Industrial Code Reader Market Size, Share, Growth, and Industry Analysis, By Type (Handheld and Stationary), By Application (Warehousing & Logistics and Manufacturing), Regional Insights and Forecast to 2031

Updated On: 29 April 2024

INDUSTRIAL CODE READER MARKET REPORT OVERVIEW

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The global industrial code reader market size was USD 499.8 million in 2020 and the market is projected to touch 757.8 million by 2027, exhibiting a CAGR of 6.3% during the forecast period.

An industrial code reader is a device used in manufacturing and industrial settings to decipher and interpret various types of codes, such as barcodes, QR codes, and alphanumeric codes. These readers utilize advanced imaging technology, including cameras and sensors, to capture the code's image accurately and then process it through specialized software algorithms. The primary function of an industrial code reader is to quickly and accurately decode the information contained within the code, which could represent product details, inventory information, or machine instructions. These readers are essential for automating processes, improving efficiency, and ensuring accurate data capture in industrial environments where precise identification and tracking of products or components are critical for operational success.

Industrial code readers come in various forms, including handheld devices, fixed-mount readers, and integrated systems within production lines or machinery. They are designed to withstand harsh industrial conditions, including dust, moisture, and temperature variations, ensuring reliable performance in challenging environments. Additionally, these readers often feature high-speed scanning capabilities, allowing for rapid identification and data capture even in high-throughput manufacturing environments. With their ability to seamlessly integrate with existing industrial systems and provide real-time data capture and analysis, industrial code readers play a crucial role in streamlining operations, improving traceability, and enhancing overall productivity in industrial settings.

COVID-19 IMPACT: Increased Demand for Contactless Solutions to Boost Market Growth Significantly

The global COVID-19 pandemic has been unprecedented and staggering, with theindustrial code reader market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

Industrial code reader manufacturers have responded to the pandemic by integrating health and safety features into their products. For instance, some readers now include antimicrobial coatings or materials to minimize the risk of surface transmission. Additionally, advancements in machine vision technology have led to the development of readers capable of detecting compliance with safety protocols, such as mask-wearing and social distancing, in industrial settings. These features have become increasingly important for ensuring workplace safety amid the ongoing pandemic.

The COVID-19 pandemic has accelerated the adoption of contactless technologies across industries to minimize the risk of virus transmission. Industrial code readers, particularly those equipped with advanced imaging capabilities, have seen increased demand as they enable contactless scanning and data capture, reducing the need for physical interaction with devices or surfaces. The market is anticipated to boost the industrial code reader market growth following the pandemic.

LATEST TRENDS

"Technological Advancements to Drive Market Growth"

Industrial code reader systems are increasingly incorporating AI and machine learning algorithms to enhance performance and functionality. AI-powered code readers can improve decoding accuracy, adapt to changing conditions, and provide predictive maintenance capabilities, thereby optimizing operational efficiency in industrial settings.Continuous advancements in imaging technology, such as higher resolution cameras, multi-spectral imaging, and improved sensor capabilities, are driving innovation in industrial code readers. These advancements enable faster and more accurate code reading, even in challenging environments with varying lighting conditions, angles, or surface materials.

The adoption of Industry 4.0 principles, including automation, connectivity, and data analytics, is fueling the demand for industrial code readers. These readers play a crucial role in smart manufacturing environments by enabling seamless integration with other IoT devices, robotics, and production systems, thereby facilitating real-time data capture and analysis for process optimization. These latest developments are anticipated to boost the industrial code reader marketshare.

INDUSTRIAL CODE READER MARKET SEGMENTATION

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By Type

Based on type the global market can be categorized into Handheld and Stationary.

• Handheld Industrial Code Reader: Handheld industrial code readers are portable devices designed for on-the-go scanning of barcodes, QR codes, and other types of codes in industrial environments. They typically feature lightweight and ergonomic designs for ease of use by operators. Handheld code readers often come with built-in displays for real-time feedback and are powered by rechargeable batteries for mobility. Handheld industrial code readers are commonly used in warehouses, distribution centers, manufacturing floors, and retail settings for tasks such as inventory management, order picking, and product identification.
• Stationary Industrial Code Reader: Stationary industrial code readers are fixed-mount devices installed at specific locations within industrial environments for continuous scanning and monitoring of codes on products, packages, or conveyor belts. They are designed for high-speed, automated scanning operations and are typically integrated into production lines or machinery. Stationary code readers often feature rugged construction to withstand harsh industrial conditions. Stationary industrial code readers are widely used in manufacturing plants, logistics hubs, and assembly lines for tasks such as quality control, sorting, and tracking of products as they move through the production process. They are also commonly used in automated packaging systems for labeling and serialization purposes.

