The global track and trace solutions market was valued at USD 3.5 billion in 2022 and is projected to grow at a robust compound annual growth rate (CAGR) of 19.3% from 2023 to 2030. This impressive growth is primarily driven by the escalating incidence of counterfeiting and theft of healthcare products across the globe. Various sectors, including biopharmaceuticals, pharmaceuticals, cosmetics, and medical devices, are increasingly adopting track and trace solutions to safeguard their products and maintain brand integrity. Additionally, favorable regulations aimed at promoting serialization practices are expected to further stimulate the adoption of track and trace solutions within the healthcare industry.
The market is poised for significant expansion due to the heightened deployment of these solutions by pharmaceutical and medical device manufacturers. Drug counterfeiting presents a substantial challenge for the pharmaceutical and biopharmaceutical sectors, prompting companies to implement track and trace systems for effective supply chain monitoring. Notably, the prevalence of substandard and counterfeit medications is particularly concerning in low- to middle-income countries, such as India and regions in Africa. According to a 2019 report by the United States Trade Representative (USTR), approximately 20% of all sold drugs in India were identified as counterfeit, underscoring the urgent need for reliable track and trace mechanisms.
Gather more insights about the market drivers, restrains and growth of the Track And Trace Solutions Market
Application Segmentation Insights
Within the track and trace solutions market, serialization solutions commanded the largest revenue share in 2022. This dominance can be attributed to the increasing emphasis placed by regulatory bodies on implementing serialization to combat product diversion and drug counterfeiting. Federal agencies, national governments, and stakeholders within the healthcare industry are actively pursuing measures to enhance product traceability throughout the supply chain. Serialization represents a critical compliance step with new ePedigree regulations that are essential for tracking products from manufacturers to end consumers. Additionally, the growing focus on patient safety and brand protection among manufacturers is anticipated to drive further growth in this segment throughout the forecast period.
Despite the advantages of serialization, manufacturers are grappling with several challenges stemming from the complexity and diversity of serialization requirements, particularly within the pharmaceutical sector. The variations in standards and regulations across different countries, combined with the management of intricate and aggregated data, complicate the implementation of serialization in track and trace systems. However, the increasing rates of counterfeiting for pharmaceuticals and other healthcare products are catalyzing the adoption of serialization throughout the supply chain.
The aggregation solutions segment is expected to experience robust growth during the forecast period. This growth is largely driven by the rising adoption of aggregation solutions among healthcare companies, which enable better management and tracking of products through various stages of the supply chain. By allowing for the consolidation of data related to serialized items, aggregation solutions facilitate improved visibility and traceability, thereby enhancing overall supply chain security.
Conclusion
In summary, the global track and trace solutions market is set to experience significant growth driven by increasing counterfeiting issues in healthcare products and regulatory pressures for serialization. With a focus on enhancing patient safety and protecting brand equity, the adoption of track and trace technologies is expected to rise, particularly in the pharmaceutical and medical device sectors. While challenges related to compliance and data management persist, the overall outlook for the market remains positive, as companies strive to implement effective solutions to safeguard their products and maintain consumer trust.
Order a free sample PDF of the Market Intelligence Study, published by Grand View Research.
