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Smart Label Market By Labelling Technology (RFID, NFC Tags, EAS, Sensing Labels, Electronics Shelf Labels) By Printing Technology (Flexographic Smart Labels, Digital Smart Labels, Gravure Smart Labels, Screen Smart Labels) By End Use(Healthcare, Automotive, FMCG, Logistics, Retail, Others) - Growth, Future Prospects, Competitive Analysis And Forecast 2016 - 2028

About this report

The global Smart Label Market report explores the critical analysis of the smart label industry using key parameters. The report consists of investment strategies, the need for investments in the smart label industry, and the multiple benefits for the investors. Importantly, this report sets out major changes in the smart label industry's global technical regulations and how economic and non-economic barriers are helping the market grow. Moreover, the report examines historic and forecasted market sizes at the global, regional, and country levels. The report also examines key investment propositions, the demand and supply gap, SRC analysis, competitor positioning, STAR analysis, and Tornado analysis. Key technological advancements and other analyses, including Porter's Five Forces, Value Chain, PESTEL, etc.

smart-label-market

Key Highlights of the report

How are the major segments performing in the Smart Label Market?

  • The RFID labels segment led the market in labeling technology in 2021 and is expected to continue throughout the projection period. RFID labeling technology has limitless potential applications for improving accuracy and delivering value to the healthcare sector. RFID labels are gaining popularity due to their traceability, which aids inventory management operations and synchronized supply chain management. RFID labels play an important role in the process of repairs and maintenance, as well as in real-time tracking and maintaining a product's genuine credibility.
  • The flexographic printing technology segment dominated the global market in 2021 owing to its higher production speed, lower cost, and capacity to use substrate rolls, which aids in bulk printing. Flexographic printing is in high demand due to consumer preference for e-commerce formats for purchasing items. Flexographic printing technology machines are the most commonly used for large-scale printing applications. Flexographic printing machines are especially efficient at high speeds and in various applications.
  • The retail segment led the global market in the end-use in 2021 and is expected to continue over the forecast period. Smart labeling in the retail industry improves inventory management and product information, resulting in advanced data warehouse management. The retail industry uses RFIDs, QR codes, EAS tags, and labels to track their products in real time. Moreover, increasing the adoption of smart labels in the retail industry for optimization and lowering labor costs by reducing the number of handheld scanners is expected to support the target market's growth.

Which region dominated the Smart Label Market?

North America dominated the global smart label market in 2021 and is expected to maintain its dominance throughout the forecast period. The increasing penetration of smart tags in merchandise and asset-tracking applications is driving the regional market growth. Besides, rising labor costs associated with manufacturing are driving companies across the region to adopt automated and smart solutions. Various initiatives launched by several regional organizations are also enhancing the prospects of smart tag manufacturers. Businesses in the region also invest in technology, such as blockchain and smart labels, improving transparency across their distribution networks.

What is the competitive environment of the Smart Label Market?

Emerging and established vendors leveraging the presence of many smart label suppliers are expected to fragment the global market with high competition. The market's key players have been taking initiatives to bring novel growth opportunities and increasing concentration to adopt various strategies. Market participants focus on expanding their global reach through product portfolio diversification, product launches, collaborations, and customized labeling solutions for various industry sectors. For instance, Saanbuy Inc launched the SmartLabel tool in Canada in November 2020. The tool provides consumers complete access to detailed product information by scanning a QR code printed on the packages. On the other hand, Honeywell Corporation Inc purchased the Invengo textile services business segment in March 2021 to expand its RFID label technology enablement solutions.

Executive Summary

What are all the technical developments being developed in the Smart Label Market?

Smart technology has grown in popularity and scope of application worldwide, and this trend is expected to propel the smart labels market growth throughout the forecast period. Smart labels improve tracking and identification opportunities, saving time and reducing errors. They are becoming increasingly popular in smart logistics and packaging operations. The use of cutting-edge technologies makes Smart Labels popular. In addition to enhancing digital transformation, this gives customers access to information that empowers them. RFID labeling technologies aid in the recording, receipt, and transmission of information, thereby saving time, money, and effort. Smart labels are widely used in the pharmaceutical industry due to their features. For instance, Oli Tec's advanced technology recently brought innovation to the smart label market in August 2022. The label eliminates the expiry date by indicating the quality of packaged food on a color scale. The smart label is temperature sensitive and changes color from yellow to red. It also turns blue when stored at the proper temperature. Similarly, Adrich, a US-based player, developed a smart label in August 2022 that can help track data and usage and automatically allow users to reorder, also known as smart-replenishment options.

