Surgical Instruments Tracking System Market

Surgical Instruments Tracking System Market Outlook

The global surgical instrument tracking system market is estimated to reach a valuation of US$ 255 billion in 2023. As per Future Market Insights (FMI) analysis, the surgical instrument tracking system market size is expected to surpass US$ 940 billion in the next decade. Between 2023 and 2033, the market has been forecast to register a 13.9% CAGR.

Global Trends & Scopes Transforming theSurgical Instruments Tracking System Market

Asset management software from key providers helps to reduce uncertainty by allowing users to handle instruments effectively. As a result, the clinical team has the correct tools in the right condition at the right moment for the treatment at hand. Their management staff evaluates the instruments during the instrument inventory to verify they are in perfect operating order. Any instrument that has to be replaced receives appropriate advice. The inventory's goal is to offer end customers precise tray data that can be imported into their asset management software.

This gives end users the tools they need to efficiently manage all areas of the SPD (Surge Protective Device) life cycle. Furthermore, it allows them to regulate their instrument supply and demands. The surgical instruments monitoring system, in addition to tracking instruments and collecting data at all touchpoints, analyses the data to find inefficiencies and chances for improvement and provides tailored solutions for a facility's unique needs. Certain market participants intend to generate a digital lifecycle file for each sterilized item and maintain it automatically throughout the cycle.

Hospital workers are supposed to monitor and track each item in realtime. As a result, users may be able to observe where the sterile items are placed, as well as if, when, and for what reason they were utilized. Moreover, they may be able to detect if they were sterilized and handled properly. Various market players enable the fulfillment of requirements defined in Regulation (EU) 2017/745 of the European Parliament and of the Council of 5 April 2017 on medical devices (also known as the Medical Device Regulation), without the need to separate the sterile goods or trays at the reading points.

Around the world, key players offer the most diverse assortment of surgical equipment designs. They can do so because of their tight working relationships with various German instrument makers and their extensive market knowledge. Furthermore, they have consistently set the bar for the sterile processing business. The primary players keep over a thousand hospitals in compliance with patient safety and regulatory requirements by providing unrivaled clinical services and support, as well as new cloud-based technologies.

Throughout the perioperative loop, they consistently increase patient safety and operational performance. T-DOC 2000 is the most complete instrument tracking system offered by a specific market participant. It offers total traceability, efficient use of OR and resources, and good quality assurance. T-DOC 2000 offers cutting-edge connections with hospital IT systems and automation, links hospitals in multi-site configurations, and supports data-driven choices with business intelligence capabilities.

Denmark's Capital Region is home to one of the world's most advanced CSSDs. T-DOC serves as the intelligent backbone of automation, logistics, and many interfaces with hospital IT infrastructure in this case. The surgical asset management solutions provided by market participants are scalable to meet the demands of customers. Additionally, they provide sophisticated sterile supply management solutions, such as automation and interaction with the hospital's IT system. They provide basic instrument traceability to entry-level clients, with an emphasis on equipment data logging and regulatory compliance.

A Contrast with the Historical Market Scenario

According to a Future Industry Insights analysis, the surgical instruments tracking system market has lately experienced rapid growth all over the world. Top competitors on the market are working together to address the soaring demand for surgical instrument tracking systems. The CAGR, which was 17.7% from 2017 to 2022, is expected to fall to 13.9% over the predicted period.

Previous quality improvement initiatives that manually tracked instrument use and gave surgeons the duty of assessing instrument trays resulted in an average 52% reduction in supply. The level of instrument surplus has been demonstrated by previous methods for identifying appropriate instruments, but they are qualitative, costly, lack scalability and sustainability, and are prone to human error. The RFID technology creates a new data stream that allows for exact instrument supply optimization.

Therefore, it is anticipated that such research projects may accelerate market expansion. The market experienced tremendous growth potential as a result of the integration of scanning technology and instrument tracking systems like RFID surgical instrument tracking, Censitrac instrument tracking system, or barcode scanning with software services for inventory management forms surgical instrument tracking systems.

