The global track & trace solutions market was valued at USD 1,784 million in 2018. Rise in counterfeit pharmaceuticals and stringent government regulations surrounding pharma safety and traceability are the key factors driving the global track and trace solutions market.
The healthcare industry is continuously looking for better ways of monitoring their products, not only in the supply-chain but also when the prescription is at home in the medicine cabinet. Track and trace solutions are becoming popular especially in the pharmaceutical and medical device industry due to stringent government requirements and constraints as they allow tracking all the relevant movements. Similarly, these solutions are of utmost importance in logistics processes, automation and optimization in the complete value chain. Tracking and tracing solutions safeguard better transparency in the transport cycle.
The global track & trace solutions market is categorized based on application, product, technology and end user. Region wise, North America was the largest market in 2018, valued at USD 700 million; however, Asia Pacific is expected to be the fastest growing region by 2025, with a CAGR of over 16%.
Key players serving the global track & trace solutions market include TraceLink Inc., Mettler-Toledo International, Inc., Axway, OPTEL GROUP, Adents, Seidenader Maschinenbau GmbH, RFXCEL CORP., Vitronic Machine Vision, Ltd., PharmaSecure Inc. and Laetus GmbH among others.
Key segments of the global track & trace solutions market
Application Overview, 2015-2025 (USD Million)
Product Overview, 2015-2025 (USD Million)
Technology Overview, 2015-2025 (USD Million)
End User Overview, 2015-2025 (USD Million)
• Pharma & Biopharma Industries
• Medical Device Industries
Regional Overview, 2015-2025 (USD Million)
• North America
• United Kingdom
• Rest of Europe
• Asia Pacific
• Rest of Asia Pacific
• Latin America
• Rest of Latin America
• Middle East & Africa
Reasons for the study
• Changing government regulations regarding pharma and medical device safety and traceability
• Rise in counterfeit healthcare products
• Adoption of aggregation in various countries
What does the report include?
• The study on the global track & trace solutions market includes analysis of qualitative market indicators such as drivers, restraints, challenges and opportunities
• Additionally, the market competition has been evaluated using the Porter’s five forces analysis
• The study covers qualitative and quantitative analysis of the market segmented on the basis of applications, product, technology and end user. Moreover, the study provides similar information for the key geographies.
• Actual market sizes and forecasts have been provided for all the considered segments
• The study includes the profiles of key players in the market with a significant global and/or regional presence
Who should buy this report?
• The report on the global track & trace solutions market is suitable for all the players across the value chain including raw material suppliers, track & trace solutions providers, pharmaceutical and medical device manufacturers, distributors, suppliers and retailers
• Venture capitalists and investors looking for more information on the future outlook of the global track & trace solutions market
• Consultants, analysts, researchers, and academicians looking for insights shaping the global track & trace solutions market
The global track and trace solutions market is highly regulated in developed regions; yet there are various factors hindering their growth in less developed regions. The biggest barrier to effectively employ track and trace technology is that many organizations think that their present infrastructures and systems used for enterprise resource planning or warehouse management can acclimatize to address the intricate requirements of track and trace solutions. Firms that try to foster track and trace with their outdated systems end up doing high degree of system customization, with lack of assurance that these customizations will fully align with the company’s drug traceability needs. However, these customizations produce substantial cost surges, time delays, and the necessity for even further customization as regulations change over time; ending up into a costly, inconclusive cycle. The sooner the companies realize that their outdated systems and information architectures are incompetent of supporting the kind of unit-level tracking and prompt information sharing through huge networks of participants, the more quickly they can move past the implementation obstacles and install an effective track and trace solution that reduces the cost and threat of not meeting compliance deadlines on time.
The other vital concern is that serialization systems are costly. Purchasing and installing a site system, along with the requisite hardware costs ranging from USD 300,000 to USD 500,000. However, a full line system ranges in between USD 400,000 and USD 1.3 million/line, which for a company that runs numerous plants, amounts to a substantial capital outlay. Owing to these reasons, the market is expected to heavily rely on skilful CMOs to help meet the new regulatory requirements.
On the other hand, in addition to cost, the companies should also be cautious to manage OEM capacity, packaging line accessibility for operation, and data system incorporations. It is also suggested that track and trace has also been facing lack of skilled labour, where particularly small pharmaceutical companies are still undergoing difficulties in developing their operation models, which will more effectively exchange across their organization and with the companions. Moreover, downtime on the lines is also a major hurdle that the users face, which needs to be planned in detail.
The global track & trace solutions market has been segmented based on applications, product, technology and end user. Based on technology, the market is categorized into barcode and RFID scanners. In 2018, barcode scanners held substantial market share accounting for more than 75%.
Barcoding is currently used at various levels in pharmaceutical (and other) supply chains, mainly to check when batches arrive at each stage. An advantage is that barcodes can be printed directly onto packaging (and hence are cheap to use), but because of this, barcodes are easily forgeable. The 2D barcoding, a more sophisticated version than the normal barcodes, is capable of holding many times more data, but operating in the same way. In retail, barcodes are employed throughout the supply chain up to the point of sale, with the data then being fed back into the ERP (enterprise and resource planning) system to help with stock control. Some suppliers and distributors use barcodes on pallets and boxes in their warehouses. In hospitals, barcodes are employed in supply chain management, inventory tracking, blood transfusion verification and asset management. However, many point-of-care applications in administration and remote patient monitoring have had lower adoption levels to date.
Barcodes have huge adoption rate and will remain the primary means of automatic data capture because they are a ubiquitous and inexpensive technology. The GS1 standards used by many countries also makes use of barcodes. In addition, many regulatory authorities worldwide explicitly mandate serialization encoded into 2D Data Matrix barcodes at the unit level.
The global track and trace solutions market is cumulative to North America, Europe, Asia Pacific, Latin America and Middle East & Africa. North America dominated the global track & trace solutions market in 2018, however Asia Pacific is expected to grow at a highest pace through 2025.
According to the incident database of the Pharmaceutical Security Institute, countries in Asia report the largest share of counterfeits detected globally. This is likely not only due to lax enforcement, but also the scale of production of counterfeits emanating from China and countries of South and Southeast Asia. Other major producers include Nigeria, Russia, Mexico, Brazil and Latin America. Grey and substandard pharmaceutical product manufactures in the United States also propose a serious challenge to both public health and national security. Depending on their point of origin, these products can pass through multiple links on the illicit supply chain prior to acquisition by the consumer. While the lion’s share of WHO defined counterfeits appears to be produced overseas, a growing share of counterfeits, substandards, and grey pharmaceuticals are being packaged from within Western markets, including the United States and Canada. In turn, their profits can support all manner of illegal activity, from illicit drug and human trafficking to weapons proliferation to terrorism.