2025 Print-and-Apply Systems Report: Driving Accurate and Consistent Labeling in High-Throughput Environments

Inside this Report

This report puts together global market sizing and forecasting for automated print-and-apply systems and the print engines that drive them, and presents VDC's perspective on the reasons why organizations are evaluating and purchasing these solutions. Automated P&A solutions integrate label printing and application into a single process, streamlining operations in manufacturing, packaging, warehousing, and distribution environments. These systems are increasingly adopted as companies seek to improve efficiency, accuracy, and compliance in their labeling workflows, driven by labor shortages, rising automation, and evolving regulatory requirements. The growing need for automation to manage increasing production and packaging volumes fuels demand. By implementing automated systems alongside well-defined error-proofing processes, manufacturers can enhance operational efficiency, accuracy, and overall product quality.

What Questions are Addressed?

• What is the current size and growth rate of the global print-and-apply and print engine markets?
• Who are the leading vendors and how varied are their portfolios?
• What are the main application areas and industries driving demand for print-and-apply solutions
• What are the primary labeling application types and how do they vary by industry?
• Are there any regional variations in adoption of and investments in these automated solutions?
• How are trends like linerless labeling and RFID impacting product development and adoption?
• What are the key challenges and opportunities in automating labeling and traceability processes?

Who Should Read this Report?

VDC has designed this research program for senior decision-makers at print-and-apply system and print engine vendor organizations as well as their partners and customers, including those individuals with the following roles:

• CEO or other C-level executives
• Corporate development and M&A teams
• Marketing executives
• Business development and sales leaders
• Product development and product strategy leaders
• Channel management and channel strategy leaders

Organizations Listed in this Report:

Executive Summary

Print-and-apply (P&A) systems are automated solutions that integrate label printing and application into a single process, streamlining operations in manufacturing, packaging, warehousing, and distribution environments. These systems are increasingly adopted as companies seek to improve efficiency, accuracy, and compliance in their labeling workflows, driven by labor shortages, rising automation, and evolving regulatory requirements. VDC research on this market includes solutions deployed to automate thermal barcode label printing and application processes on various packaging types. Market participants include vendors like Domino, Markem-Imaje, NOVEXX (part of Possehl Group), and Videojet who design systems around their own proprietary print engines or those like HERMA, ProMach (ID Technology, Panther, EPI), and Weber Packaging Solutions who source OEM print engine components from industry veterans such as SATO, Toshiba TEC, TSC/Printronix, and Zebra Technologies.

VDC's research suggests that leading drivers for P&A system investments are the need for automation due to labor shortages, the demand for traceability and compliance (especially in food & beverage and e-commerce sectors), and the push for operational efficiency. Vendors have developed advanced P&A solutions that offer high-speed, reliable label application, also replacing manual or semi-automated processes that relied on desktop or industrial printers. Adoption rates are particularly strong in North America and Europe where labor costs are higher and regulatory requirements are more stringent. E-commerce growth and the need for accurate, real-time shipping labels have further accelerated investments in these systems, especially in large-scale distribution centers and automated warehouses.

The global P&A solutions market grew by 3.6%, rising from $441M in 2023 to $458M in 2024 driven by a combination of industry, macroeconomic, and competitive factors. Growth in key end markets like F&B and logistics led to increased capital expenditure on automation, positively impacting new system purchases such as P&A. Logistics and automation integrators increasingly bundle P&A with broader conveyor or warehousing systems; P&A then becomes a commodity component, forcing specialized vendors to accept lower margins to stay in the project. Despite ongoing geopolitical tensions, the outlook for 2025 is largely positive - VDC predicts a 6.4% increase in revenues to $487M in 2025, and an overall 5-year CAGR of 7.2% through 2029. This will be driven by a rebound in capital spending as delayed projects are released, growing need for high-speed variable-data labeling, continued growth in e-commerce volumes, and increased integration with automation solutions.