Category-wise Insights

• Barcode - By Technology

The market can be classified into barcodesand radiofrequency identification (RFID). The Barcode segment is accounting for a substantial share of the global market.

The key factor behind the high market share of barcodes is the low installation cost and its easy adaptation amongst the industry-specific giants. RFID on the other hand is likely to expand its space into large projects.

The factors behind the average growth of RFID tech are its disability against high temperatures, chemical reactions, and humidity. Also, RFID can interfere with liquid, radio transmission, metals, and electric/magnetic fields present in the ambiance.

The reason behind this shift in the surgical instruments tracking systems market is the repetitive purchase of RFID tags/barcodes that are non-durable and need substitution. This usually happens to the instrument when it is in its sterilization process.

• Hospitals - By End User

Based on end users, there are segments like hospitals, public hospitals, and private hospitals. The hospital segment is likely to have an edge in the global surgical instruments tracking systems market over the other end users.

Factors leading up to this growth of the hospital segment due to the increasing admissions of patients, especially after the impact of covid-19 on the surgical instruments tracking systems market. Another factor is the large-scaleuses of equipment in the hospital than the regular clinics or other healthcare providers.

Other segments like public and private hospitals are also growing at more than the usual growth rate as they are also influenced by the outbreak coronavirus.

Sabyasachi Ghosh

Principal Consultant

Talk to Analyst

Find your sweet spots for generating winning opportunities in this market.

Talk to Analyst

While Government Controls Improve System Safety, Winning Market Approval for these Measures may be Difficult

Surgical instrument tracking system manufacturers, re-processors, specification developers, re-packagers, and re-labelers are required to use direct marking at the individual instrument level, according to the UDI standards.

The FDA's GUDID (Global Unique Device Identification Database) system requires labelers to provide information on each device. For all devices, this database acts as a reference catalog. These regulations are expected to be a leading driver of surgical tool monitoring system adoption among end users.

What are the Obstacles for Players in the Surgical Instruments Tracking System Market?

When compared to traditional systems such as barcode-based systems, the overall cost of installing automated surgical instrument tracking systems employing RFID is extremely expensive. Aside from the high installation costs, most of the automated surgical equipment monitoring systems have extremely extended investment lifecycles.

Another issue that hospitals encounter is a lack of awareness of cost-benefit analysis or the evaluation of monitoring system returns on investment (ROI). This problem emerges due to a lack of understanding of the value of these systems as well as the high acquisition costs.

Furthermore, manufacturers must adhere to the government's and other regulatory agencies' safety criteria. Obtaining approval from these regulators is one of the key challenges faced by new players in this industry, limiting the market's growth.

For surgical instrument tracking, both RFID and barcode methods have considerable drawbacks. It is estimated that 20% of RFID tags fail to work properly. Metals and liquids can interfere with most RFID tags, which can't tolerate high temperatures, humidity, or chemical reactions.

Other radio signals or electric or magnetic forces present in the usage area may cause interference. A single reader can't read tags from various frequencies, which limits its application. Barcode scanning, on the other hand, is error-prone and time-consuming since it needs human methods. Repetitive autoclaving may potentially harm barcode labels, necessitating post-sterilization inspections, which might limit the future growth of the surgical instruments tracking system market.

What Opportunities are Expected for Players in the Surgical Instrument Tracking System Market?

Emerging economies like India and China, as well as nations in the Middle East, Latin America, and Southeast Asia, are likely to provide subsequent growth possibilities for surgical tool tracking systems manufacturers. Growing healthcare spending and increasing healthcare infrastructure are likely to provide development possibilities for market players in these economies toward the management of surgical instruments.

Various nations in the Middle East are taking steps to strengthen their healthcare infrastructure. For example, as part of Saudi Vision 2030, created health services worth US$ 8.8 billion were to be used. In the United Kingdom, 36 new hospitals with a total capacity of 8,950 beds are now being created and developed. Two medical cities with a combined capacity of 2,350 beds are being built.

The National Health Service System Plan in China aims to grow the hospital industry throughout the country. The expanding usage of HIT solutions in India, as well as the growing volume of healthcare data, present considerable potential prospects.

