The global track and trace solution market size is anticipated to gain astronomical growth from 2023 to 2033. According to the research report published by FMI, the global market is projected to surpass a valuation of USD 6.51 billion in 2023. It is anticipated to hit a valuation of USD 33.52 billion by 2033. The market is projected to showcase a monumental CAGR of 17.8% from 2023 to 2033.
The increasing prevalence of anti-counterfeiting measures is expected to boost the demand for track and trace solutions. Companies can combat the production and sale of counterfeit items through track and trace solutions. Track and trace solutions use unique identifiers such as barcodes and serials that are fixed to product packaging, assisting them in the easy identification of original products.
Counterfeit products are becoming a leading problem for several industries. They are mostly low quality that can damage a brand’s reputation, sales, and revenues. They are dangerous when it comes to pharmaceuticals, electronics, and other products that can pose health and safety risks.
According to the World Health Organization, almost USD 40 billion in losses are faced by pharmaceutical companies every year. The implementation of track and trace solutions helps businesses to accurately identify and isolate counterfeit products. This helps in preventing consumers from any harm and also protects the brand’s reputation. This, in turn, can lead to increased consumer trust, sales, and loyalty for businesses.
The increasing demand for transparency and accountability in the supply chain is likely to be a crucial factor driving market growth. Track and trace solutions help in obtaining real-time information about the products’ whereabouts. They are used to keep a track of products’ supply chain history. They help businesses improve their supply chain efficiency by providing the location and status of the goods. This valuable information provided by track and trace solutions can be used to optimize logistical networks and reduce wastage.
As businesses across several industries expand, the demand for track and trace solutions is likely to rise. The emphasis on increasing supply chain efficiency is projected to fortify market expansion in the coming years.
The increasing adoption of Blockchain technology is estimated to provide significant growth for the market. The decentralized nature of BlockchainBlockchain makes it difficult in manipulating or modifying supply chain records. It ensures that the data recorded on the Blockchain is secure and tamper-proof, providing great trust in the entire supply chain. It enables the automation of many processes in the supply chain, which reduces the time and costs associated with tracing and tracking products.
Blockchain technology ultimately helps in streamlining operations and improving supply chain efficiency, which is likely to boost its adoption during the forecast period.
However, A substantial amount of hardware is required to collect and transport the necessary data to effectively monitor and trace products. For small and medium-scale businesses, the initial costs of implementing this hardware can be significant, combined with the expenses of replacing and maintaining it. As a result, these businesses, which often have limited IT, may experience slow market growth.
License fees for these types of solutions are typically charged separately, further discouraging investment in these cutting-edge technologies. These factors may potentially lead to a slowdown in market expansion.
| Attributes | Details |
|---|---|
| Track and Trace Solution Market Share (2022) | USD 5.53 billion |
| Track and Trace Solution Market Share (2023) | USD 6.51 billion |
| Track and Trace Solution Market Share (2033) | USD 33.52 billion |
| Track and Trace Solution Market Share (2023 to 2033) | 17.8% |
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According to the research report published on the track and trace solution market, the demand for track and trace solutions is snowballing every year. In 2018, the global market size at nearly US$ 2.87 billion. From 2018 to 2022, the market witnessed substantial growth in the following years, accounting for US$ 5.53 billion in 2022.
In recent years, technology has evolved at a remarkable pace. The swift digitalization experienced in recent years has increased consumer awareness. Consumers are becoming aware of the risks associated with counterfeit and tampered products, particularly in the cosmetics, pharmaceuticals, and food & beverage industries. They are becoming increasingly interested in ethical sourcing and the sustainability of products.
Consumers want to ensure that the products they buy are produced in a socially responsible and environmentally friendly way. These factors compel companies to adopt track and trace solutions and are likely to bolster market expansion in the coming years.
