AIDC mkt set to grow at 15.2% CAGR, driven by industry 4.0
AIDC technologies are being used in a variety of industries to improve operational efficiency, visibility, and traceability
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The cutting-edge Automatic Identification and Data Capture (AIDC) tech such as barcodes, POS (point of sale) powered QR codes and RFID tags provide real-time tracing and tracking, inventory and shipment management for retail, logistics and manufacturing sectors
Incepted back in the 1950s, Automatic Identification and Data Capture (AIDC) is now being employed to cater to a network of needs posed by multifarious broad-scale industries. With the rapid advent of digitization, a new era has set in the ‘Industry 4.0’ poised to bring upcoming technologies like IoT, Machine Learning (ML), AI, and 3D printing which have taken the centre stage. The AIDC segment has become the pillar of industrial growth by playing a pivotal role in enhancing the ‘track and trace’ segment in retail, logistics, manufacturing and supply chain management.
The AIDC industry, valued at $46.31 billion in 2021, is destined to witness a staggering growth rate of 15.2 per cent till 2029, touching nearly $143.65 billion highlighting its relevance and demand with the leverage of modern innovative automation. AIDC’s growth is due to its applications which were aimed at identifying, tracing and tracking records, and communicating vital data efficiently to deliver highly accurate results have proven to be a revolutionary game changer in the market by improving efficiency, visibility, traceability, and accuracy in supply chain management.
The surging demand for optimizing supply chain management in multiple industries is driving the demand for harnessing AIDC technologies, resulting in leading companies leveraging innovative automation to come up with advanced automation solutions to amalgamate output productivity and maximize workforce efficiency simultaneously improving accuracy rates. The cutting-edge AIDC tech such as barcodes, PoS (point of sale) powered QR codes and RFID tags provide real-time tracing and tracking, inventory and shipment management for retail, logistics and manufacturing sectors.
Talking to Bizz Buzz, JP Mishra, Country Manager-India, Newland AIDC, said, “The track and trace system incorporates various technologies including 2D barcodes, linear barcodes, and RFID for the control of distribution channel. RFID is synonymous with track-and-trace solutions and has a critical role to play in supply chains.”
AIDC is seen to play pivotal roles in the ‘track and trace’ segment including logistics, retail, manufacturing and supply chain management empowering organizations to make informed decisions, reduce costs, and deliver better customer experiences through optimized supply chain operations. The data gathered by track and trace system helps companies to foster efficient sales outlets, competent distribution channels, and effective production and repackaging processes, he added.
The growing need for supply chain management has augmented the adoption of barcodes, QR codes, and RFID tags for real-time monitoring driving the market growth for AIDC.
Discussing the industrial revolution 4.0 aided by AIDC, Sunil Veena, Chief Executive Officer, Quinta Systems, said, “The development of advanced technologies, such as AI and ML, to process, manage, store, and share information without human intervention is expected to fuel the automatic identification and data capture market in the coming years.”
In line with the technological advancements in automation tools, AIDC is increasingly being utilised for capturing accurate data and enhancing operational efficiency fuelling market growth. Acting as a key catalyst in creating a vigorous market landscape, the increasing demand for asset-tracking solutions raised by various enterprises is sure to disrupt the Indian market.
While observing the manufacturing sector’s success, traceability and trackability play a cornerstone role as it is just invaluable when it comes to troubleshooting supplier quality problems and averting larger challenges in the future. Additionally, it saves many manufacturers from the high, unpredictable expenses of a product by catching product quality problems early and mitigating them immediately.
In the retail segment, tracing and tracking aids in bolstering inventory management seamlessly with accurate forecasts enabling production planning to optimize manufacturing schedules efficiently. In the logistics channel, the trace and track segment blends perfectly and assists in facilitating the game-changing phenomenon of reverse logistics.
Over the years, AIDC technologies have evolved as an essential part of effective supply chain operations demonstrating limitless potential. Organisations that have not implemented these technologies are constantly falling behind and are not setting themselves up to avail future IoT possibilities. However, with hyper localization, AIDC is projected to open new avenues to bolster the global supply chain stimulating unprecedented market growth.