According to the India Brand Equity Foundation (India), the country's healthcare industry has experienced remarkable expansion; it is expected to reach US$ 718 billion by 2026, growing at a CAGR of 17%, with hospitals accounting for 71% of revenue. As a result, the growth prospect for the surgical instruments tracking system market seems to be healthy during the forecast period.

Region-wise Overview

Software Package offered by Market Players Allows Immediate Access to Instrument Data

The United States dominates the surgical instruments tracking system market, accounting for 13.7% of total North American sales. In the United States, the surgical instruments tracking system market is predicted to reach US$ 333 million. The introduction of the UDI system by the United States Food and Drug Administration (FDA) for the active identification of medical devices and gadgets is one of the key elements ascribed to this region's supremacy. The growing prevalence of surgical instrument misplacement, as well as the rising hospital-acquired infections, are propelling the surgical instrument monitoring system market forward. According to the Centers for Disease Control and Prevention (CDC), hospital-acquired infections kill about 90,000 individuals in the United States each year. Consequently, the necessity to minimize infection caused by contaminated tools, as well as the need for improved inventory management, is driving the surgical instruments tracking system market. The fine-quality, most up-to-date inventory management services are offered by key companies in the United States. Their software package allows immediate access to instrument data as simple as a mouse click. Using cutting-edge bar-coding technology, surgical sets and instruments may be tracked in real-time throughout the SPD Life Cycle. Furthermore, their advisors are eager to collaborate with end users to streamline the process and increase the efficiency obtained by using data correctly.

Key Players have a Mission to Increase Instrument Tracking in Sterile Processing Departments

With an anticipated value of US$ 39.6 million and a revenue growth rate of 13% over the projection period, the United Kingdom is a significant surgical instruments tracking system market. The geriatric population, increasing frequency of chronic illnesses, and surgical operations are predicted to boost the sector in the United Kingdom. The frequency of chronic illnesses in the United Kingdom is predicted to climb as the senior population grows. Furthermore, healthcare spending in the United Kingdom is rising due to the continual demand for improved healthcare technology and infrastructure. Comprehensive solutions from leading firms give unrivaled visibility throughout the whole perioperative loop. Owing to the inexpensive installation cost, hospitals are now employing the barcode approach. RFID technology is expected to expand as customers increase their desire for improved automated identification technology tools (such as RFID) to track medical equipment and surgical instruments. In the United Kingdom, the Department of Health and the MHRA require hospitals to trace instruments down to the tray level. However, many institutions prefer to go a step further, with each device being individually recognized. As a result, significant players created and manufactured high-performance 2D DataMatrix. Their mission is to increase instrument tracking in sterile processing departments and operating rooms across the world. As a result, this is accomplished by offering technicians a premium variety of 2D DataMatrix readers that are high-performance and simple to use while being reasonably priced.

The Chinese Government is taking Initiatives to Enhance Access to Surgical Instruments in Low-income Communities

With a revenue growth rate of 13.3% and an anticipated value of US$ 67.5 million during the projection year, China is a very profitable surgical instrument tracking system market. Rising healthcare expenditure and the installation of technologically sophisticated solutions, such as surgical tool tracking systems, inside healthcare facilities are positively influencing the market in China. Furthermore, various healthcare institutions in China are focused on offering high-quality care using technologically improved navigation techniques. The Chinese government is stepping up efforts to enhance access to surgical treatment in lower-income communities. With Chinese MedTech enterprises expanding into lower-tier locations and new procurement processes and reimbursement regulations shifting market dynamics and influencing device costs, only organizations that can identify and capitalize on emerging possibilities can remain competitive in this fast-evolving industry. To maintain regulatory monitoring compliance and improved patient safety, key companies provide systems that track the whole surgical instrument and endoscope life cycle in single hospitals, multi-site reprocessing units, local clinics, and dentists. They have been able to track every stage in the lifetime of frontline medical equipment after replacing manual record methods for over two decades. As a result, they've created several software solutions that automate the procedure. This is known as Equipment Lifecycle Management (ELM) and needs little interaction from the people involved.

