Contact Tracing Technology Market

Market Overview

The global contact tracing technology market size is forecasted to grow at a rate of 16.8% from USD 3.83 billion in 2021 to USD 15.49 billion in 2030. Contact Tracing Technology is able to assist in preventing the further dissemination of an infectious virus or disease by proactively locating those who are at a greater risk than others as a result of likely exposure, alerting these individuals, and isolating them if necessary. It is a tried-and-true method, and the use of smartphones may assist to make it even more helpful; however, this will only be possible if concerns around privacy and other issues can be addressed and handled. The chain of infection may be broken and the reproduction number, which is the number of new cases formed by each infected individual in a specific social setting, can be driven toward one or lower. This is the level that must be maintained in order to keep the coronavirus confined. One of the most significant benefits of this technology is that it provides a foundation for risk stratification. As a result, the authorities are able to minimize the amount of time that infected and at-risk individuals are required to spend in quarantine, and they do not have to place a lockdown on the entire population.

Mobile devices communicate with one another as well as cell towers and Wi-Fi routers through the usage of wireless radios. A Wi-Fi signal may go up to 100 to 200 feet, while a mobile signal can go miles. Bluetooth was intentionally designed to have a range that is rather limited; for optimal reception, this range is less than 30 feet. Bluetooth chips, on the other hand, make fleeting touch with other phones and gadgets that you come into proximity with without your knowledge. The expansion of the sector may be hampered by a lack of readiness to share data, concerns over privacy, the possibility of challenges associated with fully anonymizing data, and the inability to manage how data should be used in the long run.

Market Dynamics

Global Contact Tracing Technology Market Drivers

Increasing application of contact tracing applications by a wide range of end-user verticals such as banking financial services and institution corporations, public transport authorities, shopping centers and entertainment, bars, and restaurants, press, and media, and others are the major factors that can be attributed to the growth of contact tracing application. Increasing focus on the technological advancements involved in track and trace solutions, and increasing penetration of the internet are the major factors that can be attributed to the growth of contact tracing.

Increased digitalization of economies, particularly emerging ones, and an upswing in the government's measures towards social distancing, particularly in the wake of the coronavirus epidemic will emerge as the primary growth driving drivers for the contact tracing application market. The increasing popularity of decentralized data gathering systems, in conjunction with an increased focus on the part of manufacturers on technological developments in GPS, Bluetooth, and ultrasonic technologies, will further exacerbate the need for touch tracing applications.

Global Contact Tracing Technology Market Restraints

The contact tracing application market will see a slowdown in its rate of expansion as a direct result of the growing concerns around data privacy and cyber security. An additional factor that may slow the development rate of contact tracing technology market applications is the submission of inaccurate information or disinformation. The development of the contact tracing application industry will face additional obstacles brought on by the developing nations' inability to support modern technology infrastructure.

Regional Analysis

The Asia-Pacific region would be one of the most important areas in terms of revenue generation for the Contact Tracing Technology market. During the time covered by the projection, it maintained a CAGR of 16.1 percent. Most of this region's nations are moving in the direction of embracing this technology. The tracing applications have already begun rolling out in China, Hong Kong, Singapore, and India, as well as in other nations in this area, and those countries are working on the final touches. People in these areas are likewise eagerly anticipating the release of the app, and users in many of these areas have already begun to rely mostly on the applications themselves. For example, since it was released on April 14, 2020, the smartphone application known as Arogya Setu, which was developed by the government of India, has already been downloaded by more than 50 million people in that nation. The Trace Together app has been heavily pushed throughout Singapore, and the country's population has been urged to download and actively utilize the app. There has been an uptick in the adoption of a number of mobile applications in South Korea that follow individuals who have been identified as having a diagnosis.

During the time frame covered by this prediction, it is anticipated that North America would occupy a sizeable portion of the market share worldwide for this sector. Apple and Google, two of the most influential companies in the world of technology, have come up with a cross-platform contact tracing approach that can be applied to mobile phone operating systems.

Segmental Analysis

The contact tracing technology market is segmented into the following categories: Technology, Devices, Database Management, and Region.

The global market has been segmented by technology into Bluetooth, GPS, radio frequency identification (RFID), near field communication (NFC), wireless fidelity (Wi-Fi), wireless sensor network technology, and others.

The Global market has been segmented by device into the internet of things (IoT) devices and standalone solutions. It is anticipated that Internet of Things devices would come to dominate the business since these devices offer the easiest and quickest means to make the technology available to a greater number of people over a shorter period of time. These gadgets also help connect other pieces of medical equipment and devices with the individuals who are in need of them at the moment. They are employed for the purpose of tracking ventilators and the manner in which they are placed in areas of greatest demand. In the long run, this contributes to the efficient management of medical supplies and devices in the field of healthcare service provision. Also, a number of firms that specialize in semiconductors and information technology created themselves, and start-up companies increased their investments in research and development and developed user-friendly standalone solutions that were more accurate in tracking contacts. As one example, India developed the Aarogya Setu to serve as a standalone contact tracing system.

The global market has been segmented based on database management into self-reported databases, mass-tested databases, and health tracking systems. The mass-tested database section is further subdivided into government-tested databases and red alert areas.

Recent Developments

As the COVID-19 outbreak spread, Polte Corporation introduced Polte Proximity, a service that allows contact tracking to assist enterprises in securely returning to work.

Everbridge unveiled Contact Tracing Software in May 2020 to contain COVID-19 and enable a safe and secure return to work for organizations in the public sector, private sector, and healthcare.

Triax Technologies unveiled Proximity Trace, a new Internet of Things solution, in April 2020. For workers in different industries, including manufacturing, healthcare, and construction, this solution is intended to provide proximity distancing alerts and tracing via a wearable device.