According to Future Market Insights, the global market for smart labels amassed revenues worth $4.7 billion in 2016, and is likely to reach $22.6 billion market value by the end of 2026. During the forecast period, the global smart labels market size is anticipated to expand robustly at a CAGR of 17%.
Organized retail sector will continue to drive rampant growth in global smart labels sales, while warehousing businesses in the world are expected to actively adopt smart labelling for their benefits in tracking products. Growing sales of biologics and specialty drugs that require thermal-sensitive packaging are promoting the use of smart labels that are equipped with temperature-control functions. Smart labels will be integrated in drug monitoring systems across pharmaceutical manufacturers in the world, facilitating efficiency in transportation, anti-counterfeit measures, and damage control.
Key highlights of the research report exhibit RFID as the dominant labeling technology, however, Electronic Article Surveillance (EAS) and sensing labels are also expected to gain traction while independently registering a rise at more than 16% CAGR over the forecast period. By the end of 2026, global retail industry will be the largest end-user of smart labels by procuring global revenue share of more than 30%. On the other hand, healthcare, automotive and logistics will be considered as lucrative end-user industries for smart labels, collectively accounting for sales of more than 1.561 billion units by the end of 2026.
Flexographic and gravure printing technologies are predicted to dominate the global smart labels market in terms of revenues. Over the forecast period, more than $8 billion in revenue will be accounted by flexographic smart labels, while smart labels manufactured through gravure printing technology will amass an estimated $6.4 billion market value.
North America’s smart labels market is anticipated to procure over 40% of the global revenues, throughout the forecast period. Smart label revenues in Asia-Pacific excluding Japan (APEJ) region are projected to rise at the fastest CAGR at 18.2%, while Western Europe smart labels market is likely to reach an estimated $3.6 billion market value by the end of 2026.