Surgical Instrument Tracking Systems Market Analysis By Product (Hardware, Software, Services), By Technology (Barcodes, RFID), By End Use, By Region (North America, Europe, Asia Pacific, Latin America, MEA), And Segment Forecasts, 2018 - 2025

Industry Insights

The global surgical instrument tracking systems market size was valued at over USD 83.5 million in 2015 and is projected to grow at 18.6% over the forecast period. Increasing incidence of instrument misplacement and hospital-acquired infections are major factors contributing toward the growth of the market. According to the CDC, annually, around 90,000 people die in the U.S. because of hospital-acquired infections; hence, in order to prevent the infection caused due to contaminated instruments and better inventory management, use of tracking is expected to grow at high rate in the near future.

The U.S. surgical instruments tracking market, by product, 2014 - 2025 (USD Million)

Increasing incidence of retained surgical instrument cases is another major factor significantly contributing towards the growth of the market. According to the National Center for Biotechnology Information, the fatality rate of retained surgical objects is around 2%. Thus, the need for advanced technologies, like 2D barcodes and RFID, to track instruments in operation theater is growing, which is expected to boost growth.

Product Insights

On the basis of product, the market is segmented into hardware, software, and services. In 2015, software was the largest revenue grossing segment and is also expected to maintain its dominance during the forecast period. Technological advancement in software is a key factor driving the adoption of tracking software for inventory and surgical instruments 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 expected to show profitable growth during the forecast period owing to the regular demand of hardware products, such as barcode tags and RFID labels. Hardware segment was followed by services in terms of revenue, in 2015.

Technology Insights

Barcode technology reported major revenue share of the surgical instrument tracking systems sector in 2015. Barcode technology is the most commonly used type of tracking technology and its increased adoption in medical devices industry is the key element that contributes to its high revenue share. In addition, the low installation cost of barcodes has resulted in its growing applications in hospitals and ambulatory surgery centers.

The RFID technology segment is expected to show fastest growth rate during the forecast period. Technological advancements like high durability, reusability, more data storage capacity, and no requirement of line-of-sight are the key factors that can be attributed to the growth of this segment.

North America surgical instrument tracking market share, by technology, 2015

End-Use Insights

The hospitals dominated the overall market in 2015 due to the growing incidence of surgical instruments being left in the surgical sites. Hence, the increasing need of track-and-trace for inventory management and tracking of instruments in the hospital propels growth.

Hospitals are also expected to witness the fastest growth over the forecast period. The introduction of technologically advanced software and hardware products is anticipated to increase usage of track-and-trace in the near future.

Regional Insights

In 2015, North America dominated the market followed by Europe. The introduction of unique device identification system by the U.S. Food and Drug Administration for effective identification of medical devices through their distribution channels and use is one of the key factors attributing to the dominance of the North American region. Moreover, the presence of highly developed healthcare infrastructure, high per capita healthcare expenditure, and the rapid adoption of advanced technology and products drives the market growth. In 2014, total healthcare expenditure of the U.S. was around USD 3.0 trillion, which it is projected to remain high in the near future.

Asia Pacific is anticipated to grow at highest rate during the forecast period due to untapped opportunities in this region. In addition, increasing geriatric population coupled with rapidly evolving healthcare infrastructure in the Asian countries, such as China and India, propels the market.

Competitive Insights

Some of the key players in the market are Censis Technologies, Inc.; Xerafy; Getinge Group; Haldor Advanced Technologies. Ltd.; Materials Management Microsystems, Inc.; B. Braun Melsungen AG; and Becton, Dickinson and Company.

The major companies are undertaking several organic as well as inorganic strategies, such as collaborations, new product development or launch, mergers & acquisitions, and regional expansion for serving the unmet needs of their 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 Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the latest trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the surgical instruments tracking systems market on the basis of product, technology, end-use, and region:

• Product Outlook (Revenue, USD Million; 2014 - 2025)

  • Hardware

  • Software

  • Services

• Technology Outlook (Revenue, USD Million; 2014 - 2025)

  • Barcodes

  • RFID

• End-Use Outlook (Revenue, USD Million; 2014 - 2025)

  • Hospitals

  • Others

• Regional Outlook (Revenue, USD Million; 2014- 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • UK

  • Asia Pacific

    • China

    • India

  • Latin America

    • Brazil