Inventory Tags Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Posted May 20, 2021 by manojshinde

The inventory tags market is estimated to grow at a CAGR of 4.7% over the forecast period 2021-2026.
Works towards normalization, growing application segments, increasing awareness of using inventory tags, augmented integration of advanced technologies to improve existing technology and mounting knowledge among the general population are major factors that drive the growth of the global inventory tags market. Moreover, rising disposable incomes in developing economies are expected to augment demand for several retail products. This is another primary factor anticipated to propel the growth of the global inventory tags market.

- Inventory tags connected products help secure identification and tracking, reduce human error, and hence assist in effective supply chain management. Inventory tags provide detailed information about products that can later be used and even let the stock be tracked, making warehousing and logistics opting just in time for their inventories.

- When inventory levels are chronically inaccurate, it is next to impossible to manage replenishment schedules, leading to stockouts. It also leads to poor customer experience as customers must either wait longer to receive their orders or face canceled orders once the error is realized. The average U.S. retail operation has an inventory accuracy of only 63 %. American businesses have yet to get on for the proper inventory management for preventing leading to errors, lost opportunity, and increased costs. Inventory, along with accounts receivable and accounts payable, has tied up USD 1.1 trillion in cash equivalent to 7% of the U.S. GDP (source REL). This caters to the market penetration for the inventory tags in the region.

- Furthermore, inventory tags are used by the hospitals to create smart cabinets where all medications or other products that are being brought into a hospital are being put. These smart cabinets sync with the hospitals' inventory management systems, making it easier for authorized personnel to locate products when required. These smart cabinets can have huge budget ramifications. After implementing an RFID tracking system, Adventist Health White Memorial in Los Angeles was able to reduce its manual inventory counting time by 67% and reduced costs by USD 120,000 per year by using products before expiration.

- Furthermore, the impact of Covid-19 disrupted the supply chain distribution in significant industries., which has directly impacted the sales of inventory tags. In order to contain the spread of the virus, Governments in various countries imposed curfews and quarantines across the country from the end of January 2020 onwards. This also affected the economy, as many production sites closed in order to reduce possible contact between individuals.

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Key Market Trends

RFID Holds a Substantial Share in Technology Segment of the Inventory Tags Market

- Sectors showing extraordinary growth potential for RFID technology are the automotive, pharmaceuticals, and healthcare industries. RFID can significantly reduce the labor cost borne by companies for warehouses, as labor costs amount to about 50-80% of the total charges in a distribution center. Processes that require a higher number of employees can be completed with a smaller number of employees.

- The most common use of RFID technology and smart labels are tracking goods in the supply chain, monitoring parts moving to a manufacturing production line, tracing assets, security, and payment systems that let clients pay for items without using cash. Many distribution centers and warehouses are putting to increase the efficiency of the processes, as a part of improvement programs.

- The Asia region is forecasted to be the most significant user of RFID technology and will witness substantial RFID revenues due to increasing opportunities for RFID applications in countries such as India, China, Japan, South Korea, and Taiwan. The Institute of Electrical and Electronics Engineers (IEEE) estimated that by 2020, more than 50 billion objects would be networked, of which many will use chipless RFID.

- Further, the retail industry has been utilizing RFID technology for a considerable period now, and it counts for the most significant tag volumes used in the industry today. Further, approx 72% of all retailers plan to leverage real-time inventory visibility that is enabled by automation, sensors, and analytics to reinvent their supply chains. According to the Li & Fung Group, the global market size for RFID tags is expected to reach USD 24.5 billion by 2020, which shows the steady growth of this segment ahead.

APAC is Growing wit the Fastest Pace in Inventory Tags Market

- Asia-Pacific is one of the fastest-growing markets for inventory tags, including regions such as China, India, and others. The increase in demand for tags partly originates from traditional industrial products. According to the China National Light Industry Council (CNLIC), approx 80% of light industrial products need packaging and tags. Transportation & Logistics tags are also the fast-growing segments in China’s industrial supply chain.

- The degree of traceability that integrates RFID with consumer-scannable codes like QR can provide is expected to be an all-important link to the supply chain to prevent counterfeiting and loss of goods transporting products across the vast geography of China. Baoshen, a leading Chinese packaging company, with the annual capacity of producing 1 billion RFID tags recently introduced a new Eprint line of RFID products focused on anti-counterfeit solutions for fast-moving consumer goods, online sales, and pharmaceutical drugs.

- Further, India is one of the top pharmaceutical manufacturers in the world. Although most of the production is distributed for domestic consumption, a considerable amount of drugs are exported to countries like the United States. Most of the pharmaceutical exporters in India use smart labeling techniques to meet the safety and security regulations of importing countries.

- Moreover, global players like Avery Dennison are opening their facilities in India to meet the needs of inventory tags. It has opened its first intelligent label innovation lab in Pune, India. It will act as an interactive facility equipping customers and partners with hands-on experiences, live demonstrations, and technical support to help stakeholders explore opportunities for intelligent tag solutions and RFID adoption.

Competitive Landscape

The inventory tags market is moderately competitive and consists of a significant number of global and regional players. These players account for a considerable share in the market and focusing on expanding their customer base across the globe. These vendors are focusing on the research and development investment in introducing new solutions, strategic alliances, and other organic & inorganic growth strategies to earn a competitive edge over the forecast period.

- March 2020 - Avery Dennison acquired Smartrac’s RFID Inlay business for an estimated EUR 225 million. It expects tremendous growth in its RFID business with this venture. The acquisition will increase Avery’s capacity by an estimated 2.5 billion transponders per year. It also gives the company manufacturing facilities in China, Malaysia, Germany, and the United States.

- April 2020 - Detego, an RFID software solutions provider for fashion and sports retailers, announced their new factory offerings, which ensures that factory shipments are validated on a unit level to prevent shipping errors and enable complete traceability throughout the supply chain.

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Issued By Statzy Market Research
Country India
Categories Technology
Tags inventory tags market , inventory tags market forecast , inventory tags market share , inventory tags market size
Last Updated May 20, 2021