All indicators are pointing toward continued AIDC market growth. IMARG Group forecasts a 12.6 percent CAGR for AIDC, increasing its market value from $49.8 billion to $105 billion in 2028. Its applicability across a broad spectrum of industries and use cases for technologies, including barcodes, RFID tags, magnetic stripes, and biometric ID, is leading to more implementations.
Solving Pain Points
AIDC technologies’ features are helping businesses and organizations address their top priorities, including:
- Automation – Many businesses are struggling to fill open positions. Companies are turning to AIDC technology to automate labor-intensive data collection tasks associated with shipping and receiving, inventory management, and compliance documentation. Companies that use these technologies have increased the accuracy of the data collected and decreased waste. Retail, manufacturing, education, warehousing, sports, and entertainment businesses are all prioritizing automation with AIDC.
- Security – AIDC technologies, particularly biometric and mobile authentication, and smart cards, are enhancing access control to restricted spaces, assets, computer networks, and intellectual property. AIDC offers a higher level of security that decreases fraud and unauthorized entry. It also automatically tracks who has accessed sensitive data or restricted areas for compliance or breach investigations.
- Loss Prevention – Companies worldwide are finding new ways to use RFID tags to track assets. Internet of Things (IoT) networks using AIDC can track and locate virtually anything, anywhere around the world. Retailers like Walmart are using the technology to prevent theft and track inventory, while Air Canada uses AIDC technology to track food carts worldwide, saving millions of dollars every year.
Who’s Using AIDC Technology?
The versatility of AIDC is benefiting businesses and enterprises in varied applications across industries in both traditional and innovative ways:
- BFSI – Banking, financial services, and insurance (BFSI) represent the largest revenue share of the AIDC market,primarily due to issuing smart cards that communicate cardholder information and help to prevent fraud. AIDC technology also helps to control entry and enhance security at BFSI facilities.
- Transportation and Logistics – AIDC enables T&L companies to maintain inventory visibility and improve supply chain management processes. AIDC offers traceability, enabling transporters to locate shipments in addition to providing retailers and consumers with information, such as manufacturing history, expiration dates, and other product-level data.
- Healthcare – The healthcare industry is using AIDC technologies to track medical devices, medications, and patient health records and to control access to sensitive areas. Additionally, optical character recognition (OCR) can help healthcare providers save time by converting printed or handwritten content to digital form.
- Manufacturing – AIDC allows manufacturers to track material throughout their operations, replacing manual processes and saving time. It also allows manufacturers to monitor inventory levels more accurately and provide data for smart purchasing and production planning decisions.
- Retail – Retailers are saving time by using AIDC to streamline receiving, stocking, ordering, and fulfillment. AIDC also continues to be a go-to technology for streamlined point of sale (POS) processes and loss prevention.
- Entertainment – Theme parks, music festivals, cruise lines, and other attractions use RFID wristbands to prevent fraud and improve guests’ experiences.
- Hospitality – Hotels can use the technology, including mobile access control systems, to provide guests with convenient digital room keys. AIDC technology also helps resorts, hotels, and restaurants streamline inventory control.
- Utilities – Utility companies have also discovered the benefits of AIDC technology, tagging transformers, cables, and tools with RFID tags to ensure trucks are stocked before leaving the warehouse to a job site, reducing wasted time and increasing efficiency.
A Positive Outlook for the AIDC Market
The drive for more automation, increased security, predictable cost control, and improved loss prevention eases pain points in all industries. This universal value will continue to drive market growth. Technological developments continue to give AIDC new capabilities and new possibilities for integration in even more applications. Companies can use proven technology to implement high-value solutions. Growth for 2024 and beyond is not just predictable. It’s inevitable.