Automatic Identification and Data Capture Market Size - By Component (Hardware, Software, Services), Technology (Barcodes, Radio Frequency Identification (RFID), Biometrics, Smart Cards, Voice Recognition), End-user, Regional Outlook & Forecast, 2023 - 2032

Automatic Identification and Data Capture Market Size - By Component (Hardware, Software, Services), Technology (Barcodes, Radio Frequency Identification (RFID), Biometrics, Smart Cards, Voice Recognition), End-user, Regional Outlook & Forecast, 2023 - 2032

Automatic Identification and Data Capture Market Size

Automatic Identification and Data Capture Market size was valued at USD 50.5 billion in 2022 and is estimated to register a CAGR of 13.5% between 2023 and 2032. The increasing construction of warehouses dedicated to storing and managing electric components including those used in electric car production will drive the market growth. These warehouses rely on automatic identification and data capture technologies for efficient inventory management, accurate tracking, and streamlined logistics. For instance, in May 2023, Maersk collaborated with Bauwo, a project developer, to construct a 20,000-square-meter logistics facility. This center will be dedicated to storing & managing electric car batteries and components used in battery production.

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The growing demand for supply chain optimization is a key factor propelling the automatic identification and data capture market expansion. Businesses are increasingly adopting automatic identification and data capture technologies to enhance efficiency, reduce operational costs, and improve the overall supply chain visibility. Automatic identification and data capture solutions including barcode systems, RFID technology, and mobile data capture devices, enable accurate tracking, inventory management, and real-time data analysis. As companies seek to streamline their supply chains and improve competitiveness, the demand for automatic identification and data capture technologies will continue to rise.
 

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High initial costs deter businesses from adopting automatic identification and data capture technologies. The substantial investments required for purchasing hardware, software, and employee training can strain the budgets of Small & Medium-sized Enterprises (SMEs). Often, the financial burden restrains these businesses from embracing automatic identification and data capture solutions, hindering their ability to improve operational efficiency and data accuracy. Finding cost-effective options and exploring scalable solutions are crucial to overcoming these challenges and promoting wider adoption of automatic identification and data capture across industries.

COVID-19 Impact

The COVID-19 pandemic significantly impacted the automatic identification and data capture market. The need for contactless transactions and remote operations surged, fueling the demand for automatic identification and data capture technologies such as RFID, barcode scanners, and mobile devices. Industries including healthcare, e-commerce, and logistics quickly adopted automatic identification and data capture solutions to ensure efficient supply chain management, enhance inventory visibility, and enable seamless online transactions. This increased demand bolstered market growth and encouraged innovations in automatic identification and data capture applications.

Automatic Identification and Data Capture Market Trends

Partnerships focused on introducing automatic identification and data capture software for real-time inventory monitoring have fueled lucrative market demand. Collaborations between technology companies and businesses have led to innovative solutions that provide accurate, real-time data on inventory levels.

For instance, in October 2023, SATO Holdings Corporation, an automatic identification and labeling solution provider, joined forces with CipherLab, a supplier of automatic identification and data capture solutions, to introduce ReMoCloud × SOS1, an integrated enterprise mobility management software. This software enables users to access remote maintenance support and device maintenance seamlessly. This real-time monitoring capability enhances supply chain efficiency, reduces costs related to overstocking or stockouts, and improves the overall operational productivity.

The rapid growth of the e-commerce industry is propelling the automatic identification and data capture market. E-commerce businesses rely on automatic identification and data capture technologies, such as barcode scanners and RFID systems, for efficient inventory management, order fulfillment, and shipment tracking. Automatic identification and data capture solutions streamline processes, ensuring accurate data capture and reducing errors. As the demand for online shopping continues to rise, e-commerce companies will invest in automatic identification and data capture technologies to enhance operational efficiency, thereby driving market expansion.

Automatic Identification and Data Capture Market Analysis

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Based on the component, the hardware segment held over 45% of the market share in 2022. Enhanced work productivity driven by barcode printers is a significant factor propelling the hardware segment. Barcode printers streamline various processes, such as inventory management and order fulfillment, leading to improved operational efficiency.

For instance, in June 2022, TSC Printronix Auto ID unveiled the Alpha 30R barcode printer, available in two models with varying print speeds. The standard version offers speeds of up to 5 inches per second (IPS), while the premium model increases the speed to 6 IPS, enhancing worker productivity. Businesses invest in advanced barcode printers to boost their overall efficiency, boosting the demand for such hardware solutions in the market.

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Based on technology, the barcodes segment accounted for 28% of the automatic identification and data capture market share in 2022. The ease of integrating barcodes with mobile devices is a key factor propelling barcode technology within the market. Barcodes can be scanned using smartphones and tablets equipped with cameras, enabling seamless integration with mobile applications. This capability enhances mobility in various industries, allowing businesses to efficiently track inventory, manage assets, and process transactions on the go. The simplicity and versatility of barcode integration with mobile devices have significantly expanded its adoption, augmenting the market siz

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North America automatic identification and data capture market recorded more than 30% of the revenue share in 2022, propelled by continuous technological advancements. The region's strong emphasis on research & development leads to the creation of cutting-edge automatic identification and data capture solutions. Industry players invest significantly in innovations, resulting in the development of sophisticated technologies that cater to diverse market needs. These advancements, coupled with a robust infrastructure, position North America as a prominent region in automatic identification and data capture solutions, attracting businesses aiming for state-of-the-art technologies to enhance their operational efficiency and competitiveness.

Automatic Identification and Data Capture Market Share

Major companies operating in the automatic identification and data capture industry are

• Panasonic Corporation
• Denso Global
• Honeywell International Inc
• Toshiba corporation
• Thales Group
• Zebra Technologies Corporation
• NCR Corporation
• SICK AG
• Congex Corporation
• SATO Holdings Corporation

Panasonic Corporation and Denso Global dominate the automatic identification and data capture market. Major companies in the market are fiercely competing for revenue share by leveraging emerging RFID technology, digital watermarking, and 1D & 2D barcodes. They focus on innovations, enhancing product capabilities, and expanding service offerings to gain a competitive edge in the industry.

Automatic Identification and Data Capture Industry News

• In August 2022, Peak Technologies, a prominent multinational system integrator, and Supply Chain Services (SCS), a digital supply chain, retail, and mobile workforce solutions provider, have joined forces to serve the Automatic Identification and Data Capture (AIDC) market. The merged entity aims to become the industry's largest provider of comprehensive solutions, transforming manufacturing processes, enhancing warehouse efficiency, innovating retail experiences, and redefining field services and last mile delivery.

The automatic identification and data capture market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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Market, By Component

• Hardware
• Software
• Services

Market, By Technology

• Barcodes
• Radio Frequency Identification (RFID)
• Biometrics
• Smart cards
• Voice recognition
• Others

Market, By End User

• Manufacturing
• Retail & E-commerce
• Transportation & logistics
• BFSI
• Hospitality
• Healthcare
• Government
• Others

The above information has been provided for the following regions and countries

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Southeast Asia
  • ANZ 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa

Frequently Asked Questions (FAQ)

How big is the automatic identification and data capture market?

The market size of automatic identification and data capture reached USD 50.5 billion in 2022 and is set to grow at 13.5% CAGR from 2023 to 2032, due to the increasing construction of warehouses dedicated to storing and managing electric components worldwide.

Why is the automatic identification and data capture industry growing from hardware components?

The hardware component segment held over 45% of the market share in 2022, owing to its capability to enhance work productivity through barcode printers.

What factors are influencing automatic identification and data capture market growth in North America?

North America accounted for 30% of the market share in 2022, attributed to the continuous technological advancements and strong emphasis on research and development in the region.

Who are the key automatic identification and data capture industry players?

Panasonic Corporation, Denso Global, Honeywell International Inc, Toshiba corporation, Thales Group, Zebra Technologies Corporation, NCR Corporation, SICK AG, and Congex Corporation are some of the major automatic identification and data capture companies worldwide.