Contact Tracing Application Market

Contact Tracing Application Market Outlook

Future Market Insights (FMI) in its newly released data estimates US$ 142.8 million in revenue in 2023 for the contact tracing application market. The market also holds the potential to surpass a valuation of US$ 199.5 million by 2033. The terms contact tracing application market and digital contact tracing market are often used interchangeably to refer to the same market segment which includes different digital solutions used for contact tracing purposes.

Market players could expect a CAGR of 3.4% during the forecast period given the development of efficient disease management plans can be facilitated by these technologies. These applications can also be used to monitor outbreak patterns and comprehend viral transmission pathways. Examples of such apps include the NHS COVID-19 in the United Kingdom and the COVIDSafe app in Australia.

Contact tracing applications have not been popular globally for their role in infectious disease control programs so far. However, these products have been steadily gaining interest on the back of the highly-contagious Covid-19 pandemic which has spread to all corners of the world at a rapid pace. The scope of adoption has soared with growing recommendations by key regulatory bodies such as the WHO in controlling infectious disease outbreaks.

A research report conducted by Future Market Insights reveals essential data on the industry. The role of digital technologies in containing infectious disease is expected to witness strong growth between 2022 and 2032. Contact tracing applications are expected to benefit in the short term with governments around the world investing in their own mobile applications.

The key driver of this market growth has been the unprecedented demand for app-based contact tracing. As governments and health organizations across the world seek to contain the spread of the virus, these apps have become essential contact tracing tools in tracking and managing infections. In response to this demand, companies have developed new and innovative contact tracing technologies, including Bluetooth-based proximity tracking, GPS location tracking, and QR code scanning.

An important trend in the market is the growing focus on user privacy. Many consumers are wary of the potential privacy implications of contact tracing applications, which can collect sensitive personal information. Market players are developing more secure and privacy-focused contact tracing solutions to address these concerns. They are developing a decentralized contact tracing system that stores data locally on a user’s device.

The contact tracing application market is closely associated with the COVID-19 tracking system market which is likely to grow rapidly in the coming years. The market is expected to be driven by the increasing adoption of advanced technologies such as artificial intelligence, machine learning, and big data analytics. These technologies are enabling the development of more advanced tracking and tracing system that can provide real-time data.

It is important to note that the success of market players in the contact tracing applications industry is highly reliant on community engagement, by application developers and public health agencies to bolster overall awareness. Challenges in patient compliance, particularly in developing countries with poor ICT infrastructure is likely to hold back growth prospects

2018 to 2022 Global Contact Tracing Application Market Outlook Compared to 2023 to 2033 Forecast

The contact tracing application market is forecast to expand at a CAGR of 3.4% during 2023 to 2033 in comparison to a 2.4% CAGR registered from 2018 to 2022. During the historical period, the app-based contact tracing market experienced significant growth, largely driven by the global COVID-19 pandemic. Prior to 2020, there were few contact tracing apps available; however, the pandemic has propelled the demand for such solutions to unprecedented levels.

The market has witnessed the entry of several new players, with established technology companies such as Apple and Google launching their own contact tracing application programming interfaces. Government and public health authorities worldwide have also launched their own contact tracing apps, further fueling the market growth. As a result, the market size was recorded at US$ 138.1 million in 2022.

The adoption of advanced contact tracing tools has been widespread, with individuals, businesses, and organizations alike using these solutions to track potential exposure to the virus. The market has also seen an increase in the development of more advanced contact tracing solutions, incorporating features such as Bluetooth technology and geolocation tracking.

The contact tracing tool market is poised to experience significant growth opportunities during the forecast period. These opportunities are driven by various factors such as the COVID-19 pandemic, the increasing adoption of smartphones, and the growing focus on public health.

