According to the deep-dive market assessment study conducted by Growth Plus Reports, the Global Track and Trace Solutions Market was pegged at ~US$ 3.8 billion in 2021. The market is expected to witness a CAGR of ~ 11.80% from 2022 to 2030.
Track and trace refer to the ability to identify the past and present positions of all product inventory, as well as a history of product safekeeping, in the supply chain industry. Track and trace technologies allow a product's position to be acquired in the value chain and its path to be identified and verified retrospectively. Factors contributing to the growth of the global track and trace solutions market are the swift adoption by pharmaceutical and biopharmaceutical industries to reduce the risk of drug counterfeiting, Moreover, several governments are making the use of track and trace solutions mandatory in pharma manufacturing. An increase in the demand for RFID-enabled products, as well as the use of these products for serialization and aggregation, as their use allows for the smooth tracking of products during the manufacturing process.
Drug counterfeiting occurs when a medication is manufactured improperly and is labeled incorrectly. According to CDC (Center of Disease Control and Prevention) report on counterfeit drugs published in June 2021, 9% to 41% of medicines marketed in small and middle-income nations are counterfeit. In contrast, less than 1% of drugs marketed in high-level-revenue nations such as the United States are forged. The serialization method from track and trace technology provides a unique code to every drug manufactured which reduces the risk of drug forgery. This factor attributes to the growth of the track and trace solutions market.
Serialization provides a reduced risk of counterfeiting medicines which eventually gives confidence in producing trustable products in the market. All the healthcare, pharmaceutical, and federal agencies are increasingly recommending the use of track and trace systems, as it provides product optimum traceability throughout the value chain. The aggregation solution sector is also anticipated to expand during the forecast period as it helps the manufacturer to track the product from the start of the production process. The growing acceptance of inventory control, the application of serialization rules worldwide, and the managing of product recalls are all driving up the requirement for serialization solutions.
The main purpose of using the track and trace solutions is to track the product during any stage of the manufacturing process. This helps the manufacturer to assure the quality standards to ensure that the production is in accordance with regulations, all pharmaceutical manufacturers are required to track and trace all stages of their manufacturing process. From a healthcare perspective, the pharmaceutical and biopharmaceutical companies are well benefited from this technology as it increases the productivity of manufacturing process and reduces theft and fraud rates. Establishing a national standard is the biggest problem in the application of track and trace solutions. In the United States, for instance, the Food and Drug Administration (FDA) has demanded the pharmaceutical business create a general standard so that all drugs can be tracked and traced. The aim of developing a universal standard is to bring all industry leaders collectively under one standard to assist compliance procedures.
The market for track and trace solutions is being researched in four major regions: North America, Europe, Asia Pacific, and the Rest of the World. North America commands the largest market share, followed by Europe and Asia Pacific. Factors contributing to the dominance of North America includes the presence of many pharmaceutical manufacturers, swift adoption of novel process improvement and production technologies, and stringent implementation of serialization in industrial practice. Europe is reported as the second largest regional market for track and trace solutions. European Union has announced a goal of authorizing the use of track and trace solutions to decrease drug forgery and theft. The regional trend is also characterized by high interest in the uptake of latest process improvement technologies. Asia Pacific is also experiencing rapid growth as a result of factors such as emerging growth in the pharmaceutical and biotechnology sectors, increased investment in manufacturing systems, rapid development of pharma manufacturing infrastructure and so on.
This report entails a thorough quantitative analysis of the global track and trace solutions market trends from 2022 to 2030. The global track and trace solutions market has been analyzed from five perspectives: product, application, technology, end-user, and region. Based on products the global track and trace market is further categorized into hardware systems and software solutions. According to the application, this market is classified into serialization solutions and aggregation solutions. Based on the end user it is grouped into pharmaceutical and biopharmaceutical companies, medical devices companies, and healthcare companies.