Automatic Identification & Data Capture Market - Forecast(2024 - 2030)

Automatic Identification & Data Capture Market Overview

The Automatic Identification & Data Capture industry is forecast to reach USD 35 billion by 2027, growing at a CAGR of 12.3% from 2022 to 2027. Automatic Identification and Data Capture (AIDC) is a broad category of technologies used to collect information from an individual, object, image or sound without manual data entry. Automatic Identification and Data Capture systems are used to manage inventory, delivery, assets, security and documents. It comprises of technologies such as bar codes, radio frequency identification (RFID) systems, magnetic stripes, biometric system, optical character recognition (OCR), smart card, voice recognition, electronic article surveillance (EAS) and real-time locating systems (RTLS). These technologies are widely used in the industry verticals of manufacturing & packaging, retail & e-commerce, transportation & logistics, banking & finance, healthcare and pharmaceuticals, energy & power, life sciences, food & beverages, automotive, electronics and many others. The growth contributing factors for this market are development of network connectivity and wireless infrastructure in countries and COVID-19 pandemic situation leading to demand of contactless and remote functionalities using automatic identification and data capture system. However, the limitations in terms of inability to process data in case of system failure and risk of data privacy and cyber-attacks on the system are inhibiting the growth of this market.

Report Coverage

The report: “Automatic Identification & Data Capture Industry Outlook – Forecast (2022-2027)”, by IndustryARC covers an in-depth analysis of the following segments of the Automatic Identification and Data Capture industry.

By Offering: Hardware, Software, Services (Professional services, Support services)
By Technology: Barcodes, Radio Frequency Identification, Biometrics, Magnetic Stripes, Optical Character Recognition, Smart Cards, Voice Recognition, Electronic Article Surveillance, Real-Time Locating Systems, Others
By Products : Printers (Barcode Printers (Dot Matrix Printers, Inkjet Printers, Laser Printers, Thermal Printers ), Desktop Printers, Mobile Printers, Industrial Printers, Smart Card Printers, Label Printers, RFID Printers, Others), Scanners (Barcode Scanners, Pen type Scanners, Laser Barcode Scanners, Charge-Coupled Device Barcode Scanners, Camera-based Scanners, RFID Scanners, Others), RFID devices(RFID Readers and Infrastructure, RFID Antennas, RFID Labels and Tags ), Biometric devices (Face Recognition, Voice Recognition, Finger Print Recognition, IRIS Recognition, Others), Mobile computers (Vehicle mount computer, Handheld computers), Enterprise Tablets (Rugged, Smart, Specialized ),Consumables (Barcode Labels, RFID Tags & Sticker, Thermal Transfer Ribbon/Foil, Others) ,Software, Others
By End user : Manufacturing & Packaging, Retail & E-commerce, Transportation & Logistics, Banking & Finance, Healthcare and Pharmaceuticals, Energy & power, Life sciences, Food & beverages, Automotive, Electronics, Others
By Geography: North America (U.S, Canada, Mexico), Europe(U.K, Germany, France, Italy, Spain,Others), APAC (China, Japan, South Korea, India, Australia, Others), South America (Brazil, Argentina, Others), RoW (Middle East, Africa)

Key Takeaways

• The Biometrics segment is predicted to grow at the fastest rate over the forecast period 2022-2027 in Automatic Identification &Data Capture market by technology, in 2021. This is attributed to rise in security and data privacy concerns along with increasing big data fuels the growth of automatic identification and data capture systems.
• The retail and e-commerce held the greatest share in the Automatic Identification & Data Capture market segmented by end user, in 2021.This is owing to growing demand of identifying and tracking product by the customers and growing need to manage inventory efficiently for the manufacturers.
• North America held the largest market share of 34%, in 2021. This is due to automatic identification and data capture compatible infrastructure, widespread network connectivity and significant increasing in ecommerce in United States and other countries of North America market.
• Factors such as increasing government initiatives , growth of e-commerce industry and need for errorless data capturing and analysis are contributing factors in the growth of automatic identification & data capture market. The COVID-19 pandemic caused rise in E-commerce industry and online purchasing and contactless functioning which increased the use of automatic identification and data capture technologies like QR code based payments, biometric identity verification which also drives this market.

