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Coding and Marking Systems Market Overview
Global coding and marking systems market is estimated to attain a size of $3,358.0 million in 2017 and is projected to witness a CAGR of 6.9% during 2018-2023. The growing application of coding and marking systems for printing labels, government identification codes, batch numbers, and other information on primary as well as secondary packages in industries such as food and beverage, automotive, chemical, semiconductor and electronics, healthcare, and construction, is driving the growth of the coding and marking systems market, globally.
GLOBAL CODING AND MARKING SYSTEMS MARKET, BY REGION, $M (2013 – 2023)
Asia-Pacific is estimated to be the largest region in the global coding and marking systems market in 2017. To combat the rapid penetration of counterfeiting and piracy, the governments of different countries of the region have introduced legislative norms. For example, China Food and Drug Administration (CFDA) introduced labeling norms for prepackaged foods in 2011, according to which, manufacturers need to put information regarding product name, ingredients, producer details, batch identification, and storage condition on packages. These regulations make the producers of Asia-Pacific to rely on coding and marking systems to properly label produced goods, thereby driving the growth of the market in the region.
On the basis of technology, the coding and marking systems market is segmented into continuous inkjet, laser coding and marking, thermal ink jet, drop on demand, print & apply labelers, thermal transfer overprinting, and others. Others include valve jet, and hot-melt ink jet technologies. Laser coding and marking technology has been further bifurcated into direct part marking (DPM) and laser coding. Continuous inkjet, thermal transfer overprinting, and laser coding and marking are the three common types of technologies used in coding and marking systems market. Among these three technologies, thermal transfer overprinting is expected to register the fastest growth in the coding and marking systems market during the forecast period.
The thermal transfer overprinting technology is ideal when a large amount of information is required to be printed on limited space. The machine is easy to use and has almost low maintenance cost. Thermal transfer overprinting printers are mostly used for coding and marking on primary and secondary packages of food and beverage items such as confectionaries, dairy products, and snacks. Such wide application areas and low-cost benefits are propelling the growth of this technology in the coding and marking systems market.
The major trend identified in the global coding and marking systems market is the emergence of environment-friendly coding technologies. The growing demand for anti-counterfeit coding and marking on packages in industries such as food and beverage, and automotive has been identified as the major driver for the growth of the market during the forecast period.
Printing materials used in coding and marking devices are subject to regulations designed by Restriction of Hazardous Substances Directive (RoHS) and Registration, Evaluation, Authorization, and Restriction of Chemicals (REACH) committee. Due to the presence of these regulatory agencies, manufacturers of coding and marking systems feel compelled to decrease the use of hazardous solvents such as methyl ethyl ketone (MEK), reduce the content of volatile organic compound (VOC), and prevent smearing. Growing end user awareness regarding the benefits of environment-friendly printing technologies and the rising pressure from environment protection agencies to improve sustainability, are expected to boost the acceptance of environment-friendly coding technologies by manufacturers in the coding and marking systems market, during the forecast period.
The rising sales of packaged snacks, processed food, bottled water, non-alcoholic beverages, and dairy items fuel the growth of packaged food and beverage industry across the globe. As packaged food and beverage industry is a major end user of coding and marking systems, increase in the demand of packaged food and beverage items positively impacts the growth of the coding and marking systems market.
The manufacturing of vehicles requires thousands of individual components and for eradicating flaws in the manufacturing process, many of these components need to carry a specific part number. In order to code part numbers or labels on automobile components, manufacturers are resorting to the use of coding and marking devices, which in turn drives the growth of the coding and marking systems market, in the automotive segment.
The price of coding and marking devices depends on its specifications, level of technology integration, applications, size, and nature of consumables used. Due to such wide criteria, a significant amount of variance is observed when it comes to the pricing of coding and marking machines. Furthermore, the high price of coding and marking machines impedes their adoption by the price-sensitive industrial users from emerging economies. Therefore, high price has been identified as a major restraint in the coding and marking systems market.
Coding and Marking Systems Market Competitive Landscape
Some of the major players operating in the coding and marking systems industry are Danaher Corporation, ATD Marking Systems, ID Technology, Inkjet Inc, Hitachi Ltd, Dover Corporation, Diagraph Group, Matthews International Corporation, Domino Printing Sciences plc, and Overprint Packaging Ltd.