Track and Trace Solutions Statistics 2024 By Management Tech

Introduction

Track and Trace Solutions Statistics: Track and trace solutions are essential in supply chain management, ensuring product safety, regulatory compliance, and efficiency.

They employ technologies like barcodes, RFID, serialization, and data matrix codes to track items in industries such as pharmaceuticals, food, automotive, electronics, and healthcare.

Compliance with regulations is crucial, with standards like the U.S. DSCSA and EU FMD in place. Challenges like data security are met with advancing technology and industry standards. Making these solutions indispensable for transparency and efficiency across sectors.

Editor’s Choice

• In 2018, the global track and trace solutions market revenue stood at USD 1,728.33 million and is expected to expand to 6,048.96 million in 2027.
• Barcodes come in various formats, including 1D barcodes like Code 39 and Code 128. As well as 2D barcodes like Data Matrix and Quick Response (QR) codes.
• The first RFID tag was patented in 1973, IBM introduced the first Ultra-High Frequency (UHF) reader in the 1990s, and by 2004. Walmart, a prominent player in the American retail industry, had invested nearly $500 million in its RFID initiatives.
• A data matrix is a 2D barcode composed of black and white cells arranged in square or rectangular modules. The encoded data’s length depends on the matrix’s cell count. Ranging from several bytes to 1556 bytes or up to 2335 alphanumeric characters.
• Complying with global pharmaceutical regulations is growing increasingly intricate. With approximately 80% of countries incorporate serialization to combat counterfeit drugs and fraud.
• Global regulatory bodies such as the FDA, EMA, and regional agencies have implemented strict directives. That requires the use of track and trace technologies for achieving complete visibility, traceability, and responsibility throughout the entire process.
• About 39% of companies are using these tools for demand forecasting, resulting in reduced inventory levels by 20-30%.

Global Track and Trace Solutions Market Statistics

Track and Trace Solutions Market Size Statistics

• The global track and trace solutions market has been on a consistent growth trajectory over the past decade.
• In 2018, the market revenue stood at USD 1,728.33 million, and it continued to expand in subsequent years.
• By 2019, it had already reached USD 1,939.47 million, demonstrating a steady upward trend.
• The year 2020 witnessed further growth, with market revenue reaching USD 2,189.64 million.
• However, the pace of expansion accelerated in the following years.
• In 2021, the market saw a significant increase, with revenue surging to USD 2,487.04 million.
• The trend continued into 2022, with revenue climbing to USD 2,841.81 million, marking a notable milestone. Projections for the years ahead indicate even more substantial growth.
• In 2023, the market is expected to reach USD 3,266.61 million. Followed by USD 3,777.21 million in 2024 and USD 4,393.42 million in 2025.
• By 2026, the market is anticipated to surpass the USD 5 billion mark, reaching USD 5,140.17 million, and it is forecasted to continue its upward trajectory, reaching USD 6,048.96 million in 2027.
• This robust growth in the track and trace solutions market underscores the increasing importance of supply chain visibility and product authentication in various industries worldwide.

(Source: Statista)

Technologies Used in Track and Trace Solutions Statistics

Barcode Systems

• Since the initial scanning of the first consumer barcode in 1974, the application of barcodes for asset tracking has been a game-changer. Significantly enhancing data precision and speeding up inventory control for businesses.
• The integration of advanced asset tagging technology and cloud-based asset-tracking solutions has further expanded the utilization of barcode labels and scanning devices within enterprises.
• This adoption has been so extensive that GS1, a global standards organization. approximates that over five billion barcodes are scanned daily. Underlining their ubiquity in both consumer and business domains.
• Barcode asset tracking provides a straightforward and cost-effective solution for businesses of all sizes to efficiently manage and monitor their physical assets. This method relies on two essential components: a barcode label and a scanning device.
• Barcodes come in various formats, including 1D barcodes like Code 39 and Code 128. As well as 2D barcodes like Data Matrix and Quick Response (QR) codes.
• Regardless of the type, barcodes serve the same purpose of storing data, represented by alphanumeric characters. A reader, typically a barcode scanner or mobile device, is used to decode this data.
• One of the significant advantages of barcode asset tracking. Especially for small businesses, is the ability to create and print barcodes on-site.
• After assigning unique data to a barcode, it can be printed and attached to assets. Whether they are fixed assets, IT equipment like monitors and keyboards, or current assets such as stock and inventory.

