Image Based Barcode Reader Market Outlook & Key Findings
- The image based barcode reader market is expected to grow at a CAGR of 7% through 2030
- Capturing ~28% of the value share, North America remained market kingpin in 2019
- Despite a pandemic induced slowdown, 80% drop in volume share in countries such as China the market is expected to rebound through 2021
- ICT spending tantamount to US$ 689Bn in 2020 will further boost market prospects for image based barcode readers
Image Based Barcode Reader Market Analysis – Overcoming the COVID-19 Crisis
By the end of 2020, approximately 90% of the global population will have access to high speed internet. Image based bar code readers have undeniably gained greater prominence this year as the COVID-19 pandemic continues its relentless pursuit.
Countries such as China are showing resilience by using QR codes as a way to filter visitors at airports while Singapore is enabling better contact tracing by ensuring contactless entry of tourists.
With the high penetration of extremely sophisticated smart phones, QR codes and bar codes are being used as the next step for app based retail solutions. Presently, businesses are voraciously absorbing the might of image based barcodes as it serves as a lead magnet through aggressive marketing campaigns.
Demand from Online and Offline based Shopping Makes Retail the Largest Segment
Retailers are coming out with resourceful strategies to use barcode readers for increased revenue and productivity. Conventional hand-held scanners were being used till now in grocery stores on back of their affordability, simplicity and low cost.
With technological advancements, smart phone apps are now being used as image based barcode readers and scanners. Most smart phones come with internet connectivity and high resolution cameras, thus making them fairly ubiquitous.
Not only this, but smart phones are also helping shoppers to scan product information such as descriptions, price and place. Self-adding of products into virtual shopping carts is helping eliminate long queues at store physical check-outs.
Retailers are also using this strategy to secure consumer related data which helps them in analyzing for more targeted marketing campaigns through the use of email marketing and newsletters. Desktop environments are also being used for warehouse management using desktop based webcams for barcode lookups
Automated robots having embedded devices that capture images, check product inventories, bad labeling and price discrepancies are becoming common place in very large retail spaces. The retail and commercial segment captured a value share of 33% in 2020 in the overall market and will continue to remain the largest segment through 2030.
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Image Based Barcode Reader Market Trends – App Tech Paves Way for Seamless Adoption
The prevailing COVID-19 pandemic has raised concerns amidst the general public for coming into contact with surfaces that are potentially infected by the virus.
This has led to the institution of bar code readers through mobile phone apps that have contactless solutions for users. These new apps are now being used for contactless deliveries and payments.
2020 has been a good year for the image based barcode reading market with QR codes being used to make payments, avail concessions on products and gather information.
The latest smart phones this year are coming with sophisticated barcode readers that do not need a third party app. These include versions such as Android 9 and Apple 13.
Further, the market is seeing an astounding number of barcode scanner apps that are compatible with all Apple and Android phones. Scanning a bar code or a 2D image based QR code has never been easier. Here is our take on the latest apps that have been trending in the market:
- Kaspersky, a global cybersecurity company has launched its QR code reader and scanner which is compatible for both Android and Apple phones. The stringent security features of the app ensure that the barcode reader within the app does not lead to an unsecure link. It also maintains a history of barcode captures allowing customers’ easy access to old files.
- Scan’s QR code reader is an app which has a point to shoot feature that captures the barcode as soon as the phone is pointed towards it. It has been touted as one of the most popular with more than 50 million downloads
- Bar-Code reader available on both Apple Store and Google Playstore is fast becoming a front running contender as it permits copy pasting on the web and export to Google drive
- Multiple QR code formats are being supported by the QuickMark barcode scanner. These formats include Data Matrix, QR code and Code39 to name a few
The penetration of legacy smart phones in the market are allowing consumers to access varied content through barcode which is giving a boost to the overall market.
Image Based Barcode Reader Regional Analysis – East Asia Shows Substantial Growth, North America Slated to be Largest Market
Image based barcode readers are ubiquitous in Asia Pacific countries. QR code scanning demand has deeply penetrated Chinese markets and has also paved the way for new entrants. Within Asia Pacific, South Korea has reported a staggering increase in sales of image based barcode readers.
