SURGICAL INSTRUMENT TRACKING MARKET ANALYSIS

The global surgical instrument tracking market was valued at US$ 301.5 Mn in 2022 and is forecast to reach a value of US$ 1,206.5 Mn by 2030 at a CAGR of 19.0% between 2023 and 2030. The global surgical instrument tracking market is experiencing strong growth due to the rise in burden of cardiovascular diseases and growing number of surgical procedures worldwide. Moreover, high demand for surgical instrument tracking devices/systems and lack of skilled or trained healthcare professionals is expected to boost the market growth. However, factors such as product recalls and data security and high cost of surgical instrument tracking system expected to hamper the growth of the global surgical instrument tracking market.

Global Surgical Instrument Tracking Market: Regional Insights

Based on region, the global surgical instrument tracking market is segmented into North America, Latin America, Europe, Asia Pacific, Middle East, and Africa.

Among regions, North America is expected to gain highest share in the market over the forecast period owing to the increasing prevalence of cardiovascular disorders and other chronic disorders, increasing number of road accidents, and increasing number of surgical procedures in this region. For instance, with the increasing number of surgical procedures, the use and demand for surgical instrument tracking devices is also increasing. According to the U.S. Centers for Disease Control and Prevention (CDC), heart disease is the leading cause of death for men, women, and people of most racial and ethnic groups in the United States.

Europe and Asia Pacific are also expected to witness significant growth in the surgical instrument tracking market owing to the rise in burden of cardiovascular disorders and other chronic disorders, increasing number of surgical procedures, and increasing use and demand for surgical instrument tracking devices in these regions. For instance, according to the International Society of Aesthetic Plastic Surgery (2022 report), around 10,129,528 cosmetic surgeries were performed in 2020, and the top 5 surgical procedures included breast augmentation (1,624,281), liposuction (1,525,197), eyelid surgery (1,225,540), abdominoplasty (765,248), and rhinoplasty (852,554). 

Figure 1. Global Surgical Instrument Tracking Market Share (%), by Region, 2023

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Global Surgical Instrument Tracking Market Drivers:

Rise in burden of cardiovascular disorders to propel market growth

One of the key factors expected to augment the growth of the global surgical instrument tracking market over the forecast period is the increasing prevalence of cardiovascular diseases worldwide. Such a high burden of cardiovascular diseases leads to an increased number of surgical procedures and is expected to increase the use and demand for surgical instrument tracking devices. According to the National Institutes of Health (NIH), each year, more than 2 million people around the world have open-heart surgery to treat various heart problems. This in turn is expected to augment growth of the global surgical instrument tracking market.

Increasing number of surgical procedures to drive market growth

Another factor which is driving the growth of the global surgical instrument tracking market is the increasing number of surgical procedures around the world. For instance, according to the National Center for Biotechnology Information (NCBI), worldwide, around 310 million major surgeries are performed each year; around 40 to 50 million in the United States and over 20 million in Europe. The volume of surgical procedures across the globe is on the rise, which in turn increases the use or demand for surgical instrument tracking devices; thereby positively impacting the growth of the global surgical instrument tracking market.

Global Surgical Instrument Tracking Market Opportunities:

Increasing demand for surgical instrument tracking devices/systems is expected to offer significant growth opportunities for players in the global surgical instrument tracking market. For instance, in April 2023, GE HealthCare announced the launch of a next-gen intraoperative ultrasound imaging system, bkActiv, to provide guidance for urology, colorectal, and pelvic floor surgical procedures. bkActiv provides surgeons with advanced ultrasound guidance, ensuring better performance while offering them a user-friendly and intuitive experience. Furthermore, the system delivers improved image quality that enhances decision-making during surgical procedures.  

Lack of skilled/trained healthcare professionals is expected to offer lucrative growth opportunities for players in the global surgical instrument tracking market. For instance, owing to lack of skilled or trained healthcare professionals, the use or demand for surgical instrument tracking devices has increased significantly. In 2021, Spa Track Medical announced the launch of their next generation RFID hospital scanner for surgical instrument tracking. A hi-tech tracking system offer a complete solution that has been designed in close consultation with surgeons, theatre nurses and sterilization experts in hospitals. This in turn is expected to drive market growth.

Global Surgical Instrument Tracking Market Trends:

Rising adoption of HIT solutions is a recent trend

With the increase in healthcare digitalization, the adoption or use of Healthcare IT solutions is also increasing with a rapid pace. Healthcare IT solutions or services improves the quality of healthcare delivery, increases patient safety, reduces medical errors, and strengthens the interaction between the healthcare providers and patients. In February 2022, MyHealthcare launched its MyHealthcare Enterprise Application (MHEA) for hospitals and healthcare institutions towards digitalization of healthcare in India. This trend is expected to continue over the forecast period.

Increasing number of healthcare centers is another trend

With the increasing healthcare expenditure, along with investment in new hospitals and increasing number of healthcare centers, the use or adoption of surgical instrument tracking devices/systems is also increasing. According to the American Hospital Association (AHA), the number of active hospitals in the U.S. increased from 5,534 in 2016 to 6,093 in 2020 and total hospital admissions stood at about 33.4 million with a total hospital expense of around US$ 1.2 trillion. This trend is also expected to continue during the forecast period.

Global Surgical Instrument Tracking Market Restraints:

Product recall and data security to hamper market growth

One of the key factors expected to hamper growth of the global surgical instrument tracking market is the product recall & data security. Surgical instruments tracking system poses another challenge of malfunctioning, product failure at an operational level due to incorrect handling and due to the product fault. Thus, in recent years, many instances of product recall are observed worldwide. Data management and security also pose another barrier to effective use of the system, as unskilled staff or professionals unable to operate these systems effectively, posing a threat to data security.

High cost of the system to hinder growth of the market

Another factor which is hampering the growth of the global surgical instrument tracking market is the high cost of surgical instrument tracking system. The surgical tracking systems implementation requires the heavy upfront investments that encompass the costs of application software, hardware, tags, middleware, and the cost of integrating RFID tags along with the legacy system, maintenance services, consultancy fees, and staff training. Moreover, the cost of implementation of automated systems using RFID is very high as compared to traditional systems of recording.

Figure 2. Global Surgical Instrument Tracking Market Share (%), by Technology, 2023

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Global Surgical Instrument Tracking Market Segmentation:

The global surgical instrument tracking market report is segmented into Technology, Component, End User, and Region.

Based on Technology, the market is segmented into Barcode and Radiofrequency Identification (RFID). Out of which, Barcode Segment is expected to dominate the surgical instrument tracking market over the forecast period and this is attributed to the increasing adoption of 2D barcodes. 2D barcodes such as data matrices and QR Codes, are more popular due to their advantages, which include robust build, low cost, and 360° readability.

Radiofrequency Identification (RFID) Segment is also expected to witness significant growth in the near future and this is owing to the increasing adoption of automated surgical instrument tracking devices or systems across the globe.

Based on Component, the market is segmented into Software, Hardware (Readers, Tags, and Other Hardware), and Services and Hardware (Readers, Tags, and Other Hardware). Out of which, Software Segment is expected to dominate the market during the forecast period and is attributed to the increasing adoption of surgical instrument tracking software.

Hardware Segment is also expected to witness robust growth in the near future and this is owing to increasing adoption of surgical instrument tracking hardware.

Based on Application, the market is segmented into Public Hospitals, Private Hospitals, and Other End Users. Out of which, Public Hospitals Segment is expected to dominate the market over the forecast period and this is attributed to the increasing prevalence of cardiovascular disorders and other chronic disorders around the world.

Private Hospitals Segment is also expected to witness significant growth in the near future and this is owing to increasing number of surgical procedures.

Global Surgical Instrument Tracking Market: Key Developments

In September 2022, Stryker announced the launch of its Q Guidance System for spine applications. The system combines optical tracking options provided by a redesigned, state-of-the-art camera with sophisticated algorithms of the newly launched Spine Guidance Software to deliver more surgical planning and navigation capability than ever before.

In September 2022, HID Global acquired Vizinex RFID. The acquisition increases HID Global’s presence and relevance in key verticals including healthcare/medical and adds a key technology to HID Global’s industry-leading RFID tag portfolio.

In April 2022, Surglogs announced the launch of a new module called Sterile Processing Records that tracks sterilization loads for healthcare facilities of all types.

Global Surgical Instrument Tracking Market: Key Companies Insights

The global surgical instrument tracking market is highly competitive. This is attributed to the high demand for surgical instrument tracking devices or systems, as a result, players in the market are focusing on launching novel products in the market.

Some of the key players in the global surgical instrument tracking market are Keir Surgical Ltd., Case Medical, Scanlan International, Inc., Koch Industries, Getinge Group, B. Braun (Aesculap, Inc.), Xerafy, Mobile Aspects, Key Surgical, Inc., Spatrack Medical Limited, Fortive Corporation Group, Haldor Advanced Technologies, Tgx Medical Systems, Becton, Dickinson and Company, Intechnology Distribution Pty Ltd., Nutrace,  Steris Insturment Management Services, Material Management Microsystems, Asanus Medizintechnik GmbH Inc., and Stanley Healthcare (Division of Stanley Black & Decker), among others.

*Definition: The surgical instrument tracking system helps healthcare professionals gain access to surgical equipment or instruments and leads to reliable and time-saving procedures. The system also helps enhance tool governance to decrease the need for instant steam sterilization.