Compliance and Traceability Solutions Market Expected to Reach $9.5 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Compliance and Traceability Solutions Market," The compliance and traceability solutions market was valued at $2.8 billion in 2021, and is estimated to reach $9.5 billion by 2031, growing at a CAGR of 13.3% from 2022 to 2031.

Compliance and traceability solutions are one of the rising technologies that can make the value chain digitalized through setting an entirely networked business environment. These solutions intend to detect and track items along the value chain by the use of data transfer. Furthermore, the main focus of positioning of the compliance and traceability solutions is to effectively manage the supply chain and reduce the risks related to counterfeit products. As a result, businesses are increasingly deploying compliance and traceability solutionss to enable security, stability, and cooperation in the value chain process.

Moreover, the paradigm shift of visibility into the supply chain process and simplifying consumers with access to product deliveries drive growth of the compliance and traceability solutions market. However, high costs and longer implementation timeframe associated with serialization, as well as concerns over data privacy in traceability requirements are expected to restrict adoption of compliance and traceability solutions market.

Compliance and traceability solutions are used in various industry verticals, such as IT & telecom, BFSI, healthcare, food and agriculture, government, manufacturing, and others to streamline business processes, along with increase in their competitive advantage. In addition, increase in applications in real-time tracking for seamless cross-border shipping boost demand for compliance and traceability solutions, which is expected to fuel growth of the market.

Furthermore, key players operating in the market are expected to adopt compliance and traceability solutions for improved suppliers access to trackable information in real-time. This is further expected to present lucrative opportunities for the compliance and traceability solutions market as market vendors are introducing novel compliance and traceability solutions to cater to these new requirements.

On the basis of industry vertical, the healthcare segment had the highest share in 2021. This is attributed to streamline key processes such as performance evaluation, patient satisfaction, and staff planning and training, which drive growth of the market. In addition, growing pressure to implement effective compliance and trace systems for product traceability and authentication to mitigate the risk of pharmaceutical counterfeiting. Furthermore, the IT & telecom sector is expected to grow at the fastest CAGR during the forecast period. This is attributed to the advancement of IT, 5G, IoT technologies and other technologies to help organizations efficiently handle complex operations and support services such as customer relationship management. In addition, the business process moves toward digitization and technology initiatives in the wake of the global pandemic, the need for business agility, providing lucrative growth opportunities for the compliance and traceability solutions among these industry verticals.

By region, the compliance and traceability solutions market was dominated by North America in 2021, and is expected to maintain this trend during the forecast period, owing to surge in demand for adoption of advanced and emerging technology and robust availability of leading vendors and their strategic initiatives. Moreover, rise in usage of compliance and traceability solutions in e-commerce, government, and healthcare for security purposes to improve businesses and customer experience. However, Asia-Pacific is expected to grow at the fastest CAGR during the forecast period. The region has a proliferation of new technologies that enable increased level of automation in quality control and product recall aspects. Moreover, growth in number of pilot projects for track and trace systems and compliance solutions drive market growth in the region. For instance, in July 2022, Malaysia’s National Pharmaceutical Regulatory Agency (NPRA) introduced industry plans to operate a pilot project for an end-to-end track and trace platform intended to improve on prevailing hologram safety label system. Such developments further drive growth of the market.

The compliance and traceability solutions market analysis was negatively impacted by the COVID-19 outbreak. This was attributed to majority of countries are being affected by disrupted supply chain for track and trace activities as well as limited operations of logistics and transportation. As a consequence, demand for compliance and traceability solutions is expected to experience a significant decline across the region. Moreover, customers are looking to compliance and traceability solutions to assist them in preparing for the future beyond COVID-19. Hence, many market vendors are expanding their offerings to improve efforts in tracking and tracing solution. For instance, in May 2022, Inspectorio unveiled a new production chain quality and compliance management solution that integrates with SAP S/4HANA. This newly advanced solution is expected to provide a holistic platform to manage quality, compliance, and production tracking, as well as leveraging machine learning technology to take proactive approaches in supply chain management. Vendors are also enthusiastic about improved compliance and traceability solutions since it provides better visibility in supply chain management to attract a wide customer pool.

Key Findings of the Study

• By component, the software segment led the compliance and traceability solutions analysis in terms of revenue in 2021.
• By deployment mode, the on-premise segment led the compliance and traceability solutions industry in terms of revenue in 2021.
• By organization size, the large enterprises segment dominate the compliance and traceability solutions market share in terms of revenue in 2021.
• By industry vertical, the healthcare segment accounted for the highest compliance and traceability solutions market size in 2021.
• By region, North America generated the highest revenue in compliance and traceability solutions market forecast in 2021.

The key players profiled in the compliance and traceability solutions industry analysis include, 4CRisk.ai, Agrilyze, Mettler-Toledo, Omron Corporation, Optel Group, SAP SE, Systech International, Tata Consultancy Services, TraceLink, Inc., and Tuleap. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.