Tagging machines and tagging products such as Radio Frequency Identification (RFID) tags are used for identification and tracking of products and play a significant role in the packaging industry. Demand for tagging machines has increased substantially over the past three to four years, as RFIDs are used across various industries for identification and tracking. The market for tagging machines is at a nascent stage currently, but is expected to witness significant growth over forecast period, 2016–2024. Awareness regarding electronic tagging is growing globally owing to rapid growth of industries such as textiles, pharmaceuticals, FMCG, cosmetics, etc. RFID technology is used in tags, thereby enabling identification of the specifications of a tagged product using a reader device. Identification and tracking measures help to eradicate issues pertaining to counterfeiting and robbery of products such as apparel, electronic goods, expensive perfumes, consumables, DVDs, CDs etc. to name a few.
Global Tagging Machines – Market Dynamics:
Demand from the retail clothing market is significantly high owing to rapid growth of this sector globally, and this trend is expected to continue over the forecast period. In addition, increasing growth in the textile industry is further driving demand for tagging machines. Moreover, increasing per capita disposable income in developing countries is a key factor driving growth of the global tagging machines market. This is attributed to an increasing number of consumers purchasing premium products such as branded apparel and perfumes, and other products that retailers use RFID tags to track or identify in malls and stores etc. Rapid industrialization and stringent norms regarding secure and safe packaging are other factors fueling demand for tagging machines globally. Growth of the tagging machines market is moderately hampered by high installation cost and lack of awareness regarding this emerging technology.
The tagging machines market in Asia Pacific excluding Japan is expected to account for highest revenue growth as compared to markets in other regions. Markets in India and China are projected to remain dominant in terms of revenue due to relatively large retail industry and technological advancements in these developing economies. Furthermore, growth of the market in Asia Pacific is expected to be driven by increasing disposable income and spending power among consumers in countries in the region.
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North America is expected to be the second dominant region, accounting for two-thirds of the revenue contributed by the Asia Pacific excluding Japan market to the global market. The market in Europe is expected to witness above average growth, with Germany, France, and the U.K. ranking high in terms of demand for tagging machines. The market in the Middle East & Africa region is expected to witness a significant increase in revenue contribution from sales in GCC countries, South Africa, and Egypt.