(Source: Compare Soft)

Radio-Frequency Identification (RFID)

• Using radio-frequency identification (RFID) to track physical objects is not a recent innovation. The origins of RFID tracking systems can be traced back to the Second World War when they were employed to track and identify enemy aircraft.
• Over the subsequent 80 years, RFID technology has undergone significant development. The first RFID tag was patented in 1973, IBM introduced the first Ultra-High Frequency (UHF) reader in the 1990s, and by 2004. Walmart, a prominent player in the American retail industry, had invested nearly $500 million in its RFID initiatives.
• This substantial investment by Walmart served as a signal to all consumer-oriented organizations with substantial assets to recognize the potential of RFID technology and leverage its benefits.
• Since its inception, RFID asset tracking has been applied across a wide spectrum of industries and enterprises. Whether in manufacturing facilities, educational institutions, retail establishments, or storage facilities. Its tracking functionalities are pervasive and in use across diverse sectors.
• River Island, a clothing retailer in the UK, significantly improved its inventory precision. Enhancing it from 70% to an impressive 98% accuracy by implementing RFID tags in all of its stores.
• Air Canada, the Canadian airline company, achieves substantial annual cost savings by employing RFID technology to monitor the whereabouts of food carts utilized in airports worldwide.
• Club Car, a manufacturer specializing in golf carts, streamlined their assembly process effectively. Reducing the time required for each vehicle’s assembly from 88 minutes to just 46 minutes through the implementation of RFID tracking.
• Canus, a skincare production firm, relies on RFID temperature sensors to oversee the condition of its products during transit.

(Source: Compare Soft)

Serialization

• Serialization involves assigning a specific code to each product, giving it a unique identity for constant tracking and tracing throughout its lifecycle in production, logistics, and marketing.
• Track and Trace systems follow a hierarchical model consisting of five interconnected levels.
• Level 1 oversees the hardware within production machinery for serialization and aggregation.
• Level 2 manages the serialization/aggregation system across the production chain, with one Level 2 overseeing multiple Level 1 systems.
• Level 3 handles the serialization/aggregation system at the production plant level, with one Level 3 managing multiple Level 2 systems.
• Level 4 manages the serialization/aggregation system at the company level, overseeing multiple Level 3 systems.
• Level 5 oversees the serialization/aggregation system at an external level, facilitating external data access for entities like drug agencies and logistics operators. Typically, Level 5 receives data from a single Level 4.
• Grifols has two operational Track and trace systems for serializing and aggregating hemoderivative products.
• The first system is designed for a single product and a single country. It’s currently in use at the GBI and IG production facilities to serialize and aggregate albumin for the Chinese market.
• This system complies with CFDA regulations from 2013 and encompasses levels 1, 2, and 3 of the Track & Trace model, covering both single-pack and multipack product levels.
• The second system is more versatile, handling multiple products and countries. Initially deployed at the GWWO Ireland plant, it currently manages serialization and aggregation for albumin and flebogamma products destined for various international markets. Each meeting its specific regulatory requirements.

(Source: American Pharmaceutical Review)

Data Matrix

• A data matrix is a 2D barcode composed of black and white cells arranged in square or rectangular modules. The encoded data’s length depends on the matrix’s cell count. Ranging from several bytes to 1556 bytes or up to 2335 alphanumeric characters.
• Unlike standard barcodes, which can hold a maximum of 20 digits, data matrices store significantly more information, often dozens or hundreds of times more. Despite this, a data matrix is only a fraction of the size of a standard barcode.
• Each data matrix conveys information both horizontally and vertically, occupying just one-tenth of the space of a standard barcode.
• It includes a timing pattern, with various combinations of black and white cells at two corners, and an L-shaped locator pattern in one corner.
• The locator pattern assists in locating and interpreting the code. While the timing pattern specifies the number of columns and rows encoded within the symbol.
• Data matrices are commonly applied to label small items because their 2-3 mm² space can hold up to 50 characters of data and still be read with just a 20% contrast ratio. This is especially advantageous for medical packaging as it allows for swift product tracking using barcode readers.
• Data matrices excel in storing data within tiny spaces. With the smallest size being 10×10 modules, compared to QR codes’ 21×21 minimum dimensions.
• They boast a higher error correction rate of around 33% in each version, surpassing QR codes. This makes them the top choice for reliable data coding needs.

(Source: Drug Track & Trace)

Regulatory Compliance of Track and Trace Solutions Statistics

• Complying with global pharmaceutical regulations is growing increasingly intricate. With approximately 80% of countries incorporate serialization to combat counterfeit drugs and fraud.
• Nations like the US, Brazil, EU, Russia, Bahrain, China, and South Korea have distinct serialization mandates, and more countries are expected to adopt similar requirements.
• Meeting these regulations is crucial for patient safety and competitiveness. It demands a robust technology suite, efficient data collection, and secure communication with national track and trace systems to swiftly exchange data.
• Global regulatory bodies such as the FDA, EMA, and regional agencies have implemented strict directives that require the use of track and trace technologies for achieving complete visibility, traceability, and responsibility throughout the entire process.