Technological developments have made it easy for businesses to monitor supply chains. Track and trace solutions are becoming accessible and cost-effective due to the use of modern technologies. Barcode scanning, RFID tags, and other technologies are witnessing increasing adoption.
Increasing Emphasis on Business Intelligence and Data Analytics to Boost Software Segment’s Growth
According to the segmentation based on components, the market is segmented into hardware and software. Among these, the software segment is anticipated to acquire a prominent market share. The growing focus on data analytics and business intelligence is increasing the demand for software solutions that can provide insights into supply chain operations and performance. Track and trace software solutions can collect and analyze data on supply chain activities, helping companies identify areas for improvement. Thereby, helping companies optimize their processes and make informed business decisions.
The hardware segment is anticipated to register a considerable CAGR during the forecast period. The increasing incorporation of Internet of Things (I0T) based devices and rising investments are expected to boost the segment’s expansion.
2D Barcode Segment to Gain Enormous Demand Due to More Data Storage Capacity
The 2D barcode segment is anticipated to garner enormous demand during the forecast period. The growth of the 2D barcode segment can be attributed to several factors. One of the crucial reasons is the ability of 2D barcodes to store lots of information than traditional 1D barcodes. This makes them suitable for tracking and tracing complex supply chain processes and products.
The use of 2D barcodes allows easy integration with various devices, including tablets, smartphones, and others. This makes it easy for consumers to scan and verify products, thereby increasing transparency and accountability in the supply chain. The 2D barcode segment is experiencing a demand surge for anti-counterfeiting measures. It is easy to detect counterfeit items using 2D barcodes. This helps in preventing the distribution of counterfeit products, protecting both manufacturers and consumers.
Serialization Segment to Hold the Lion’s Share
The serialization segment is anticipated to capture a dominant share in the global track and trace solution market. Serialization solutions are becoming increasingly popular. Serialization technology has substantially advanced in recent years. Advances in printing technology, for example, have made it possible to print unique codes directly onto product packaging.
Serialization in track and trace solutions helps in reducing waste, optimizing inventory management, and improving order fulfilment times. They also help brand owners protect their products from counterfeiting. Such factors are expected to boost its adoption and foster growth in the market.
Pharmaceutical Segment to Lead Revenue Share During the Forecast Period
The pharmaceutical segment is anticipated to attain immense growth in the forthcoming years. The increasing health complexities, combined with the ever-increasing global population are surging the demand for medicines. The increasing prevalence of counterfeit drugs and their subsequent health risks are compelling pharmaceutical companies to adopt track and trace solutions.
Pharmaceutical track and trace solutions can ensure that patients receive safe and authentic products, thereby preventing adverse reactions and reducing liability. This also protects the company’s reputation. A traceable and transparent record of the supply chain is ensured by the implementation of these solutions, which proliferates their adoption across the industry.
The United States to Dominate Market Share in North America
North America is predicted to acquire the foremost market share during the forecast period. The United States is likely to dominate growth in the region. The growth is attributable to the presence of prominent companies across various industries, including pharmaceuticals, automobiles, retail and eCommerce, and others.
The increasing investment in advanced technologies across these industries fosters market development. Significant market players operating in these industries are emphasizing providing quick deliveries to consumers, which is likely to bolster the demand for track and trace solutions.
The key players are increasing investments to expand their portfolios by incorporating advanced technologies. The increased use of track and trace solutions across sectors is likely to emerge from the integration of technologies such as the cloud, the Internet of Things, Blockchain, linked devices, and many. The market players are adopting strategic partnerships and collaborations to increase their worldwide consumer reach.
Key Players in the Global Track and Trace Solution Market:
The market is estimated to secure a valuation of USD 6.51 billion in 2023.
The market is estimated to reach USD 33.52 billion by 2033.
Through 2033, the market is anticipated to expand at a 17.8% CAGR.
Growing adoption of technology in track and trace solutions spur market expansion.
It is projected that there is going to be an enormous demand for 2D barcodes.
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