The global surgical instruments tracking systems market size was valued at USD 128.3 million in 2018 and is projected to expand at a CAGR of 19.9% over the forecast period. Increasing incidence of retained surgical instruments in the human body after surgery and instrument misplacement are the major factors contributing to the growth. According to the National Center for Biotechnology Information (NCBI), the fatality rate of retained surgical objects is around 2.0%. Thus, the need for advanced technologies such as 2D barcodes and RFID to track the retained instruments while the patient is still in the operation theater is rising. This factor is projected to propel the market.
High adoption of instrument tracking products by hospitals is another major factor driving the market growth. Tracing medical devices and inventory management during work cycle including surgery, post-surgery, storage, and sterilization procedures are some of the major problems faced by hospitals. Thus, they are adopting innovative technologies to track these equipment and systems, which in turn is expected to propel the market.
For instance, St. Joseph's Hospital and Medical Clinic, Arizona deploys the IMPRESS instrument management system, which allows them to save over USD 1.0 million in refurbishment, repair, and instrument purchasing costs, annually.
Some of the common instruments that are accidentally left in a patient’s body during surgery include knife blades, sponges, scalpels, needles, clamps, electrosurgical adapters, towels, scissors, and safety pins. Among these instruments, the sponge is the most commonly retained surgical item. Surgical instruments left in patients’ bodies tend to puncture blood vessels and vital organs leading to internal bleeding, necessitating a system to track these instruments.
The increasing need for inventory management and implementation of Unique Device Identification (UDI) regulations by the FDA is anticipated to drive the market. Technological advancements and efforts from governments to implement adoption of these devices are anticipated to further fuel the market over the forecast period.
On the basis of product, the surgical instruments tracking systems market is segmented into hardware, software, and services. The software was the largest revenue-generating segment in 2018 and is projected to maintain its dominance during the study period. Technological advancements in software is a major factor driving the adoption of these devices for inventory as well as surgical instrument management. For instance, IMPRESS instrument management software delivers information on serialized surgical instruments, assisting in inventory management, and providing ongoing support through continuous assistance through phone.
The hardware segment is projected to showcase profitable growth during the forecast period owing to the repetitive purchase of products such as barcode tags and RFID labels. Hardware segment was followed by services in terms of revenue, in 2018 and is expected to grow at a lucrative rate during the forecast period. U.S., Germany, U.K., France, and Japan are projected to account for the highest usage of surgical instrument tracking systems. Well-developed healthcare infrastructure and rising number of surgical procedures are anticipated to contribute to this growth.
Hospitals led the overall market in 2018 owing to the rising incidence of surgical instruments being left in the body during surgeries. It is estimated that around 20% of hospital devices, supplies, or equipment are misplaced or lost owing to inefficiency in supply chain management. This could lead to a 50% reduction in efficiency of the operating room due to deprived equipment flow. Hence, there is a rising adoption of these devices in hospitals.
Hospitals are also expected to witness the fastest growth over the forecast period due to the rising adoption of these products by hospitals for inventory management and tracing of medical instruments during work cycles such as sterilization procedures, surgery, and post-surgery. For instance, St. Joseph's Hospital and Medical Clinic, in Arizona, uses the IMPRESS instrument management system that allows hospitals to save more than USD 1.0 million in repair, refurbishment, and instrument purchasing costs, annually.
Barcode technology accounted for the major revenue share of the market in 2018. It is the most commonly used type of tracking technology and its increased adoption in medical devices industry is the key element contributing to its high revenue share.2D barcodes such as data matrix and QR Code are more popular in the market due to its advantages such as low cost, robust build, and 360° readability. In addition, the low installation cost of these products has resulted in rising application in healthcare facilities including hospitals and ambulatory surgery centers.
The RFID technology segment is projected to showcase the fastest CAGR during the forecast period. Technological advancements including high durability, more data storage capacity, reusability, and no need for line-of-sight are the major factors that can be attributed to the segment growth. For instance, Haldor Advanced Technologies Ltd. provides the ORLocate Operating Room Solution which allows efficient management of surgical items including instruments, disposables, sponges, and other items.
In 2018, North America led the overall market in terms of revenue share. The introduction of the Unique Device Identification (UDI) system by the U.S. Food and Drug Administration (FDA) for effective identification of medical devices through their distribution channels and application is one of the major factors attributed to this dominance of the region. In addition, the presence of highly developed healthcare infrastructure, rapid adoption of advanced technology and products, and high per capita healthcare expenditure is anticipated to drive regional market growth. According to the Centers for Medicare and Medicaid Services (CMS), in 2017, total healthcare expenditure of the U.S. was USD 3.5 trillion and accounted for 17.9% of the nation’s GDP.
Asia Pacific is projected to expand at the fastest CAGR during the forecast period owing to untapped opportunities in this region. Moreover, an increasing number of surgical procedures coupled with rapidly developing healthcare infrastructure in Asian countries such as China, Indonesia, and India, is projected to propel the regional market over the forecast period. The introduction of technologically advanced software and hardware products is anticipated to increase the usage of surgical instruments tracking devices in the near future.
Some of the major market players are Xerafy; Censis Technologies, Inc.; Getinge Group; Materials Management Microsystems, Inc.; B. Braun Melsungen AG; Haldor Advanced Technologies. Ltd.; and Becton, Dickinson and Company.
The leading companies are undertaking several inorganic as well as organic strategies, such as new product development or launch, collaborations, and mergers and acquisitions along with regional expansions for serving the unmet needs of customers. For instance, in March 2015, Xerafy and The Tag Factory announced a licensing agreement for RFID ceramic tag technology of Xerafy. According to the agreement, The Tag Factory will manufacture and market ceramic RFID tags using the RFID ceramic tag technology.
Report Attribute |
Details |
Market size value in 2020 |
USD 175.24 million |
Revenue forecast in 2026 |
USD 536.0 million |
Growth Rate |
CAGR of 19.9% from 2019 to 2026 |
Base year for estimation |
2018 |
Historical data |
2015 – 2017 |
Forecast period |
2019 – 2026 |
Quantitative units |
Revenue in USD million and CAGR from 2019 to 2026 |
Report coverage |
Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Medical condition, facility type, service, region |
Regional scope |
North America; Europe; Asia Pacific; Latin America; Middle East & Africa |
Country scope |
U.S.; Canada; U.K.; Germany; France; Italy; Spain; Russia; Japan; India; China; South Korea; Singapore; Australia; Brazil; Mexico; Argentina; South Africa; Saudi Arabia; UAE |
Key companies profiled |
Xerafy; Censis Technologies, Inc.; Getinge Group; Materials Management Microsystems, Inc.; B. Braun Melsungen AG; Haldor Advanced Technologies. Ltd.; Becton, Dickinson and Company |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2015 to 2026. For the purpose of this study, Grand View Research has segmented the global surgical instruments tracking systems market report on the basis of product, technology, end-use, and region:
Product Outlook (Revenue, USD Million, 2015 - 2026)
Hardware
Software
Services
Technology Outlook (Revenue, USD Million, 2015 - 2026)
Barcodes
RFID
End-Use Outlook (Revenue, USD Million, 2015 - 2026)
Hospitals
Others
Regional Outlook (Revenue, USD Million, 2015 - 2026)
North America
The U.S.
Canada
Europe
Germany
The U.K.
France
Italy
Spain
Russia
Asia Pacific
Japan
China
India
South Korea
Australia
Singapore
Latin America
Brazil
Mexico
Argentina
MEA
South Africa
Saudi Arabia
UAE
b. The global surgical instruments tracking systems market size was estimated at USD 157.31 million in 2019 and is expected to reach USD 175.24 million in 2020.
b. The global surgical instruments tracking systems market is expected to grow at a compound annual growth rate of 10.8% from 2019 to 2026 to reach USD 322.48 million by 2027.
b. North America dominated the surgical instruments tracking systems market with a share of 39.00% in 2019. This is attributable to the presence of highly developed healthcare infrastructure, rapid adoption of advanced technology and products, and high per capita healthcare expenditure
b. Some key players operating in the surgical instruments tracking systems market include Xerafy; Censis Technologies, Inc.; Getinge Group; Materials Management Microsystems, Inc.; B. Braun Melsungen AG; Haldor Advanced Technologies. Ltd.; and Becton, Dickinson and Company.
b. Key factors that are driving the market growth include increasing incidence of retained surgical instruments in the human body after surgery and instrument misplacement.
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