By Application

Based on application the global market can be categorized into Warehousing & Logistics and Manufacturing.

• Warehousing & Logistics: Industrial code readers are used in warehousing and logistics for efficient inventory management. They can quickly scan barcodes or RFID tags on products, pallets, or containers, enabling accurate tracking and updating of inventory records in real-time. In distribution centers and warehouses, industrial code readers assist in order picking operations by scanning barcodes or pick lists to identify and verify the correct items for outbound shipments. This helps minimize errors and improve order accuracy. Industrial code readers are employed in shipping and receiving areas to scan shipping labels, packing slips, and delivery documents.
• Manufacturing: Industrial code readers are used in manufacturing for product identification and tracking throughout the production process. They scan barcodes, QR codes, or serial numbers on components, work-in-progress (WIP), and finished goods to ensure traceability and quality control. Industrial code readers assist in quality control and inspection tasks by scanning codes on products to verify specifications, perform dimensional checks, and detect defects or inconsistencies. This helps maintain product quality and compliance with standards. In automated manufacturing systems, industrial code readers guide machines and robots by scanning codes to provide instructions for assembly, positioning, and processing tasks.

DRIVING FACTORS

"Increasing Automation in Industries to Boost the Market"

The rising trend of automation across various industries, such as manufacturing, logistics, and healthcare, is a significant driver for the industrial code reader market. As industries strive for greater efficiency, accuracy, and productivity, the demand for automated solutions like industrial code readers for barcode and QR code scanning increases.The COVID-19 pandemic has accelerated the adoption of contactless technologies across industries to minimize the risk of virus transmission. Industrial code readers, with their contactless scanning capabilities, have witnessed increased demand as they enable safer and more hygienic operations in manufacturing and logistics environments.

"Advancements in Imaging Technology to Expand the Market"

Continuous advancements in imaging technology, including higher resolution cameras, faster processing speeds, and improved sensor capabilities, drive the development of more sophisticated industrial code readers. These technological advancements enhance the performance, accuracy, and reliability of code reading systems, driving market growth.The adoption of Industry 4.0 principles and the Internet of Things (IoT) is driving the integration of industrial code readers into smart manufacturing environments. Industrial code readers are essential components of connected systems, enabling real-time data capture, analysis, and decision-making for process optimization and predictive maintenance. These factors are anticipated to drive the industrial code reader marketshare.

RESTRAINING FACTOR

"Skills Gap and Training Requirements to Potentially Impede Market Growth"

Operating and maintaining industrial code reader systems require specialized skills and training. Companies may face challenges in finding qualified personnel with the necessary expertise to install, configure, and troubleshoot these systems effectively. The skills gap can hinder adoption rates and limit the widespread deployment of code reader solutions.Integrating industrial code reader systems into existing manufacturing or logistics processes can be complex and time-consuming. It often requires customization, configuration, and testing to ensure seamless interoperability with other equipment and software systems. The complexity of integration can deter some companies from investing in these solutions. The factors are anticipated to hinder the growth of the industrial code reader marketgrowth.

INDUSTRIAL CODE READER MARKET REGIONAL INSIGHTS

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"The market is primarily segmented into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa."

"North America to Dominate the Market owing to Emphasis on Automation and Strong Manufacturing Sector"

North America, particularly the United States, is known for its leadership in technological advancements and innovation. The region is home to many leading manufacturers and developers of industrial code reader systems, benefiting from a strong ecosystem of research institutions, technology companies, and skilled workforce driving innovation in the field.The COVID-19 pandemic has accelerated the adoption of contactless technologies in North America to minimize the risk of virus transmission. Industrial code readers, with their contactless scanning capabilities, have witnessed increased demand in the region as they enable safer and more hygienic operations in manufacturing and logistics environments.North America has a robust manufacturing sector across various industries, including automotive, aerospace, electronics, pharmaceuticals, and consumer goods. Industrial code readers are widely used in these industries for applications such as inventory management, quality control, and product traceability, driving the demand for code reader systems in the region.

KEY INDUSTRY PLAYERS

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead in the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolio.

List of Market Players Profiled

• Cognex [U.S.]

• Keyence [Japan]

• Datalogic [Italy]

• NewLand [China]

• Hikrobotics [China]

INDUSTRIAL DEVELOPMENT

March 2021: The DataMan 8700 Series Handheld Barcode Readers by Cognex Corporation are advanced industrial code readers designed for high-speed and high-precision barcode reading in manufacturing and logistics environments. These handheld readers are equipped with cutting-edge imaging technology and powerful decoding algorithms, enabling them to decode 1D and 2D barcodes with exceptional speed and accuracy, even in challenging conditions such as low contrast, damaged codes, or fast-moving production lines.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.