• Short Term (2023 to 2026): The market is likely to witness a surge in demand owing to the global pandemic which has not yet ended. As governments and health organizations seek to contain the spread of the virus, the adoption of contact tracing apps has become a key strategy. This trend is expected to continue as vaccination efforts ramp up and economies reopen. This is anticipated to increase the demand for more advanced and effective contact tracing solutions.
• Medium Term (2026 to 2029): The outlook of the market is equally bright during this period. Investment in advanced contact tracing solutions is likely to increase as governments and health organizations work towards strengthening public health infrastructure. This is expected to result in the development of more advanced and refined contact tracing applications that offer real-time monitoring of individuals’ movements and social interactions.
• Long Term (2029 to 2033): The market is expected to experience sustained growth for the long term as these applications become more ubiquitous and mainstream. Contact tracing solutions are likely to become a daily routine in people’s lives with the rapid proliferation of mobile devices and smartphones. This could lead to the development of more specialized and tailored contact tracing solutions that cater to specific industries and user cases, such as healthcare and transportation.

These factors are anticipated to support a 1.4X increase in the contact tracing application market between 2023 and 2033. The market is projected to be worth US$ 199.5 million by the end of 2033, according to FMI analysts.

Decentralization: Data Privacy Concerns Influence App Development

Earlier versions of contact tracing applications set up by public health organizations, largely relied on gathering data about factors such as contact history and user health onto central server databases.

However, with growing push back in terms of data privacy and misuse concerns, governments in Colombia, Norway, the United Kingdom, and Australia have introduced decentralized applications, which limit data transmission to the user’s device.

Apple and Google have been at the forefront of this more privacy minded approach, with the development of a Bluetooth-based API to warn contacts about potential of exposure, which has resulted in widespread adoption in Europe and North America.

In addition, the extensive use of smartphones with iOS and Android platforms makes the use of such decentralized applications practically feasible in terms of pandemic management efforts.

On the other hand, the American Medical Informatics Association has noted that even decentralized applications are prone to potential data privacy threats with contact tracing devices and binary searches potentially revealing medical information.

Sudip Saha

Principal Consultant

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User Trust in Contact Tracing Applications Market

The success of contact tracing applications has largely been reliant on the adoption rates by smartphone users. Although the Chinese government has made it mandatory for citizens to download its app, maximum countries rely on voluntary adoption. Consequently, trust building efforts have been crucial towards growth in adoption.

Already Germany and Ireland have disclosed details of the source code for their apps to the public. Security and privacy concerns are of high importance to app developers, with an approach towards minimal data collection being critical. With community engagement efforts, and associated public goodwill has been key to success in such projects.

• Contact tracing applications provide the benefits of a scalable contagion tracking approach reducing the burden on associated healthcare professionals
• Innovations towards short term data storage, and voluntary participation set higher standards of confidentiality

Key Challenges

Contact tracing applications have been gaining traction in recent months, such as government support and increased investments by tech companies. However, the sector has faced a number of obstacles largely over public perceptions and data privacy concerns.

In terms of data privacy, many countries have taken up measures for anonymization of data. However, with centralized architecture being adopted in multiple countries including China, Kuwait, and Vietnam the control over the data server is with health authorities instead of user devices.

Further, poor adoption of contact tracing applications among populations in developing countries and rural areas, owing to poor awareness levels will hold back industry prospects.

Also, the use of Bluetooth technologies has proven inaccurate in detecting the distance between user devices owing to environmental factors, which can substantially reduce the efficacy of such applications.

Further, differences in public perception of efficacy of contact tracing applications, and associated incentives can also negatively affect adoption. This is largely affected by technical performance issues such as poor device compatibility, and software bugs.

Country-wise Insights

Europe Contact Tracing Application Market

Europe is widely considered to be the frontrunner in terms of contact tracing applications. Around 20 countries in the region have either launched or are developing smartphone applications, with the aim of tracking and breaking coronavirus infection chains by issuing timely warning to potential carriers.

The Google-Apple standard of contact tracing apps has been adopted in Austria, Poland, Croatia, Latvia, Denmark, Ireland, Germany, Italy, Gibraltar, Switzerland, and Northern Ireland. More countries have plans to adopt this standard in the near future.

On the other hand, Hungary and France have opted for centralized apps, claiming technological sovereignty. This disruption of standardization in the region is likely to create issues for people traveling between countries in the Euro bloc.

