Surgical Instruments Tracking Systems Market Size, Share & Trends Analysis Report By Product (Hardware, Software, Services), By Technology (Barcodes, RFID), By End Use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global surgical instruments tracking systems market size was valued at USD 187.67 million in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 12.1% from 2022 to 2030. The market growth is driven by the need to automatically track critical equipment, such as surgical instruments, comply with the U.S. Food & Drug Administration (FDA)’s Unique Device Identification (UDI) program, ensure the right tools are available in time for each surgical procedure, and improve patient outcomes. The growing number of surgical procedures, owing to sports injuries, accidents, and cardiac surgeries, due to the increased frequency of cardiovascular illnesses and other chronic disorders, where surgery is mandatory, is driving the market.

Furthermore, emerging economies like India and China, as well as countries in the Middle East, Latin America, and Southeast Asia, are likely to provide major growth possibilities for surgical instrument tracking systems manufacturers. Growing healthcare spending and increasing healthcare infrastructure are likely to provide growth possibilities for market players in these economies. Surgical instrument tracking systems facilitate automatic identification of medical devices including instruments to adhere to the U.S. FDA’s new Unique Device Identification (UDI) tracking requirements. As the number of devices falling under UDI will keep expanding, it is expected to fuel the demand for solutions that enable compliance, such as surgical instrument tracking systems. Several other government bodies have also specified regulatory requirements related to traceability from manufacturer to patient.

These include the CFDA’s draft of UDI regulation in China, the EU’s In Vitro Diagnostic Medical Device Regulation 2017/746 and Medical Device Regulation 2017/745, and Australia and New Zealand’s AS/NZS 4187:2014. This is expected to propel the adoption of automatic identification and tracking technologies including surgical instrument tracking systems. For instance, Xerafy Singapore Pte. Ltd. offers RFID Systems for Healthcare that helps comply with such regulations. The COVID-19 pandemic significantly impacted the market. According to a 2020 report by Censis Technologies, Inc., many elective surgeries were postponed due to the pandemic. However, when they resumed, Operating Rooms (ORs) and technicians had to deal with a huge backlog, while continuing to work around COVID.

This unveiled the need for effective surgical instrument tracking systems as sterile supply processing and equipment shortages became an issue. Many large hospitals experience several incidences of surgical items left inside patients after surgery. These could vary from clamps and sponges to needles and other items. Responding to these mistakes can be very costly. Typically, after surgery, a team may conduct careful counts manually to ensure the post-op inventory of instruments and materials is the same as before the operation. In case the numbers don’t match, costly x-rays must be taken to look for stray instruments, which could add to complications. Such Significant incidences are other factors contributing to the market growth.

Product Insights

Based on products, the global market has been segmented into hardware, software, and services. The hardware product segment accounted for the largest revenue share of more than 45.00% in 2021. The segment is projected to maintain its dominance during the study period. Technological advancements in hardware, such as RFID chips and barcode tags, are a major factor driving the adoption of these systems for inventory as well as surgical instrument management. For instance, Wyss Institute at Harvard University has developed a way to embed RFID chips onto metal surgical instruments using a vapor deposition process and biocompatible sealant.

The entire system comprising the technique, RFID chips, antenna, and the visual display is designed to be wirelessly tracked & counted and to withstand repeated sterilizations. The hardware segment is also projected to register the fastest CAGR over the eight years. The services segment is also expected to grow at a considerable rate during the forecast period. The U.S., U.K., Germany, France, and Japan are projected to account for the highest usage of surgical instrument tracking systems. Well-developed healthcare infrastructure and a rising number of surgical procedures are anticipated to contribute to this growth.

Technology Insights

Based on technologies, the global market has been further divided into barcodes and RFID. The barcode technology segment accounted for the largest revenue share of more than 82.00% in 2021. Barcode is the most commonly used type of tracking technology and its increased adoption in the medical devices industry is the key element contributing to its high revenue share in the market. 2D barcodes, such as data matrices and QR codes, are more popular in the market due to their advantages, which include low costs, robust build, and 360° readabilities.

In addition, the low installation cost of these products has resulted in their rising applications in healthcare facilities including hospitals and Ambulatory Surgery Centers (ASCs). The RFID segment is anticipated to register the fastest CAGR over the forecast period due to the ability of RFID tags to withstand the rigorous healthcare environment, such as harsh sterilization processes, in addition to storing additional information and documenting each instrument’s vital statistics, such as repair history and location. In addition, unlike barcodes, RFIDs do not require line-of-sight scanning, which is expected to drive their adoption over the forecast period.

End-use Insights

Based on end uses, the global market has been further bifurcated into hospitals and others. The hospitals end-use segment led the market in 2021 and accounted for the maximum revenue share of more than 79.00%. The segment is estimated to retain its leading position throughout the forecast period. Factors contributing to the share of this segment include the rising need to reduce the incidence of surgical instruments being left in the patient’s body during surgeries and effective inventory management. It is estimated that around 20% of hospital devices, supplies, or equipment are misplaced or lost owing to inefficiency in supply chain management.

The segment is also expected to witness the fastest growth rate over the forecast period. This can be credited to the rising adoption of surgical device tracking solutions by hospitals for inventory management and tracing of medical instruments during work cycles, such as sterilization procedures and surgery. For instance, St. Joseph’s Hospital and Medical Clinic, in Arizona, uses the IMPRESS instrument management system that allowed it to save more than USD 1.0 million in repair, refurbishment, and instrument purchasing costs, annually.

Regional Insights

Based on geographies, the market has been categorized into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. In 2021, North America led the overall market and accounted for the largest share of more than 38.00% of the global revenue. The introduction of the UDI system by the U.S. FDA for the effective identification of medical devices and instruments is one of the major factors attributed to the dominance of this region. In addition, the presence of a highly developed healthcare infrastructure and rapid adoption of advanced technologies and products are anticipated to drive the regional market growth.

Asia Pacific, on the other hand, is projected to expand at the fastest CAGR during the forecast period. This growth can be attributed to untapped opportunities in this region. Moreover, an increasing number of surgical procedures coupled with the rapidly developing healthcare infrastructure in Asian countries, such as China, Indonesia, and India, is projected to propel the regional market growth over the forecast period. The introduction of technologically advanced software and hardware products is also anticipated to boost the usage of surgical instrument tracking devices in the years to come.

Key Companies & Market Share Insights

The leading companies are undertaking several strategic initiatives, such as product developments or launches, collaborations, and mergers & acquisitions along with regional expansions for gaining a higher market share. For instance, in October 2020, STERIS plc acquired Key Surgical, thus expanding its sterile processing, OR, and endoscopy offerings. This also added the latter’s KeyDot surgical instrument tracking solution to STERIS’ portfolio. Some of the prominent players in the global surgical instruments tracking systems market include:

• Censis Technologies, Inc. (Fortive)

• SpaTrack Medical Ltd.

• Xerafy Singapore Pte Ltd.

• Fingerprint Medical Ltd.

• Getinge AB

• B. Braun Melsungen AG

• BD

• Haldor Advanced Technologies

• Microsystems, Inc.

• Ternio Group LLC

Surgical Instruments Tracking Systems Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this report, Grand View Research has segmented the global surgical instruments tracking systems market report based on product, technology, end use, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Hardware

  • Software

  • Services

• Technology Outlook (Revenue, USD Million, 2017 - 2030)

  • Barcodes

    • Hospitals

    • Others

  • RFID

    • Others

    • Hospitals

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • Hospitals

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

    • Singapore

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • MEA

    • South Africa

    • Saudi Arabia

    • UAE