With retail being the largest segment in the overall segment, East Asian countries such as China and Japan are showing high growth within the retail and commerce space. The region is also seeing a high uptake of 2D image/barcode scanning. China will remain on top in terms of market value while the South Asian region is slated to witness an expansion of 2.4x during the forecast period.
The market is already well-established in countries such as US where they are being extensively used in retail for a seamless shopping experience. North America is also witness high influx of 2D image/code scanning which holds a leading share in the overall market. Well-timed digital wallet partnerships makes both Europe and North America high growth regions. Regionally North America is expected to be the largest market, anticipated to hold a value share of 28% by the end of 2030.
Image Based Barcode Reader Market Manufacturers are utilizing QR Barcodes as preferred medium of labels
QR barcode reading is slowly and steadily carving a niche for itself in all categories of businesses. Big and small brands are capitalizing on this trend extensively giving an edge to consumer experiences.
- Mobile engagement with QR code reading went up one level with Nissan’s initiative to use barcode stickers on its car windows for its product line-up. This allowed customers to compile vehicle information such as its key features, vehicle accessories through mobile phones. Their feedback was logged and analyzed for more prudent marketing strategies
- Cosmetic heavyweight L’Oreal partnered with Glamour to use QR codes and bar codes inside cabs and taxis for better customer engagement. Through barcode campaigning they were able to capture customers for their latest cosmetic products line by linking these barcodes to interesting product videos. Customers watched these through their phones and L’Oreal was able to increase it app downloads by a whopping 80%
- UK based retail behemoth Tesco, through image based barcode reading managed to increase its customer footfall in South Korea by creating virtual stores for working executives with busy schedules and long working hours. This led to the build-up of virtual stores for the company in UK as well
- Starbucks and Paypal have expanded their profit pools extensively with the trend of cashless payments through barcodes. This is done by customers through their mobile phone barcode readers
- Sports giant Nike took barcode campaigning to the next level when they introduced QR coded shoes which were specially customized for their customers. This was made possible by Nike’s collaboration with WeChat, a popular Chinese messaging app. By scanning Nike’s QR code, customers could choose delightful colour pallettes which would then be used in the customized shoes that they bought from Nike’s
- IKEA the popular furniture brand, has made it case for faster check-outs through mobile phone based bar code check-outs thus obviating the challenge of lugging heavy furniture
With astute marketing campaigns, QR codes and bar code reading have proven to be a cutting-edge and game-changing technique that has led to successful amalgamation of both physical and digital worlds and have helped brands garner better virtual visibility and higher ROIs
Image Based Barcode Readers to Herald an Era of Experiential Shopping
Image based barcode and QR code reading will continue to trend over the next 4-5 years. This can be attributed to the following reasons:
- Over its conventional first-generation barcodes, the new QR codes will have extremely reduced error margins ranging between 7%-30%. Further most codes will have the ability to restore or repair dirty data
- Holding capacities will see an uptick to at least 2000 characters of data that is encoded. This data can range from supply chain management figures, inventory stocks and mobile marketing sales figures
- Readability will become more precise and cutting edge with codes being read from a distance of more than 3 feet
- Machine efficiency will increase thus reducing costs incurred over maintenance
With an estimated 11 million households in US scanning bar codes and QR codes from a meagre 9 million scans in 2018, the future for image based bar code reading and QR code reading looks effervescent.
- 1D Image/ Code Scanning
- 2D Image/ Code Scanning
- Portable/Handheld Scanners
- Rugged Scanners
- PDA Scanners
- Smart Phones
- Automatic Readers
- Cordless Scanners
- Fixed-position Scanners
- Stationary Scanners
- Presentation Scanners
- Retail and Commercial
- General Manufacturing
- Health Care
- Logistics & Warehouse
- Commercial Aviation
- S mounted lens
- C mounted lens
- Autofocus / Liquid based lens
- PoE (Power over Ethernet)
- North America
- Latin America
- East Asia
- South Asia & Pacific
- Middle East & Africa