Track And Trace Solutions Market Size, Share & Trends Analysis Report By Product, By Technology (Barcodes, RFID), By Application (Serialization, Aggregation), By End Use, By Region, And Segment Forecasts, 2019 - 2026

Industry Insights

The global track and trace solutions market size was valued at USD 1.86 billion in 2018 and is anticipated to expand at a CAGR of 17.9% during the forecast period. Various advantages of track and trace solutions, such as continuous transparency, packaging and logistics management, and product ID verification services in distribution channel, are anticipated to propel the growth.

Rising deployment by pharmaceutical and medical devices companies is anticipated to further fuel the growth. Drug counterfeiting is a major problem faced by pharmaceuticals and biopharmaceuticals companies. Thus, companies are adopting these solutions for supply chain monitoring. It is expected that more than 40 countries and over 75% of worldwide medicine supply will be covered by track and trace regulations by 2018.

In addition, the existence of stringent regulations and standards for the implementation of serialization and aggregation is expected to drive the market growth. However, the high cost connected with implementation of these solutions and lack of global standards and regulations for serialization and aggregation could hinder market growth.

Track and trace solutions are vital in the manufacturing industry irrespective of the product being produced. These solutions have become key in industries such as drug manufacturing, food and beverage industry, consumer goods, and luxury goods. In order to ensure consumer safety, various industries have specifically laid regulatory policies and mandates.

The two most important industries that require steadfast implementation of these mandates include the food and beverage and pharmaceuticals and medical device industry. Various end-to-end solutions such as ingredients traceability, finished goods traceability, blockchain enabler, serialization processing, compliance management, food and beverage traceability, and environmental monitoring are anticipated to gain traction in the field.

Application Insights

Serialization solutions held the highest revenue share in 2018 due to the increasing focus of regulatory bodies on implementation of serialization. The federal agencies, country governments, and healthcare industry are taking measures to decrease product diversion and drug counterfeiting. Serialization is a major step to comply with new ePedigree regulations that are required for product traceability during the supply chain. In addition, the increased focus on patient safety and brand protection by manufacturers is expected to propel the segment growth during study period.

Manufacturers are facing challenges due to growing complexity and diversity in serialization requirements, primarily in pharmaceutical industry. Variations in standards & regulations across the countries, as well as management of aggregated complex data makes it difficult for manufacturers to implement serialization in track and trace. However, increasing rate of counterfeiting of pharmaceuticals and other healthcare products drives the adoption of serialization in supply chain.

End Use Insights

The food and beverage industry has experienced huge losses in the recent past owing to sale of counterfeit goods, thus constituted the largest segment share in the market. Contaminated and adulterated consumer goods have detrimental effects on consumer health. According to Center for Biosecurity of UPMC, in 2010, an outbreak due to contaminated cantaloupe killed 30 individuals and led to hospitalization of 146 others in the U.S. Thus, the implementation of track and trace solutions has been mandated across several countries in order to ensure public health safety.

Introduction of The Food Safety Modernization Act (FSMA) has driven the adoption of these solutions, necessitating visibility into supply chain logistics. In October 2018, rfxcel, a supply chain track and trace company, announced the extension of its solutions for food and beverage industry. Such strategic initiatives by entities is expected to propel track and trace solutions market growth during the forecast period.

Technology Insights

Barcodes technology reported largest revenue share of the track and trace solutions sector in 2018. The 2D barcode is the largest segment of barcodes technology and is expected to maintain its position throughout the study period. The increased application of 2D barcodes in pharmaceutical & biopharmaceutical product packaging is a major factor that contributed to the higher revenue share. Also, higher data storage capacity of 2D barcodes than linear barcodes, as well as its higher popularity in the industry boosts the demand for 2D barcode-based solutions.

Government regulations and increase in sale of counterfeit drugs led to the implementation of barcode technology in healthcare industry. For instance, Directorate General of Foreign Trade issued a notice announcing the execution of a track and trace system integrated barcode technology for pharmaceutical products exported from India. Thus, demand for barcodes technology in track and trace solutions market has increased and is expected to remain high during the forecast period.

