India Coding and Marking Systems Market Report - By Offering (Systems, Software Solution), Systems (Continuous Inkjet, Thermal Transfer Overprinting, Thermal Inkjet, Drop on Demand, Print and apply Labeling, Laser Coding and Marking), End User (Automotive, Fast-Moving Consumer Goods, Electrical and Electronics, Extrusion, Chemicals and Agrochemicals, Construction, Pharmaceutical) – Revenue Estimation Through 2030

Market Overview

From around $42.7 million in 2021, the Indian coding and marking systems market size will advance at a CAGR of over 12% during 2021–2030, primarily as a result of the stringent government regulations on product labeling and increasing traceability requirements across industries.

Another major driving factor for the market is the growing manufacturing and packaging industries. In addition to this, the increasing application of these machines in the food and beverage and pharmaceutical industries is driving the market growth.

As a result of the slowdown in manufacturing activities in 2020 due to the COVID-19 pandemic, the demand for these systems dropped. Since these systems are widely used on automotive components, electrical equipment, and chemical packaging, their usage witnessed a slight dip in the first two quarters of 2020. However, the market is set to recover with the expected increase in the demand for food and beverages as well as cosmetics and personal care products, as there is a shift in focus from loose to packaged, branded items.

The pandemic even led to the growing demand for the proper packaging of products that were being marketed as basic or essential. Thus, the growth in these industries led to a high demand for coding and marking systems in India.

Systems Witnessed Higher Demand than Software in 2021

The systems category held over 90% share in 2021 in the market, based on offering. This was because coding and marking systems are widely used in various industries, including fast-moving consumer goods (FMCG), chemicals and agrochemicals, automotive, and pharmaceutical, to authenticate, track, and trace products along the supply chain.

Major Opportunity Areas

• The market outlook for coding and marking systems in India is rather positive as their production volumes and demand are expected to grow in the coming decade. India has the potential to become a global manufacturing hub and provide numerous growth opportunities to industry participants. Packaging is now being viewed as critical for brands to effectively communicate to consumers that hygiene has been maintained, safety has been prioritized, and the product quality has not been compromised.
• Along with this, the coding and marking integration software market in India is set to grow at an even higher rate owing to the increasing need for traceability and proving the authenticity of a product in an era characterized by counterfeits. This is especially evident in the pharmaceutical industry, where counterfeiting is a major concern.
• Moreover, due to the large population and manufacturing demands, India is expected to emerge as a major coding and marking systems market in the coming years. As a result of this, companies offering such systems and related software are investing heavily in scaling up their operations, which is expected to result in the growth of the market in the future.

FMCG Sector To Procure Coding and Marking Systems and Software at Highest Rate

The FMCG category is expected to progress with a CAGR of more than 13% during 2021-2030. The food processing industry forms a major part of India’s economy owing to the variety of food products that the country harvests and further processes for domestic consumption. India is the largest producer of milk, bananas, mangoes, guavas, papayas, ginger, and okra; the second-largest producer of wheat, rice, fruits, vegetables, tea, sugarcanes, and cashew nuts; and the third-largest producer of cereals, coconuts, lettuce, chicory, nutmeg, mace, cardamoms, and pepper worldwide. Thus, the rising consumer income, growing demand for healthy, packaged food, and increasing urbanization are leading to a surging consumption of these products, thereby driving the demand for such systems in the FMCG industry.

Growing Manufacturing and Packaging Industries To Drive Market Growth

Manufacturing has emerged as one of the high-growth sectors in India. The Government of India has taken several initiatives to promote a healthy environment for it. Some of the notable initiatives and developments are:

• The government has approved a production-linked incentive (PLI) scheme for 16 plants, for the promotion of the domestic manufacturing of key starting materials (KSMs)/drug intermediates and active pharmaceutical ingredients (APIs). The establishment of these 16 plants would require a total investment of $47.01 million (INR 348.70 crore).
• As part of efforts to expand its smartphone assembly industry and improve its electronics supply chain, the government, in March 2021, announced funds worth $1 billion in cash for each semiconductor company that establishes manufacturing units in the country.
• The Indian Government, in the ‘Make in India’ campaign, has prioritized the food processing sector and is promoting investments in it. In addition, it has established 18 mega food parks and 134 cold chain projects to develop the food processing supply chain.
• In October 2021, the Agricultural and Processed Food Products Export Development Authority (APEDA) signed a memorandum of understanding (MoU) with the Indian Council of Agricultural Research - Central Citrus Research Institute (ICAR-CCRI), Nagpur, for boosting the export of citrus fruits and the value-added products developed from them.
• In October 2021, the Union Minister of Home Affairs and Minister of Cooperation launched the ‘Dairy Sahakar’ scheme in Anand, Gujarat. Under it, financial support will be extended by the National Cooperative Development Corporation (NCDC) to eligible cooperatives for activities such as bovine development, milk procurement, processing, quality assurance, value addition, branding, packaging, marketing, transportation, storage of milk and milk products, and export of dairy products, in tune with the overall objectives of doubling farmers’ income, under the wider Atmanirbhar Bharat initiative.
• In September 2020, the Ministry of Food Processing Industries (MOFPI) approved 28 new cold chain infrastructure projects to boost the export potential of the country’s agri-food sector and reduce food waste. These 28 projects fall under the ‘Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) scheme’, for which the central government is offering $28 million (INR 2.08 billion) in aid.

Market Players Are Introducing New Products to Gain Competitive Edge

The Indian coding and marking systems market is consolidated in nature, with the presence of major players such as Dover Corporation, Danaher Corporation, Domino Printing Sciences plc, and Control Print Limited. In recent years, they have pursued product launches in order to stay ahead of their competitors. For instance:

• In October 2021, Markem-Imaje Group, (a subsidiary of Dover Corporation) launched a new remote user interface (RUI) for the SmartDate X30 thermal transfer overprinting (TTO) system. The optional RUI is ideal for production lines that require a broader suite of functions, including password protection, front-end uniformity, and web user interface (web UI) or virtual network computing (VNC) integration with original equipment manufacturers’ (OEM) packaging machines.
• In November 2020, Domino Printing Sciences plc launched the K600G — a new blister foil and web digital printing solution — for product-level serialization in pharmaceutical applications. The K600G has been developed to provide manufacturers with an on-site solution for variable data printing, which includes coding at the item level.

Key Players in India Coding and Marking Systems Market Are:

• Domino Printing Sciences plc
• Danaher Corporation
• Dover Corporation
• Control Print Limited
• Hitachi Ltd.
• RYNAN Technologies Pte Ltd.
• Kishu Giken Kogyo Co. Ltd.

Market Size Breakdown by Segments

The Indian coding and marking systems market report offers comprehensive market segmentation analysis along with market estimation for the period 2015–2030.

Based on Offering

• Systems
• Software Solution

Based on Systems

• Continuous inkjet
• Thermal Transfer Overprinting (TTO)
• Thermal inkjet
• Drop on Demand (DoD)
• Print and apply labeling
• Laser coding and marking

Based on End User

• Automotive
  • Engine parts
  • Transmission and steering parts
  • Suspension and braking parts
  • Equipment
  • Electrical parts
• Fast-Moving Consumer Goods (FMCG)
  • Food
  • Personal care products
  • White goods
  • House care products
• Electrical and Electronics
• Extrusion
• Chemicals and agrochemicals
  • Chemicals
  • Fertilizers
  • Seeds
  • Small pouches/packaging chemicals
• Construction
  • Cement
  • Steel
  • Wood
  • Glass
• Pharmaceutical