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Track and Trace Solution Market Size, Share & Industry Analysis, By Component (Software and Hardware), By Technology (Linear Barcode, 2D Barcode, Radiofrequency Identification, and Others), By Type (Serialization Solutions and Aggregation Solutions), By End-user (Pharmaceutical, Consumer Durables, Retail and Ecommerce, and Others), and Regional Forecast, 2024– 2032

Last Updated: June 24, 2024 | Format: PDF | Report ID: FBI106944

 

KEY MARKET INSIGHTS

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The global track and trace solution market was valued at USD 6.42 billion in 2023. The market is projected to be worth USD 7.50 billion in 2024 and reach USD 26.35 billion by 2032, exhibiting a CAGR of 17.0% during the forecast period (2024-2032). The key factors driving the growth of the track and trace solutions market include growth in the medical device and pharmaceutical industry, increasing serialization practices, increasing number of packaging-related product recalls, and increasing number of counterfeit drugs.


Track and trace solutions allow businesses to trace a single product along the supply chain and trace it back to its origin. Track and trace systems support healthcare organizations manage their supply chains more effectively while reducing the risk of counterfeit medicines. This process tracks the drug's current and previous location. Increasing brand protection concerns due to counterfeit products and drug theft in the pharmaceutical industry are impacting brand image and product credibility, which is contributing to market growth. Track and trace solutions allow pharmaceutical companies to easily track compliance requirements, better manage recalls, and improve the overall efficiency of their manufacturing processes.


Further, the rising counterfeiting threats are encouraging businesses to enhance the traceability capabilities of their products. Also, the launch of advanced hardware, such as 2D barcodes, radiofrequency identification, IoT connection, and more, is driving various businesses to invest in these solutions. For instance,



  • In May 2021, Teatro Regio di Parma, an opera house, collaborated with Murata ID Solutions to implement RFID-based track and trace solutions to gain real-time visibility of its valuable stage assets.


The COVID-19 pandemic has severely disrupted supply chain and logistics in businesses across the world. Further, it has dramatically changed consumer behaviour, as stated in the Accenture 2021 report, 61% of consumers are now more focused on sustainable and environment-friendly purchases. Businesses across the world are forced to offer transparent product lifecycles owing to the conscious buying behaviour of customers. To offer transparency and to monitor the supply chain, industries are now significantly investing in track and trace solutions.


Track and Trace Solution Market Trends


Adoption of Blockchain Technology to Boost Market Growth


Blockchain technology is gaining significant traction with its increasing applications across industries. One major application of blockchain technology is in the supply chain to provide visibility and traceability of the products across networks. The adoption of blockchain is showcasing significant opportunities in tracking and tracing the food sector. For instance, the tuna fish market is facing challenges owing to the rising number of illegal tuna deliveries. As per industry experts, blockchain technology can boost the supply chain velocity and help in supplying fresh caught tuna fish sustainably.


Similarly, other industries can significantly gain benefits by integrating blockchain with the track and trace solution. The systems’ complex solution directly connects with a peer-to-peer network instead of having central authority to verify, thus enhancing its real-time tracking. Thus, the availability of precise tracking through blockchain technology is expected to boost the track and trace solution market growth in the future.


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Track and Trace Solution Market Growth Factors


Rise in Counterfeiting of Supplied Products to Aid Market Expansion


Increasing instances of counterfeiting and delivery of duplicate or illegal products are surging the demand for safe and secure supply chain solutions. End-use industries, such as pharmaceuticals and medical devices, retail and e-commerce, and electrical and electronics, are getting negatively impacted due to such unlawful activities, which is further propelling market expansion. As per the World Health Organization, every year, pharmaceutical companies face losses of over USD 40 billion owing to drug counterfeiting. Thus, to overcome these challenges, governments across the globe initiated regularized serialization.


European countries, the U.S., India, China, Russia, and many other nations, have launched regulatory requirements with unique identifying barcodes. The adoption of advanced tracking and tracing tools is expected to protect supplies from counterfeiting and falsification. This is expected to surge the demand for solutions across industries worldwide.


RESTRAINING FACTORS


High Cost of Implementation to Restrain Market Proliferation


The solution requires significant set of hardware to collect and transfer data that helps in tracking and tracing the products. The initial cost of installing this hardware can be expensive for various small and medium-scale businesses. Also, the purchaser should bear the cost of replacing any hardware product when needed. Small and medium businesses have limited IT capital fixed, which is expected to hamper market growth. Further, there are separate licensing costs for such types of solutions. Thus, various businesses are not investing in such advanced solutions, which is expected to hinder market growth.


