ID: MRFR/PNT/0786-HCR | February 2021 | Region: Global | 115 pages
Smart labels market growth is expected to achieve a CAGR of 16.6% with a market value of $13671 million by the year 2028. Smart labels are referred to as identification slips that are applied to the products. It is an additional feature other than the barcode-like QR codes, article surveillance amongst which provides information about the products or services. The smart labels are responsive electronic devices that are embedded within the object.
It might be configured as chip, antenna, and bonded wires which helps in tracking goods and other assets. Smart labels owe the demand growth due to their features of product information. It is estimated that smart labels will be highly used in industries like healthcare, retail inventories, food, and pharmaceuticals which will drive the smart labels market growth
The pandemic outbreak has impacted all industries except healthcare and pharmaceuticals. In addition to this, smart labels are in the developmental stage for many industries. Since the lockdowns, many offices have shifted their operations from remote areas, hence work from home has increased. However, working from home lacks an environment for creativity and critical thinking which has impacted advancements in smart labels which will impact the growth.
Also, the majority of the production companies are working on reduced capacities due to low demand, supply chain disruptions, and investment issues. Hence, the usage of smart labels on large productions has been reduced thus, impacting the smart labels market growth. In addition to this, the pandemic has created a positive impact on healthcare and specific FMCG products.
As national and international lockdowns were imposed, customers started stockpiling the products due to panic which improved the sales. Besides, several healthcare products have witnessed growth as a larger population has become health conscious.
Drivers- Technological advancements like Big Data, IoT, and digital printing inventions are estimated to be driversof smart labels market growth. Also, there has been increasing sales for electronic products along with high awareness of consumer rights is a major growth driver for the smart labels industry. Besides, many online operating giants like Amazon and Walmart have been aggressively using smart labels for managing their supply chains and functions of logistics. It is estimated that the global packaging and printing market will be worth US$ 1trillion by the year 2025.
In addition to this, governments are imposing strict regulations for the disclosure of product information to the public. However, very small packages cannot be equipped with all the information about the products. Hence smart labels are alternative options for tech-savvy and highly aware consumers.
Opportunities- There has been a rapid surge in populations and urbanization due to which industries for food, health, and others are being established. The packaging and printing of the products will fuel the demand for smart labels. Also, there is a rise in disposable income and high usage of smartphones applications. Due to which customers can access the product information easily.
Smart packaging ensures a high customer interface, thus the smart labels industry must reap the opportunities of fuelled demand. Additionally, there has been a growth of 44% in e-commerce which further bolsters smart labels market growth.
Restraints- The proper functioning of smart labels is highly dependent on metal, liquid, and foil-based materials. Low mechanical susceptibility impacts the functioning, which further restrains smart labels market growth. As the connectivitybetween the antenna and the chips is disrupted during the conversion procedures due to which RFID cannot be read.
Also, for the electronic device markets, the smart labelsneed to be highly customized. The smart labels required for electronic devices must be resistant to metals. These customizations majorly impact smart labels' market growth due to production hindrances.
Challenges- The reduction in market penetration has impacted the smart labels' market value. Smart labels are majorly used in premium products which restricts the smart labels market growth. Also, market penetration is restricted due to it high costs of production of smart labels. As small and medium-sized industries prefer using barcodes as they are cost-effective.
Since, technological development is not developed, hence many regions lack awareness about smart labels. The underdeveloped regions lack infrastructure which impacts implementation technologies. Due to which the smart label market value is reduced.
Cumulative Growth Analysis- Smart Labels are popular as they use advanced technologies. This helps in improving digital transformation while also enabling the customers to be empowered by accessing the information. RFID technologies help in recording, receiving, and transmitting information thereby reducing time, cost and efforts. Due to their features, smart labels are majorly used in the pharmaceutical industry.
Since supply chain occupies an important role in production and distribution. Hence, companies are likely to adapt to RFID due to its features like traceability, automation, and acquiring information. On a global basis, there has been high adoption of advanced labelling and packaging technologies which will fuel the smart labels market growth
Value Chain Analysis
The use of smart labels has reduced the intervention of humans while also providing convenience within the supply chain. The RIFDs labels are being preferred in healthcare sectors due to their fast-reading capabilities. The smart labels can read 700 products each second than the barcodes systems.
Besides, RFID labels are manufactured according to their strengths. For instance, RFIDs with low frequencies are major utilised in operations that require traceability in fewer centimetres. Tags that have higher frequencies are used in complex supply chains. Also, the use of TTI labels in packaged and frozen foods has further fuelled smart labels market growth.
Smart labels market size is further subdivided into technology, end-use, application, and component.
Smart Labels are being utilized in several sectors owing to their specific needs and demands. In North America, technological advancements are high due to which substantial growth is expected. Also, there have been increasing issues for labour costs, price integrity while manufacturers use RFID, EAS, and NFC on wider scales.
In addition to this, the Asian Pacific market will facilitate high CAGR. Owning to strict government rules and labelling requirements will drive demand in this market. In Europe, the smart label market will encounter market growth. On the contrary, European regions have higher smart labels market share than North America due to stringent laws and regulations. The markets in Africa and the Middle East will also encounter steady growth due to advancements in packaging standards.
Smart labels market size is consolidated on a global basis.
European Commission has been investing in Smart labels that can detect chicken spoilage in the early stages. The labels are created for measuring the poultry freshness through the release of gases. Also, in canned and frozen foods, gas indicator tags are helpful to control toxic gas composition. Thus, a change in colours indicates the reaction of chemicals and enzymes. This helps the consumers in avoiding the use of decomposed food.
The report has included various market aspects like
|Market Size||2027: USD 21.52 billion|
|CAGR||18.29% CAGR (2020-2027)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Type ,Application and End-use industry|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||CCL Industries Inc., Invengo Information Technology Co. Ltd., Checkpoint Systems Inc., Avery Dennison Corporation, Displaydata Ltd., Sato Holdings Corporation, Smartrac N.V., Willian Frick & Company, Zebra Technologies Corporation, Intermec Inc., Thin Film Electronics ASA, ASK S.A., Graphic Label Inc., Alien Technology Inc. and Muhlbauer Holding Ag & Co. Kgaa.|
|Key Market Opportunities||New product launches and R&D Amongst major key Players|
|Key Market Drivers||The growing retail sector and increased security concerns related to anti-theft|
Frequently Asked Questions (FAQ) :
It is estimated that the smart label market will reach a CAGR of 16.6% with a market value of $13671 million by the year 2028.
Technological advancement and government and regulations are driving factors for smart label market growth.
North America will be the highest growth region, followed by the Asia Pacific due to growing demand from packaging and manufacturing units.
The market segments for smart labels are subdivided into technology, end-use, component, and applications.
The pandemic has positively impacted healthcare and FMCG products which have fuelled the market demand for smart labels.
Poor mechanical susceptibility and high costs for smart devices have restrained the market growth for smart labels.
European Commissions have designed smart labels that can detect early spoilage of chicken.
Rapid urbanization and industrialization will increase opportunities for the smart labels industry. Also, tech-savvy customers have increased with extensive use of smartphones. In addition to this government, rules have been tightened that indicate smart labels will reach higher growth in the forecast period.