Many countries in the region including Germany, and the United Kingdom have chosen short-range Bluetooth technologies to track potential encounters with covid-19 patients. These applications are a middle-ground for complying with requirements of functionality and data privacy. Certain applications have even provided an option for users to voluntarily share information to help authorities to track the spread of the ailments.

The Germany contact tracing application market is experiencing significant growth, with a wide range of solutions being developed and deployed to help combat the spread of infectious diseases. The COVID-19 tracing software Corona-Warn-App had recently received nearly 21 million downloads from the Apple App Store and about 26 million downloads from the Google Play Store as of September 2022. This official coronavirus tracing software was created by the German government and has been accessible since June 16, 2020. Privacy-Preserving Contact Tracing ("PEPP-IT") is the foundation of the "Corona-Warn-App."

The market in Germany is dominated by key cities including Berlin, Munich, and Hamburg, which have higher rates of infection and greater demand for contact tracing solutions. However, the market is also growing in smaller cities and rural areas, as the requirement for contact tracing becomes more widespread. With new technologies and approaches being developed every day, the future of contact tracing in Germany looks bright.

The United Kingdom contact tracing application market is a burgeoning landscape that is witnessing a significant surge in demand in the wake of the COVID-19 pandemic. The use of United Kingdom contact tracing applications has become increasingly popular in the country as a means of mitigating the spread of the virus.

One of the key drivers of the market in the United Kingdom is the government’s mandate for citizens to download and use contact tracing applications to help curb the spread of COVID-19. For instance, the NHS COVID-19 monitoring app was downloaded more than 22.0 million times between March and April 2021, according to figures published by the National Health Service. Also, organizations are using a variety of COVID-19 contact tracking technologies to monitor and safeguard their employees' health.

North America Contact Tracing Application Market

Contact tracing applications potentially could play a significant part in the coronavirus response in North America. However, adoption of these apps have remained below average especially in the United States with only 8 states either having released or planning to release covid-19 contact tracing applications.

A survey from the Institute of Electrical and Electronics Engineers has found that 42% of respondents in the United States supported the use of contact tracing apps. Concerns and confusion over the collection of user data, in addition to misunderstandings with the varying app options available is restraining use.

The United States contact tracing application market is experiencing rapid growth and intense competition among various providers. This emerging market has garnered significant attention from investors, entrepreneurs, and government entities alike, all seeking to capitalize on the high demand for effective contact tracing solutions. These digital solutions have emerged as a critical tool for public health officials to monitor and control the spread of viruses. One of the key drivers of the market growth is the increasing adoption of smartphones and mobile devices among the population. With the maximum number of citizens of the United States now owning a smartphone, contact tracing applications have become a convenient and accessible tool for tracking and preventing the spread of infectious diseases.

One prominent player in the Canada contact tracing application market is the government itself. The government of Canada has launched several contact tracing applications, including COVID Alert, which has been widely adopted by citizens across the country. This application uses Bluetooth technology to detect and track potential exposure to COVID-19 and has been instrumental in containing the spread of the virus.

The Canadian government has joined hands with Shopify and Blackberry for the development and launch of its completely voluntary contact tracing applications to manage the covid-19 outbreak. According to the WHO, Canada had crossed 100,000 cases of coronavirus in June 2020, making the launch of the applications more important.

Also, data privacy watchdogs in the country, the Federal and Ontario privacy commissioners have also supported the use of the contact tracing app. The application has already gained more than a million downloads in early August 2020. In February 2021, the Canadian province of Ontario funded US$ 2.5 million in Facedrive Inc. to enable the introduction of wearable contact tracking technology called TraceSCAN in commercial settings.

East Asia Contact Tracing Application Market

With the sustained threat of resurgence in cases, China had launched its contact tracing app in collaboration with China Electronics Technology Group Corporation, which works using QR code technologies.

The app uses a centralized database which collects information such as passport numbers, phone numbers, and detailed questionnaires about symptoms and travel history, which is then used for contact tracing and quarantine compliance. A similar app has been launched by Singapore. However, the voluntary installation of the application has resulted in limited adoption.

