader Vision GmbH, Zebra Technologies Corporation, Robert Bosch GmbH, and Uhlmann Group. For instance, in May 2019, OPTEL GROUP collaborated with Nelipak Healthcare Packaging to improve the seal inspection technology and expand its market penetration by speeding up logistics activities.
Key Findings Of The Study
- On the basis of product type, the hardware systems segment was the highest contributor to the track and trace solutions market in 2019
- On the basis of technology, the RFID segment is anticipated to register the fastest track and trace solutions market growth over the forecast period
- On the basis of application, the serialization solutions segment spearheaded the market among other applications
- On the basis of end user, the pharmaceutical & biotechnology companies segment dominated the track and trace solutions market in 2019, and is expected to continue this trend during forecast period with a CAGR of 15.1%
- On the basis of region, North America accounted for the largest revenue share in 2019; while Asia-Pacific is anticipated to grow at the highest CAGR of 16.2% during the forecast period