Smart Labels Market Trend, Share, Growth, Size and Forecast 2028

Smart Labels Market: Industry Prospective

The global smart labels market was worth around USD 8924.70 Million in 2021 and is estimated to grow to about USD 15216.49 Million by 2028, with a compound annual growth rate (CAGR) of approximately 9.3 percent over the forecast period.

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The report analyzes the Smart Labels market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the Smart Labels market.

Smart Labels Market: Overview

Smart technology has substantially increased in popularity and scope of application all over the globe and this trend is anticipated to propel the smart labels market growth over the forecast period. Smart labels enable better tracking and better identification opportunities that save time and reduce errors. They have been seeing a substantial rise in popularity in smart packaging and smart logistics operations.

Rising technological proliferation and increasing digitization are expected to boost demand for smart labels over the forecast period. These smart labels provide more surveillance of products and provide better information as they are practically embedded electronic devices with advanced capabilities.

However, the mechanical susceptibility and functioning capability of these smart labels are expected to act as restraining factors for the global smart labels market growth over the forecast period.

A smart label is a slip for an item identification which contains more advanced technologies than bar code data which leads to advantageous features such as quick identification, automated reading, high tolerance, reduced errors, and re-programmability. These labels are approximately 0.3 millimeters thick made from paper, plastics, or fabrics and are used as printed labels, chip labels, or electronic labels. They are usually designed to record, receive, and transmit the digital information which leads to the reduction of total time tracking. Moreover, rising industrial use of these labels leads to minimized human errors, owing to its efficiency and accuracy. 

Increased demand for the security and tracking solutions is the major factor driving the smart labels market growth. Moreover, the growing retail sector is also the strong factor driving the growth of the smart labels market. Growing retail sector leads to the rising demand for the smart labels in merchandise and asset tracking. In addition to this, increase in the adoption of smart labels in packaging industry results in the ability to offer detailed data to the customers about the products with the use of smart devices. The features offered by the smart labels such as real-time location tracking, re-programmability, and high tolerance, among others are anticipated to boost the market across the globe in various sectors in the upcoming years. However, additional cost incurred by the use of smart labels is projected to hamper the market growth in the forecast timeframe.

COVID-19 Impact:

The COVID-19 pandemic resulted in a huge drop in smart label sales and created a major adverse situation for smart labels market growth. Lockdown restrictions created a downfall situation in the global smart labels marketplace in 2020 and resulted in losses for smart labels manufacturers.

Smart labels saw a drop in demand as multiple sales and distribution channels were shuttered under the lockdown restrictions. Disrupted logistics and inadequate manufacturing landscape led to a demand-supply gap in the global smart labels market landscape and resulted in a negative growth trend for the smart labels market potential through 2028.

In the post-pandemic era, the smart labels market is expected to make a comeback at a steady pace and is expected to see good growth through the forecast period.

Smart Labels Market: Growth Drivers

Increasing Advancements in Technology to Boost Smart labels Market Growth

Advancements in technology have substantially risen over the past few years and this trend is anticipated to be prominent over the forecast period as well. Increasing use and integration of technologies like Big Data, IoT, artificial intelligence, and virtual reality are also expected to further bolster the smart labels market potential in the long run.

Smart Labels Market: Restraints

Mechanical susceptibility and Functioning capabilities

Smart Labels usually use different components made of various elements that act differently in different environments and this affects their overall functionality and capability. The high cost of production associated with these smart labels is also anticipated act as a restraining factor for the smart labels market growth over the forecast period.

Global Smart Labels Market: Segmentation

The global Smart Labels market is segregated based on technology, component, end-use industry, application, and region.

By technology, the market is divided into EAS labels, RFID labels, Sensing Labels, Electronic shelf/dynamic display labels, and NFC tags. The RFID labels have seen a substantial increase in popularity in the past few years and are anticipated to maintain this stance over the forecast period as well. Their simple nature of use and easy accessibility are anticipated to be major factors driving the smart labels market growth through 2028.

By end-use industry, the Smart Labels market is segmented into FMCG, Retail, Automotive, Logistics, Manufacturing, Healthcare, and Others (aerospace, library, construction, and postal services). The retail sector is projected to have a bright outlook over the forecast period in the global smart labels market landscape through 2028

Report Scope:

Recent Developments

• In August 2019 – Smartrac a leading manufacturer of RFID inlays and announced the launch of Skyline tags that will be used in industrial applications these new chips are equipped with RAIN RFID chips with the connectivity of up to 6 meters.

Smart Labels Market: Regional Landscape

Asia Pacific region will see the fastest growth of all regions in the global smart labels market landscape. The increasing popularity of technology and rising adoption of smart technologies are expected to boost demand in this region. Emerging economies of China, India, and Japan are projected to be the most important markets in this region over the forecast period.   

The market for Smart Labels in North America is expected to hold a dominant revenue share in the global smart labels marketplace and this can be attributed to increasing technological proliferation and rising adoption of novel technologies in this region. The increasing popularity of smart devices and rising trends of smart packaging and smart logistics are further boosting the smart labels market potential over the forecast period. The United States is anticipated to be the major market for smart labels in this region through 2028.

Smart Labels Market: Competitive Landscape

Some of the main competitors dominating the global Smart Labels market include:

• Avery Dennison Corporation (U.S.)
• CCL Industries Inc. (Canada)
• Checkpoint Systems Inc. (U.S.)
• Smartrac N.V. (The Netherlands)
• Zebra Technologies Corporation (U.S.)
• Alien Technology Inc. (U.S.)
• Sato Holding Corporation (Japan)
• Intermec Inc. (U.S.)

The Global Smart Labels market is segmented as follows:

By Technology

• EAS labels
• RFID labels
• Sensing labels
• Electronic shelf/dynamic display labels
• NFC tags

By End-Use Industry

• FMCG
• Retail
• Automotive
• Logistics
• Manufacturing
• Healthcare
• Others (aerospace, library, construction, and postal services)

By Component

• Batteries
• Transceivers
• Microprocessors
• Memories
• Others (antenna and another basic component)

By Application

• Electronics and IT asset
• Equipment
• Retail & Inventory tracking
• Pallet
• Perishable goods
• Others (reusable goods, security access, patient care smart wrist bands, and general assets)

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of the Middle East & Africa