Surgical Instrument Tracking System Market Size, and Share Analysis by Component (Software, Hardware, Services), End User (Hospitals, ASCs), Technology (RFID, Barcodes) – Forecast to 2030

Market Overview

The global surgical instrument tracking system market size was $209.1 million in 2021, which is expected to reach $627.4 million by 2030, advancing at a CAGR of 13.0% during 2021–2030. The industry growth can be ascribed to the technological advancements in healthcare, the increasing need to implement unique device identification (UDI) standards and inventory management practices, and the rising number of surgeries across the globe.

The implementation of UDI standards by the Food and Drug Administration (FDA) is a major reason driving the growth of the market. Most gadgets now have a unique device identifier in both human- and machine-readable forms, as a result of the adoption of this regulation. The instrument labeler is required to provide some information about each device to the FDA's global unique device identification database (GUDID). This database is easily accessible, searchable, and downloadable by the general public.

Hardware Contributes Highest Revenue to Market

The hardware category generated the highest revenue, over $100 million, in 2021 in the market. This is due to the developments in technologies, such as RFID chips and barcode tags, which are a major factor propelling the use of these solutions for surgical instrument inventory management. Moreover, the rise in the demand for hardware is attributed to the repurchasing of non-durable RFID chips/barcode tags, as these are detached during washing or suffer damage during sterilizing cycles.

The software category is expected to witness the fastest surgical instrument tracking system market growth, more than 13% CAGR, during the forecast period. This can be ascribed to the surging need for advanced real-time surgical instrument tracking software.

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Hospitals Are Major End Users in the Market

Hospitals are the largest end users of surgical instrument tracking systems. The category is also expected to maintain its industry dominance throughout the forecast period. This can be accredited to the large patient base and rise in the number of surgeries performed in hospitals.

The demand for surgical instrument tracking systems in ambulatory surgery centers (ASCs) is projected to grow at the highest CAGR in the coming years. This will be due to the increasing government focus on reducing healthcare costs and offer enhanced patient outcomes, which is driving the establishment of these facilities. Additionally, they are more convenient and accessible than hospitals and 40–60% less costly.

North America Leads the Market

North America generated the highest market revenue, around $100 million, in 2021. One of the key factors credited for the dominance of the regional market on the globe is the implementation of UDI regulations by the USFDA for the effective identification of healthcare devices and instruments. Furthermore, the presence of well-developed medical infrastructure and the quick uptake of modern technologies and products are projected to enhance the market expansion potential.

• The U.S. led the North American market during the historical period, with an around 90% revenue share in 2021. The growing number of initiatives by the WHO to spread awareness about surgical care programs and rising number of hospitals and emergency care centers are some of the key factors contributing to the growth of the market in the U.S.

Europe is the second-largest market for surgical instrument tracking systems, after North America. The growth of the European market is mainly attributed to the increasing aging population, rising number of surgical procedures performed, and growing prevalence of chronic diseases in the region.

• Germany holds the largest European surgical instrument tracking system market share, and it is expected to account for over 20% revenue in the market by 2030. Germany is the hub for medical devices in Europe, in terms of product innovation and distribution. Moreover, the presence of major players, such as B. Braun Melsungen AG and Getinge AB, supports the market growth in the country.
• The U.K. industry is expected to be driven by the aging population, increasing prevalence of chronic diseases, and growing number of surgical procedures. With the increasing geriatric population, the incidence of chronic diseases is expected to rise in the U.K. Moreover, healthcare expenditure in the U.K. is increasing on account of the constantly rising need for better healthcare technology and infrastructure.

The APAC surgical instrument tracking system market forecast is for the highest CAGR in the world, of around 14%, during the forecast period. This can be ascribed to the improving healthcare facilities and increasing disposable income. Furthermore, the massive rise in the adoption of technically advanced software and hardware solutions will boost the regional market growth. In addition, developing countries, such as India and China, are expected to present significant growth opportunities to market players.

• The market in China is positively influenced by the rising healthcare expenditure and implementation of technologically advanced solutions, including surgical instrument tracking systems, within healthcare facilities. Additionally, most of the healthcare facilities in China are focused on providing quality treatment with technologically advanced navigation techniques.
• In the same way, the Indian market is booming owing to the rise in the number of surgical procedures, high demand for skilled surgeons, and growth in medical tourism activities in the country. India is one of the preferred medical tourism destinations, mainly due to the low-cost treatments available in the country. According to a report by the Federation of Indian Chambers of Commerce and Industry (FICCI), more than 5 million overseas patients visit India every year. In addition to patients from across the border, the country itself accounts for a large patient pool requiring surgical interventions.

Barcodes Are Major Revenue Generator

The barcodes category is the major revenue generator, with more than half of the share in the market, and it is also expected to maintain its position in the future. Barcodes are used in hospitals, clinics, and other surgical specialty centers for inventory monitoring. With the technological advancement and increase in the number of experiments, inventory management has become easier and more convenient for surgeons. The demand for monitoring surgical instruments generated across all hospital departments, ranging from sterilization units to operating rooms, is rising, as a large number of surgeries take place globally. Further, the barcode is a user-friendly technology that provides real-time location.

Moreover, due to their cost-effectiveness, barcodes have become more popular in the field of instrument tracking. Even their successor, named QR code, is now integrated into surgical instruments.

The RFID category is expected to grow at the higher CAGR in the market in the coming years. This can be because these systems are more accurate and efficient and able to read multiple codes at a time.

The COVID-19 epidemic had a substantial impact on the surgical instrument tracking system market outlook in 2020. Owing to the high risk of infection at medical centers, several elective procedures were postponed. However, after the reopening of medical spaces for non-elective procedures, the demand for robust surgical instrument tracking systems is expected to increase.

Key Players in the Market Are:

• Becton, Dickinson and Company
• B. Braun Melsungen AG
• Fortive Corporation
• SpaTrack Medical Limited
• Promedical Inc DBA NuTrace
• STERIS plc 
• Stanley Black & Decker Inc.
• Getinge AB 
• Scanlan International Inc.

Market Size Breakdown by Segment

The report offers comprehensive market segmentation analysis along with the revenue estimation for the period 2017–2030.

Based on Component

• Software
• Hardware
  • Tags
  • Readers
• Services

Based on End User

• Hospitals
• ASCs

Based on Technology

• RFID
  • Hospitals
  • ASCs
• Barcodes
  • Hospitals
  • ASCs

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific
  • China
  • Japan
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa