Smart labels are those labels that are embedded with technology and consist of small chips, barcodes that further help in counterfeiting, and theft of goods from stores. The market for smart labels is witnessing a healthy growth throughout the forecast period on account of the rising popularity of these labels across the various numerous end-user industries. The rising digitally literate population on both developed and developing economies of the globe is also providing an impetus for the market to grow in the near future. Also, strict regulations regarding the information of products to be printed on the labels of the product coupled with the rapid advancements in the label technology is also widening up the opportunities for the manufacturers and vendors to invest and the market and gain a competitive edge over other players.
One of the key factors propelling the global smart labels market growth throughout the course of the next five years. The current era of technological upgradations and inclination of various organizations towards the adoption of digital technology such as big data, the Internet of Things (IoT) has led to an upsurge in the data-driven operations. This, in turn, is offering lucrative opportunities for the market to grow throughout the forecast period and beyond. The presence of big retail chains such as Walmart, Carrefour S.A, and others are moving towards the digitization trend and are adopting numerous technological solutions to manage their supply chain activities. As these labels offer effective inventory management at lesser costs than conventionally printed labels, organizations are moving towards the adoption of these labels. Thus, growth in the number of retail stores is also anticipated to be a key factor amplifying the demand for smart labels during the forecast period. The booming e-commerce industry and the presence of big players in the e-commerce industry is also supplementing the demand for smart labels as big giants are employing intelligent solutions with a primary aim to manage their supply chain activities.
The global smart labels market has been segmented on the basis of technology, end-user industry, and geography. By technology, the segmentation of the market has been done into electronic article surveillance (EAS), RFID, NFC, and electronic shelf label (ESL). By the end-user industry, the classification of the market has been done on the basis of healthcare, FMCG, transport and logistics, manufacturing, retail, and others. Geographically, the global smart labels market has been distributed into North America, South America, Europe, Middle East and Africa, and Asia Pacific.
Manufacturing to Show Healthy Growth
By the end-user industry, the manufacturing sector is anticipated to witness healthy growth throughout the forecast period. The growth of the manufacturing sector throughout the globe coupled with the rapid adoption of technology is further bolstering the demand for intelligent solutions for the enhancement the operational efficiency is driving the growth of this segment. According to the data from the World Bank Group, the manufacturing, value-added in the United States reached US$2.173 trillion by 2017 from US$1.789 trillion in 2010. Similarly, in China, it increased from US$1.924 trillion in 2010 to US$3.896 trillion by 2019.
Manufacturing, Value Added (Current Us$) - United States, China, US$ Trillion, 2010-2019
Source: The World Bank Group
APAC to Witness Healthy Growth
Geographically, the North American region is projected to hold a notable share in the market throughout the forecast on account of the early adoption of technology and the presence of well-established industries in the countries like the United States and Canada. Furthermore, the presence of key market players in the region is also supplementing the growth during the next five years. However, in the APAC region, the rising healthcare spending for the up-gradation of the healthcare infrastructure and the rising trend of smart hospitals are some of the key factors boosting the demand for smart labels throughout the forecast period. For example, in India, the current healthcare expenditure per capita (current US$) reached US$69.293 by 2017 from 45.251 in 2010. Similarly, in China, it reached US$440.826 by 2017 from 187.733 by in the year 2010.
Current Healthcare Expenditure per Capita (Current Us$) - India, China
Source: The World Bank Group
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