(Source: Pharma IQ)

The Role of Track and Trace Solutions Statistics

Quality Assurance

• Imagine your favorite chocolate bar melting in a hot delivery truck or an asthma inhaler losing its potency due to cold conditions.
• These scenarios emphasize the crucial necessity for precise monitoring of temperature, humidity, and light during transportation.
• This is especially vital for perishable items, life sciences products, and delicate electronics. Where maintaining the appropriate environment is fundamental for safety and quality.
• Consider the significant impact on food and pharmaceuticals: The International Air Transport Association (IATA) notes that 25% of vaccines lose their efficacy due to improper shipping, and around 5 to 20% of temperature-sensitive vaccine shipments degrade during transit.
• In the U.S., food waste amounts to a staggering 400 pounds per person each year, incurring roughly $218 billion in costs.
• Simultaneously, foodborne illnesses affect 48 million individuals annually in the United States.

(Source: ZDNet, NRDC, TIVE)

Safety & Security

• When it comes to shipping hazardous materials, the stakes are exceptionally high, and tracking technology plays a crucial role.
• In 2022, there were 23,178 hazmat incidents on highways, resulting in $21.3 million in damages.
• Additionally, the Coalition to Prevent Chemical Disasters documented 188 incidents, with over 30 more occurring in the first seven weeks of 2023.
• This underscores the importance of real-time tracking technology, especially since only 37% of companies effectively monitor their hazardous shipments in transit. Even though approximately 84% of incidents involving these materials happen during transportation.

(Source: NBC, Guardian, Utilities One)

Data-Driven Decision Making

• Predictive analytics and data analysis are revolutionizing supply chain management.
• About 39% of companies are using these tools for demand forecasting, resulting in reduced inventory levels by 20-30%.
• Maintenance, asset management, and customer transparency also benefit, with 35% of companies applying analytics in these areas.
• Supply planning and pricing optimization are similarly influenced, and utilized by 32% and 31% of companies, respectively.
• Beyond number-crunching, the integration of IoT and AI empowers businesses to proactively respond to demand shifts, streamline routes, and enhance customer satisfaction with accurate ETAs.

(Source: Django stars, River Logic)

Recent Developments

Acquisitions and Mergers:

• Danaher acquires Aldevron: In 2023, Danaher Corporation expanded its reach in track and trace solutions for the pharmaceutical industry by acquiring Aldevron for $9.6 billion. This acquisition helps Danaher strengthen its capabilities in life sciences by integrating advanced traceability systems to monitor drug development and distribution.
• OPTEL acquires GeoTraceability: In 2023, OPTEL Group, a leader in traceability systems, acquired GeoTraceability, a company specializing in supply chain traceability, for an undisclosed amount. This merger enhances OPTEL’s solutions in tracking the origin of raw materials, allowing businesses to ensure transparency across their supply chains.

New Product Launches:

• Zebra Technologies introduces RFID to track and trace solution: In 2024, Zebra Technologies launched an advanced RFID-based track and trace solution to help industries like healthcare, pharmaceuticals, and logistics monitor their assets and inventory in real-time. The solution focuses on automating the tracking process and improving operational efficiency.
• Antares Vision releases TrackMyWay: In 2023, Antares Vision, a leader in serialization and track and trace systems, introduced TrackMyWay, a cloud-based platform designed to provide real-time visibility and data analytics for product tracking in the pharmaceutical and food industries. The platform aims to enhance traceability compliance and streamline supply chain management.

Funding:

• Rfxcel secures $30 million for global expansion: In 2023, Rfxcel, a leading provider of track and trace solutions for pharmaceuticals, raised $30 million to fund its expansion into new markets, including Europe and Asia. The company plans to use the funding to develop new features and ensure compliance with global regulatory requirements.
• Tracelink raises $50 million for blockchain-based track and trace solutions: In early 2024, Tracelink raised $50 million to develop blockchain-based solutions that enhance the security and transparency of track and trace systems, particularly for pharmaceutical supply chains. The funding will also support Tracelink’s expansion into new sectors like food and beverage.

Technological Advancements:

• Blockchain integration for enhanced security: Blockchain technology is being increasingly integrated into track and trace solutions to enhance security and transparency. By 2025, over 40% of track and trace solutions are expected to incorporate blockchain to reduce fraud, ensure product authenticity, and improve data integrity.
• AI and machine learning in track and trace systems: AI is being utilized to optimize track and trace processes by predicting demand, detecting anomalies, and ensuring regulatory compliance. By 2026, 35% of track and trace platforms will feature AI-driven analytics to enhance supply chain efficiency and decision-making.

Conclusion

Track and Trace Solutions Statistics – In summary, Track and Trace Solutions have become essential across industries, ensuring transparency and compliance.

They employ technologies like barcodes and RFID to enhance supply chain efficiency, safety, and product authenticity.

Challenges like counterfeiting and data security are effectively tackled. Emerging trends like blockchain and data analytics promise further improvements.

In a world valuing trust and compliance, these solutions are vital for modern supply chain management, helping businesses thrive in a dynamic marketplace.

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