Japan Market Players Incorporating Artificial Intelligence (AI) to Instantly Detect Surgical Tools

Japan is a significant surgical instrument tracking system market, accounting for 12.4% of total sales. The Japanese surgical instrument tracking system market is valued at US$ 55.1 million. During the forecast period, the development of technologically upgraded software and hardware products is also expected to promote the utilization of surgical instrument tracking devices in the country. Key players in the nation offer comprehensive, high-quality surgical tools for all surgical specialties. The gadgets are ergonomically designed and handcrafted to allow the user to operate comfortably and safely. Key players strive to develop goods and solutions that promote aesthetic medicine while instilling trust in practices, personnel, and patients. For instance, a certain market player has created a surgical tool monitoring system that incorporates cutting-edge artificial intelligence (AI) technology to instantly detect surgical instruments. It operates without DataMatrix or RFID and requires no changes or markings on the surgical tools, recognizing surgical instruments in a kit based on their form. The history of usage in hospitals has emerged as a critical problem in the medical community. In response to this challenge, market participants have created and initiated mass production of the LXTBKZMCMG-010, an IC tag for surgical equipment that makes use of a UHF band RFID capability that allows multiple tags to be read from a distance. Moreover, two Japan-based hospitals have already deployed surgical equipment monitoring systems, thereby eliminating the risk of mistakes.

New Entrants are Catching Up with Key Players: Start-up Economy

Start-up companies are offering surgical tools and devices, incorporated with artificial intelligence (AI) to contribute to the global surgical instruments tracking system market growth:

• Petrissinc - It is a provider of software for monitoring the sterilization and disinfection of surgical instruments. It provides hospital staff with access to its BLUEfin platforms, such as the BLUEfin Endoscopy Intelligence platform, which has a sterilization intelligence solution. It provides a dashboard with the necessary data and cleaning instructions, as well as a way to scan an instrument with a special code.
• Mente - It offers software for monitoring surgical tools. Additionally, it offers real-time surgical tool data that revolutionizes the management of OR resources.
• TrackX - For medical personnel, it offers a tracking tool to monitor surgical planning solutions. The business sells a TrackX Snap that is customized to the surgical tools and uses the TrackX software platform to provide real-time fluoroscopic imagery of the surgical operation. The platform makes it easier for doctors to do implant surgeries by assisting in the capturing of X-rays of the patient's operative region to improve workflow.

Key Companies Revamping the Surgical Instruments Tracking System Market Space

Due to the presence of several well-established competitors, the surgical instruments tracking systems market share is quite competitive. These businesses are focusing on broadening their reach through acquisitions, expansions, product approvals, and launches to take advantage of market growth prospects.

Recent Developments:

• In October 2020, with the US$ 850 million acquisition of Key Surgical, a provider of hospital supplies such as surgical instruments and infection control, Steris expanded its global reach and added complementing product lines.
• In 2021, the T-DOC 2000 surgical tool traceability system was created by Getinge AB and Intelligent InSites, Inc. From reprocessing, inventory, and logistics through to usage, the system covers the sterile supply workflow of instruments, consumables, and implants.
• In September 2022, Vizinex RFID was acquired by HID Global. The purchase broadens HID Global's reach and significance in important vertical sectors, such as healthcare and the medical sector, and enhances its portfolio of RFID tags, which is the best in the business.

Top Market Players in the Market

• SpaTrack Medical Limited
• Keir Surgical Ltd.
• NuTrace
• Vizinex RFID
• ScanCARE Pty Ltd.
• RFID Discovery
• Healthtech Pivot LLP
• RMS Omega Healthcare
• Avery Dennison Corporation
• Becton, Dickinson and Company
• STERIS
• Integra LifeSciences Holdings Corporation
• Xerafy
• B. Braun Melsungen AG.

Key Segments Profiled in the Market Survey

By Component:

• Software
• Hardware
• Services

By Technology:

• Barcode
• Radio Frequency Identification (RFID)

By End User:

• Hospital
• Public Hospital
• Private Hospital
• Others

By Region:

• North America
• Latin America
• Asia Pacific
• The Middle East &Africa
• Europe