Which are the key investments by the players in the Smart Label Market?

Market participants have been increasing their investments in various R&D activities to bring technological advancements to industry services. Many end-use companies are looking for vendors who can establish smart labels with materials and rigorous chemicals that withstand weather conditions, are wear-resistant, and can be connected to IoT devices via barcode scanning using new and improved technology. General Mills, PepsiCo, Mondelez International, Coca-Cola, and Unilever are a few manufacturers leading the smart label market in developing smart labels. These businesses invest in cutting-edge technologies like RFID tracking, organic ingredients, and real-time product data analysis. They are also developing long-term supply chains that safeguard workers' rights and ecosystems. For example, the retailer may benefit if the manufacturer invests in RFID labeling. The costs of item-level RFID deployments can be shared among supply chain partners to maximize overall supply chain profit. For instance, PragmatIC, a flexible electronics specialist, has been awarded a £1.3 million contract from the United Kingdom Government's Sustainable Innovation Fund for a cutting-edge recycling scheme based on its ultra-low-cost NFC labeling technology.

Some of the major players in the market are Avery Denison Corporation, Honeywell International Inc, CCL Industries Inc, SATO Holdings Corporation, Zebra Technologies Corporation, Checkpoint Systems Inc, Muehlbauer Holding AG, Thin Film Electronics ASA, OPRFID Technologies, Invengo Technology Pvt. Ltd, and MPI Label Systems.      

What are the Major Driving Factors for the Smart Label Market?

Technological advancements such as Big Data, IoT, and digital printing innovations propel the smart print labels market forward. The scope for smart labels is rapidly expanding due to the Internet of Things (IoT) introduction. Moreover, rising sales of electronic goods and growing consumer rights awareness are driving the success of the smart labels market. Many worldwide largest e-commerce companies use smart label technology to manage their supply chain and logistics. Smart labels, for example, are used by e-commerce giants like Amazon and retail stores like Walmart to manage their supply chains and logistics.

What are the Major Risks for the Smart Label Market?

Smart Labels typically employ various components comprised of various elements that behave differently in different environments, affecting their overall functionality and capability. The high production costs associated with smart labels are also expected to restrain the market growth during the forecast period. The markets for electronic devices also require highly customized smart labels. Metal resistance is required for smart labels used in electronic devices. Due to production challenges, these customizations significantly negatively impact the market growth of smart labels. The lack of consistency in the standardization system is expected to halt further market growth over the forecast period.

Which is the key Labelling Technology in the Smart Label Market?

In 2021, the RFID labeling technology segment led the global market due to cost-effectiveness, high traceability and easy handling, and durability factors. RFID labels are widely used in inventory management, supply chain management, and asset tracking applications in manufacturing, retail, automotive, and other industrial sectors. RFIDs are also widely used in the healthcare industry for various purposes, including patient wristbands that provide real-time identification and tracking of their health. Smart labeling benefits hospitals and the entire healthcare industry, from primary care offices to diagnostic labs to the pharmaceutical supply chain, by enabling end-to-end traceability, increased productivity, and better inventory management. For these reasons, RFID technology is in high demand and gaining a technological advantage in the global smart label market.

How is the Smart Label Market performing in regions?

In 2021, North America dominated the global smart label market owing to the region's increasing technological proliferation and growing adoption of technological solutions. North America has the world's largest smart label market, with the United States having the largest share. The presence of retail stores in the United States has contributed to market growth. Retail behemoths such as Target, Walmart, and others are ramping up activity, thereby contributing to the country's smart label market growth. Walmart has been affixing electronic identification tags to clothing items to prevent theft and gain greater control over its inventory. The growing popularity of smart devices and increasing trends in smart packaging and logistics will increase the market potential for smart labels over the forecast period.