Track and Trace Solution Market Segmentation Analysis


By Component Analysis


Need for Continuous Data Flow to Boost Track and Trace Software Share


Based on components, the market is bifurcated into software and hardware.


The software segment is projected to hold a dominant share during the forecast period. Track and trace software offers continuous data flow and real-time communication between the manufacturer and all other vendors till the product reaches the customer. Further, with the assigned serial number to the product, the software can trace the entire product lifecycle from its manufacturer to consumers. Various players are investing in the research and development of software solutions to enhance their offerings and applications. 


The hardware segment is slated to showcase a significant growth rate during the forecast period. The increasing investment in track and trace solutions is driving hardware demand to collect the information. Similarly, increasing smart Internet of Things (IoT) device capabilities are further expected to boost hardware demand.  


By Technology Analysis


More Data Storing Capacity to Boost 2D Barcode Share


Based on technology, the market is segmented into linear barcodes, 2D barcodes, radiofrequency identification (RFID), and others. 


The 2D barcode segment is projected to capture the largest market share in the coming years, owing to its capability of storing 100 times the information as compared to linear barcodes. This helps in transferring more data and increases convenience in tracing and inspecting the products from large batches. Linear barcode is a traditional way of scanning to encode the product details. Thus, during the forecast period, the linear barcode segment will hold a significant share.


The radiofrequency identification segment is anticipated to witness rapid growth rate during the forecast period. The technology uses antennas and transceivers to identify unique tags that interpret data. For instance, in November 2022, Canada-based Axem Technology launched a track and trace solution for fishing supplies using rugged UHF RFID tags.


By Type Analysis


Advanced Product Identification to Surge Serialization Solutions Demand


Based on type, the market is segmented into serialization solutions and aggregation solutions. 


Serialization segment is expected to hold a dominant share of the global market during the forecast period. The solution assigns a unique number and helps manufacturers and suppliers in keeping track of the products. The supply chain visibility offered through this solution efficiently helps in tracing and tracking the product by batches. Businesses are also using the solution in re-engagement marketing strategy to boost loyal customers.


The aggregation segment is projected to showcase steady growth during the forecast period. Its ability to expand across verticals is driving its demand across various industries.


By End-user Analysis


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Need for Advanced Medicines Supply to Boost the Pharmaceutical Segmental Share  


Based on end-users, the market has been studied for pharmaceuticals, consumer durables, retail and e-commerce, automobiles, electrical and electronics, and others. 


The pharmaceutical segment is projected to dominate the revenue share during the forecast period. The growing population and increasing health complexities are driving the demand for medicines worldwide. Thus, to manage the demand and supply, pharmaceutical companies are investing in this solution. Further, the growing risk of health issues owing to counterfeit drugs is boosting market growth.


The retail and e-commerce segment is expected to showcase a significant growth rate owing to increasing online shopping across the globe. Similarly, the electrical and electronic industry is implementing a solution to monitor the demand and supply of the components.  


The automobile segment is predicted to display a rapid growth rate owing to the increasing demand for logistics and supply chains across the globe. With the growing demand for vehicles, companies are investing in the track and trace solution to monitor the entire process of manufacturing, storing, and shipping the vehicles.


REGIONAL INSIGHTS


The market has been studied across North America, South America, Europe, the Middle East & Africa, and Asia Pacific along with their respective countries.


North America Track and Trace Solution Market Size, 2023 (USD Billion)

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North America is likely to hold the largest revenue share during the forecast period. The presence of top companies across industries such as retail and e-commerce, automobiles, pharmaceuticals, and more is fueling market growth in the region. The U.S. is likely to dominate the market owing to the significant investments in advanced technologies. The companies here are focused on offering quick deliveries to their customers and are thus investing in tracking and tracing the product through real-time solutions.


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Asia Pacific is expected to record the highest growth rate across all regions during the forecast period, considering the rapidly growing population across major countries such as China and India. This is significantly driving the need for solutions to manage and monitor the product through its lifecycle. With the dominant provider in electrical and electronic components, retail and e-commerce chains, and more, China is expected to hold the major share. Similarly, for the India track and trace solution market, the rapidly growing pharmaceutical companies and other industries in India are likely to generate future opportunities. For instance, till the year 2025, DHL logistics company is planning to introduce 10,000 plus cargos with tracking and traceability capabilities.


Europe is predicted to capture a significant global market share during the forecast period. The growing implementation of regulations in the medical field, such as the Falsified Medicines Directive (FMD) Act, has fueled the demand for solutions in European pharmaceutical industries. Similarly, the automobile industry is expected to boost the demand for the solution to track car deliveries, cargo suppliers, and more.


Similarly, the growing supply chain and increasing focus on exports will boost revenue generation in the Middle East & Africa to witness significant growth.


