Published: September 2020 | Report Code: CM11092 | Available Format: PDF | Pages: 165
The global coding and marking systems market size stood at $3,832.4 million in 2019, and it is expected to demonstrate a CAGR of 6.4% during the forecast period (2020–2030). One of the key growth factors for the coding and marking systems industry is the growing product application in the food & beverage and pharmaceutical industries, along with a surge in the demand for them from the automotive sector, owing to the increasing sales of electric vehicles.
Owing to the COVID-19 pandemic, several industries across the globe witnessed turmoil; hence, the coding and marking system uptake also witnessed a fall. The suspension of manufacturing activities worldwide led to a temporary erosion of the demand for the systems. In addition, severe repercussions befell the supply lines of the components required for the manufacturing of marking systems in 2020 Q1.
In 2019, the continuous inkjet category accounted for the largest market size in the coding and marking systems industry, on the basis of technology. This is majorly attributed to the several benefits of the technology, which include high-speed printing and the ability to print characters on virtually any material. Additionally, the usage of the technology allows systems to run for long hours, with minimum servicing requirement, thus making their operations cost-effective.
The paper & cardboard category is expected to showcase the fastest growth, based on material, on account of the widespread usage of labels on packaged food products, along with on e-commerce packaging. The growing consumption of packaged food is further propelling the usage of paper and cardboard material for packaging. According to industry experts, the food packaging industry stood at $292.9 billion in 2018 and grew to $308.7 billion in 2019.
During the forecast period, the food & beverage category is expected to hold the largest share, on the basis of end user. Stringent government regulations across the globe regarding the safety and traceability of shipments have created an urge among producers to properly display the manufacturing date, nutritional facts, ingredient list, and manufacturer’s details on the primary or secondary packaging of food & beverage items. Additionally, supportive regulatory policies to prevent the entry of counterfeit products in the market, along with technological advancements, is expected to drive the global coding and marking systems market.
Globally, APAC held the largest revenue share in the coding and marking systems market in 2019, and the trend is likely to continue during the forecast period. This is majorly attributed to the stringent government regulations, increase in food production, and surge in the export of packaged food items. Additionally, with the rising population in the region, food consumption in the region is likely to increase, thereby further propelling the packaged food & beverage sector.
The importance of coding and marking in the APAC region has increased manifold in recent years, owing to the rapid penetration of counterfeiting and piracy in most of the industries. According to the data published by the United Nations Office on Drugs and Crime (UNODC), on average, globally, more than 50% of the counterfeit medical products are sourced from China and India every year.
Additionally, a significant number of counterfeit products, particularly electrical and electronic items, such as computers and smartphone tablets, are manufactured in North Korea, Myanmar, and Vietnam. In order to prevent the penetration of counterfeit products, governments of different countries have introduced legislative norms. Such stringent government regulations have impelled the end users in the region to use coding and marking systems to ensure proper labeling of the produced goods.
Printing materials used in coding and marking systems are subject to regulations designed by the Restriction of Hazardous Substances Directive (RoHS) and the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) committee. Due to the regulations of these environmental protection agencies, manufacturers of coding and marking systems are being forced to decrease the use of hazardous solvents, such as methyl ethyl ketone (MEK), reduce the content of volatile organic compounds (VOC), and prevent smearing. These regulations are also impelling companies to focus on tackling the odor problem associated with printing consumables. For example, Videojet Technologies Inc. has developed printing consumables that do not acquire odors from their environment.
The rising demand for such equipment from the food & beverage, pharmaceutical, and cosmetic industries is one of the primary factors driving the coding and marking systems market growth. The food & beverage industry captures the largest market share mainly due to the high demand from food & beverage companies end. The rising sales of packaged food, bottled water, fruit juices, and dairy products have fueled the growth of the packaged food & beverage industry across the globe.
Similarly, the growing demand for pharmaceutical packaging is supported by multiple factors, such as an increase in the awareness among manufacturers on the benefits of citing drug information on the package and rising penetration of blister packaging and special packaging in the pharmaceutical industry. Such factors are expected to drive the usage of such systems, in turn, boosting the coding and marking systems market advance during the forecast period.
|Base Year (2019) Market Size||$3,832.4 million|
|Forecast Period CAGR||6.4%|
|Report Coverage||Market trends, revenue estimation and forecast, segmentation analysis, regional and country breakdown, company share analysis, companies’ strategic developments, product benchmarking, company profiling|
|Market Size by Segments||Technology, material, end user, geography|
|Market Size of Geographies||U.S., Canada, Germany, France, Italy, U.K., Japan, China, India, South Korea, Brazil, Mexico, Saudi Arabia, South Africa, Turkey|
|Secondary Sources and References (Partial List)||American Chemical Society, American Hardware Manufacturers Association, Asia Print Association, Association of Visual Packaging Manufacturers, Brazilian Packaging Association, Central Intelligence Agency, Contract Manufacturing and Packaging Association|
Coding and marking systems are widely used in the automotive sector to code part numbers or anti-counterfeit labels on automobile components, in order to stop the sale of counterfeit parts. Additionally, according to the Automotive Aftermarket Suppliers Association (AASA), the global automotive industry loses around $12.0 billion every year due to counterfeit products, such as brake pads, compression systems, suspension components, batteries, steering linkages, and lighting systems. In order to combat the threat of counterfeits, automotive manufacturers prefer scannable invisible anti-counterfeiting printing inks and barcodes. Such factors are expected to drive the coding and marking systems market in the coming time.
The coding and marking systems market is consolidated in nature, with the presence of few major players, including Danaher Corporation, Domino Printing Sciences plc, Dover Corporation, and Matthews International Corporation.
Coding and marking system manufacturers are launching a number of products in order to expand their portfolio, which, in turn, is expected to help them increase their clientele. For instance:
The coding and marking systems market report offers comprehensive market segmentation analysis along with market estimation for the period 2014–2030.
Based on Technology
Based on Material
Based on End User
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