Automatic Data Capture Market to Expand by USD 36,478.13M

Jun 18, 2023

The automatic data capture (ADC) market size is expected to increase by USD 36,478.13 million between 2022 to 2027, with a CAGR of 11.75%, according to a recent market study by Technavio. The rising demand for better inventory management systems is the key factor driving the growth of the global automatic data capture market. The process of inventory management involves tracking, inventorying, and forecasting future inflows or outflows of raw materials and goods. In manufacturing or production, it is necessary to know what inventory is stored or replenished and to track the movement of components within the production line. Thus, the rising demand for better inventory management systems will drive the market. Inventory levels represent the number of resources invested in the final product. Discover some insights on market size before buying the full report -Request a sample report

A qualitative and quantitative analysis of vendors was conducted to help clients understand the broader business environment and the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors into pure vendors, category-focused vendors, industry-focused vendors, and diversified vendors. It is quantitatively analyzed and classifies vendors into dominant, major, strong, interim, and weak categories. The bargaining power of buyers and suppliers, new entrants, competition, and the threat of substitutes were also analyzed and rated between ‘low’ and ‘high’ to provide an overall picture of market expediency.

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The automatic data capture market report also offers information on the criticality of inputs, R&D, CAPEX, technology, and products of 15 vendors listed Below –

Alien Technology LLC, Avery Dennison Corp., B O S Better Online Solutions Ltd., Bluebird Inc., CipherLab Co. Ltd., Cognex Corp., Datalogic Spa, DENSO Corp., Honeywell International Inc., Impinj Inc., Janam Technologies LLC, Motorola Solutions Inc., Newland Europe BV, OMRON Corp., Opticon Sensors Europe BV, Panasonic Holdings Corp., SATO Holdings Corp., TSC Auto ID Technology Co. Ltd., Unitech Computer Co. Ltd., Zebra Technologies Corp.

Chart & Data Table on 5-Year Historic (2017-2021) Market Size, Comparative Analysis of Segments, and Y-O-Y Growth of Automatic data capture (ADC) market market

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Automatic Data Capture (ADC) Market- Market Dynamics

Drivers

Rising demand for better inventory management systems is driving the market. The process of inventory management involves tracking, stockpiling and forecasting future inflows or outflows of raw materials and goods. Manufacturing needs to know what inventory is being held or replenished and track the movement of components through the production line. Inventory represents the amount of resources invested in the final product, and mismanagement of inventory levels has a direct impact on business loss.

Previously, inventory was tracked manually or via barcode systems. Several workers were manually counting the products. RFID systems and barcodes play an important role in inventory management. The introduction of ADCs through technologies such as RFID allows businesses to reliably associate orders with the amount of inventory that needs to be replenished.

RFID systems have received positive responses from many large stores, supermarkets, hypermarkets, and clothing stores. These systems help store managers track inventory that is out of stock or going out of stock. Using these systems, store managers can identify which inventory is being replenished faster and identify inventory that requires economic order volume. It also helps businesses understand customer preferences and offer in-store discount offers and loyalty programs.

RFID systems allow information to be entered into the database more quickly than manually entering data. RFID systems prevent theft by tracking inventory. It can also be used to analyze demand trends by observing which items are rapidly running out of inventory. Hence, rising demand for better inventory management systems is expected to drive the growth of the global ADC market during the forecast period.

Trends

The growing popularity of big data is the primary trend shaping the global automatic data capture market growth. The process of inventory management involves tracking, stockpiling and forecasting future inflows or outflows of raw materials and goods. Manufacturing needs to know what inventory is being held or replenished and track the movement of components through the production line. Inventory represents the amount of resources invested in the final product, and mismanagement of inventory levels has a direct impact on business loss.

Previously, inventory was tracked manually or via barcode systems. Several workers were manually counting the products. RFID systems and barcodes play an important role in inventory management. The introduction of ADCs through technologies such as RFID allows businesses to reliably associate orders with the amount of inventory that needs to be replenished.

RFID systems have received positive responses from many large stores, supermarkets, hypermarkets and clothing stores. These systems help store managers track inventory that is out of stock or going out of stock. Using these systems, store managers can identify which inventory is being replenished faster and identify inventory that requires economical order volume. It also helps businesses understand customer preferences and offer in-store discount offers and loyalty programs.

