Automatic Identification And Data Capture Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Services), By End-user (Retail, BFSI, Healthcare), By Region, And Segment Forecasts, 2023 - 2030

Market Size & Trends

The global automatic identification and data capture market size was valued at USD 54.58 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 12.0% from 2023 to 2030. Automatic identification and data capture (AIDC) is a method that involves scanning, identifying, capturing, analyzing, recording, and storing data from an individual, video, picture, or audio without the need for manual entry. AIDC systems are routinely used to manage assets, inventory, delivery, scanning documents, and security. AIDC’s industrial applications include transport and logistics, chemical, pharmaceutical, food and beverage, automotive, consumer products, retail and warehousing, and distribution, among others.

For instance, in February 2022, AIM, the industry alliance for automated data capture technologies such as RFID, barcode, NFC, IoT, and RTLS, announced its strategic goal to expand its influence among stakeholders in the AIDC marketplace. One of the primary goals of AIM's strategic plan is to give a new set of AIDC standards to members and the general public via a newly established "AIM Standards Marketplace.”

Radiofrequency identification (RFID), barcodes, biometrics, labels, smart cards, and speech and voice recognition are examples of AIDC solutions. The solutions have gained acceptance across various industries due to their increased accuracy, precision, and smooth functioning. Factors such as the growing requirement to reduce manual data entry and capture errors, improvements in AIDC technology, and increased adoption of advanced AIDC systems are expected to drive market growth.

For instance, in July 2022, Cybra Corporation, a provider of barcoding, RFID tags, data gathering, wireless, and mobility technologies, and RMS Omega Technologies, an information technology firm, announced a collaboration. The companies intend to develop RFID-centered solutions for inventory tracking and asset management through this collaboration. The partnership will let users implement robust tracking solutions like real-time equipment location tracking, work-in-process operations, incoming and outbound shipment auditing, inventory threshold monitoring, and safety protocol enforcement.

Rising smartphone QR scanning and innovative low-cost solutions are expected to fuel market growth. In addition, factors such as rapidly growing e-commerce, retail, and consumer goods sectors are likely to drive the demand for AIDC products. Similarly, increased government efforts to promote AIDC products due to a surge in human errors and incorrect data entry are expected to drive growth. Factors such as the growing requirement to reduce manual data entry and capture errors, improvements in AIDC technology, and increased adoption of advanced AIDC systems will likely expand the market size.

Component Insights

The hardware segment accounted for the largest revenue share of 63.6% in 2022. The maximum share of the segment can be attributed to the increasing demand for AIDC hardware devices such as scanners, RFID tags, magnetic stripe cards, barcoding solutions, optical character recognition (OCR) systems, smart cards, and biometric systems.

Furthermore, rising sales of these items are contributing to the expansion of the AIDC hardware industry. For instance, in May 2022, Datalogic S.p.A., a producer of bar code readers and portable data-gathering terminals, introduced the Matrix 320 5MP industrial scanner. The new scanner, built on a multicore architecture with HDR capability and hardware acceleration, has a fantastic field of view for reading multiple tags or codes in a single capture with a single reader.

The software segment is estimated to grow significantly over the forecast period, owing to software companies focused on introducing unique features in data capture software. AIDC solution vendors are expanding their marketing capabilities to help their data capture software get market exposure for managing large amounts of incoming communication across industries.

Data capture software is witnessing high demand from the banking sector to drive paperless transactions and enable digitally connected bankers to perform better during workloads and respond faster. For instance, in August 2022, Melissa Inc., a provider of data quality and address management systems, partnered with ID-Pal., a provider of identity verification services. The partnership created Melissa ID, a fully customizable, innovative software as a service solution that uses a multi-layered approach to automated identity verification that includes facial matching, biometrics, address verification, liveness testing, and document checks.

The services segment is expected to grow at the fastest CAGR of 13.3% during the forecast period. Service providers in the AIDC industry offer comprehensive support, including installation, configuration, and maintenance of AIDC systems. They also provide training and consulting services to assist organizations in effectively implementing and utilizing AIDC technologies. Additionally, service providers offer technical support and troubleshooting assistance to ensure smooth operation and minimize disruptions in data capture processes.

End-user Insights

The BFSI segment accounted for the largest revenue share of around 18.7% in 2022. The highest share of the segment can be attributed to the increasing demand for smart cards in the banking sector. The transport and logistics segment is anticipated to be a potential end-user of the AIDC solutions. By incorporating AIDC technology for proper workflow and supply chain management, the industry has pushed the boundaries and redefined the nature of business.

For instance, in July 2021, Supply Chain Services LLC., an AIDC vendor, acquired ISG Technologies, LLC, a value-added reseller of AIDC products and services. The company increased its product portfolio and geographical reach into Texas through this acquisition. Furthermore, the AIDC industry will benefit from long-term tailwinds generated by the continuous emphasis on integrated supply chains and logistics and the proliferation of smart, connected devices.

The retail segment is estimated to register the fastest CAGR of 13.6% over the forecast period. The segment growth is attributed to the higher adoption of automatic identification & data capture technologies such as supply chain management, barcode & RFID tags for billing, and replenishment orders in the retail value chain. Furthermore, with increasing urbanization and demand for various consumer items, the retail business is witnessing substantial expansion in multiple nations worldwide, increasing the adoption of AIDC technology in this sector.

