The Global Smart Labels Market size is expected to reach USD43.5 billion by 2031, rising at a market growth of 15.5% CAGR during the forecast period.
In 2023, North America region held 29% revenue share in the smart label market. This dominance is attributed to the high adoption of advanced technologies, the presence of major industry players, and the increasing demand for efficient supply chain management solutions. North America's retail, healthcare, and logistics sectors have particularly driven the demand for smart labels, leveraging their capabilities for enhanced tracking, inventory management, and product authentication.
The major strategies followed by the market participants are Acquisitions as the key developmental strategy to keep pace with the changing demands of end users. For instance, In June, 2023, Impinj, Inc. took over Voyantic, a provider of radio frequency identification (RFID) testing and measurement solutions. With this acquisition, the company would be able to advance and accelerate design, manufacturing, and testing to drive quality products out into the market. Moreover, in May, 2023, CCL Industries acquired eAgile Inc., a company specializing in RFID technology, along with another intelligent label company. This acquisition aims to strengthen CCL's presence in the smart label market, particularly in RFID-enabled labelling solutions.
Based on the Analysis presented in the KBV Cardinal matrix; STMicroelectronics N.V. is the forerunner in the Market. Companies such as NXP Semiconductors N.V., Fujitsu Limited, Avery Dennison Corporation are some of the key innovators in Market. In September, 2021, Avery Dennison completed its acquisition of Vestcom, a prominent provider of retail pricing and promotional solutions. This strategic move is intended to strengthen Avery Dennison’s capabilities in the retail and consumer packaging sectors. The acquisition of Vestcom, which specializes in shelf-edge technology and promotional labelling, expands Avery Dennison’s reach and enhances its offerings in retail management.
The surge in digital transformation initiatives across industries leads organizations to seek technology-driven solutions that enhance operational efficiency. Increased investments in digital transformation often involve integrating these labels with existing ERP systems. In conclusion, increased investment in digital transformation initiatives drives the market's growth.
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 Acquisitions, and Partnerships & Collaborations.
The Smart Labels Market is highly competitive, driven by technological advancements and growing demand for real-time tracking and enhanced product visibility. Key players focus on innovation, strategic partnerships, and expanding product portfolios to gain a competitive edge. Market fragmentation allows both large corporations and emerging startups to compete effectively.
In 2023, North America region held 29% revenue share in the smart label market. This dominance is attributed to the high adoption of advanced technologies, the presence of major industry players, and the increasing demand for efficient supply chain management solutions. North America's retail, healthcare, and logistics sectors have particularly driven the demand for smart labels, leveraging their capabilities for enhanced tracking, inventory management, and product authentication.
The major strategies followed by the market participants are Acquisitions as the key developmental strategy to keep pace with the changing demands of end users. For instance, In June, 2023, Impinj, Inc. took over Voyantic, a provider of radio frequency identification (RFID) testing and measurement solutions. With this acquisition, the company would be able to advance and accelerate design, manufacturing, and testing to drive quality products out into the market. Moreover, in May, 2023, CCL Industries acquired eAgile Inc., a company specializing in RFID technology, along with another intelligent label company. This acquisition aims to strengthen CCL's presence in the smart label market, particularly in RFID-enabled labelling solutions.
KBV Cardinal Matrix - Market Competition Analysis
Based on the Analysis presented in the KBV Cardinal matrix; STMicroelectronics N.V. is the forerunner in the Market. Companies such as NXP Semiconductors N.V., Fujitsu Limited, Avery Dennison Corporation are some of the key innovators in Market. In September, 2021, Avery Dennison completed its acquisition of Vestcom, a prominent provider of retail pricing and promotional solutions. This strategic move is intended to strengthen Avery Dennison’s capabilities in the retail and consumer packaging sectors. The acquisition of Vestcom, which specializes in shelf-edge technology and promotional labelling, expands Avery Dennison’s reach and enhances its offerings in retail management.
Market Growth Factors
The growing demand for real-time monitoring and visibility in supply chain operations is one of the primary factors driving the smart label market. Efficient inventory management is crucial for maintaining operational effectiveness and customer satisfaction. In conclusion, increasing demand for efficient and transparent supply chain management drives the market's growth.The surge in digital transformation initiatives across industries leads organizations to seek technology-driven solutions that enhance operational efficiency. Increased investments in digital transformation often involve integrating these labels with existing ERP systems. In conclusion, increased investment in digital transformation initiatives drives the market's growth.
Market Restraining Factors
Implementing smart labels requires significant upfront investment in technology and infrastructure. Businesses need to purchase smart label printers, RFID or NFC readers, and software systems capable of managing the data generated by these labels. In conclusion, the high initial costs and investment required for smart label implementation hamper the market's growth.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 Acquisitions, and Partnerships & Collaborations.
