The global inventory tags market was valued at approximately US$ 4,995.36 million in 2020 and is anticipated to reach around US$ 7,264.42 million by 2028, reflecting a compound annual growth rate (CAGR) of 5.0% from 2021 to 2028.
In North America, key economies such as the United States, Canada, and Mexico play a significant role in this market. The high disposable income of the population allows for investments in advanced technology, fostering innovation and competition among businesses in the region. North America boasts a robust retail and manufacturing landscape, characterized by a dense network of retailers. The retail sector, in particular, has been a major adopter of RFID technology, which enables efficient data transfer from tags attached to products through a wireless scanning system, facilitating automatic identification and tracking.
According to the International Trade Administration (ITA), Canada had approximately 19.8 million e-commerce users in 2018, with projections suggesting this number could rise to 5.21 million by 2021. Retail e-commerce sales in Canada were valued at US$ 2.2 million in 2019 and surged to US$ 47.9 million in 2020. This growth in the retail sector, coupled with the expansion of e-commerce activities, is significantly contributing to the inventory tags market in North America.
The healthcare sector in the US, as reported by the American Hospital Association, comprises around 5,534 registered hospitals serving approximately 35,158,934 patients. Effective inventory management is crucial in this sector, as it underpins various decision-making processes. Hospitals are increasingly adopting best practices in supply chain management to enhance inventory control. Inventory tags facilitate the swift check-in and check-out of medical equipment, with unique identification numbers simplifying the location of items in storage. Additionally, RFID technology allows for the simultaneous scanning of multiple items.
In August 2020, Vizinex RFID, a US-based manufacturer of RFID tags, launched new flexible inventory tags designed to cater to a broader range of industries. These tags are specifically engineered to adhere to flat metal surfaces, showcasing the innovative developments by leading inventory tag providers that are driving market growth in North America.
The US stands out as a significant market for inventory tags, bolstered by the expanding retail, e-commerce, and healthcare sectors. However, the surge in COVID-19 cases and the associated rise in fatalities have adversely impacted these industries. The shutdowns of factories and businesses across the US, Canada, and Mexico have hindered the adoption of inventory tags. While the retail sector has experienced notable shifts, consumer spending on groceries has risen, spending on clothing and accessories, however, saw a marked decline in 2020.
Midway through 2020, retail and e-commerce sales began to recover gradually, leading to a slight uptick in the inventory tags market in North America. RFID technology has also found extensive application in the healthcare sector for asset tracking. In response to the pandemic, the region has initiated the distribution of vaccines and personal protective equipment (PPE), with RFID technology playing a crucial role in tracking and authenticating test kits, PPE, and vaccines, further contributing to market growth.
The COVID-19 pandemic has severely impacted the transportation, automotive, and trade sectors. North America is home to numerous manufacturing and technology firms, making the effects of the coronavirus outbreak particularly pronounced in 2020 and likely extending into 2021. However, the impact of COVID-19 is expected to be short-lived, with a gradual recovery anticipated in the coming years.
The overall size of the inventory tags market has been determined through a combination of primary and secondary research methods. The research process commenced with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data related to the market. This approach also aimed to provide an overview and forecast for the inventory tags market across various segments. Additionally, multiple primary interviews were conducted with industry participants and experts to validate the data and gain deeper analytical insights. Participants included industry professionals such as VPs, 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 inventory tags market.
Key players profiled in this market study include 3M Company, Alien Technology, LLC, Avery Products Corporation, Brady Worldwide Inc., Camcode (Horizons Incorporated), Cenveo Corporation, Checkpoint Systems, Smartrac Technology GmbH (Avery Dennison Corporation), Tyco (Johnson Controls, Inc.), and Zebra Technologies Corporation.