Inventory Tags Market Size
|2019 - 2029
|Base Year For Estimation
|Fastest Growing Market
*Disclaimer: Major Players sorted in no particular order
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Inventory Tags Market Analysis
The inventory tags market is estimated to grow at a CAGR of 4.7% over the forecast period. A barcode label or plate used for inventory tracking is applied to a product or package as an inventory tag. These tags can be used for human inventory counts or automatic counting by connecting to a network of scanners and an inventory management system (IMS).
- Works towards normalization, growing application segments, increasing awareness of using inventory tags, augmented integration of advanced technologies to improve existing technology, and mounting knowledge among the general population are major factors that drive the growth of the global inventory tags market. Moreover, rising disposable incomes in developing economies are expected to augment demand for several retail products. This is another primary factor anticipated to propel the global inventory tags market growth.
- Inventory tags connected to products help secure identification and tracking, reduce human error, and hence assist in effective supply chain management. Inventory tags provide detailed information about products that can later be used and even let the stock be tracked, making warehousing and logistics opt just in time for their inventories.
- When inventory levels are chronically inaccurate, it is next to impossible to manage replenishment schedules, leading to stockouts. It also leads to poor customer experience as customers must either wait longer to receive their orders or face canceled orders once the error is realized. The average U.S. retail operation has an inventory accuracy of only 63 %. American businesses have yet to get on the proper inventory management for preventing leading to errors, lost opportunity, and increased costs. Inventory and accounts receivable and accounts payable have tied up USD 1.1 trillion in cash, equivalent to 7% of the U.S. GDP (source REL). This caters to the market penetration for the inventory tags in the region.
- Furthermore, inventory tags are used by the hospitals to create smart cabinets where all medications or other products that are being brought into a hospital are being put. These smart cabinets sync with the hospitals' inventory management systems, making it easier for authorized personnel to locate products when required. These smart cabinets can have huge budget ramifications. After implementing an RFID tracking system, Adventist Health White Memorial in Los Angeles reduced its manual inventory counting time by 67% and costs by USD 120,000 per year by using products before expiration.
- Furthermore, the impact of Covid-19 disrupted the supply chain distribution in significant industries., which has directly impacted the sales of inventory tags. To contain the spread of the virus, Governments in various countries imposed curfews and quarantines across the country from the end of January 2020 onwards. This has affected the economy, as many production sites closed to reduce possible contact between individuals.
Inventory Tags Market Trends
This section covers the major market trends shaping the Inventory Tags Market according to our research experts:
RFID Holds a Substantial Share in Technology Segment of the Inventory Tags Market
- Sectors showing extraordinary growth potential for RFID technology are the automotive, pharmaceutical, and healthcare industries. RFID can significantly reduce the labour cost borne by companies for warehouses, as labour costs amount to about 50-80% of the total charges in a distribution center. Processes that require a higher number of employees can be completed with a smaller number of employees.
- The most common use of RFID technology and smart labels are tracking goods in the supply chain, monitoring parts moving to a manufacturing production line, tracing assets, security, and payment systems that let clients pay for items without using cash. Many distribution centers and warehouses are increasing the efficiency of their processes as a part of improvement programs.
- The Asia region is forecasted to be the most significant user of RFID technology and will witness substantial RFID revenues due to increasing opportunities for RFID applications in countries such as India, China, Japan, South Korea, and Taiwan.
- Due to increased market competition and the consequent availability of reasonably priced RFID solutions on a global scale, the RFID market share is anticipated to experience a noticeable increase throughout the projected period. An increase in the installation of RFID solutions across the manufacturing and healthcare sectors also drives the expansion of this market during the forecast period. The government's increased rules and initiatives for various industries are also anticipated to drive the RFID market study.
- However, the high cost of installing, purchasing, and maintaining RFID and worries about data security and privacy are anticipated to limit industry expansion. In addition, industry 4.0, the Internet of Things, and smart manufacturing solutions are predicted to increase the usage of RFID tags, creating a lucrative potential for the RFID market forecast to develop.
APAC is Growing wit the Fastest Pace in Inventory Tags Market
- Asia-Pacific is one of the fastest-growing markets for inventory tags, including regions such as China, India, and others. The increase in demand for tags partly originates from traditional industrial products. According to the China National Light Industry Council (CNLIC), approx 80% of light industrial products need packaging and tags. Transportation & Logistics tags are also fast-growing segments in China's industrial supply chain.
- As a significant tag exporter, China already has 85% of the world's RFID production capacity. The second-generation National Identification Card project in China is also the largest RFID order in terms of value, and China is completing it almost entirely with Chinese-only resources. China has used RFID extensively in a variety of applications, from train tickets to library assets, thanks to the government's strong support. As China becomes a manufacturing leader in most segments, including cars and planes, this will fuel rising demand for RFID in manufacturing and many other industries.
- The degree of traceability that integrates RFID with consumer-scannable codes like QR can provide is expected to be an all-important link to the supply chain to prevent counterfeiting and loss of goods transporting products across the vast geography of China. Baoshen, a leading Chinese packaging company with an annual capacity of producing 1 billion RFID tags, recently introduced a new Eprint line of RFID products focused on anti-counterfeit solutions for fast-moving consumer goods, online sales, and pharmaceutical drugs.
- Further, India is one of the top pharmaceutical manufacturers in the world. Although most of the production is distributed for domestic consumption, a considerable amount of drugs are exported to countries like the United States. Most of the pharmaceutical exporters in India use smart labeling techniques to meet the safety and security regulations of importing countries.
- Moreover, global players like Avery Dennison are opening their facilities in India to meet the needs of inventory tags. It opened its first intelligent label innovation lab in Pune, India. It will act as an interactive facility equipping customers and partners with hands-on experiences, live demonstrations, and technical support to help stakeholders explore opportunities for intelligent tag solutions and RFID adoption.
Inventory Tags Industry Overview
The inventory tags market is moderately competitive and consists of many global and regional players. These players account for a considerable share of the market and focus on expanding their customer base across the globe. These vendors focus on the research and development investment in introducing new solutions, strategic alliances, and other organic & inorganic growth strategies to earn a competitive edge over the forecast period. In may 2022, The Technology Innovation Development Facility (TIDC), a pioneering Radio Frequency Identification ("RFID") inlay Research & Development (R&D) center and production hub, was opened by SML Group ("SML"), a global leader in digital identification technology and solutions. The new center is a component of SML's long-term strategic ambitions as it works to build the technology ecosystem needed to support increasingly global operations that involve a larger client base as they move toward a future where everything will be identified digitally across markets.
Inventory Tags Market Leaders
Avery Dennison Corporation
Alien Technology, LLC
Brady Worldwide, Inc.
Zebra Technologies Corporation
*Disclaimer: Major Players sorted in no particular order
Inventory Tags Market News
- May 2022: A leader in trusted identity solutions globally, HID Global, recently announced the acquisition of Vizinex RFID. The acquisition expands HID Global's reach and importance in important vertical areas like healthcare/medical, manufacturing, oil & gas, data centers, etc. It brings crucial technology to the company's market-leading RFID tag portfolio.
- May 2022: Kerala, India, is now fitting its cattle with a radio-frequency identification (RFID) microchip to build a sizable database on its livestock and enhance the animal's traceability. J. Chinchurani, the minister for animal husbandry, officially started the distribution of the microchip and reader to kick off the initiative, which is being started as a pilot in the State. The Department of Animal Husbandry is putting this program, known as E-Samridha, into action in collaboration with the Kerala University of Digital Sciences, Innovation, and Technology.
Inventory Tags Market Report - Table of Contents
1.1 Study Deliverables and Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Real-Time Tracking
4.2.2 Provides Protection Against Loss, Theft, and Counterfeiting
4.2.3 Remote Identification of Products
4.3 Market Restraints
4.3.1 High Cost Associated with Software and Equipment Integration
4.4 Industry Attractiveness - Porter Five Forces
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Assessment of COVID-19 on the Industry
5. MARKET SEGMENTATION
5.1.3 Other Technologies
5.2.4 Other Types
5.3 End-user Industry
5.3.3 Transportation & Logistics
5.3.4 Other End-user Industries
5.4.1 North America
5.4.3 Asia Pacific
5.4.4 Rest of the World
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Avery Dennison Corporation
6.1.2 3M Company
6.1.3 Zebra Technologies Corporation
6.1.4 Alien Technology, LLC
6.1.5 Brady Worldwide, Inc.
6.1.6 Tyco International Plc
6.1.7 Smartrac N.V.
6.1.8 Johnson Controls International Plc
6.1.9 Cenveo Corporation
6.1.10 Checkpoint Systems, Inc.
6.1.11 Hewlett Packard Enterprise Development LP
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Inventory Tags Market Research FAQs
What is the current Inventory Tags Market size?
The Inventory Tags Market is projected to register a CAGR of 4.70% during the forecast period (2024-2029)
Who are the key players in Inventory Tags Market?
3M Company, Avery Dennison Corporation, Alien Technology, LLC, Brady Worldwide, Inc. and Zebra Technologies Corporation are the major companies operating in the Inventory Tags Market.
Which is the fastest growing region in Inventory Tags Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Inventory Tags Market?
In 2024, the North America accounts for the largest market share in Inventory Tags Market.
What years does this Inventory Tags Market cover?
The report covers the Inventory Tags Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Inventory Tags Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Inventory Tags Industry Report
Statistics for the 2023 Inventory Tags market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Inventory Tags analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.