by Market Overview:
Pharmaceutical traceability refers to tracking drugs at any stage of distribution, from manufacturing to dispensing. It helps ensure patient safety by preventing counterfeiting and theft. Technologies like barcodes, RFID and blockchain are used to assign unique identities to drug packages and authenticate products. This boosts supply chain visibility and regulatory compliance. Pharmaceutical firms use traceability solutions to gain real-time location data, streamline recalls and improve inventory management.
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 Dynamics:
ncreasing regulations: Stringent serialization standards enacted by various countries mandate unique identification of pharmaceutical products. For example, the US Drug Supply Chain Security Act requires serialization of prescription drugs by 2023. This is positively impacting adoption of traceability systems.
Drivers: Growing need to curb counterfeiting: Pharmaceutical counterfeiting poses serious risks to patient safety and profitability of drug makers. Traceability solutions help verify authenticity and detect fraudulent products, driving their implementation across supply chains.
Segment Analysis
The global pharmaceutical traceability market is dominated by the software segment owing to increasing adoption of traceability software by pharmaceutical companies to streamline their supply chain operations and ensure product authenticity. The software segment offers solutions such as serialization, aggregation and inventory management software that help pharmaceutical firms track and trace individual drug units through the distribution chain from manufacturer to patient.
PEST Analysis
Political: Governments across the world are imposing stringent regulations for drug serialization and traceability to curb counterfeit medicines. For example, the Drug Supply Chain Security Act (DSCSA) in the US mandates implementation of traceability systems.
Economic: The market is witnessing significant growth due to rising healthcare spending on pharmaceuticals globally. High costs associated with product recalls and loss of brand image due to counterfeiting are compelling companies to adopt traceability solutions.
Social: Growing aging population and increasing incidence of chronic diseases are augmenting the demand for pharmaceuticals. Patients and consumer groups are demanding transparency in drug supply chains to ensure product safety and efficacy.
Technological: Emerging technologies such as IoT, cloud computing and blockchain are being leveraged by software vendors to develop advanced traceability platforms offering real-time visibility, advanced analytics capabilities and enhanced security.
Key Takeaways
The Global Pharmaceutical Traceability Market Size is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to stringent regulations for drug serialization and evolving standards for supply chain transparency. The market size for 2023 is US$ 4.3 Bn.
Regional analysis: North America dominated the global market in 2022 owing to early adoption of traceability systems driven by DSCSA implementation in the US market. Asia Pacific is expected to grow at the fastest rate during the forecast period supported by growing generics market and presence of key generic drug manufacturers in countries such as India, China and Japan.
Key players: 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. Major players are focusing on developing integrated platforms with features such as sample tracking, variance management, and recall management to gain a competitive edge 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
