Industry Overview
The APAC track and trace solution market is expected to grow from USD 1.6 billion in 2023 to USD 5.7 billion by 2030 at a CAGR of 16.9% during the forecast period ranging from 2025 to 2030.
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Track and trace solutions refer to complex mechanisms that use advanced technologies for monitoring and documenting products in transit. This is a crucial mechanism that ensures smoother and streamline supply chain operations to ensure safer and faster product delivery. It also ensures authenticity of products and their origin. The primary purpose of these solutions is to offer visibility into the status or location of products in real-time. This promotes accountability and transparency.
The primary growth factor of the APAC track and trace solutions market is the efficiency in improving inventory control and management and other benefits such as assured security against counterfeiting and theft. This is crucial for supply chain and logistics management as well as in pharmaceuticals, food and beverage, manufacturing, and other industries as it helps in compliance with regulations and enhancing customer satisfaction due to timely deliveries.
The cost of implementing these sophisticated solutions which includes costs of hardware, software, and training is quite substantial, deterring smallbusinesses from adopting them and thereby hindering market expansion. However, the growing government initiatives and support through favorable regulations offer noteworthy opportunities for the adoption of these solutions and growth of the track and trace solutions market in the APAC region.
Market Segmentation
Insight by Component
The APAC track and trace solution market is divided on the basis of component into hardware and software, where the later segment is further divided into plant manager, line controller, and the former into barcode scanner, radiofrequency identification (RFID) reader, and others. Out of the two major divisions, it is the software segment will grow more during the study period due to widespread adoption and higher usage.
Insight by Enterprise Size
In terms of enterprise size, the Asia Pacific track and trace solutions market is segmented into SMEs and large enterprise, where the large enterprise segment is expected to grow at a higher CAGR during the forecast period due to higher adoption and widespread use in several industries.
Insight by Application
Different types of applications also divide the APAC track and trace solution market into serialization solutions and aggregation solutions, wherein the former segment is expected to grow significantly to beat the other during the forecast period due to higher applicability and adoption.
Insight by End Users
In terms of end users, the APAC track and trace solutions market is categorized into pharmaceutical, medical devices, consumer goods, food & beverages, and others. The pharmaceutical segment will beat all other segments during the projected period due to higher adoption and usage.
APAC Track and Trace Solutions Market Report Coverage
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Report Metric
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Details
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Historical Period
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2018 - 2023
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Base Year Considered
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2024
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Forecast Period
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2025 - 2030
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Market Size in 2023
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U.S.D. 1.6 Billion
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Revenue Forecast in 2030
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U.S.D. 5.7 Billion
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Growth Rate
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16.9%
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Segments Covered in the Report
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By Components, By Enterprise Size, Application and End User
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Report Scope
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Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
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Regions Covered in the Report
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China, Japan, India, South Korea, Australia and the Rest of Asia Pacific.
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Industry Dynamics
Industry Trends
The APAC track and trace solutions market is witnessing significant trends which includes a growing focus on sustainability practices to reduce waste and meet environmental responsibilities, rise in demand in the industries such as pharmaceuticals and food due to increasing regulatory and compliance requirements which is driving a more standardized, streamlined, and secure supply chain environment.
Growth Drivers
Strict and increasing governmental regulations and standards and regulatory compliance requirements for product safety and authenticity is driving the demand for track and trace solutions, resulting in higher adoption to prevent the risk of counterfeit products and pushing the market forward. In addition, technological developments and implementation of sophisticated technologies such as blockchain and IoT is improving the capabilities of track and trace systems to offer more accurate and efficient tracking, thereby boosting the demand and the market. Also, there is a significant expansion in the eCommerce sector in the APAC region needing such efficient solution to handle and efficiently manage large volume of orders and shipments to ensure timely and safe delivery to enhance customer satisfaction.
Challenges
With the significant rise in data collection and sharing, the growing concerns over data security and privacy is a significant hindrance to widespread adoption of these systems and the growth of the APAC track and trace solutions market. Also, the lack of uniform standards across the APAC region and complex supply chains causes serious challenges in integrating these systems into the existing systems.
Opportunities
Major innovations and progress in technologies such as IoT, AI, and blockchain has created novel opportunities for the growth of the APAC track and trace solutions market as incorporating these advanced technologies enhance the efficiency and functionality of the systems. The rapid growth of eCommerce in the APAC region and increased the demand of these systems to optimize delivery process and logistics, offering new growth opportunities for the APAC market.
Geographic Overview
The Asia Pacific market, on the whole, will grow at a higher rate during the forecast period due to higher demand in the emerging economies in India and China as well as the rising focus on preventing counterfeiting as well as promote supply chain management. Typically, the market is divided into a few major regions such as China, Japan, India, South Korea, Australia, and the Rest of Asia Pacific. Out of all of these regions, China is expected to dominate the Asia Pacific track and trace solutions market share during the forecast and grow at a significant rate due to the favorable government policies to track and trace solution for pharmaceuticals, food and beverages, and consumer goods. Additionally, the higher and better product launch strategies by the market players contribute to the growth of the market in this region. The Indian market will also grow due to increasing regulatory requirements in the pharmaceutical and food industries, government initiatives for digitalization, and the expansion of the e-commerce market needing efficient logistics management. The Southeast Asian market will also grow due to rising e-commerce, increasing investments in supply chain infrastructure, and higher compliance requirements for product safety and traceability.
Competitive Insight
A few major players of the APAC track and trace solutions market are WIPOTEC GmbH, Trace Technologies, Bar Code India Ltd, SAP SE, Uhlmann Pac-Systeme GmbH & Co KG, Korber AG, Videojet Technologies Inc, rfxcel Corp, NeuroTags Inc, Domino Printing Sciences plc, Kezzler AS, and Jekson Vison Pvt Ltd.
Recent Developments by Key Players
Trace Technologies (India) has raised a huge amount as pre-series A capital to expand their operations across Indian and worldmarkets as well as to improve the technological platformand enter new value chains to boost their market presence and growth.
Domino Printing Sciences plc has recently introduced UV97BK black ink for the K600i digital ink jet printer to make it compliant with food packaging.
Segments Covered in the Report
- Component
- Hardware
- Software
- Standalone
- Enterprise Size
- SMEs
- Large Enterprises Sectionse
- Application
- Serialization
- Printing
- Labeling and Packaging Inspection
- Aggregation
- Tracking
- Tracing
- Reporting
- End-User
- Pharmaceutical and Biopharmaceutical Companies
- Consumer Packaged Goods
- Luxury Goods
- Food and Beverage
- Medical Device Companies
- Contract Manufacturing Organizations
- Repackages
- Cosmetics Companies
- Others
Region Covered in the Report
- China
- Japan
- India
- South Korea
- Australia
- Rest of Asia Pacific
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Source: VynZ Research
Source: VynZ Research
