Enjoy complimentary customisation on priority with our Enterprise License!
The global pharmaceutical traceability market size is estimated to grow by USD 17.92 billion at a CAGR of 23.44% between 2023 and 2028.
Globally, pharmaceutical companies are witnessing significant growth. The increasing prevalence and incidence of various chronic diseases, such as cancer, heart disease, diabetes, arthritis, chronic obstructive pulmonary disease (COPD), asthma, cystic fibrosis, and dementia, have increased the need to develop new drugs for their treatment. To treat these chronic diseases, pharmaceutical companies are increasingly focusing on developing generic and over-the-counter (OTC) drugs for various therapeutic applications. Further, rapid growth in drug development has increased the need for pharmaceutical companies to ensure brand protection due to counterfeiting. This is increasing the demand for various advanced technologies, including printing technologies and digital scanning, to protect pharmaceutical products from counterfeiting. Hence, the rising focus of pharmaceutical companies on brand protection is fostering the growth of the market during the forecast period.
Technavio has segmented the market into Type, Application, and Geography
It also includes an in-depth analysis of drivers, trends, and challenges. Our report examines historical data from 2018 - 2022, besides analyzing the current market scenario.
To learn more about this report, Download Report Sample
The market share growth by the barcode segment will be significant during the forecast period. Barcodes are a series of vertical lines or bars with different widths that can be read by an optical scanner. The width and spacing of the bars represent binary data. The scanners are connected to computers. These scanners decode the barcodes to give the necessary information regarding the product.
Get a glance at the market contribution of various segments Download PDF Sample
The barcode was the largest segment and was valued at USD 1.71 billion in 2018. Barcodes have been widely accepted by end-users because of their relatively lower cost when compared with RFID tags, their lightweight nature for ease of use, and their high accuracy levels on different material surfaces. Also, the government has promoted the use of barcodes in the pharmaceutical industry by introducing new initiatives and laws. Barcodes facilitate efficient tracking and identification of pharmaceutical products, aiding in supply chain management and reducing the risk of counterfeit drugs. Additionally, regulatory mandates for serialization and traceability further propel the growth of barcode solutions, making them a practical and widely accepted technology in pharmaceutical traceability efforts worldwide. Such factors will fuel the growth of the barcode segment of the market during the forecast period.
The pharmaceutical factories segment in the global pharmaceutical traceability market is witnessing increased demand due to several compelling factors. Firstly, regulatory compliance is a major driver in the growth of the pharmaceutical factories segment, as pharmaceutical manufacturers must adhere to stringent regulations to ensure the safety and authenticity of their products. Secondly, the rising prevalence of counterfeit drugs is a significant concern in the pharmaceutical industry. Pharmaceutical factories are adopting traceability solutions to enhance operational efficiency and supply chain visibility. Accurate tracking and monitoring of the production processes, inventory, and distribution contribute to streamlined operations, reduced errors, and improved overall efficiency. Thus, stringent regulatory requirements, the need to combat counterfeit drugs, and a focus on enhancing operational efficiency will drive the growth of the global pharmaceutical traceability market through the pharmaceutical factories segment during the forecast period.
The hospital segment in the global pharmaceutical traceability market is witnessing increased demand due to various factors contributing to the overall safety, efficiency, and effectiveness of healthcare delivery. Patient safety is paramount in hospitals, and accurate traceability ensures that the right medications are administered to the right patients at the right time. Further, instances of increasing demand for pharmaceutical traceability in hospitals include the adoption of barcoding systems for patient identification and medication administration. Barcodes on patient wristbands and medications enable healthcare providers to verify patient identities and match them with prescribed medications, reducing the risk of errors during the administration process. This enhanced traceability in hospitals contributes to a safer and more efficient healthcare environment. Thus, increased emphasis on patient safety, efficient inventory management, and regulatory compliance will drive the demand for pharmaceutical traceability solutions in hospitals and will fuel the growth of the market in focus during the forecast period.
For more insights about the market share of various regions Download PDF Sample now!
North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that will shape the market during the forecast period. Rapid growth in the development of pharmaceutical drugs, technological advances, growing outsourcing of pharmaceutical manufacturing activities, rising concerns over the proliferation of counterfeit drugs, stringent regulations, and government initiatives, and the presence of prominent companies are the major factors driving the growth of the pharmaceutical traceability market in North America. In addition, pharmaceutical companies are outsourcing the development and manufacturing of pharmaceutical drugs to CMOs and contract development and manufacturing organizations (CDMOs), which is also increasing the demand for pharmaceutical traceability solutions and thereby boosting the growth of the pharmaceutical traceability market in North America.
Additionally, the DSCSA relates to the serialization of manufacturing drug products in the US and aims at tracking and tracing certain prescription drugs, which, in turn, has increased the demand for pharmaceutical traceability, thus spurring the growth of the pharmaceutical traceability market in North America during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market. The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
AlpVision SA - The company offers pharmaceutical traceability solutions namely Pharmaledger.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
There are multiple factors influencing market growth. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges.
Government regulations and initiatives regarding counterfeit drugs and medicines are notably driving the market growth. The rise in the global counterfeit of drugs and medicines has led the governments of various nations to introduce regulations to improve the traceability of pharmaceutical products. To reduce the growing market for counterfeit drugs, various governments and authorities in several nations have taken initiatives by declaring deadlines for implementing serialization by pharmaceutical companies. For example, in the US, the DSCSA made it mandatory that pharmaceutical companies introduce serial codes while manufacturing drugs, both at the saleable unit and case level, for manufacturers and re-packagers.
Similarly, in July 2019, the Therapeutic Goods Administration (TGA) in Australia introduced new guidelines on product coding to reduce the counterfeiting of drugs in the country. Thus, the various government regulations and initiatives will drive the demand for the implementation of global traceability systems to overcome the various counterfeit issues and, in turn, will boost the growth of the market during the forecast period.
The growth of online pharmacies is an emerging trend shaping the market growth. An online pharmacy or e-pharmacy uses an online platform for connecting a customer and seller for the sales of medicines. E-pharmacies are growing because of the discounts available on the products. Also, the customers can have easy access to the products because they are delivered to the customer as and when required. Some of the major factors driving the market are the growing number of Internet users and changing purchase preferences, that is, the growing number of online purchases.
Moreover, the sale of counterfeit drugs imposes a huge threat to the patient's life as well as the reputation of the company that manufactures the original drug. The growth of online pharmacies is the main source of counterfeit drugs; hence, this trend will give rise to the need for appropriate traceability systems in place and, in turn, will propel the growth of the market during the forecast period.
The growing need for system integration is a significant challenge hindering the market growth. For a proper track and trace system, the state and central governments must be integrated into a single system. The integrated system must connect the government agencies, manufacturers, and other players in the supply chain. This task involves substantial setting up and implementation costs. Also, the integrated system becomes complex when more serial codes are assigned at unit levels and must be tracked throughout the supply chain. Also, the assignment of unique serial numbers at the unit level generates a huge amount of data.
Furthermore, huge investments are required for the development of such systems because updating existing hardware, software, and equipment is also required. The implementation of serialization can reach an estimated cost of around USD 2 million. The technical issues and difficulties in integrating the system will obstruct the adoption of such systems. Such challenges will slow down the growth of the market in focus during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Pharmaceutical Traceability Market Customer Landscape
The pharmaceutical traceability market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Pharmaceutical Traceability Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 23.44% |
Market Growth 2024-2028 |
USD 17.92 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
23.38 |
Regional analysis |
North America, Europe, Asia, and Rest of World (ROW) |
Performing market contribution |
North America at 37% |
Key countries |
US, Germany, France, UK, and China |
Competitive landscape |
Leading Comapnies, Market Positioning of Comapnies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AlpVision SA, Antares Vision S.p.A, Authentix Inc., Avery Dennison Corp., Axway Software SA, Bar Code India Ltd., Cognex Corp., Controlant hf., Datalogic SpA, Dover Corp., Impinj Inc., Logista Pharma SAU, Mettler Toledo International Inc., Optel Group, Oracle Corp., rfxcel Corp., SAP SE, SATO Holdings Corp., TraceLink Inc., and Zebra Technologies Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
Download Sample PDF at your Fingertips
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.