RFID systems allow information to be entered into the database more quickly than manually entering data. RFID systems prevent theft by tracking inventory. It can also be used to analyze demand trends by observing which items are rapidly running out of inventory. Hence, rising demand for better inventory management systems is expected to drive the growth of the global ADC market during the forecast period.

Challenges

Security concerns are a major challenge impeding the growth of the global automatic data capture market. Data stored in RFID systems can be encrypted, but the encryption process adds to the overall cost, which is already higher than other alternatives. Without encryption, competitors and fraudsters can see how often his RFID tags are. These tags are also embedded in bank cards that contain sensitive information. Cards can be read on the move or nearby.

Alternatives, such as image ID systems, require line of sight to scan marked objects, such as those found in barcodes. However, an omnidirectional image is used. A unique ID is generated for each image during the imaging process. This ID is later used by the system to collect relevant information and is stored and linked to a database. Therefore, without access to the storage database, the identities created during the imaging process do not contain relevant data that can be exploited.

In contrast, barcodes have numeric and alphabetic encodings. Most other confidential information is stored in secure management software. However, RFID tags communicate over a specific frequency that can be accessed by an RFID reader set to that frequency. RFID tags are often permanently embedded in manufacturing processes and industrial applications. Therefore, the ID remains on the tag even after the sale. End-users who purchase these products are therefore at risk of being tracked. As a result, stores and consumer goods manufacturers will be able to install RFID readers in their stores to identify customers based on past purchases.

Integrating RFID into credit cards carries significant risks. Credit cards (with NFC or RFID) can be stolen by hackers and fraudsters. Data security is important to consumers, governments and businesses. The increasing adoption of RFID has opened new frontiers in data threats and data security measures. In an RFID system, the RFID reader communicates in both directions and both sides must be secure, hence the communication interface. RFID systems are vulnerable to threats and should be properly protected to prevent data theft. The nature of RFID technology, which gives every object a unique ID number, can raise privacy concerns for consumers. Since RFID tags are small in size, they can be inconspicuously attached to products and clothing. The signal received from the interrogator is decoded by a computer program to display information about the product. The system also has the ability to link other data to tags. Such data may include payment method and other consumer-related data such as age, address, occupation, income level, etc., which builds a customer profile and may and to further analyze and predict patterns. Collected data is aggregated and sold to organizations, and the information can be used to find potential buyers from data pools. Payment mode information is data that helps credit card companies identify potential customers. If the RFID tag is not turned off (which is difficult for the customer to see), the tag ID number can be used to track the customer's movements.

Chart & Data Table on Historical Market Size (2017-2021, Historic Industry Size & Analysis of 15 Vendors and 7 Countries

Automatic Data Capture (ADC) Market – Market SegmentationThe market is segmented by region North America, APAC, Europe, South America, and Middle East and Africa. An analysis of key leading countries has been included.

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Automatic Data Capture (ADC) Market Market Scope

Report Coverage

Details

Base year

2022

Historic period

2017-2021

Forecast period

2022-2027

Growth momentum & CAGR

Accelerate at a CAGR of 11.75%

Market growth 2023-2027

USD 36478.13 million

Market structure

Fragmented

YoY growth 2022-2023 (%)

10.75

Regional analysis

North America, APAC, Europe, South America, and Middle East and Africa

Performing market contribution

North America at 38%

Key countries

US, China, Japan, UK, and Germany

Competitive landscape

Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks

Key companies profiled

Alien Technology LLC, Avery Dennison Corp., B O S Better Online Solutions Ltd., Bluebird Inc., CipherLab Co. Ltd., Cognex Corp., Datalogic Spa, DENSO Corp., Honeywell International Inc., Impinj Inc., Janam Technologies LLC, Motorola Solutions Inc., Newland Europe BV, OMRON Corp., Opticon Sensors Europe BV, Panasonic Holdings Corp., SATO Holdings Corp., TSC Auto ID Technology Co. Ltd., Unitech Computer Co. Ltd., and Zebra Technologies Corp.

Market dynamics

Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period

Customization purview

If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Key Topics Covered:

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation by Product

7 Market Segmentation by Application

8 Customer Landscape

9 Geographic Landscape

10 Drivers, Challenges, and Trends

11 Vendor Landscape

12 Vendor Analysis

13 Appendix

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