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The track and trace solutions market size is forecast to increase by USD 1.89 billion, at a CAGR of 12.4% between 2023 and 2028. The market is experiencing significant growth due to the increasing importance of product safety, traceability, and authenticity. E-commerce sales continue to rise, driving the need for advanced tracking systems to ensure the integrity of goods during distribution. Product coding and serialization mandates, such as those in the offshore pharmaceutical industry, are also fueling market expansion. New product launches by companies are addressing data security and privacy concerns, ensuring software solutions meet the highest standards. As regulatory compliance becomes increasingly stringent, businesses must adapt to remain competitive and protect their brand reputation.
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The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The software segment is estimated to witness significant growth during the forecast period. The track and trace solutions market plays a significant role in the medical device and pharmaceutical industries by implementing serialization practices to prevent packaging-related product recalls, combat counterfeit drugs, and ensure effective supply chain management.
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The software segment was valued at USD 1.19 billion in 2018. The software segment is a crucial component of this market, offering solutions that merge data from various sources to monitor product journeys and manage recalls efficiently. Key components of this segment include track and trace software, data analytics tools, and compliance management software. These tools increase transparency, accountability, and efficiency by providing a comprehensive view of product movements throughout the supply chain, enabling companies to make informed decisions and maintain regulatory compliance.
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North America is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In North America, the market is experiencing significant growth due to technological innovations and rigorous regulatory requirements within the healthcare, pharmaceutical, and logistics sectors. The United States and Canada are leading markets, with a focus on ensuring drug safety and combating substandard and counterfeit medications. In the pharmaceutical industry, companies are mandated to implement effective track and trace systems to adhere to regulations such as the Drug Supply Chain Security Act (DSCSA) in the U.S. This legislation requires manufacturers, repackagers, and wholesale distributors to provide comprehensive tracking information for prescription drugs. To meet these requirements, advanced technologies like RFID, barcoding, and Internet of Things (IoT) devices are being adopted, enabling real-time monitoring and traceability throughout the supply chain. This not only ensures regulatory compliance but also enhances overall efficiency and security within the pharmaceutical and healthcare industries.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ACG - The company provides track and trace solutions featuring advanced serialization, aggregation, and anti-counterfeiting solutions, ensuring the monitoring and protection of pharmaceutical products across the entire supply chain.
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Market structure |
Fragmented |
YoY growth 2023-2024 |
12.3 |
The pharmaceutical and medical device industries are subject to stringent regulations to ensure product safety and quality. Serialization practices, such as the use of unique identifying barcodes, have become essential to combat issues like packaging-related product recalls, counterfeit drugs, and substandard medications. Two-dimensional (2D) barcode technology and Radio Frequency Identification (RFID) are the foundation of advanced track & trace solutions. These technologies enable real-time monitoring of the supply chain, allowing for efficient and accurate product tracking. In the context of medical devices and pharmaceuticals, RFID and 2D barcodes serve as critical components in the fight against drug counterfeiting. Biopharmaceutical companies and suppliers can leverage these technologies to maintain an unbroken chain of custody, ensuring the authenticity and integrity of their products. The Internet of Things (IoT) plays a pivotal role in enhancing the capabilities of track & trace solutions. IoT-enabled devices provide real-time data on product location, temperature, and other critical conditions, ensuring optimal storage and handling conditions. Supply chain management in the medical device and pharmaceutical industries is a complex process.
Track & trace solutions, with their ability to provide end-to-end visibility, can significantly improve the efficiency and effectiveness of these processes. By implementing software solutions and hardware systems, companies can streamline their operations, reduce errors, and minimize the risk of product recalls. Consumer packaged goods industries also benefit from track & trace solutions. These solutions enable companies to monitor their supply chains, ensuring the timely delivery of products and maintaining customer satisfaction. By implementing track & trace systems, companies can quickly identify and address any issues, reducing the impact on their brand reputation and bottom line. In conclusion, advanced track & trace solutions, which include RFID, 2D barcode technology, and IoT, are essential for maintaining the integrity and security of the supply chain in the medical device and pharmaceutical industries. These solutions enable real-time monitoring, ensuring product authenticity, improving supply chain efficiency, and minimizing the risk of product recalls. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Stringent laws to ensure product safety, traceability, and authenticity is notably driving market growth. In the global market for track and trace solutions, regulatory compliance plays a crucial role, particularly in sectors with rigorous regulations such as pharmaceuticals, food and beverage, and cosmetics. Governments and regulatory bodies worldwide are strengthening laws to ensure product safety, traceability, and authenticity for consumers. In the pharmaceutical industry, the Drug Supply Chain Security Act (DSCSA) in the United States mandates that manufacturers, wholesalers, and pharmacies implement serialization and tracking systems.
This legislation requires each drug package to be assigned a unique identifier, enabling comprehensive tracking throughout the supply chain. Serialization and aggregation are key elements of these systems, often utilizing 2D barcode technology. Software solutions and hardware systems are employed to facilitate this process, ensuring regulatory compliance and protecting consumers from counterfeit drugs and potential health risks. Thus, such factors are driving the growth of the market during the forecast period.
New product launches by companies is the key trend in the market. In the global market, new product introductions are a notable trend. This growth is fueled by the rising demand for advanced technologies that improve supply chain transparency and regulatory compliance. companies are consistently launching innovative offerings, integrating features like serialization, real-time monitoring, and data analysis to cater to diverse industries' needs. For example, on December 15, 2023, ACG, a renowned track and trace solutions provider, unveiled its new cloud-based Verification Router Service (VRS).
Designed to meet the upcoming Drug Supply Chain Security Act (DSCSA) requirements, this service streamlines the verification process for pharmaceutical products using the National Drug Code (NDC) system. By utilizing cutting-edge technologies, companies ensure efficient and accurate tracking and tracing of products across various sectors, including medical devices, consumer goods, and food & beverages. Thus, such trends will shape the growth of the market during the forecast period.
Data security and privacy concerns with software solutions is the major challenge that affects the growth of the market. In the realm of business operations, data security and privacy are paramount concerns within the track and trace solutions market. These systems handle confidential information throughout the supply chain, increasing the risk of data breaches. A prominent instance of this occurred on August 27, 2024, when JAS Worldwide, a leading international cargo freight forwarder, suffered a ransomware attack.
The breach resulted in considerable technical disruptions, affecting service delivery, customer service, billing, payment processes, and data integrations with clients and companies. Such incidents not only raise doubts about a company's data security protocols but also expose vulnerabilities within supply chain management systems. Ensuring data protection is crucial for businesses in e-commerce, offshore pharmaceuticals, and other industries subject to product coding and track & trace solution mandates, such as serialization. Data breaches can lead to substantial financial losses and damage to a company's reputation. Hence, the above factors will impede the growth of the market during the forecast period
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
The market is witnessing significant growth due to the increasing need for enhanced supply chain management in the medical device and pharmaceutical industries. Serialization practices are becoming a mandate to prevent packaging related product recalls, counterfeit drugs, and substandard medications. These solutions employ advanced hardware technologies like radiofrequency identification (RFID) and the Internet of Things (IoT) to enable real-time tracking and monitoring of medical devices and pharmaceuticals. Unique identifying barcodes, such as 2D barcode technology, are integral to serialization solutions and aggregation solutions. These technologies ensure continuous data flow and facilitate accurate tracking of products throughout the supply chain.
The Falsified Medicines Directive (FMD) is driving the adoption of track and trace solutions in Europe. Software solutions and hardware systems are essential components of track and trace systems. They provide advanced analytics and enable the monitoring of supply chain activities, ensuring product authenticity and safety. The market for track and trace solutions is not limited to pharmaceuticals alone; it also caters to consumer packaged goods, e-commerce, food & beverages, and offshore pharmaceutical industries. The implementation of national drug codes further enhances the effectiveness of track and trace systems. Overall, the market for track and trace solutions is expected to grow significantly due to the increasing focus on supply chain monitoring and the need to combat drug counterfeiting and substandard medications.
Market Scope |
|
Report Coverage |
Details |
Page number |
217 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.4% |
Market Growth 2024-2028 |
USD 1.89 billion |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 38% |
Key countries |
US, UK, China, Germany, France, Japan, The Netherlands, Italy, India, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ACG, Accenture PLC, Antares Vision S.p.A, Avery Dennison Corp., Axway Software SA, Honeywell International Inc., Jekson Vision, Laetus GmbH, Marchesini Group Spa, Mettler Toledo International Inc., Optel Group, Oracle Corp., Robert Bosch GmbH, SAP SE, SATO Holdings Corp., Sea Vision, Siemens AG, Syntegon Technology GmbH, TraceLink Inc., Uhlmann Pac Systeme GmbH and Co. KGA, and Zebra Technologies Corp. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, fast-growing and slow-growing segment analysis, AI impact on market trends, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the market forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Technavio Analysis
3 Market Landscape
4 Market Sizing
5 Historic Market Size
6 Qualitative Analysis
7 Five Forces Analysis
8 Market Segmentation by Component
9 Market Segmentation by End-user
10 Customer Landscape
11 Geographic Landscape
12 Drivers, Challenges, and Opportunity/Restraints
13 Competitive Landscape
14 Competitive Analysis
15 Appendix
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