Japan has also launched its own contact tracing app Cocoa, which has been developed by Microsoft Corporation for iOS and Android platforms. The app is not mandatory, and works with Bluetooth technologies, and deletes data collected every 14 days.

South Korea’s digital contact tracing approach is heavily reliant on transparency, complying with the country’s Infectious Disease Control and Prevention Act, text messages are sent to every smartphone in case of significant developments. The country’s app is primarily used to ensure that potential patients do not violate quarantines. However, public information of covid-19 cases has resulted in the risk of social stigma, which could prove counter-productive.

The China contact tracing application market is a rapidly growing industry that has experienced significant growth since the country continues to grapple with COVID-19. In response to the pandemic, the government of China has taken several measures to control the spread of the virus, including the implementation of strict contact tracing protocols. This has resulted in a surge of interest in contact tracing applications, both from consumers and from businesses looking to protect their employees and customers.

As the COVID-19 problem broke out, China built a national telecom data analysis platform under the direction of the Ministry of Information Industry Technology. Based on this technology, telecom providers (China Mobile, China Unicom, and China Telecom) can offer a history of the whereabouts of mobile phone customers for the last 15 or even 30 days.

The National Health Commission of China introduced the Close Contact Detection app. The software, which was accessible by scanning a QR code through services like QQ, Alipay, and WeChat, operated on similar principles and allowed users to determine whether they are in danger of contracting an infection.

The Japan contact tracing application market has witnessed a surge in demand during the pandemic. The use of these applications has become a critical component in the fight against the spread of the virus and Japan is no exception. The government in Japan has been proactive in encouraging the adoption of contact tracing applications. The government has introduced several initiatives aimed at promoting their use among the general public. The COCOA app, a coronavirus contact-tracing application, was introduced in Japan.

Despite the growing demand for contact tracing applications, there are also concerns surrounding privacy and data security. The government, however, asserts that it was created with privacy in mind and that no personally identifying information is taken from users. Nevertheless, the government has decided to stop offering its COVID-19 contact-tracing smartphone app, coinciding with the cessation of comprehensive reporting on all COVID-19 cases in the nation.

The South Korea contact tracing application market has witnessed significant growth and is poised for further expansion in the upcoming years. The use of many smartphone applications that track people who have been designated as having a diagnosis has increased in South Korea. The key factor fueling the market expansion in this country is its proactive approach to public health.

The government has been at the forefront of promoting the adoption of contact tracing apps, with various public health campaigns and initiatives aimed at raising awareness of their benefits. One key application is the government-run app, Corona 100m, which has been widely adopted by the population. This application has been praised for its effectiveness in tracking the movements of infected individuals and notifying those who may have been exposed. The TraceTogether and Care19 apps also gained a significant user base through their user-friendly interfaces and additional features such as symptom tracking and testing center locations.

Category-wise Insights

Bluetooth - By Connectivity

Contact tracing applications largely use Bluetooth, or GPS, technologies, or a combination of both. The demand for Bluetooth based applications has been higher than that of GPS options. This trend is unlikely to change in the near future.

Bluetooth technology offers a high degree of accuracy and precision in proximity detection, which is essential for effective contact tracing. Bluetooth signals can be used to detect and measure the distance between devices with a high degree of accuracy. This makes it possible to accurately determine whether two individuals have been in close proximity for an extended period.

Bluetooth is widely available and standardized, making it easy to implement and use in a wide range of devices and applications. This has facilitated the rapid development and deployment of contact tracing apps that rely on Bluetooth.

Data privacy concerns is the primary factor that has made the use of Bluetooth technologies popular for limiting data transmission to user devices. GPS and combination technology approaches for connectivity have been limited to select countries with relaxed data privacy laws. However, with larger population bases in countries such as China the growth of GPS based applications are also expected to be positive in the assessment period.

Android - By Operating System

The distribution of contact tracing application is largely dependent on the penetration of smartphones using either iOS or android platforms. Android platforms account for maximum smartphone sales, including in key European markets with higher adoption rates of contact tracing applications.

