Market Overview:
The pharmaceutical traceability market deals with tracking medicines and medical devices throughout the supply chain. This helps ensure drugs and devices are authentic and safe for consumption. Traceability solutions involve using technologies like RFID, barcode, and blockchain to track products from manufacturing to the end user. This helps curb counterfeit drugs and address issues of drug diversion & medication errors. Secure traceability brings more transparency to pharmaceutical supply chains and helps maintain quality standards.
The pharmaceutical traceability market is estimated to be valued at US$ 4.3 Bn or Billion in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Growing focus on supply chain security: Pharmaceutical companies are increasingly implementing track and trace technologies to curb rising incidents of counterfeit drugs and secure supply chain operations. Blockchain is touted as the next big trend to bring more transparency in supply chains by enabling data sharing across stakeholders.
Stringent regulations: Major markets have implemented laws mandating unique identification and tracing of drugs at the package level. For example, the U.S. Drug Supply Chain Security Act requires serialization and tracing from manufacturers to dispensers. Such regulations are driving traceability adoption.
Digital transformation of healthcare: Rapid technology advancement including IoT, cloud, and analytics are allowing traceability solutions to be further developed. Novel traceability models using computer vision, AI are being introduced which can automate tracing tasks and lower operating costs. This will support market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in pharmaceutical traceability market is low, owing to the stringent regulations for new entrants and high initial investment costs required for complying with regulations.
Bargaining power of buyers: The bargaining power of buyers is moderate as there are several players providing traceability solutions and buyers can negotiate on pricing. However, non-compliance can impact buyers significantly.
Bargaining power of suppliers: The bargaining power of suppliers is low due to the presence of many solution providers and buyers have alternatives if negotiations fail with any supplier.
Threat of new substitutes: There are no close substitutes for pharmaceutical traceability as it provides compliance and patient safety which cannot be substituted.
Competitive rivalry: The competitive rivalry in the market is high due to presence of global and regional players providing customized traceability solutions.
Key Takeaways
The Global Pharmaceutical Traceability Market Size is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing regulatory compliance for drug authentication and supply chain visibility. The market size for 2023 is estimated to be US$ 4.3 Bn.
Regionally, North America is expected to dominate the pharmaceutical traceability market during the forecast period. This is owing to stringent regulations for serialization and track & trace in the region. Additionally, presence of many pharmaceutical companies and solution providers drives the market growth.
Key players operating in the pharmaceutical traceability market are SAP SE, Oracle Corporation, IBM Corporation, Microsoft Corporation, SAS Institute Inc., Infor, JDA Software, TraceLink, GS1, and Owens & Minor. Key players are focusing on new product launches and partnerships to gain competitive advantage in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it