Product Insights

Software solutions held the largest share in 2018 due to its growing adoption in healthcare companies, including pharmaceuticals, biopharmaceuticals, and medical devices companies. These software solutions are used for continuous management of manufacturing facilities, product lines, case & bundle tracking, and warehousing & shipping.

The rate of counterfeit prescription drugs is growing worldwide. According to the WHO, it is estimated that around 10% of all medicines are counterfeit worldwide, and this percentage is much higher in some parts of Africa, Asia, and Latin America (10% to 30%). Thus, more and more companies are adopting this technology to protect their brand and revenue.

Regional Insights

North America is the predominant regional sector and accounted for the largest revenue share in 2018, primarily due to presence of highly regulated serialization & aggregation standards, as well as advanced healthcare infrastructure. Automatic identification technologies including barcoding and RFID are recommended to pharmaceuticals and other healthcare companies by the FDA. Furthermore, the presence of highly developed healthcare infrastructure and adoption of this technology in the U.S. is expected to drive the market growth.

Europe is the second-largest market, in terms of revenue share, and is expected to maintain its market share. The can be attributed to the presence of developed economies, such as Germany, Turkey, the U.K., France, and Italy, in the region. The European Union aims to progressively implement track and trace solutions in healthcare supply chain to deal with drug counterfeiting and theft. According to Falsified Medicines Directive, manufactures failing to comply with drug serialization regulations would not be allowed to market their products in Europe.

Asia Pacific region is expected to exhibit the highest growth rate due to high incidence of counterfeit drugs in the developing Asian countries like China & India. International Trade Administration estimated that the global counterfeit drug market size ranges from USD 75 billion to USD 200 billion and accounted for around 50% of all medicines sold in some Asian and African countries. In addition, untapped opportunities in this region are expected to contribute toward the growth of the sector.

Track and Trace Solutions Market Share Insights

Some major players catering to the market are Axway; Mettler-Toledo International, Inc.; Optel Vision; TraceLink, Inc.; Adents International; Antares Vision srl; Siemens AG; Seidenader Maschinenbau GmbH; ACG Worldwide; and Systech, Inc. There are various small and large manufacturers offering products for tracking and tracing applications, resulting in intense competition among vendors.

The vendors are increasing their focus on strategic partnerships with their consumers and are collaborating with other vendors in the sector. Mergers and acquisitions is another major strategy applied by vendors to get maximum revenue share in this sector. For instance, in February 2017, Axway announced the acquisition of Syncplicity, a leading enterprise file sync and share (EFSS) solution that provides users with the experience and tools they need for secure collaboration. This acquisition helped Axway enhance its AMPLIFY platform.

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 2014 to 2025. Grand View Research has segmented the global track and trace solutions market report by product, technology, application, end use, and region:

• Product Outlook (Revenue, USD Million, 2015 - 2026)

  • Hardware Systems

    • Printing & Marking Solutions

    • Monitoring & Verification Solutions

    • Labeling Solutions

    • Others

  • Software Solutions

    • Plant Manager Software

    • Line Controller Software

    • Bundle Tracking Software

    • Others

• Technology Outlook (Revenue, USD Million, 2015 - 2026)

  • Barcode

  • RFID

• Application Outlook (Revenue, USD Million, 2015 - 2026)

  • Serialization Solutions

    • Bottle Serialization

    • Label Serialization

    • Carton Serialization

    • Data Matrix Serialization

  • Aggregation Solutions

    • Bundle Aggregation

    • Case Aggregation

    • Pallet Aggregation

• End Use Outlook (Revenue, USD Million, 2015 - 2026)

  • Pharmaceutical Companies

  • Medical device Companies

  • Healthcare Others

  • Food and Beverage

  • Consumer Packaged Goods

  • Luxury Goods

• Regional Outlook (Revenue, USD Million, 2015 - 2026)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • Switzerland

    • Belgium

  • Asia Pacific

    • Japan

    • China

    • India

    • Russia

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East and Africa

    • South Africa

    • Saudi Arabia

    • Egypt