Surgical Instrument Tracking System Market Assessment, By Component [Software, Hardware, Service], By Technology [Barcode, Radio Frequency Identification], By End-user [Hospitals, Ambulatory Surgical Centers, Others], By Region, Opportunities and Forecast

Surgical Instrument Tracking System Market Assessment, By Component [Software, Hardware, Service], By Technology [Barcode, Radio Frequency Identification], By End-user [Hospitals, Ambulatory Surgical Centers, Others], By Region, Opportunities and Forecast, 2017-2031F

Global surgical instrument tracking system market is projected to witness a CAGR of 13.73% during the forecast period 2024-2031, growing from USD 275.34 million in 2023 to USD 770.4 million in 2031. Growth in the global surgical instrument tracking system market is being driven by various factors, such as increasing number of surgeries, technological advancements, and growth in surgical industry. Increased investments and extensive research and development activities in this market, along with favorable regulatory frameworks further assist in driving the market growth. Increasing investments by companies to develop novel technologies, presence of several top players, and collaborative ventures, such as mergers and acquisitions, partnerships, and distribution agreements, are further accelerating the growth of the global surgical instrument tracking system market.

The global surgical instrument tracking system market is undergoing significant growth primarily due to an increasing number of surgeries worldwide, which enhances the need for efficient and smooth operations during surgical procedures. The surgical instrument tracking system assists in improving accountability and visibility of surgical equipment to maintain inventory of the surgical tools required to perform surgeries. Significant growth in the medical and surgical industry, along with technological advancements in this industry, is further propelling the market growth. There have been tremendous efforts from governments across the globe to provide funds for research and development activities to develop advanced systems that can assist in meeting the growing requirements of timely delivery of surgeries.

In June 2023, TEDCO, a Maryland-based Company, focused on bringing development in the surgical systems. It announced a seed funds investment of USD 5,00,000 to Galen Robotics, Inc. The aim of this investment was to bring advancements and innovation in surgical assistive technologies, such as the development of advanced surgical instrument tracking systems, for efficient operational activities during surgeries.

Increasing Volume of Surgical Procedures

There has been a surge in demand for surgical instrument tracking systems due to the rising number of surgeries worldwide. As there is an increase in the geriatric population, the chances of developing chronic diseases and other health conditions, such as diabetes, cardiovascular diseases, and trauma related injuries, have also increased. According to Global survey 2022, more than 14.9 million surgical procedures were performed in the year 2022 and this number is expected to grow significantly in the next few years as well, due to factors such as increase in aging population, growing burden of diseases, and expansion of healthcare facilities. Surgical instrument tracking systems are responsible for timely execution of surgeries by performing several functions, such as maintaining records, availability of surgical tools, their inventory, as well as their sterilization right before surgeries.

Technological Advancements

Surgical instrument tracking systems have huge potential in automating the surgical instrument care process by keeping records of all the necessary information of surgical instruments such as inventory, safety, maintenance, and availability. Due to these potential benefits, there has been increased research and development activities in this market to develop efficient platforms to smoothen the surgical procedures and minimize human error. Many key players are involved in developing innovative and advanced surgical instrument tracking systems such as AI-based software. In January 2024, Censis Technologies, a global leader in surgical asset management technology, announced the launch of its latest system “CensisAI2 Instrument Recovery” system. This is an AI-based interactive data platform that assists in several surgical instrument tracking processes, such as sterilization of surgical instruments, reducing instrumentation costs, improving surgical efficiency, and automating interdepartmental collaboration activities.

Growth in Demand for Software Services for Surgical Instruments

Among the component segment, software holds a significant market share in the global surgical instrument tracking system market. Increasing adoption of digital solutions improves data management, inventory management, and reduces the burden of healthcare staff. Due to these benefits, several leading players are launching software based surgical instrument tracking systems. In January 2023, SAVI (Semi Automated Vision Inspection) was developed in partnership with Google Cloud and Johnson & Johnson MedTech to revolutionize the process of identifying and organizing surgical instruments, ultimately reducing the number of postponed surgeries, alleviating the burden on surgery schedules, and enhancing patient safety. By harnessing the power of Google Cloud's machine learning tools, SAVI streamlines the examination and monitoring of surgical instruments through automation.

Hospitals Holds Dominant Share in the Global Surgical Instrument Tracking System Market

Among the end-user segment, hospitals hold a significant market share in the global surgical instrument tracking system market. These systems are highly advanced and consist of expensive products, due to which these are mainly available in multi-specialty hospitals compared to other healthcare settings. With growing healthcare expenditure, increased healthcare infrastructure, and increasing number of surgeries, there is a growing need to establish hospital facilities. Hence, governments are increasing the number of hospitals with high-tech and advanced platforms such as surgical robotics, EHR implementation, cybersecurity, and surgical instrument tracking system facilities.

North America Holds Significant Market Share

North America holds the highest share in the global surgical instrument tracking system market. United States is globally well-known for its robust healthcare infrastructure and world class healthcare facilities, which enhance application of hi-tech surgical care facilities, such as surgical instrument tracking system. There is a huge market for these high-end products in this region, due to the increasing number of surgeries performed every year. For instance, according to the world’s largest medical association, “American Academy of Orthopaedic Surgeons (AAOS)”, by the year 2050, the demand for orthopaedic surgeon is going to increase tremendously due to an increase in number of orthopaedic surgeries such as total joint arthroplasty. It also states that, to meet this growing demand, it will be crucial to increase the number of surgeons by 10% every five years. As the ratio of surgeons with respect to number of surgeries is very low, the demand for efficient platforms, such as surgical instrument tracking systems, to maintain records, inventory of surgical tools, and smooth and timely delivery of surgeries is expected to increase, ultimately reducing the burden on orthopaedic surgeons.

Future Market Scenario (2024 – 2031F)

The global surgical instrument tracking system market is expected to grow in the future primarily due to the increasing number of surgeries worldwide and technological advancements, such as the integration of AI, which has enhanced manufacturer’s focus in developing efficient system that can provide accurate information regarding surgical instruments’ availability in healthcare settings. Due to these increased investments by manufacturers, this industry is witnessing significant growth. Surgical instrument tracking systems play an essential role in timely execution of successful surgeries by assisting in maintaining records of available surgical tools, their sterilization, and economical use of surgical instruments during surgeries. To assist in this objective, governments across the world promote policies and programs to enhance surgical facilities that further accelerate growth in the global surgical instrument tracking system market. In May 2022, the Global Surgery Foundation announced the “SURGfund initiative” to ensure sustainable funding for providing surgical care systems, such as the development of platforms that can ease the surgical procedures in LMIC (low middle income countries). These funds would be responsible for saving lives and preventing disabilities, as well as leading to strong and improved healthcare systems.
0In the surgical instrument tracking system market, several medical device manufacturers and surgical companies are frequently establishing strategic partnerships and distribution agreements, which play a crucial role in propelling the global surgical instrument tracking system market's expansion. These partnerships enable companies to gain informative insights regarding the market, access each other’s resources, markets, and technologies, and invest in research and development activities to bring efficient surgical platforms in the market. Distribution agreements enable companies to broaden their market presence at a global level. These collaborative initiatives promote innovation, expertise product development, and contribute to the enduring and tremendous growth of the global market. For instance, in August 2023, STERIS plc., which is a leading healthcare company that provides quality patient care, announced successful acquisition of the surgical instrumentation and sterilization container assets from Becton, Dickinson and Company. This venture aims to expand the company’s product portfolio of surgical care segment and bring innovation and advancement in this industry, which will assist in further elevating the global surgical instrument tracking system market.