Automatic Identification and Data Capture Market Size, Trends and Growth Analysis by 2027

The automatic identification and data capture (AIDC) market is projected to expand significantly, increasing from approximately US$ 34,342.36 million in 2019 to around US$ 78,654.15 million by 2027. This growth represents a compound annual growth rate (CAGR) of 10.9% from 2020 to 2027.

In recent years, online shopping has emerged as a dominant trend globally. E-retail sales have experienced a remarkable year-on-year growth of about 18% over the past decade, with sales exceeding EUR 1 trillion in 2016. Currently, the Asia-Pacific region accounts for nearly 50% of the total global online retail sales. Furthermore, the online retail market in Europe was valued at over 600 billion Euros by the end of 2018, marking a significant increase from 530 billion Euros the previous year, which reflects a year-on-year growth of 15%. The industry is anticipated to continue its upward trajectory, with projections indicating a further rise of 14% to reach 602 billion Euros in the coming years.

Major players in the e-retail sector, such as Amazon and other online retailers, dominate the European market, as a significant number of consumers prefer shopping on platforms like Amazon or the online versions of Wal-Mart and Target. This trend contributed to the retail and e-commerce sector in Europe reaching a valuation of US$ 1.55 trillion in 2015, with expectations to grow to US$ 3.4 trillion by 2019. The increasing demand for cost-effective and efficient retail solutions has prompted companies in supply chain management to develop robust systems to meet these needs. Tools such as barcode scanners, optical character recognition (OCR) systems, and optical mark recognition (OMR) technologies facilitate quicker data processing and input into computer systems. These technologies are essential for various applications, including Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), and Supply Chain Management (SCM).

In retail environments, handheld scanners and point-of-sale (POS) scanners are increasingly being utilized to streamline customer checkouts, enhancing the shopping experience. The imaging technologies integrated into these scanners enable rapid data processing and storage, leveraging automatic identification and data capture tools. Consequently, POS and handheld scanners are among the most widely adopted AIDC solutions in the retail and e-commerce sectors. As a result, the anticipated growth of the retail sector is expected to positively influence the AIDC market in the forthcoming years.

Before the onset of the COVID-19 pandemic in late December 2019, players in the automatic identification and data capture market were experiencing a significant surge in demand for their offerings. However, the pandemic severely impacted businesses across various sectors, leading to a drastic decline in demand for AIDC products and services, with the exception of the healthcare, logistics, and retail industries. These three sectors provided a lifeline for AIDC market players, allowing them to maintain a favorable outlook during the global lockdowns.

The overall size of the automatic identification and data capture market has been determined through a combination of primary and secondary research methodologies. The research process commenced with extensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data relevant to the market. This approach also aimed to provide an overview and forecast of the AIDC market across various segments and regions. Additionally, numerous primary interviews were conducted with industry stakeholders and experts to validate the collected data and gain deeper analytical insights. Participants in these interviews typically included industry professionals such as vice presidents, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the AIDC market.

Key players in the automatic identification and data capture market include Bluebird, Inc., Cipherlab Co. Ltd., Cognex Corporation, Datalogic, Denso Wave Inc., Honeywell International Inc., Sato Holding Corporation, Sick AG, Toshiba Corporation, and Zebra Technologies Corporation. These companies are at the forefront of innovation and development in the AIDC sector, contributing to its growth and evolution.