Driving and Restraining Factors
Drivers
- Increasing demand for efficient and transparent supply chain management
- Increased investment in digital transformation initiatives
- Exponential growth of the e-commerce and retail industries
Restraints
- High initial costs and investment required for smart label implementation
- Complexity of integration with existing supply chain and IT infrastructure
Opportunities
- Growth in autonomous delivery solutions
- Expansion of the subscription-based services
Challenges
- Privacy and data security concerns associated with smart labels
- Short lifecycle and durability issues in harsh environments
Component Outlook
On the basis of component, the smart label market is segmented into transceivers, memories, batteries, microprocessors, and others. In 2023, the transceivers segment attained 23% revenue share in the smart label market. Transceivers are integral to smart labels' functioning, facilitating wireless communication between the label and the reader. This component is crucial for the real-time tracking and monitoring of products, assets, and inventory.Application Outlook
Based on application, the smart label market is categorized into retail inventory, perishable goods, electronic & IT assets, equipment, pallets tracking, and others. The perishable goods segment witnessed 22% revenue share in the smart label market in 2023. The need to monitor and manage the freshness and quality of perishable items, such as food and pharmaceuticals, has fuelled the demand for smart labels.Technology Outlook
Based on technology, the smart label market is divided into EAS labels, RFID labels, sensing labels, electronic shelf/dynamic display labels, and near field communication (NFC) tags. The electronic shelf/dynamic display labels segment attained 13% revenue share in the smart label market in 2023. This technology is particularly popular in retail, providing real-time pricing information, promotions, and product details directly on the shelf.End Use Outlook
By end use, the smart label market is divided into automotive, fast moving consumer goods (FMCG), healthcare & pharmaceutical, logistic, retail, manufacturing, and others. The fast moving consumer goods (FMCG) segment procured 20% revenue share in the smart label market in 2023. Smart labels in the FMCG sector ensure product authenticity, track expiration dates, and enhance supply chain transparency.Market Competition and Attributes
The Smart Labels Market is highly competitive, driven by technological advancements and growing demand for real-time tracking and enhanced product visibility. Key players focus on innovation, strategic partnerships, and expanding product portfolios to gain a competitive edge. Market fragmentation allows both large corporations and emerging startups to compete effectively.
By Regional Analysis
Region-wise, the smart label market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific region generated 39% revenue share in the smart label market in 2023. The rapid growth in this region can be attributed to the burgeoning retail sector, the expansion of the manufacturing industry, and increasing government initiatives supporting the adoption of smart technologies.Recent Strategies Deployed in the Market
- Apr-2024: STMicroelectronics launched a new NFC tag chip with elliptic curve cryptography to enhance security in smart labels. This innovation aims to provide secure authentication and data protection in smart labelling applications.
- 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.
- Nov-2022: Impinj released two new RFID tag chips M780 and M781 RAIN RFID. The newly launched RFID tag chips are a part of the Impinj M700 series and are intended to manage product shelf life, adhere to regulations, and reduce waste. The Impinj M780 chip is equipped with 128-bit user memory, and 496-bit electronic product code memory, while the Impinj M781 chip features, 512-bit user memory, and 128-bit electronic product code.
- May-2022: Avery Dennison Corporation unveiled D Medio Web DF EM4425 and AD Web DF EM4425 V12, two added to its expanding Dual-frequency (DF) range of RFID inlays. Both the product offers combined NFC (HF) and RAIN RFID (UHF) functionality for item-level tagging in a small, cost-effective way. AD Medio Web DF has been developed for pharmaceuticals and healthcare applications, while AD Web DF focuses on retail use cases.
- Sep-2021: Avery Dennison completed its acquisition of Vestcom, a prominent provider of retail pricing and promotional solutions. This strategic move is intended to strengthen Avery Dennison’s capabilities in the retail and consumer packaging sectors. The acquisition of Vestcom, which specializes in shelf-edge technology and promotional labelling, expands Avery Dennison’s reach and enhances its offerings in retail management.
List of Key Companies Profiled
- Avery Dennison Corporation
- Zebra Technologies Corporation
- Invengo Technology Pte. Ltd.
- Advantech Co., Ltd.
- Alien Technology, LLC
- CCL Industries, Inc.
- STMicroelectronics N.V.
- Fujitsu Limited
- NXP Semiconductors N.V.
- Impinj, Inc.
Market Report Segmentation
By Component
- Batteries
- Transceivers
- Memories
- Microprocessors
- Other Component
By Application
- Retail Inventory
- Perishable Goods
- Electronic & IT Assets
- Equipment
- Pallets Tracking
- Other Application
By Technology
- RFID Labels
- EAS Labels
- Electronic Shelf/Dynamic Display Labels
- Near Field Communication (NFC) Tags
- Sensing labels
By End Use
- Retail
- Fast Moving Consumer Goods (FMCG)
- Logistic
- Healthcare & pharmaceutical
- Automotive
- Manufacturing
- 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
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Table of Contents
Chapter 1. Market Scope & Methodology
Chapter 2. Market at a Glance
Chapter 3. Market Overview
Chapter 4. Competition Analysis - Global
Chapter 5. Global Smart Labels Market by Component
Chapter 6. Global Smart Labels Market by Application
Chapter 7. Global Smart Labels Market by Technology
Chapter 8. Global Smart Labels Market by End Use
Chapter 9. Global Smart Labels Market by Region
Chapter 10. Company Profiles
Companies Mentioned
Some of the key companies in the Smart Labels Market include:- Avery Dennison Corporation
- Zebra Technologies Corporation
- Invengo Technology Pte. Ltd.
- Advantech Co., Ltd.
- Alien Technology, LLC
- CCL Industries, Inc.
- STMicroelectronics N.V.
- Fujitsu Limited
- NXP Semiconductors N.V.
- Impinj, Inc.
Methodology
LOADING...