Besides, Asia Pacific is expected to grow the fastest during the forecast period due to the high demand for smart solutions and the rising adoption of smart labels in various industries, such as healthcare, automotive, retail, FMCG, and manufacturing. The region's demand for intelligent labels is most likely driven by laws and regulations that mandate product labeling. The emerging economies of India, China, and Japan are expected to be the most important markets in the region throughout the forecast period.

What is the regulatory landscape for the Smart Label Market?

The strict regulations imposed by developing-country governments regarding the product information label on the product itself are expected to increase global demand for smart labels. Very small packages, however, cannot contain all the product information. Smart labels are thus an alternative for tech-savvy and well-informed consumers. The United States government's federal disclosure rule for genetically modified organisms (GMOs) can be complied with using a smart label. A smart label or other digital connection, writing on the packaging, a symbol, or all three are acceptable ways for brands to communicate product information under this federal regulation. Buyers can learn more about a product from digital disclosures than they could from a word or symbol. Governments worldwide are also increasingly supportive of Smart Labeling and are working to make it a reality. The United Kingdom, one of the early adopters in the global smart label market, has announced a £240 million investment over the next 10 years to support Smart Food Initiatives, while Brazil plans to implement a National Program for Label Innovation by 2023. Smart labeling is already a reality in some countries, such as Australia and New Zealand. Several European regulations require food companies to label their products with product origin, nutritional information, and GMO information.

What is the Market Size of the Smart Label regarding value?

The global smart label market is anticipated to grow at a substantial CAGR of 9.2% in the upcoming years. The global smart label industry was estimated to be worth USD 9.1 billion in 2021 and was expected to be worth USD 15.43 billion by 2028.

What are the major players planning for the future of the Smart Label Market?

The key market players constantly invest in research and development to provide industries with the most efficient and cost-effective smart labeling solutions. Major corporations use collaborative strategic initiatives to expand their market share and profitability. Customization is an important factor in differentiating the products offered by market vendors. As a result, the players concentrate on innovation to gain a competitive advantage over the other players. Besides, rising demand for smart labels in logistics, technological advancements in printed electronics, and emerging technologies such as dynamic display labels, electronic shelf labels, and others are expected to create significant revenue opportunities for market participants. Key market players plan to develop an advanced material flow solution that assists enterprises in shipping materials on time. For instance, organizations currently use RFID for employee ID cards to track attendance and in-and-out records accurately and instantly accurately and instantly. The rapidly rising demand for smart labels, propelling the market forward, is essential to the future growth of the smart label market.

Segmentation of Global Smart Label Market -

Global Smart Label Market – By Labelling Technology

  • RFID
  • NFC Tags
  • EAS
  • Sensing Labels
  • Electronics Shelf Labels

Global Smart Label Market – By Printing Technology

  • Flexographic Smart Labels
  • Digital Smart Labels
  • Gravure Smart Labels
  • Screen Smart Labels

Global Smart Label Market – By End Use

  • Healthcare
  • Automotive
  • FMCG
  • Logistics
  • Retail
  • Others

Global Smart Label Market – By Region

  • North America
    •  U.S.
    • Canada
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • South-east Asia
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Rest of the Middle East and Africa

Frequently asked questions about the global Smart Label Market

The smart label market also suffered from the COVID-19 pandemic, which resulted in a decline of over 3.2% in revenue generated in 2020.

North America accounted for the highest share in the global smart label market regarding value and volume.

Technological advancement, rise in disposable household income, feasible real-time tracking of goods, increasing adoption of the product by the healthcare and eCommerce sectors, and growing demand for security and anti-theft smart labels are all driving the global market growth.

The RFID labels segment had a major share in 2021, with more than 35% of the market revenue. Besides, NFC tags segment is projected to witness the fastest growth.

The retail segment had a major share in the global market in 2021 and is projected to continue its dominance over the forecast period.

Smart Label Market Scope

Report Attribute Details
Market Value in 2021 USD 9.1 billion
Market Value in 2028 USD 15.43 billion
CAGR 9.2%
Benchmarking Year 2021
Past data 2016 – 2021
Forecast period 2022 – 2028
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Trusted By
Godaddy
Published Date:  Oct 2022
Category:  Technology & Media
Report ID:   60750
Report Format:   PDF
Pages:   120
Rating:    4.6 (60)
Delivery Time: 24 Hours to 48 Hours   
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