South America is likely to showcase steady growth during the forecast period. With a major focus on customer satisfaction through timely deliveries, the region is implementing advanced solutions to manage its supply chain efficiently.


List of Key Companies in Track and Trace Solution Market


Strategic Partnership Between Leading Players to Boost Market Presence Will Aid Market Augmentation


Key players are keen on expanding the solution offering through innovative and advanced technologies. For instance, the integration of technologies, such as the cloud, Internet of Things, blockchain, connected devices, and more, is expected to increase the adoption of track and trace solutions across industries. Similarly, by offering dedicated industry-specific solutions, the prominent players are expanding their market share. Collaboration and strategic partnership play a key role in helping market players to expand their global customer reach.


LIST OF KEY COMPANIES PROFILED:



KEY INDUSTRY DEVELOPMENTS:



  • February 2024 –TrinaTracker launched an updated version of its Vanguard 1P Smart Tracking Solution in global markets. This updated version includes recent enhancements to the Smart Control System, denoting a major development in solar tracking technology.

  • February 2023 – Chemours Company, thermal and speciality solutions and advanced performance materials, today announced that it offers customers Ti-Pure™ Flex and Connect, track & Trace innovative order tracking technology. It helps to know the location and status of your orders directly through your e-commerce portal.

  • February 2023 –DispatchTrack, a provider of last-mile delivery solutions, integrated a new track and trace feature into its last-mile platform. This feature has been designed to capture large amounts of data, organize it and display it so that end-users can access the exact data that is required.

  • October 2022 – Zebra Technologies Corporation launched a new extended solution, PartnerConnect, for its partners using RFID and Real-time Location Systems (RTLS). The new launch offers businesses a competitive edge by actively tracking and empowering them in the next decision-making in real-time. 

  • September 2022 –Trinidad and Tobago Postal Corporation launched a track and trace solution for the courier packaging sector to improve service efficiency and customer convenience.


REPORT COVERAGE


An Infographic Representation of Track and Trace Solutions Market

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The research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the growth of the market in recent years.


Report Scope & Segmentation










































ATTRIBUTE



DETAILS



Study Period



2019-2032



Base Year



2023



Estimated Year



2024



Forecast Period



2024-2032



Historical Period



2019-2022



Growth Rate



CAGR of 17.0% from 2024 to 2032



Unit



Value (USD billion)



Segmentation



By Component



  • Software

  • Hardware


By Technology



  • Linear Barcode

  • 2D Barcode

  • Radiofrequency Identification (RFID)

  • Others


By Type



  • Serialization Solutions

  • Aggregation Solutions


By End-user



  • Pharmaceutical 

  • Consumer Durables

  • Retail and Ecommerce

  • Automobile

  • Electrical and Electronics

  • Others (Government)


By Region



  • North America (By Component, By Technology, By Type, By End-user, and By Country)

    • U.S. (By End-user)

    • Canada (By End-user)

    • Mexico (By End-user)



  • South America (By Component, By Technology, By Type, By End-user, and By Country)

    • Brazil (By End-user)

    • Argentina (By End-user)

    • Rest of South America



  • Europe (By Component, By Technology, By Type, By End-user, and By Country)

    • U.K. (By End-user)

    • Germany (By End-user)

    • France (By End-user)

    • Italy (By End-user)

    • Spain (By End-user)

    • Russia (By End-user)

    • Benelux (By End-user)

    • Nordics (By End-user)

    • Rest of Europe



  • Middle East & Africa (By Component, By Technology, By Type, By End-user, and By Country)

    • Turkey (By End-user)

    • Israel (By End-user)

    • GCC (By End-user)

    • South Africa (By End-user)

    • North Africa (By End-user)

    • Rest of the Middle East & Africa



  • Asia Pacific (By Component, By Technology, By Type, By End-user, and By Country)

    • China (By End-user)

    • India (By End-user)

    • Japan (By End-user)

    • South Korea (By End-user)

    • ASEAN (By End-user)

    • Oceania (By End-user)

    • Rest of Asia Pacific








Frequently Asked Questions

As per the Fortune Business Insights study, the market size was worth USD 6.42 billion in 2023.

The market is likely to grow at a CAGR of 17.0% over the forecast period (2024-2032).

The 2D barcode segment will dominate the technology segment share during the forecast period.

The North America market size stood at USD 2.23 billion in 2023.

Rise in counterfeiting of supplied products is expected to drive the market growth.

Some of the top players in the market are Zebra Technologies Corporation, IBM Corporation, SAP SE, Accenture plc, Siemens S.A., and Honeywell International Inc.

North America is expected to gain maximum revenue share during the forecast period.

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