Manufacturers of AIDC systems are creating new, complementary technologies while continuously improving classic laser scanning capabilities to assist retail distribution centers in meeting these new identification problems and achieving the necessary process improvement goals.

Regional Insights

North America dominated the market and accounted for the largest revenue share of 39.6% in 2022. This high share can be attributed to the increasing awareness and high adoption of AIDC devices and increased government legislative and investment, particularly in retail, healthcare, and manufacturing industries. Furthermore, the widespread acceptance of advanced technology and the technological development of numerous industries are driving the regional market's growth.

For instance, in August 2022, OmniQ Inc., an IT firm that offers AI-based computer vision solutions, was awarded an extra USD 1 in a project for a supply chain of fortune 100 retailers with over 2300 locations in North America. The purchase order is for full technical assistance for the new technology deployed in the region's giant logistic facilities. It is expected to speed up the deployment process by assuring precise configuration, robust reporting, and a concierge enterprise support team dedicated to the customer.

Asia Pacific is expected to grow at the fastest CAGR of 14.6% during the forecast period. Retail and logistics firms are extending their footprint in the Asia Pacific region to profit from the rising purchasing power of the middle class. As a result, the region's automatic identification and data capture business has expanded. Furthermore, the presence of many major players in the area, such as Toshiba, SATO, Panasonic, Godex, and Optoelectronics, is expected to propel the expansion of the industry.

Key Companies & Market Share Insights

The automatic identification and data capture market is highly competitive, and the players are undertaking strategies such as product launches, acquisitions, and collaborations to increase their global reach. For instance, in August 2022, Peak Technologies and Supply Chain Services LLC. agreed to integrate their businesses in a comprehensive merger agreement. The combined business will do business as Peak Technologies. In the enormous, fragmented, and competitive AIDC sector, the new company seeks to establish itself as a full-service solution provider. The newly consolidated firm is ideally positioned to provide a comprehensive array of products to existing and new customers in North America and Europe. The following are some of the major participants in the global automatic identification and data capture market:

• Zebra Technologies Corp.

• Datalogic S.p.A.

• Bluebird Inc

• B.O.S. Better Online Solutions LTD.

• Honeywell International Inc

• NEC Corporation

• Cognex Corporation

• Toshiba Corporation

• Panasonic Holdings Corporation

• Thales

Recent Developments

• In July 2023, Newland AIDC, an auto identification company, established an after-sales service network Newland AIDC India Service Pvt Ltd, to serve customers in the country. With this, Indian customers can enjoy less downtime and greater convenience, which leads to operational efficiency and enhanced business community.

• In June 2023, Socket Mobile, a data capture and delivery solutions provider, introduced the DuraScan Wear DW930. The DW930 is a wearable laser barcode scanner specifically developed to cater to the growing needs of industries like warehousing, manufacturing, and distribution. Designed to facilitate scanning scenarios that necessitate the use of both hands for improved speed, flexibility, and precision, the DuraScan Wear DW930 enhances productivity. Its wearable design empowers workers to seamlessly continue scanning without setting the scanner down while handling items or operating machinery.

• In June 2023, Tidypay, a payment processing company, partnered with Global Auto ID Ltd, a barcode scanner, label printer, and data capture solutions company. This collaboration enables Tidypay to extend its payment services to new countries and markets, expanding business opportunities. The partnership combines simplicity, efficiency, and technological advancements, ultimately enhancing the value of both brands involved.

• In January 2023, Avery Dennison announced an investment of USD 100 million in a manufacturing site in Querétaro, Mexico. This strategic investment aligns with the company's vision of providing a unique digital identity to every item, reinforcing its position as the world's largest provider of RFID technology. Anticipated to be operational by the end of the first quarter of 2024, this facility to become Avery Dennison's largest RFID plant worldwide.

• In October 2022, Liquid Barcodes introduced C-StorePay, an innovative solution that simplifies and streamlines payment processes for fuel, in-store purchases, and subscription programs. This revolutionary product aims to provide customers with a seamless and hassle-free payment experience while simultaneously reducing credit card fees for retailers.

Automatic Identification And Data Capture Market Report Scope

Global Automatic Identification And Data Capture Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global automatic identification and data capture market on the basis of component, end-user, and region:

• Component Outlook (Revenue, USD Billion, 2017 - 2030)

  • Hardware

    • RFID Reader

    • Barcode Scanner

    • Smart Cards

    • Optical Character Recognition Devices

    • Biometric Systems

    • Others

  • Software

  • Services

    • Integration & Installation Services

    • Support & Maintenance Services

• End-user Outlook (Revenue, USD Billion, 2017 - 2030)

  • Manufacturing

  • Retail

  • Transportation & Logistics

  • Hospitality

  • BFSI

  • Healthcare

  • Government

  • Energy & power

  • Others

• Regional Outlook (Revenue, USD Billion, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • South Korea

  • Latin America

    • Brazil

    • Mexico

  • Middle East and Africa

    • Saudi Arabia

    • South Africa

    • UAE