Automatic Identification & Data Capture Market Value Share, By Geography, 2021 (%)

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Automatic Identification & Data Capture Market Segment Analysis- By Technology

The Automatic Identification and Data Capturemarket by type of system has been segmented intobarcodes, radio frequency identification, biometrics, magnetic stripes, optical character recognition, smart cards, voice recognition, electronic article surveillance, real-time locating systems and others. The biometrics segmentheld the largest share of 40%, in 2021.Biometrics technology uses fingerprints, face or iris for verification using scanning and sensor components governed by an operating software. It is used for law enforcement, airport security, mobile verification, online banking, public transport, blood bank and many other such regular applications. The rising demand for authentication and identification solutions for security and surveillance purposes in various application areas is leading the growth of this segment. In May 2022, Norway government announced the plans to replace the digital ID authentication platform BankID with new apps that will require either face or fingerprint biometrics, and passwords or PINs in some cases, for users to log in and access banking services online. This is carried out to streamline the way people can verify their digital identity online, but it will also reduce the time required to log in and enhances user security. These growing innovations and adoption of the biometric segment contributes in the growth of Automatic Identification & Data Capture market.

Automatic Identification & Data Capture Market Segment Analysis- By End User

The Automatic Identification & Data Capture market by end user has been segmented into manufacturing & packaging, retail & e-commerce, transportation & logistics, banking & finance, healthcare and pharmaceuticals, energy & power, life sciences, food & beverages, automotive, electronics and others. The retail and E-commerce segment held the largest share of 32%, in 2021. Earlier, each manufacturing process needed manual data entry leading to additional time and exhausting procedures. The use of automatic identification and data capture technologies is found across various stages in retail and e-commerce product cycle. Barcodes are used for automatic identification and tracking of the products, radiofrequency identification technology is used for Automated Vehicle Identification (AVI) systems and Real-Time Locating Systems (RTLS) for tracking the delivery, biometrics technology is used to verify the receiver or the sender of the product, electronic article surveillance systems (EAS) used to prevent the theft of goods are some of the applications in retail and e-commerce industry. The driving forces for capturing the market share are, rising competition to provide on-time and quality delivery, omni-channel sales and increase in ecommerce. In April 2022, Technology company Apptricity has joined forces with Shopify, a global e-commerce platform, to provide Apptricity's Omni Inventory Solution for Shopify's merchants, to help them gain visibility into their inventory at stores and warehouses, and during omni-channel transit. The solution leverages a choice of wireless technologies based on a user's specific needs, ranging from barcodes to radiofrequency identification technology, Bluetooth Low Energy (BLE), and satellite. Thus, adoption of automatic identification and data capture technologies by retailers and e-commerce industry is boosting the growth of this market.

Automatic Identification & Data Capture Market Segment Analysis- By Geography

The Automatic Identification & Data Capture market by geography is segmented into North America, Europe, Asia-Pacific (APAC), South America, and the rest of the world (RoW). North America held the largest market share in Automatic Identification & Data Capture market with 34% of total market size and is predicted to grow at the fastest rate over the forecast period 2022-2027. In Asian countries like China, India, Japan and others have a large number of manufacturing units of various industries. The factors such as increasing complexity of supply chain, need for tracking, labelling and identification of the goods and verification of sender and receiver in manufacturing, retail and logistics contribute to the growth of Automatic Identification & Data Capture Market. The most populated countries of China and India faced adverse effects of COVID-19 which compelled them to adopt contactless and time saving technologies such as RFID, real-time location system and others. In December 2021, 31 companies in Japan from a variety of industries have formed a group to consider optimal legal and regulatory frameworks for systems that allow consumers use face biometrics for transactions. Resona Holdings, a financial services company in Japan, is one of several sizable organizations leading the consortium. Thus, growing research and development in Automatic Identification and Data Capture technologies in Asia-Pacific countries helps the market growth.

Automatic Identification & Data Capture Market Drivers

The growth in E-commerce industry which involves remote purchase, tracking and payment has created the growth in demand for automatic identification and data capture systems

Automatic identification and data capture systems are based on Internet of things-based technologies using Wi-Fi, Bluetooth and sensors for connectivity. Globalization and pandemic situation gave a great boost to online purchasing and Ecommerce. This sudden rise in demand led to challenges in supply chain, inventory and logistics management. RFID tags help in real-time results for stock taking, transactions, inventory levels, or individual customer purchase order history. The use of Electronic Article Surveillance for preventing theft and tracking of goods is also assisting the management and supply chain. During the delivery of E-commerce goods, Real-Time Locating Systems are used to track the delivery and estimate time for delivery as well. In 2021, according to Shopify report, with RFID, retailers can automate their inventory data and improve accuracy by 30%, while reducing out-of-stock situations by 50%. In April 2022, the American Orthodontics Corp. announced the launch of a multimillion-dollar ecommerce platform and ERP upgrade and with it for a better customer experience. This will include the latest round of government regulations on medical devices; unique device identification (UDI) in the U.S. and medical device reporting (MDR) in Europe, with safety and tracking features is included in this platform. Thus, growing use of automatic identification and data capture systems in variety of end user industries is driving the growth of this market.

