Smart Labels Market size is poised to cross USD 121.77 Billion by the end of 2035, growing at a CAGR of 20.65% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of smart labels was over USD 12.8 Billion.The growth of the market can be attributed to growing adoption of cloud by organizations. About 93% of US businesses were employing cloud services in 2022. In contrast, approximately 66% of business infrastructure was hosted in the cloud. Hence, the demand for smart labels is estimated to increase with the growing adoption of cloud, since a smart label solution makes use of the cloud's capabilities to make the packaging and the content accessible online.
The QR code is one of the smart labels that is most frequently used. The number of smartphone users that scanned a QR code on their mobile devices increased by about 25% from 2020 to 2022 in the United States, where there were about 88 million smartphone users. By 2025, there are expected to be over 99 million Americans using mobile QR code scanners, with usage expected to continue to increase. One could quickly add this unobtrusive square to the product labels so that buyers may scan them with their mobile devices. The QR code could point someone in any direction after being scanned, including to a digital voucher, business website, or an invitation to download any app.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
20.65% |
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Base Year Market Size (2022) |
USD 12.8 Billion |
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Forecast Year Market Size (2035) |
USD 121.77 Billion |
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Regional Scope |
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End-user (Retail, Healthcare & Pharmaceuticals, Food & Beverages, Consumer Electronics, Supply Chain & Logistics, Transportation)
The global smart labels market is segmented and analyzed for demand and supply by end-user into retail, healthcare & pharmaceuticals, food & beverages, consumer electronics, supply chain & logistics, and transportation. Out of which, the retail segment is anticipated to garner the highest revenue by the end of 2035. The growth of the segment can be attributed to growing demand for e-commerce among people. Almost 3 billion people were anticipated to make online purchases in 2022. The world population is projected to be about 7 billion as of January 2023. That indicates that at least 27% of people worldwide make purchases online to meet their needs. The e-commerce and also m-commerce industries' breakthroughs and convergence are causing retailers to reevaluate their ideas and products, which is causing the global retail environment to change every day. Since a few years ago, the retail industry has changed to make use of RFID technology, which accounts for the majority of labels and tags produced to this day. Retailers could now better communicate with customers, apply anti-counterfeiting measures, and integrate customer experience into the Omni channel environment owing to this label technology. These elements fuel the retail sector's demand for intelligent labelling.
Technology (Electronic Article Surveillance (EAS) Security, RFID, Sensing Labels, Near Field Communication Tag, QR Code/2D Barcode)
The global smart labels market is also segmented and analyzed for demand and supply by technology into electronic article surveillance (EAS) security, RFID, sensing labels, near field communication tag, and QR code/2D barcode. Amongst which, the RFID segment is expected to have the significant growth over the forecast period. Radio frequency is used by RFID tags, a sort of tracking technology, to locate, recognize, follow, and communicate with objects and people. RFID tags could contain a variety of data, including serial numbers, a brief description, and even entire pages of information. Hence, owing to their advantages their preference is high among organizations. Cryptographic security elements are included in some RFID tags to provide a high level of verification and authentication. Low frequency (LF), high frequency (HF), and ultra-high frequency (UHF) radio frequencies are typically used to identify RFID tags (UHF).
Our in-depth analysis of the global smart labels market includes the following segments:
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By Technology |
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By End-User |
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North American Market Forecast
The share of smart labels market in North America, amongst the market in all the other regions, is projected to have the highest growth, backed by growing use of internet along with increasing use of smart labels in asset and product tracking systems. It was predicted that between 2023 and 2028, there would be an additional about 42 million internet users in North America. The total user base is estimated to grow to approximately 497 million users in 2028, marking the fifth year in a row that it has done so. Other reasons that manufacturers and merchants are being compelled to employ market for product labelling include rising labor costs and problems with price integrity. Also, a number of businesses from other sectors have launched initiatives in this region to boost the smart labels market. In addition, manufacturers and retailers are using smart labels, such as RFID, EAS, and NFC, extensively. They could track shipping goods owing to this, which opens up a number of options for market players in this region to flourish. In addition, the growing adoption of digital technology across numerous industries would support the market expansion for smart labels in the years to come.
APAC Market Statistics
The Asia Pacific smart labels market is estimated to be the second largest, to have the highest growth. Since businesses are more concerned about security, there is an increase in demand for effective anti-theft technologies, which has had a big impact on the market for smart labels in this region. Throughout the projected period, characteristics including simultaneous identification, real-time location tracking, re-programmability, and detailed real-time information would considerably aid in the expansion of the market in Asia Pacific. Moreover, other factors which are estimated to boost the growth of smart labels market in this region are growing disposable income, and rise in use of e-commerce websites in order to purchase goods.
Europe Market Forecast
Additionally, the smart labels market in Europe region is also estimated to have significant growth over the forecast period. The growth of the market can be attributed to growing technology advancement in this region. A variety of opportunities are presented by developments such as the Internet of Things, industrial data, advanced manufacturing, robots, and artificial intelligence that would allow European industry to strengthen its position as a leader in the developing smart labels market for future goods and services. Moreover, the penetration of mobile phones is also high in this region which has influenced people to purchase more goods online.
A pioneer in specialty label, security, and packaging solutions for large enterprises, governmental organisations, small businesses, and consumers, CCL Industries Inc. ("CCL") recently announced the acquisition of eAgile Inc. ("eAgile") and the intellectual property of Alert Systems ApS.
Portable Technology Solutions, LLC (PTS), a developer of mobile data gathering software and solutions, has revealed that Alien Technology, LLC’s ALR-H460 portable, rugged RFID reader is supported by its TracerPlus mobile software. TracerPlus is enterprise-class mobile and RFID software that works with a variety of home and office gear. With no programming necessary, TracerPlus may be customised to meet the exact demands of any user.
Author Credits: Sadaf Naaz, Mohd Shadab
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