Insights of Industrial Labels Market in Global Industry Development and Forecast to 2025

Industrial Labels are used for identification, advertising, and operating instruction purposes. They are engineered to survive the conditions of the equipment they are used on. They are used in transportation, automotive, manufacture of consumer goods, and construction industries. Industrial Labels can be designed to be moisture resistant, dust resistant, and high temperature and pressure resistant with anti-peel properties.

The primary use of label is to identify equipment and provide visual or textual information regarding use or risks. They also help keep track of manufactured products across the supply chain. The major drivers are security and tracking of equipment, which ensures efficient transit of goods. The major challenge is the large capital investment in setting up a labelling system.

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Brand label displays the brand and/or company, which manufactured the product. Grade label indicates quality of product (e.g. A, B, C). Descriptive label provides information regarding use of product and informative label indicates any additional information (i.e. date of manufacture & expiry, intermediary).

Security labels are the largest segment and are used to indicate any tampering of product. Also, based on material, plastic is the most used segment across all end user industries. Among identification techniques, Radio frequency identification (RFID) tags allow real-time location tracking across the supply chain. The barcode system is being replaced by RFID.

Transportation and automotive are the largest end user industries. Online shopping and mass movement of goods through various locations has boosted the industry.

Industrial Labels Market Outlook

Asia Pacific is the fastest growing market. Rise in transportation and automotive sectors has driven the market growth. Increased consumption in India and China due to rising populations has led to increasing demand for goods, which in turn has boosted the industrial labels market. The advent of online shopping has resulted into vast increase in both cross border and domestic trade. India is slated to have 175 million online shoppers by 2020, which is a result of price wars between e-commerce giants Flipkart, Amazon, and others.

North America and Europe posted strong sales in automobile sector which resulted in burgeoning growth in the industrial labels market. An estimated 17.55 million vehicles were sold in the US in 2016, with pickups and SUV’s the favored vehicles, due to low gasoline prices. This trend is expected to reverse as governments impose tough emission legislation. Three major automakers Ford, G.M, and Chrysler are the largest consumers of industrial labels.

Latin American industrial label market is projected to grow due to flourishing transportation and automobile industries. Increased consumption and shift to personal transportation are a result of higher disposable income. Brazil, Argentina, and Mexico are major markets in the forecast period.

Middle East and Africa smallest markets for transportation and automobile. Many African countries are largely un-motorized. GCC is showing burgeoning growth in luxury automobile and e-commerce segment which has increased trade with Asia Pacific region.

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The launching of Middle East’s largest e-commerce website “noon.com” in January, 2017 has boosted the industrial labels market in the region. The site has an inventory of 20 million products and is partly funded by Saudi Arabia’s Public Investment Fund and other private GCC investors.

Key players operating industrial labels market include HP Inc., Cannon Inc., Xerox Corporation, Cenveo, Inc., CL Industries, Inc., H.B. Fuller Co., Cenveo, Inc., Dunmore Corporation, 3M Company, Brady Corporation, Avery Dennison Corporation, DuPont, and Henkel Ag & Company.

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