The global track and trace solutions market was valued at $2,034.9 million in 2019, and is projected to reach $6,120.8 million by 2027, registering a CAGR of 14.6% from 2020 to 2027.
Track and trace (T&T) solutions assist healthcare companies or organizations to effectively manage their supply chain and mitigate the risks associated with counterfeit drugs. It is the process that determines current and past locations of a drug.
Some of the factors affecting the market growth include rise in adoption of advanced track and trace solutions, favorable government intervention, and stringent regulations and criteria for the implementation of serialization. Pharmaceutical companies are expecting legislation on anti-counterfeiting & traceability of the drugs globally. Several governments across the countries opt for the execution of serialization regulations. There is a rise in the regulatory compliance for serialization which is becoming a focus area for pharmaceutical manufacturers and supply chain partners. Efforts are aimed at addressing drug counterfeits, difficulty in tracking returns or recalls, and improving supply chain visibility. For instance, according to a data published by Makro Care (a clinical and regulatory services organization), more than 40 countries and above 75% of global pharmaceutical drugs supply was covered by one or other serialization track and trace regulations in 2018.
On the contrary, high cost is required for implementing product identification setups (ground infrastructure). In developing countries such as China and India, government fails to provide ground infrastructure, such as satellite for real time tracking solutions for companies. This high cost setups is sometime not feasible for low cost products, which is anticipated to restrain the track and trace solutions market growth during the forecast period.
Depending on product type, the track and trace solutions market is segmented into hardware systems and software solutions. The hardware systems market is further categorized 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 software solutions segment is expected to register the fastest CAGR during the forecast period due to its mounting adoption in biotechnology, pharmaceutical, and medical device companies to continuously manage manufacturing facilities, product lines, case, and bundle tracking, and warehousing and shipping.
On the basis of technology, the track and trace solutions market is classified into barcode and radio-frequency identification (RFID). The RFID segment is anticipated to display considerable market outlook over the next few years owing to rise in application in the pharmaceutical & biotechnology companies and hospitals. These applications for inventory control, equipment tracking, personnel tracking, prevention of distribution of counterfeit drugs and medical devices, and out-of-bed (OOB) detection and fall detection.
On the basis of application, the track and trace solutions market is categorized 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. Aggregation enables healthcare companies and organizations to trace their products from the production process, according to the parent-child principle, which is nurturing the market growth of the aggregation solutions segment.
By end user, the global track and trace solutions market is classified into pharmaceutical & biotechnology companies, medical device companies, and others. The pharmaceutical & biotechnology companies segment witnessed the supremacy in 2019 and is expected to maintain its status quo over the study period. This is due to surge in number of counterfeit drugs, particularly in the developing countries along with the presence of stringent regulations for the pharmaceutical and biotechnology companies.
By Product Type
The Hardware Systems segment is expected to spearhead the market throughout the forecast period.
Region wise, the track and trace solutions market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. The market in Asia-Pacific is expected to register lucrative growth over 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 curb high incidence of counterfeit drugs in the developing Asian countries such as China and India.
By Region
North America segment held a substantial revenue share in 2019 and Asia-Pacific will represent the fastest market growth over the forecast period.
Government authorities who are engaged in regulating and controlling counterfeit activities are now providing legislative support to companies dealing with counterfeiting activities. Developed countries have established several regulatory policies for controlling counterfeit practices. For example, in Germany, rules and regulations are providing authority to manufacturers/distributors/affected parties, to take counter action against counterfeiters. These favorable government interventions will assist in the market growth over the forecast period.
The track and trace solutions market is highly competitive in nature, as major players in this vertical are concentrating on growth strategies, namely, product launches, mergers and acquisitions (M&As), product developments, and partnerships and collaborations to achieve a substantial in the competitive market. The key players operating in the global track and trace solutions market include 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.
Key Benefits For Stakeholders
- The study provides an in-depth analysis of the global track and trace solutions market size along with the current trends and future estimations to elucidate the imminent investment pockets
- It offers track and trace solutions market analysis from 2020 to 2027, which is expected to enable the stakeholders to capitalize on the prevailing opportunities in the market
- A comprehensive analysis on region assists to understand the regional market and facilitate the strategic business planning and determine prevailing opportunities
- The profiles and growth strategies of the key players are thoroughly analyzed to understand the competitive outlook of the global track and trace solutions market growth
Track and Trace Solutions Market Report Highlights
| Aspects | Details |
 By Product Type |
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 By Technology |
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 By Application |
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 By End User |
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 By Region |
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 By List of key players profiled in the report |
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Analyst Review
The track and trace solutions market is expected to witness lucrative growth in the near future. The adoption of track and trace solutions in healthcare industry is anticipated to witness significant growth due to the presence of stringent regulations & standards for the implementation of serialization, growth in the number of packaging-related product recalls, and increase in focus of manufacturers on brand protection. Moreover, the track and trace solutions market has gained immense interest of the healthcare industry over the years due to its major role among pharmaceutical and biotechnology companies, medical device companies, contract manufacturing organizations along with contract packaging organizations and their supply chain partners.
As per the analysis in the report, the market in Asia-Pacific is projected to register highest growth rate due 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.
On the contrary, high cost is required for implementing product identification setups (ground infrastructure) which is anticipated to hinder the market growth during the forecast period. This high cost setups is sometimes not feasible for low cost products. In developing countries such as India and China, government fails to provide ground infrastructure (satellite) for real time tracking solutions for companies. High cost of radio-frequency identification (RFID) tags is expected to fall as the branded products categories are gaining importance for their authentication.
Stringent regulations and criteria for the implementation of serialization will drive the market over the near future according to the KOLs.
The market has drawn the interest of the healthcare industry, owing to rising demand for integrated fully automated serialization and aggregation systems.
The total value of track and trace solutions market was $2,034.9 million in 2019.
The forecast period in the report is from 2020-2027.
The market value of opthalmic devices market in 2027 was $6,120.8 million.
The base year calculated in the report is 2019.
In the context of the pharmaceutical supply chain, track and trace refers to the process of determining a drug's current and past locations.
Track and trace (T&T) solutions assist healthcare companies or organizations to effectively manage their supply chain and mitigate the risks associated with counterfeit drugs.
By product type, the hardware sytems segment holds the maximum market share.
The market in Asia-Pacific is expected to register lucrative CAGR of 16.2% over 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 China and India.
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