Increasing Adoption of Transparent Transportation Drives Track & Trace Market Growth
Tracking is the act of following the movement of a shipment or an asset. Tracing refers to tracking the passage of a shipment, property, or even the package’s temperature. Track & trace solutions strive to create a transparent end-to-end supply chain, allowing relevant parties to precisely locate goods and know shipping status at any time. Moreover, track & trace solutions also help improve the quality of customer service and the competence of the logistics network. These solutions help automate the process of collecting and recording essential information about goods by locating their origin and status throughout the supply chain. Applying these solutions in production involves assigning each object (raw material or finished product) a separate barcode before storing it. Each time the object passes through a stage such as packing, crating, or palletizing, a new barcode will be provided to it and updated into the system.
In addition, track & trace is also used during distribution and transportation of a product. When a product arrives at a predetermined location in the supply chain network, shipment information (including packaging, delivery time, and delivery location) will be sent to the system database. Managers can also manage and authenticate goods effectively through the track & trace software, thus ensuring a transparent supply chain, saving costs and time, and enhancing customer satisfaction. Such advantages drive the track & trace market growth.
Track & Trace Market: Segment Overview
The track & trace market is categorized on the basis of component, organization size, application, and end user. Based on component, the market is segmented into hardware, software, and service. The hardware segment has been further segmented into labeling & printing, monitoring & verification, and others. The software segment has been subsegmented into line controller, plant manager, and others. Based on organization size, the market is bifurcated into SMEs and large enterprises. In terms of application, the market is segmented into aggregation; serialization; and tracking, tracing, and reporting. Based on end user, the market is segmented into automotive, consumer goods, electronics, life sciences, retail & e-commerce, and others. The scope of the track & trace market report encompasses North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM).
In 2022, Europe held the second-largest global track & trace market share, followed by APAC. The Europe track & trace market is segmented into Germany, France, Spain, the UK, Italy, and the Rest of Europe. The European Medicines Agency (EMA) started to set the traceability standards of the European Union (EU) with the Falsified Medicines Directive (FMD) in 2011, which was accepted by EU nations in 2015. Further, in 2015, the directive clarifying the obligations of supply chain stakeholders was completed. The rising pharmaceutical and medical device industries in Europe, coupled with such proactive measures from the EMA, support the track & trace market growth. There is a rising number of government initiatives to expand the traceability of goods in a supply chain in Europe. It acts as a strong driver of the market. The adoption of cloud-based track & trace software further fuels the European track & trace market growth. Specifically, capturing the exact quantity, location, and condition of raw materials and finished products aids in preventing untoward situations leading to production line interruptions. With rapid digitalization, new technological advancements, and a rise in stringency of safety standards, a growing number of businesses are adopting track & trace solutions to increase the safety and reliability of their products. Such factors are propelling the track & trace market in Europe.
Track & Trace Market: Competitive Landscape and Key Developments
ACG Group, Axway Software, Mettler Toledo, Open Text Corporation, Optel Group, Sea Vision Srl, Sepasoft Inc, Softgroup AD, Tracelink Inc, and Zebra Technologies Corporation are among the key players that were profiled during the study. Various other companies are introducing new product offerings to contribute to market proliferation. Several other important players were also analyzed during this track & trace market analysis to get a holistic view of the global market and its ecosystem. The leading players focus on feature upgrades, expansion and diversification, collaboration, and acquisition strategies, which enable them to grab new business opportunities and increase their global market share. As per company press releases, below are a few key developments:
- In September 2023, Axonify, a leader in frontline employee enablement and Zebra Registered ISV partner, expanded its partnership with Zebra Technologies. Axonify is among the first co-sale partners for Zebra’s software solutions, and it is also providing Zebra with a new learning platform. Together, Axonify and Zebra will work to bring accessible training to frontline workers directly on the Zebra mobile devices they use every day.
- In November 2022, Mettler-Toledo Product Inspection launched a new Track & Trace and Checkweighing combination solution targeting small and mid-market manufacturers in pharmaceutical and cosmetics industries. The Mettler-Toledo CT33 system provides operators with a deep level of integration among Mark & Verify, serialization, and precision weighing capabilities, helping them achieve compliance, better brand protection, quality control, and supply chain traceability.