“Global Smart Labels Market to reach a market value of USD 43.5 Billion by 2031 growing at a CAGR of 15.5%”
The Global Smart Labels Market size is expected to reach $43.5 billion by 2031, rising at a market growth of 15.5% CAGR during the forecast period.
In 2023, North America region held 29% revenue share in the smart label market. This dominance is attributed to the high adoption of advanced technologies, the presence of major industry players, and the increasing demand for efficient supply chain management solutions. North America's retail, healthcare, and logistics sectors have particularly driven the demand for smart labels, leveraging their capabilities for enhanced tracking, inventory management, and product authentication.
The major strategies followed by the market participants are Acquisitions as the key developmental strategy to keep pace with the changing demands of end users. For instance, In June, 2023, Impinj, Inc. took over Voyantic, a provider of radio frequency identification (RFID) testing and measurement solutions. With this acquisition, the company would be able to advance and accelerate design, manufacturing, and testing to drive quality products out into the market. Moreover, in May, 2023, CCL Industries acquired eAgile Inc., a company specializing in RFID technology, along with another intelligent label company. This acquisition aims to strengthen CCL's presence in the smart label market, particularly in RFID-enabled labelling solutions.
Based on the Analysis presented in the KBV Cardinal matrix; STMicroelectronics N.V. is the forerunner in the Market. Companies such as NXP Semiconductors N.V., Fujitsu Limited, Avery Dennison Corporation are some of the key innovators in Market. In September, 2021, Avery Dennison completed its acquisition of Vestcom, a prominent provider of retail pricing and promotional solutions. This strategic move is intended to strengthen Avery Dennison’s capabilities in the retail and consumer packaging sectors. The acquisition of Vestcom, which specializes in shelf-edge technology and promotional labelling, expands Avery Dennison’s reach and enhances its offerings in retail management.
The growing demand for real-time monitoring and visibility in supply chain operations is one of the primary factors driving the smart label market. Efficient inventory management is crucial for maintaining operational effectiveness and customer satisfaction. In conclusion, increasing demand for efficient and transparent supply chain management drives the market's growth.
The surge in digital transformation initiatives across industries leads organizations to seek technology-driven solutions that enhance operational efficiency. Increased investments in digital transformation often involve integrating these labels with existing ERP systems. In conclusion, increased investment in digital transformation initiatives drives the market's growth.
Implementing smart labels requires significant upfront investment in technology and infrastructure. Businesses need to purchase smart label printers, RFID or NFC readers, and software systems capable of managing the data generated by these labels. In conclusion, the high initial costs and investment required for smart label implementation hamper the market's growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
On the basis of component, the smart label market is segmented into transceivers, memories, batteries, microprocessors, and others. In 2023, the transceivers segment attained 23% revenue share in the smart label market. Transceivers are integral to smart labels' functioning, facilitating wireless communication between the label and the reader. This component is crucial for the real-time tracking and monitoring of products, assets, and inventory.
Based on application, the smart label market is categorized into retail inventory, perishable goods, electronic & IT assets, equipment, pallets tracking, and others. The perishable goods segment witnessed 22% revenue share in the smart label market in 2023. The need to monitor and manage the freshness and quality of perishable items, such as food and pharmaceuticals, has fuelled the demand for smart labels.
Based on technology, the smart label market is divided into EAS labels, RFID labels, sensing labels, electronic shelf/dynamic display labels, and near field communication (NFC) tags. The electronic shelf/dynamic display labels segment attained 13% revenue share in the smart label market in 2023. This technology is particularly popular in retail, providing real-time pricing information, promotions, and product details directly on the shelf.
By end use, the smart label market is divided into automotive, fast moving consumer goods (FMCG), healthcare & pharmaceutical, logistic, retail, manufacturing, and others. The fast moving consumer goods (FMCG) segment procured 20% revenue share in the smart label market in 2023. Smart labels in the FMCG sector ensure product authenticity, track expiration dates, and enhance supply chain transparency.
Free Valuable Insights: Global Smart Labels Market size to reach USD 43.5 Billion by 2031
The Smart Labels Market is highly competitive, driven by technological advancements and growing demand for real-time tracking and enhanced product visibility. Key players focus on innovation, strategic partnerships, and expanding product portfolios to gain a competitive edge. Market fragmentation allows both large corporations and emerging startups to compete effectively.
Region-wise, the smart label market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific region generated 39% revenue share in the smart label market in 2023. The rapid growth in this region can be attributed to the burgeoning retail sector, the expansion of the manufacturing industry, and increasing government initiatives supporting the adoption of smart technologies.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 14.1 Billion |
| Market size forecast in 2031 | USD 43.5 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 15.5% from 2024 to 2031 |
| Number of Pages | 355 |
| Number of Tables | 553 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Component, Application, Technology, End Use, Region |
| Country scope |
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| Companies Included | Avery Dennison Corporation, Zebra Technologies Corporation, Invengo Technology Pte. Ltd., Advantech Co., Ltd., Alien Technology, LLC, CCL Industries, Inc., STMicroelectronics N.V., Fujitsu Limited, NXP Semiconductors N.V. and Impinj, Inc. |
By Component
By Application
By Technology
By End Use
By Geography
This Market size is expected to reach $43.5 Billion by 2031.
Increased investment in digital transformation initiatives are driving the Market in coming years, however, Complexity of integration with existing supply chain and IT infrastructure restraints the growth of the Market.
Avery Dennison Corporation, Zebra Technologies Corporation, Invengo Technology Pte. Ltd., Advantech Co., Ltd., Alien Technology, LLC, CCL Industries, Inc., STMicroelectronics N.V., Fujitsu Limited, NXP Semiconductors N.V. and Impinj, Inc.
The expected CAGR of this Market is 15.5% from 2024 to 2031.
The Batteries segment generated the highest revenue in the Market by Component in 2023; thereby, achieving a market value of $11.1 billion by 2031.
The Asia Pacific region dominated the Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $17.4 billion by 2031.
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