Vendors can expect growth in all three regional markets through the forecast period - VDC forecasts a 5-year CAGR of 7.6% in the Americas, 7.1% in EMEA, and 6.5% in Asia-Pacific. U.S. F&B and pharmaceuticals industries are ramping up compliance-driven investments. The FDA's DSCSA enforcement for serialization and traceability, and USDA/FSMA labeling standards push manufacturers to strengthen variable-data labeling. E-commerce and retail logistics (Amazon, Walmart, Target, UPS, FedEx) continue investing heavily in warehouse and fulfillment automation, where P&A is a staple for carton and pallet labeling. EU regulatory momentum is a major growth catalyst; consideration for linerless labels to reduce waste is stronger in Europe than other regions, pushing upgrades to compatible P&A systems. The EU Green Deal legislation titled Packaging and Packaging Waste Regulation (PPWR) is a major driver influencing the shift toward linerless labels. Regulatory tightening in food safety and pharmaceuticals, coupled with the dominance of e-commerce giants, is fueling investment in automated labeling in the China. Across Asia, local OEMs are gaining share in entry-level systems, but multinational vendors benefit from high-end projects requiring integration with name-brand robotics and warehouse automation.

The competitive landscape for print-and-apply labeling systems is characterized by 2 types of market participants - end-to-end solution vendors who build and supply fully integrated solutions featuring proprietary print engines, and those that source OEM thermal print engine components, which are then integrated into their P&A systems. End-to-end solution vendors include Markem-Imaje (Dover Corporation), Possehl Group (Logopak and NOVEXX), and Videojet (Veralto). These vendors exercise complete control over product design, innovation, and solution integration. Others like ALTech, HERMA, Label-Aire, ProMach, and Weber Packaging design and market P&A systems tailored to specific industry needs, leveraging OEM engines by vendors like SATO, Toshiba TEC, TSC, and Zebra Technologies. This business model allows these vendors to focus on applicator mechanics (tamp, blow, corner-wrap), controls, and packaging line integration, while relying on the OEM for printhead technology and firmware.

HERMA, Possehl Group, ProMach, Weber Packaging Solutions, and Videojet round out the top 5 vendors in this space, collectively accounting for 56.5% of market share. This list represents a mix of vendors leveraging proprietary and OEM print engines with varying competitive differentiators - such as cost competitiveness, customization, flexibility, innovation, and reliability. VDC expects participants to increasingly compete across compliance and sustainability trends. Vendors offering linerless-capable P&A, RFID encoding, and GS1-compliant 2D barcoding differentiate themselves, while OEM print engine vendors increasingly push firmware upgrades to support these emerging requirements. Software is also becoming a decisive differentiator especially as labeling shifts from static information to dynamic, variable, and compliance-driven requirements. VDC's research indicates that customers now value how well a P&A solution integrates with enterprise systems, ensuring data integrity and supporting future standards like 2D barcodes or RFID.

Following a strong growth year in 2023, the global print engine market experienced cyclical softness in 2024, generated nearly $44M and declined 20% year-over-year. Weaker investments from the warehousing and distribution sector hindered performance, as new warehouse construction stalled. A 26% decline in EMEA and 23.3% decrease in the Americas weighed on global shipments, while a 1.2% contraction in APAC extended declines. Despite performance headwinds, the Americas (39%) and EMEA (367%) remain the most mature markets for print engines, where high labor costs and ongoing labor shortages have accelerated print engine adoption. By contrast, APAC and LATAM remain underpenetrated due to stronger price sensitivity and lower labor costs.

Zebra Technologies maintained global leadership in 2024, capturing nearly 54% market share by revenue, down just over 11% from 2023. With a strong growth year in 2023 that saw its shipment rise just over 23% in 2023 behind the introduction of its ZE511 print engine series, a 34% contraction in 2024 weighed significantly on market performance. SATO also held a leading position with 22.1% global share, supported by the success of its S84NX series, which bolstered brand visibility and increased its market share by 5% for the year. The rest of the market remains fragmented, with NOVEXX, Toshiba TEC, and TSC collectively accounting for about 19%.

VDC expects print engine performance to recover in 2025 as enterprises deepen investment in labeling automation. Rising e-commerce fulfillment volumes are increasing SKU handling requirements, while stricter traceability standards in packaging and manufacturing drive further adoption. VDC projects print engine sales to grow just under 11% in 2025, reaching $61M by 2029 at a CAGR of nearly 7%, with unit shipments rising to 31K and the average factory selling price declining to $1982 per unit.