Android has a significantly larger user base than other mobile operating systems, giving it a natural advantage in terms of market penetration. This larger user base translates to a wider potential audience for contact tracing apps, as well as a greater potential for viral adoption. Android platform is also known for its open-source nature, which provides developers with greater flexibility and control over the development process. This can lead to faster iteration and more innovative features. This can give Android-based contact tracing apps a competitive edge over their counterparts on other platforms.

Android’s integration with Google services like Google Play Services and Google Maps can provide additional functionality and convenience for users of contact tracing apps. For example, location data from Google Maps can be used to provide more accurate information about potential exposure to COVID-19, while Google Play Services can enable push notifications and other features that enhance the user experience.

On the other, hand Apple Inc. has revealed plans to enable covid-19 exposure notifications directly to their phones with their next update, without having to download a government contact tracing app. This measure could prove potentially beneficial for the iOS share of the contact tracing application industry in the near future.

Competitive Intelligence

Public health agencies worldwide have been implementing multipronged approaches in handling the massive covid-19 crisis. digital health tracking apps technologies have been gaining importance in various sectors including healthcare and public information distribution.

With the aim largely focused towards pandemic monitoring and control, contact tracing application companies have been engaging in strategies to promote their offerings through government channels. In addition, players are also pushing for strategic collaborations with other market leaders to develop applications with multi-platform compatibility.

Google Inc. and Apple Inc. are dominant players in the market. The companies have collaborated to develop a joint platform – Exposure Notification Framework aimed towards Android and iOS devices, which has already been adopted by governments in multiple European countries.

The platform enables governments to deploy their own superficial applications without having to invest in core development. Apple is also planning to push the platform through an internal software update for new iOS devices, which will allow users to gain the same functionality without government apps.

In April 2020, on COVID-19 contact tracing technology, Apple and Google teamed up. Both businesses have made APIs available, allowing apps from public health agencies to be used on Android and iOS devices. Users can go to their respective app stores to get these official apps. Both businesses stated that they would collaborate to integrate this technology into the underlying platforms to provide a larger Bluetooth-based contact tracking platform.

SAP SE, another key player, has made its presence felt in Germany with the development of the contact tracing application for the country’s federal government.

The company is also collaborating with T-Systems in a contract to operate and maintain the platform in term of technical aspects for data processing. However, the app is only available to users with newer versions of iOS or Android phones so far.

In April 2020, contact tracing software was developed by SAP and Deutsche Telecom to monitor diseases in Germany. The business reported that a municipal health department in southern Germany employed its cloud-based Web application created by SAP called Corona Warn App to automate and quicken contact tracing if a COVID-19 case is confirmed. The app is open source and is developed on the basis of the Google-Apple platform.

Siemens AG has also played its role in contact tracing application development during the coronavirus pandemic. The company has developed a manual contact testing feature for workers in China in collaboration with Salesforce.com.

In September 2020, Enlighted Safe, a new digital contact tracking software for the workplace from Siemens Smart Infrastructure, was released to enable workers to get back to work safely. More transparency is provided by Enlighted Safe regarding the contacts made by workers who are known to have tested positive for COVID-19. This was intended to assist businesses in lowering the risk of infection exposure, keep healthy workers secure and productive, and get rid of the labor-intensive, costly, and error-prone manual contact tracing method for employers.

In addition to these companies, other important contact tracing application market players include

• Oracle Corporation
• ServiceNow
• IBM Corporation

Contact Tracing Application Market Segmentation

Connectivity:

• Bluetooth
• GPS
• Both

Operating System:

• Android
• iOS

Regional Outlook:

• North America (USA, Canada)
• Latin America (Mexico, Brazil, Rest of LATAM)
• Europe (Germany, United Kingdom, France, Italy, Spain, BENELUX, Russia, Rest of Europe)
• East Asia (China, Japan, South Korea)
• South Asia & Pacific (India, Thailand, Malaysia, Indonesia, Oceania, Rest of South Asia & Pacific)
• Middle East & Africa (GCC Countries, Turkey, Northern Africa, South Africa, Rest of MEA)