Market Trends of Inventory Tags Industry
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.
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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.
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