Surgical Instruments Tracking Systems Market Size, Share & Trends Analysis Report By Product (Hardware, Software, Services), By Technology (Barcodes, RFID), By End Use, And Segment Forecasts, 2019 - 2026

Industry Insights

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 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 accidently left in a patient’s body during surgery includes knife blades, sponges, scalpels, needles, clamps, electrosurgical adapters, towels, scissors, and safety pins. Among these instruments, 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.

Increasing need for inventory management and implementation of Unique Device Identification (UDI) regulations by the FDA are anticipated to drive the market. Technological advancements and efforts from governments to implement adoption of these devices is anticipated to further fuel the market over the forecast period.

Product Insights

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 lucrative rate during the forecast period. U.S., Germany, U.K., France, and Japan are projected to account for the highest usage of surgical instruments tracking systems. Well-developed healthcare infrastructure and rising number surgical procedures is anticipated to contribute to this growth.

End Use Insights

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 50% reduction in efficiency of operating room due to deprived equipment flow. Hence, there is 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 cycle such as sterilization procedures, surgery, and post-surgery. For instance, St. Joseph's Hospital and Medical Clinic, in Arizona, uses IMPRESS instrument management system that allows hospitals to save more than USD 1.0 million in repair, refurbishment, and instrument purchasing costs, annually.

Technology Insights

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 item including instruments, disposables, sponges, and other items.

Regional Insights

In 2018, North America led the overall market in terms of revenue share. The introduction of 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 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, 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 near future.

Surgical Instruments Tracking Systems Market Share Insights

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 Scope

Segments Covered in the Report

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 

    • U.S.

    • Canada

  • Europe 

    • Germany

    • 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