Track and Trace Solutions Market Assessment, By Product [Software, Hardware], By Technology [Linear Barcode, 2D Barcode, RFID], By Application [Serialization Solutions, Aggregation Solutions], By End-user [Pharmaceutical and Biotechnology Companies, Medic

Track and Trace Solutions Market Assessment, By Product [Software, Hardware], By Technology [Linear Barcode, 2D Barcode, RFID], By Application [Serialization Solutions, Aggregation Solutions], By End-user [Pharmaceutical and Biotechnology Companies, Medical Device Companies, Food and Beverage Companies, Consumer Packaged Goods and Durables, Automobiles, Retail and E-Commerce, Electrical and Electronics, Cosmetic Companies, Others], By Region, Opportunities and Forecast, 2017-2031F

Global track and trace solutions market is projected to witness a CAGR of 16.17% during the forecast period 2024-2031F, growing from USD 5.87 billion in 2023 to USD 19.47 billion in 2031F. The market growth is supported by the expansion of the pharmaceutical sector, the growing threat of fake products and counterfeits, and novel product launches.

The expansion of pharmaceutical and medical device companies is one of the major global trends in tracking and tracing solutions. Utilizing these solutions aids in effective inventory management and helps healthcare professionals provide high-quality patient care by ensuring that stock of essential medical equipment, supplies, and pharmaceuticals is maintained. Other benefits of the track and trace solutions include reduced risk of recalls because of aggregation and serialization as part of the end-to-end traceability. They are also helpful in tracking the transportation and handling data, including humidity and temperature, for medical devices so that in case of mishandling of the devices, the factor responsible for mishandling can be determined in a timely manner.

The rising adoption of track and trace solutions by various pharmaceutical and therapeutics companies across the globe is another major factor boosting the market's growth. In January 2024, MeCure Industries Plc, one of Nigeria's leading human therapeutics companies, launched its smartphone track and trace solution to elevate patient safety standards and ensure product safety. The launch of the solution is in response to the rising threat of counterfeit and fake drugs and is expected to play a crucial role in protecting the healthcare supply chain from infiltration. The comprehensive transparency provided by the tool is also expected to ensure that the trajectory of the drug can be monitored at every stage, increasing the supply chain efficiency.

Increasing Production of Novel Products and Technologies Boost Market Growth

The rising introduction of new products by various companies can be attributed to the growing emphasis on research and development activities and increasing investments in novel product development. These efforts are expected to support the development of track-and-trace solutions with advanced features, unparalleled performance, and a sleek design. For instance, in July 2023, ID Tech Solutions Pvt. Ltd. announced the launch of their IDT 87 IN RFID Integrated Reader. This device is expected to set new benchmarks for track and trace solutions and is suitable for applications across various industries such as retail, manufacturing, and transportation. The development of such technologically advanced solutions is also expected to enhance operational efficiency and aid businesses in curbing expenses and address challenges in a time-efficient manner.

Rising Requirement from the Pharmaceutical Sector to Bolster Market Demand

The rapid expansion of the pharmaceutical sector is bolstering the demand for track and trace solutions from pharma companies, providing lucrative growth opportunities to the market. According to Invest India's estimates, India's pharmaceutical industry is expected to reach USD 130 billion by 2030. Such growths are bolstering the requirement for track and trace solutions as they aid in combating counterfeiting and minimizing the spread of fake medicines. Several countries in the European Union, the Russian Federation, and the United States of America have included traceability and serialization in their pharmaceutical product safety regulations. Additionally, with the correct implementation of track and trace solutions, drugs can be easily tracked and traced throughout the supply chain upon recall or return, while aiding in navigating various supply chain roadblocks. These solutions also ensure that quality officers are able to identify disruptions and mistakes in time, resulting in an efficient resolution. The collection and assessment of data in real-time further aids manufacturers in solving and identifying the main cause of problems, ensuring that the repetition of the errors can be avoided, allowing pharmaceutical companies to save both time and money.

North America Accounts for a Significant Share of the Market

The market growth in North America can be attributed to the strong presence of several key market players, high acceptance of technologically advanced solutions, and rising investments towards enhancing the healthcare sector. Track and trace solutions aid in accurate inventory management, directly impacting the safety of the patients and ensuring that different medical tools and medications are available to healthcare professionals when required, decreasing the risk of errors that occur because of incorrect administration of products or their unavailability.

Additionally, the rapid growth of the pharmaceutical sector in North America is bolstering the region's market demand. According to the European Federation of Pharmaceutical Industries and Associations estimates, North America accounted for 52.3% of global pharmaceutical sales in 2022. This growth is propelling pharmaceutical companies' requirement for track and trace solutions as these solutions aid in combating pharmaceutical counterfeiting and boosting consumer trust in their products. These solutions prevent counterfeit products from entering the market and help simplify the recall process for defective products.

Consumer Packaged Goods and Durables Witness Significant Growth

The consumer-packaged goods and durables segment is expected to witness significant growth in the coming years. This growth can be attributed to the rapid expansion of the fast-moving consumer goods sector in various regions across the globe. According to estimates from the India Brand Equity Foundation (IBEF), the fast-moving consumer goods market in India achieved a value of USD 121.8 billion in 2023. This growth is expected to boost the demand for track and trace solutions as they aid in improving inventory management, enabling effective cross-selling, curbing counterfeiting, ensuring regulatory compliance, and verifying proof of product origin. The utilization of advanced track and trace solutions allows businesses to ensure that high-quality products are delivered to customers in a time-efficient manner by providing them with the ability to compare, capture, and track incoming product data against various databases. This, in turn, prevents wastage of inventory, allowing businesses to avoid substantial damage.

Future Market Scenario (2024-2031F)

According to the global track and trace solutions market analysis, the market is anticipated to witness significant growth in the coming years. The integration of blockchain technology and the Internet of Things (IoT) with track and trace solutions is expected to optimize supply chain operations and enhance their efficiency while providing a secure and decentralized way of sharing and storing data. The utilization of machine learning and artificial intelligence with track and trace solutions is expected to provide insights into supply chain operations and aid in analyzing large volumes of data. These technologies can also be used for identifying trends and patterns, detecting potential issues and anomalies, and optimizing processes by enhancing forecasting accuracy, resulting in improved efficiency and enhanced inventory management. The innovations in track and trace solutions are expected to revolutionize several industries and allow companies that adopt these technologies to gain a competitive advantage.

Key Players Landscape and Outlook

The rising efforts of various companies to introduce innovative equipment into different geographical locations in order to expand their customer base are boosting the global track and trace solutions market size. For instance, in August 2022, Geoforce, Inc., one of the leading providers of cellular and satellite-based rugged asset monitoring and tracking solutions, announced the launch of two new asset trackers that will provide customers with cost-efficient and flexible coverage options in Canada. With the addition of the GT2h and GT2c to the line of products of Geoforce, it aims to reinforce its position in the asset traceability solutions sector. Furthermore, the expansion of the GT2 line is expected to aid the company in boosting its customer base.