Key Findings:

• Compliance and sustainability making P&A essential to packaging automation. Facility modernization, traceability mandates, and packaging sustainability targets will position P&A as a core automation investment across all regional markets. In the Americas, growth is fueled by compliance (FDA DSCSA, FSMA) and e-commerce logistics, with high-speed fulfillment centers standardizing P&A for case and pallet labeling. EMEA is driven by EU sustainability laws and the upcoming Digital Product Passport, accelerating demand for linerless- and 2D-capable systems; Eastern Europe adds packaging growth. APAC adoption reflects rapid e-commerce expansion, food safety regulations in China and India, and smart packaging in Japan/Korea integrating RFID and 2D. Regulatory frameworks are less mature and unevenly enforced across Asian economies, resulting in significantly lower revenues as compared to the Americas and EMEA.
• 2D barcode mandates drive P&A upgrades for traceability and smarter packaging. The shift toward 2D barcodes is driven by regulatory requirements, traceability needs, and the demand for advanced analytics is accelerating across industries such as F&B, pharmaceuticals, and logistics. New FDA regulations and large enterprise mandates are making 2D barcodes mandatory for product tracking and compliance. This trend is prompting end users to upgrade or replace legacy systems with solutions capable of handling 2D codes, optimizing real estate on packaging, and enabling more resilient, scannable labels. GS1's Sunrise 2027 initiative and the EU's Digital Product Passport (DPP) directive will accelerate 2D adoption, providing comprehensive information about a product and its entire value chain, and enabling enhanced checks for authenticity and brand protection.
• Intense competition pressures vendors to innovate with linerless, RFID, and service-driven differentiation. The market remains highly fragmented, with many vendors offering similar solutions and new entrants increasing competition. This fragmentation, combined with price competition, puts downward pressure on both prices and margins. As a result, vendors are compelled to innovate - such as by offering leasing models, enhanced serviceability, and new features like electric tamp applicators (like Diagraph, EvoLabel, and Universal Labeling Systems) - to differentiate themselves and maintain profitability in a crowded field. Innovation around offering linerless labeling capabilities and RFID print automation will also drive increased consideration of these solutions.
• Seamless enterprise software integration critical for P&A automation. Successful P&A deployments increasingly depend on seamless integration with enterprise application systems like ERP, MES, and WMS, in addition to compatibility with industry-standard printer languages like ZPL. Customers demand real-time label generation and data-driven workflows, making software integration a key differentiator. Vendors that offer robust integration capabilities and support for open standards are better positioned to capture market share, as end users prioritize solutions that fit into their broader automation and digital transformation strategies.
• As sustainable packaging mandates continue to evolve, linerless adoption will continue to accelerate through the forecast period. With stronger enforcement of the EU's Packaging and Packaging Waste Regulation (PPWR), vendors continue to align their solution portfolio to support sustainable labeling. Led by SATO's linerless enabled S84/66NX series and Toshiba TEC's DL104 dual- sided printer coupled with cab's HERMES QI/QL solutions, linerless print engine offerings continue to gain traction. While linerless accounts for a smaller portion of shipments at 3.7% of units in 2024, VDC forecasts linerless-enabled engines to reach $2.5M by 2029 at 7.8% CAGR.
• Increased RFID consideration across verticals will continue to drive additional project opportunities. Logistics leaders are driving adoption - UPS eliminated 20M manual scans per day via RFID-enabled facilities and delivery fleet upgrades; FedEx uses RFID for sensitive good management. Vendors responding with RFID-ready engines include Zebra ZE511 RFID, SATO S84NX and TSC's PX- 1000/2000 series, which reflect the growing market opportunity.
• Direct thermal labeling continues to gain momentum, especially for last mile delivery workflows. As ecommerce shipping requirements continue to evolve and SKU handling volumes increase, direct thermal printing has gained momentum for these short-term use cases in shipping and receiving and case and pallet requirements. For instance, SATO aims to capitalize on increasing demand with direct thermal only versions of its S84NX print engines.