The global blockchain based solutions for security labels market was valued at US$ 22,311.2 Million in 2019 and is expected to surpass US$ 36,373.8 Million by 2027, registering a CAGR of 6.3% during the forecast period (2020-2027). According to the Global Blockchain based Solutions for Security Labels Market Report, by identification method (Bar code, Radio Frequency Identification and Holographic), by end-use industry (FMCG, Automotive, Retail, Consumer Electronics and Healthcare), and by region (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa), published by Coherent Market Insights.
The growing counterfeiting activities across the globe are a major factor affecting the market growth. For instance, according to a report published by the Organization for Economic Co-operation and Development, in 2019, 3.3% of the goods traded globally are counterfeit and pirated products. Europe alone imports US$ 130 billion of counterfeit and pirated products annually, contributing 6.8% of its total imports. Considering the large volume of pirated products traded in the market, companies are adopting security labels to prevent loss of revenue.
Furthermore, presence of online channel for the sales of luxury items is facilitating counterfeiting of the products. For instance, according to Coherent Market Insights’ analysis, in 2017, counterfeited items worth US$ 323 billion were sold online globally, owing to which big brands are now using blockchain and IoT technology to govern the sales of products and protect the brands. These are the major reasons facilitating the growth of the block chain based solutions for security labels market.
Augmented reality label technology can be considered as the future of security labels, as many security label manufacturers are focused on developing augmented reality security labels to prevent counterfeiting. For instance, Digital Mark, a U.S.-based company, is developing AR label technology to combat fraudulence.
Global Blockchain Based Solutions for Security Labels Market - Impact of Coronavirus (Covid-19) Pandemic
The COVID-19 Pandemic will not hamper the market growth in the long run. Many countries around the globe such as India, Spain and Italy have imposed nationwide lockdown. For Instance, India have imposed lockdown from 25 March to 1 June till the further notice. In this lockdown retail shops and Cinema halls in the malls will remain closed. The security labels are widely used in the retail shops and Cinema halls. Moreover in India, the manufacturing facilities have to be operated in limited manpower. Owing to mentioned factors the COVID-19 is expected to restrain the growth of the market during the year 2020.
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Key Trends and Analysis of the Global Blockchain based Solutions for Security Labels Market:
- North America held dominant position in the global blockchain based solutions for security labels market in 2019 and it is expected to retain its dominance throughout the forecast period owing to strategic acquisitions by security labels companies in the region. For instance, in February 2020, CCL Industries, one of the largest producers of security labels in North America, acquired Rheinfelden Americas, LLC., a U.-based manufacturer of aluminum slug. The aluminum slugs are required in the manufacturing of security labels. Owing to this acquisition, CCL Industries is expected to get aluminum slug at affordable prices.
- Asia Pacific is expected to witness significant growth during the forecast period owing to the increasing demand for security labels due to high presence of counterfeit products in countries such as China. According to Coherent Market Insights’ analysis, 20% of China’s total production in FMCG industry was counterfeited in 2019.
- Among identification method, the radio frequency identification segment is expected to exhibit highest growth during the forecast period owing to multiple advantages offered by RFID tags such as scanning of multiple items at once.
- Major players operating in the global blockchain based solutions for security labels market are 3M Company, Avery Dennison Corporation, CCL Industries Inc., Honeywell International Inc., UPM Raflatac, Inc., OpSec Security, Inc., Tesa SE, Brady Corporation, Covectra, Inc., and Mega Fortris Sdn. Bhd.
