Surgical Instrument Tracking System Market Size, Trends 2031

Report Description

The surgical instrument tracking system market size was around USD 187 million in 2021 and is projected to reach USD 513 million by 2030, expanding at a CAGR of 12% during the forecast period, 2022 – 2030. The growth of the market is attributed to the rising demand to track critical equipment.

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Hospitals have complete control over their surgical inventory, even down to the individual instruments using a surgical tool monitoring system. Each instrument is monitored throughout the entire sterilization procedure, including cleaning, assembly, and storage before being placed in cases. These monitoring systems provide tools to make sure no procedures are skipped during sterilization, save time, and enhance departmental communication. In order to effectively prevent infection and for legal reasons, surgical tools need to be traced back to the instances for which they were used. The hospital needs to show that each container underwent the necessary sterilization procedures if a patient suffers an infection after surgery. Infection control during surgeries has gained importance as healthcare systems and facilities are subject to higher regulatory and compliance standards than ever before. Incidents such as surgical instruments left within patients after surgery happen quite frequently in large hospitals. These could include anything from sponges and clamps to needles and other objects. Fixing these errors can be quite expensive. Usually, after surgery, a team would perform meticulous hand counts to make that the inventory of tools and supplies is the same as it was before the procedure. If the figures don't match, expensive x-rays will need to be taken to check for straying equipment, which could cause issues.

COVID-19 Impact

The Covid-19 pandemic had a negative impact on the demand and supply of surgical instrument tracking system market. Lockdown across the globe, supply chain disorders, and oscillating supply of raw materials forced manufacturers to shut down production leading to an unfortunate decline in market growth. Launch of vaccines to combat the Covid-19 pandemic is expected to contribute to the market growth over the forecast period.

Market Dynamics

The market research report on the global surgical instrument tracking system market provides a detailed analysis by focusing on revenue growth, facts, figures, and historical data to determine major drivers, existing restraints, key opportunities, and competitive analysis. The report includes recent developments that can shape the overall performance of the market during the assessment period, 2022 to 2030.

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Drivers: To comply with FDA Unique Device Identification requirements

Manufacturers are expected to monitor surgical tool supply chains from manufacturing to distribution. Device tracking is used to make sure that instrument manufacturers set up tracking systems that will allow them to quickly find devices in commercial distribution. The market for surgical instrument tracking systems is anticipated to expand as a result of the US FDA's (Food and Drug Administration) proposed UDI (Unique Device Identification) requirements. Surgical instrument labelers are required to use direct marking at the individual instrument level under the UDI standards. Surgical equipment classified as Class I devices had to fully adhere to these FDA regulations until September 24, 2020. Additionally, labelers need to provide FDA's GUDID with information regarding each device. For all devices, this database acts as a reference catalog. These factors are projected to boost the market in the coming years.

Restraints: Low ROIs, long investment cycles, and high system costs

Medical device tracking systems demand significant upfront investments that cover the consultancy fees, staff training, maintenance services, integration costs for the legacy system & the barcode/RFID framework, and costs of middleware, tags, hardware, and application software. Despite significant price reductions of tags and readers, the cost of implementing automated tracking systems like RFID—which need additional servers, databases, and middleware—has been rising quickly. Compared to more conventional systems like barcode-based systems, the overall cost of deploying automated surgical tool tracking systems employing RFID is relatively high. The majority of automated surgical tool tracking systems have extremely extended investment lifecycles in addition to significant implementation costs. Major challenges hospitals face are a lack of knowledge of cost-benefit analysis and returns on investment (ROI) for tracking systems. Furthermore, manufacturers are required to follow the safety guidelines implemented by the government and other regulatory agencies. One of the major challenges for new participants in this industry is getting approval from various regulators, these factors restrain market growth.

Opportunities: Emerging economies are estimated to offer lucrative growth opportunities

Developing healthcare infrastructure and increasing healthcare expenditure in emerging economies such as China, India, countries in Latin America, and Middle East. Several Middle Eastern nations have taken steps to upgrade their medical facilities. The budget for the health and social development sector is also responsible for finishing the construction of hospitals and primary healthcare facilities across the entire Kingdom of Saudi Arabia. In all parts of the Kingdom, up to 36 new hospitals with a combined bed capacity of 8,950 are now being built. Other developing nations in the Asia Pacific.

Scope of the Report

The report on the global surgical instrument tracking system market includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

The hardware segment accounted for a key market share in 2021

Based on component, the market is segregated into software, hardware, and services. The hardware segment held a market share of around 45% in 2021 and is projected to continue its dominance during the forecast period. Technological advancements in hardware such as barcode tags and RFID chips are the key factors fueling the segment. For instance, A technique for embedding RFID chips into metal surgical equipment has been developed by the Wyss Institute at Harvard University using a vapor deposition procedure and biocompatible sealant. The entire system, which consists of the technology, visual display, antenna, visual display, and RFID chips is built to be electronically tracked & counted and to endure repeated sterilizations.

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The barcodes segment held a key market share in 2021

On the basis of technology, the global market is bifurcated into Radiofrequency Identification (RFID) and barcodes. The barcodes segment held around 83% of the total market share in 2021. Growth of the segment is attributed to the increasing use of barcodes in the medical devices sector. 2D barcodes, such as QR codes and data matrices, are widely used in the market due to their advantages, such as inexpensive costs, a sturdy construction, and 360° readability. These devices are increasingly being used in healthcare facilities including ambulatory surgery centers and hospitals because of their inexpensive installation costs.

The RFID segment is projected to grow at a rapid pace during the forecast period owing to the ability of RFID tags to endure harsh environments such as rigorous sterilization processes, in addition to keeping data and recording important details about each instrument, like location and repair history. Due to the fact that line-of-sight scanning is not necessary for RFIDs, unlike barcodes, their usage is anticipated to increase during the forecast period.

The hospital segment held around 78% of the total market share in 2021

In terms of end-user, the market is fragmented into hospitals and others. The hospital segment accounted for a key market share in 2021. Effective inventory management and the growing need to decrease the risk of surgical equipment remaining in patients' bodies after procedures are two major factors driving the segment. According to estimates, 20% or more of hospital equipment, supplies, or devices are lost or misplaced as a result of poor supply chain management.

North America dominated the market in 2021

Based on regions, the global market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America dominated the market in 2021. One of the key elements ascribed to the dominance of this region is the implementation of the UDI system by the U.S. FDA for the efficient identification of medical devices and instruments. Additionally, the market growth in the region is due to the presence of a highly established healthcare infrastructure and the quick adoption of advanced products and technology.

The market in Asia Pacific is expected to expand at a high CAGR during the projected period. Growth of the market is attributed to swiftly developing healthcare infrastructure and the increasing number of surgical operations in countries such as India, Indonesia, and China. The development of technologically enhanced hardware and software solutions is estimated to increase the use of surgical instrument tracking systems in the region.

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