Global Automatic Identification and Data Capture Market Size, Share & Trends Analysis Report By Component, By End use, By Regional Outlook and Forecast, 2024 - 2031

Global Automatic Identification and Data Capture Market Size, Share & Trends Analysis Report By Component, By End use, By Regional Outlook and Forecast, 2024 - 2031

The Global Automatic Identification and Data Capture Market size is expected to reach $145.02 billion by 2031, rising at a market growth of 11.5% CAGR during the forecast period.

The North America segment recorded 37% revenue share in the market in 2023. Key sectors such as retail, logistics, and healthcare have heavily invested in AIDC tools like RFID readers, barcode scanners, and biometric systems to improve efficiency and ensure compliance with regulatory standards. The demand for AIDC solutions is further fueled by the presence of a robust e-commerce ecosystem and prominent technology providers.

The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In November, 2023, NXP Semiconductors introduced the Trimension™ NCJ29D6, a next-generation UWB family designed to improve secure car access, child presence detection, and gesture recognition in automotive systems. This innovation, which combines secure localization with short-range radar in a single chip, is expected to enhance system performance, reduce costs, and enable multiple use cases across various vehicle applications, with solutions set to be on the road by 2025. Moreover, In September, 2024, NEC Corporation has launched a biometric authentication system that uses advanced facial recognition technology to identify large groups of people in motion swiftly. This innovation aims to improve efficiency and reduce congestion, reflecting broader trends in the biometric market, including AFIS.

Based on the Analysis presented in the KBV Cardinal matrix; Honeywell International, Inc. is the forerunner in the Automatic Identification and Data Capture Market. In June, 2023, Honeywell International, Inc. introduced SwiftDecoder™ a comprehensive software development kit (SDK). This would fulfill the intricate barcode-decoding requirements spanning healthcare, transportation and logistics, retail, warehouse management, and access control. Companies such as NXP Semiconductors N.V., NEC Corporation and Avery Dennison Corporation are some of the key innovators in Automatic Identification and Data Capture Market.

Market Growth Factors

Industries are under increasing pressure to improve efficiency, lower costs, and reduce human errors, making automation a critical solution. According to the International Federation of Robotics (IFR) report, global industrial robot installations reached 553,000 units in 2023. AIDC technologies, such as RFID tags, barcode scanners, and IoT-enabled devices, integrate with these systems to capture real-time data and ensure accuracy in production, tracking, and management processes. Hence, these factors are driving the growth of the market.

Additionally, The growth of smart manufacturing and Industry 4.0 is revolutionizing the manufacturing industry through the integration of AIDC technologies. Tools like RFID systems, barcode scanners, and IoT-enabled sensors are crucial for real-time data capture, enabling accurate tracking of raw materials, work-in-progress, and finished products. For instance, automotive giants such as BMW and Tesla use RFID tags and sensors to optimize assembly lines and ensure efficient component tracking. Thus, as Industry 4.0 evolves, AIDC solutions will enhance operational efficiency, enable digital transformation, and keep manufacturers competitive in an increasingly dynamic market.

Market Restraining Factors

However, The adoption of AIDC systems, including technologies such as barcode scanners, RFID systems, and biometric devices, requires significant upfront investments. Businesses must allocate resources for purchasing hardware, implementing software, and training employees to use these systems effectively. These costs can be particularly burdensome for small and medium enterprises (SMEs), which often operate with limited budgets and tight cash flow. Hence, these factors may hamper the growth of the market.

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 Product Launches and Product Expansions.

Component Outlook

Based on component, the market is classified into hardware, software, and services. The software segment procured 30% revenue share in the market in 2023. Software platforms are essential for the management of data captured by hardware devices, providing businesses with the ability to monitor, report, and conduct predictive analysis. The rise of cloud-based software solutions and the integration of AI and machine learning algorithms have enhanced the functionality and scalability of AIDC systems, making them indispensable for industries seeking to optimize operations.

End use Outlook

On the basis of end use, the market is divided into manufacturing, retail, transportation & logistics, hospitality, BFSI, healthcare, government, energy & power, and others. The retail segment acquired 19% revenue share in the market in 2023. The need for efficient inventory management, order fulfillment, and checkout automation powers the retail segment. AIDC tools such as barcode scanners, RFID tags, and IoT devices enable real-time visibility across supply chains, ensuring accurate stock tracking and minimizing losses.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Europe segment witnessed 31% revenue share in the market in 2023. Countries like Germany, France, and the United Kingdom are at the forefront of integrating AIDC technologies to optimize supply chains and automate industrial processes. The European Union’s strict regulations on food traceability and pharmaceutical safety and programs like the Farm to Fork Strategy have accelerated the adoption of barcode scanners, RFID tags, and IoT-enabled AIDC systems.

Market Competition and Attributes

The competition in the Automatic Identification and Data Capture (AIDC) market, excluding top key players, is still intense, with numerous emerging companies offering innovative solutions. These players focus on niche applications and regional markets, driving product differentiation. While the absence of dominant companies allows room for growth, challenges include market fragmentation, technological advancement, and price competition.

Recent Strategies Deployed in the Market

• Nov-2023: NEC Corporation partnered with Mastercard International Incorporated to expand their biometric checkout program in the Asia-Pacific region. This collaboration integrates NEC’s facial recognition and liveness verification technology with Mastercard’s payment systems, aiming to enhance user experience and global expansion.
• Oct-2023: Avery Dennison Smartrac launched a new range of sustainable RFID tags. This initiative is designed to promote environmental sustainability in the packaging and labelling industry. By introducing these eco-friendly tags, Avery Dennison Smartrac, a leader in RFID technology, aims to reduce waste and enhance the environmental footprint of its products. Smartrac, known for its innovative RFID solutions, supports Avery Dennison’s commitment to creating more sustainable business practices.
• Aug-2023: Cognex Corporation came into partnership with OSARO Partners Alliance, a US-based software development company. Through this partnership, Cognex Corporation would enhance the performance of pick-and-place robots in fulfillment warehouses.
• Jul-2023: Datalogic S.p.A. introduced Gryphon 4500 Fixed Series. This device is crafted to function across a myriad of self-service applications in retail, manufacturing, healthcare, and transportation & logistics sectors. It maintains a compact form factor to seamlessly integrate into kiosks, information points, self-check-in systems, and access control setups.
• May-2023: Synaptics Incorporated has launched the Triton FS7800 family of high-resolution Match-in-Sensor fingerprint authentication sensors, offering two flexible packaging options. These sensors provide enhanced security and seamless integration for mobile workforces, ensuring safe biometric access to PCs and devices while preventing hacking.

List of Key Companies Profiled

• Datalogic S.p.A. (Hydra S.p.A.)
• Honeywell International, Inc.
• Zebra Technologies Corporation
• SICK AG
• Cognex Corporation
• Toshiba Corporation
• NEC Corporation
• NXP Semiconductors N.V.
• Synaptics Incorporated
• Avery Dennison Corporation

Global Automatic Identification and Data Capture Market Report Segmentation

By Component

• Hardware
• RFID Reader
• Barcode Scanner
• Smart Cards
• Biometric Systems
• Optical Character Recognition Devices
• Other Hardware Type
• Software
• Services
• Integration & Installation Services
• Support & Maintenance Services

By End use

• BFSI
• Retail
• Transportation & Logistics
• Manufacturing
• Healthcare
• Government
• Hospitality
• Energy & power
• Other End Use

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA