Industry 4.0 has announced its arrival in the global coding and marking market. As data exchange and automation are the key trends witnessed in industry 4.0, vendors gradually realize the need to integrate, automate, and organize their systems, machines, and processes during production stages. Therefore, vendors that can meet the current transformation in manufacturing under industry 4.0 and deliver the latest coding and marking integrated solutions are expected to emerge as market leaders. The advent of modern techniques and a variety of coding and marking printers is resulting in advanced steps toward battling counterfeiting.
Similarly, the Industrial Internet of Things (IIOT) is gaining popularity in the global coding and marking market. It involves the integration of coding solutions with real-time coding machine in the production plant, thereby enabling the smooth flow of data exchange. Further, with the automation of production lines, malfunctioning is likely to decline.
Another significant enhancement in the global coding and marking market is the development of laser technology. This technology has witnessed a high demand, given its exceptional properties and feasibility in a wide range of end-user industry applications. For instance, laser solutions are becoming popular in end-user industries such as cosmetics, personal care, food & beverages, and automotive. A key reason behind this rise in popularity is the ability of laser technology to remain permanent and visible than other solutions.
Hence, the market is shifting toward automation with the increasing demand for coding and marking products from varied industries such as chemicals, food & beverages, healthcare, electrical & electronics, and automotive. Also, strict regulations related to food, drugs, and industrial products are expected to seek innovative solutions in the future. Hence, regulations will drive the market for the vendors during the forecast period.
CODING AND MARKING MARKET SEGMENTATION
This market research report includes detailed market
- Product mix
- End-user industries
CODING AND MARKING MARKET TECHNOLOGY
Based on technology, the global coding and marking market is categorized into CIJ, laser, VIJ, PIJ, TTO, TIJ, and PALM packaging coding. In 2018, the CIJ segment captured nearly half of the market share. CIJ printing technology is exceptionally versatile and enables printing on virtually any surface. Features such as user-friendly installation procedure, high-speed printing, and quick-dry nature are contributing to increased growth of the segment. Domino Printing Sciences is a market leader in the field of CIJ technology.
The laser and TIJ technology segments are expected to gain market share during the forecast period. Lasers systems are free from consumables such as ink; hence, they have low maintenance. Code permanence and clear codes are the significant advantages offered by laser technology.
Also, the Thermal Transfer Overprinting(TTO) segment is likely to witness steady growth. This technology is well established for coding on flexible packaging films and labels. It has become an affordable mechanism and is gaining recognition.
CODING AND MARKING MARKET END-USER
The food and beverage sector is the largest end-user of coding and marking market. TTO, TIJ, CIJ, technology play a vital role within the food & beverage industry worldwide. Domino Printing Sciences has recently launched a special formulated ink for printing on foil via their thermal inkjet printer. This has a significant potential to cater to the demand of creating sharp and clear contrast codes on foil wraps for food packaging.
With the sector witnessing holistic growth across the globe, the demand for appropriate coding and marking solutions becomes imminent. The emergence of new potential markets across geographies and the multiplication of stock keeping units have further propelled the growth of the sector. The laser is becoming the most widely used technologies in the F&B industry. A continuous inkjet printer has the ability to store up to 1,000 SKUs along with pre-program custom line settings. The printer is a premier choices among food manufacturers.
The healthcare industry has remained a key end-user for the coding and marking solutions due to the high applicability for several devices and drugs. Also, healthcare spending worldwide is expected to grow at an annual rate of more than 5% during the period 2018–2022. Developed economies are further set to experience an increase in per-person spending on healthcare.
Further, stringent government regulations and norms mandating the use of drug-specific information on pharmacy products worldwide are driving the growth of coding and marking market in the healthcare sector. For instance, according to the Unique Device Identification rule by the US Food and Drug Administration (FDA), medical devices are supposed to be marked with a Unique Device Identifier (UDI).
CODING AND MARKING MARKET GEOGRAPHY
The global coding and marking market is diversified across North America, APAC, Europe, Latin America, and MEA. In 2018, the APAC region dominated the market due to high demand for coding and marking equipment by several end-users. The development of innovative, flexible packaging designs in developing countries such as Japan, South Korea, China, Indonesia, and India is driving the growth of the APAC region in the market.
Legislation and industry mandates have driven the coding and marking market in North America and Western Europe. The Harmonized Commodity Description and Coding System has increased the global demand for coding equipment. The coding and marking market in MEA is witnessing high growth, particularly in African countries, where the demand for consumer durables is increasing rapidly. Africa is one of the emerging and fastest growing economies globally. Western Africa has been increasing than southern countries of Africa. Also, the growth of the industry is governed by the expansion of the entire packaging industry.
KEY VENDOR ANALYSIS
The competitive scenario in the coding and marking market is intensifying. Market leaders are providing high-quality products with additional features such as RFID system, QR codes required to enhance the performance of the product, while local vendors are providing less expensive product equipped with basic features. Further, the market is witnessing consolidation as small entities are getting acquired or merged with major players. Global and local vendors are competing, especially in terms of features such as quality, technology, and pricing. Danaher, Dover, Brother Industries, Hitachi Industrial Equipment Systems, ITW are the leading vendors in the market.
Market Segmentation by Technology
- Primary Package Coding
- Secondary and Tertiary Packaging Coding
By Product Mix
- Spare Parts and Aftermarket
By End-user Industries
- Chemicals & Construction
- Food & Beverage
- Electrical & Electronics
- Automotive and aerospace
- Central & Eastern Europe
- Latin America
- North America
- Western Europe
- Middle East & Africa
- Saudi Arabia
- South Africa