Market Challenges And Opportunities

Global Track and Trace Solutions Market Drivers:

Increasing adoption of advanced track and trace solutions to fuel the market growth

The use of advanced track and trace solutions allows manufacturers tracking of the real time progress of products in transit across the supply chain. The development of new and advanced tracking technologies such as barcode and radio-frequency identification (RFID) continues to increase by these companies. For instance, in November 2020, AstraZeneca announced adoption of RFID into the supply chain of the company. The supply chain dispenses over 30 million RFID enabled Diprivan syringes. Thus, adoption of such advanced solutions is expected to propel growth of the global track and trace solutions market during the forecast period.

Supportive initiatives by government to augment the market pace

Governments of several countries around the world are focusing in regulating and controlling counterfeit activities and are offering legislative support to organizations dealing with such activities. Governments in developed countries have established various regulatory policies to control counterfeit practices. For instance, in Germany government authority have implemented rules and regulations for distributors/manufactures/affected parties, to take counter action against counterfeiters. Thus, such supportive initiatives by governments is likely to boost growth of the global track and trace solutions market over the forecast period.

Global Track and Trace Solutions Market Opportunities:

Increasing technological developments is anticipated to bring multiple growth opportunities in the global track and trace solutions market over the forecast period. Due to the high cost structure, the practical implementation of these solutions is disrupted. However, companies are constantly involved in development of new cost-effective tracking solutions. This can create major opportunities in medical devices, pharmaceutical products, and others. Due to technological development in sleeve labels, several packaging industry applications are emerging and it is also improving the shelf life of pharmaceutical product.

Remote product authentication feature is expected to generate business opportunities in the global track and trace solutions market over the forecast period. Conventional brand protection technologies such as authentication and anti-theft are designed for protecting each item separately instead of protecting to whole supply chain together. Thus, false products can be introduced to the supply chain at any time. To overcome this, solutions that have non-line-of-sight or automatic capabilities are needed. The demand for such technologies having modular designs is increasing and it will bring lucrative opportunities in the global track and trace solutions market in the coming future.

Global Track and Trace Solutions Market Restraints:

High initial cost required for setup of infrastructure to hamper the market pace

To implement product identification setups, it requires a high capital investment. Such high cost of setups cannot be always feasible for low cost products. These factors are not in the scenario in developed countries, as government of these countries offer support for ground infrastructure. However, in emerging countries, such as India, there is lack of government support for such infrastructure. Thus, high cost of track and trace solution infrastructure is likely to hinder growth of the global market in such countries. However, increasing number of market players are focusing on development of cost-effective solutions, which is likely to support growth of the market in the near future.

Availability of alternative technologies to prevent counterfeiters to limit the market growth

Some of the track and trace technologies have their shortcomings. For instance, RFID has shortcomings in terms of orientation, obscuration, and multiple tracking. Conventional methods of anti-counterfeiting involving special hologram labels and tamper-resistant packaging can be inadequate, as duplicating labels is easy for counterfeiters. Thus, this factor is expected to hamper growth of the global track and trace solutions market over the forecast period.