The increasing demand of automatic identification & data capture market in government sector for data management drives the growth of market

Automatic identification and data capture technologies include barcodes, radio frequency identification, biometrics, smart cards and other automation technologies. This led to the boost in the demand from the government sector for streamlining processes such as data management of surveys, citizen engagement and ensuring law enforcement. There has been a growing application in other public facilities implementation such as of radiofrequency identification in vehicles for real-time management of traffic congestions and toll collection. Growing business applications of AI-based biometric systems have stridently attracted the government sector to deploy automatic identification and data capture systems. This rise in the adoption of biometrics in corporate and government sectors has driven massive investments from technology companies in the automatic identification & data capture market. In January 2022, Indian government announced issuing of e-passports which will use Radio-Frequency Identification (RFID) and biometrics. The Secretary in Ministry of External Affairs, has stated that the new e-passport will secure biometric data, and also be in line with the standards of the International Civil Aviation Organisation(ICAO). Thus, growing adoption of automatic identification and data capture in government sector is helping the market to grow further.

Automatic Identification & Data Capture Market Challenges

The rise in concerns related to malware attacks and security breaches restricts the use and growth of this market

Automatic identification and data capture technologies operates on various type of automated technologies such as QR code, barcode, radiofrequency identification, smart cards and others. However, these automated technologies are often coupled with software for operating the system and store the data captured. This automation is highly susceptible to cyber-attack and malware which causes loss of critical data and may later result into financial loss as well. For instance, the critical application of healthcare sector using radio frequency identification tags to store and access the patient details and medical history is attacked by the hackers which can be used to harm the patient or misuse the information in other illegal ways. On June 21, 2021, a third-party vendor accidentally posted an unsecured database containing more than one billion search records of CVS Health customers. The 204-GB leaked database was not password protected and included multiple records for medications, including COVID-19 vaccines and CVS products. Hence, such kind of data and financial loss through unprotected automatic identification & data capture market restricts the growth of the market.

Automatic Identification & Data Capture Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Automatic Identification and Data Capture industry. TheAutomatic Identification and Data Capturetop 10 companies include:

1. Cognex Corporation.
2.  Bluebird, Inc.
3.  Zebra Technologies. 
4. Datalogic S.P.A.
5. NEC Corporation
6.  Honeywell International Inc. 
7. NXP Semiconductors N.V.
8. Panasonic Corporation
9. Synaptics Inc
10. Toshiba Corporation

Recent Developments:

• In April 2022, Sole Source Capital LLC, announced that its portfolio company, Peak Technologies, a leading system integrator in the Automatic Identification & Data Capture market acquired Graphic Label LLC. The acquisition of Graphic Label provides Peak Technologies with significant cross-selling opportunities, strong exposure to the attractive recession-resilient food & beverage end market, and additional geographic reach into the Pacific Northwest market.
• In January 2022, several companies and government agencies are taking stock of their efforts in biometrics for travel in 2021. For instance, the U.S. Transportation Security Administration (TSA), has released a list of recent accomplishments in transportation security, with the help of U.S. Customs and Border Protection (CBP) at FTE Global 2021. According to FTE, the executives discussed the existing collaboration between their agencies on biometrics for travel. Thus, this deal from government sector will significantly boost the revenue in this market.
• In July 2021, in India, Goods and services tax (GST) authorities have started detecting instances of tax evasion by identifying mismatches between electronic permits issued for transporting goods and the data from radio frequency tags that commercial vehicles use to pass through toll plazas. Hence, this government regulation enforced the public to implement use of RFID tags and ease of the working for GST officials. All these factors helped gain market share in automatic identification and data capture system.
• In November 2020, Keena Healthcare Technology is proud to be a Platinum Sponsor of NextGen UGM 2020 and will be exhibiting the extensive capabilities of EHR Barcode Reader now with expanded inventory functionality. With regulations like the National Childhood Vaccine Injury Act (NCVIA) that mandates documentation of product identification, EHR Barcode Reader saves time, reduces unnecessary keystrokes, and eliminates costly data entry errors. This innovative product provides unique solution in the market and gain revenue from the healthcare sector.

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