Inside this Report
This report continues VDC's analysis of the key strategic issues, trends and drivers for handheld barcode scanners, including 2D imagers, linear imagers (CCD scanners) and laser scanners. The research presents multiple market analyses: 2024 through 2029 by geographies, imaging/scanning technologies, industries, channels and more, with detailed five-year forecasts. Our analyst research and commentary address global and regional market forces, technology trends, growth opportunities and in-depth intelligence on leading vendors of handheld barcode scanners.
What Questions are Addressed?
- After turbulent years for the scanner market, what do we expect going forward, and why?
- What are the product portfolios and strategies of the leading vendors?
- How will handheld scanner vendors respond to data capture requirements beyond line-of-sight barcode scanning and leverage advances in AI and image processing to differentiate their solutions?
- How do Incumbent vendors respond to competition from low-cost/entry class solutions?
- How will traditional vertical markets and geographical regions perform in the near- and long-term for handheld barcode offerings?
Who Should Read this Report?
This annual research has been carefully designed for senior managers and executives at barcode technology and solution provider companies, especially individuals in the following roles:
- CEOs and supporting C-level management
- Corporate development and M&A professionals
- Product Management and Marketing professionals
- Strategic Directors and Marketing Communications managers
- Business development and sales
- Channel developers and managers
- Senior management of leading retailers
Organizations Listed in this Report:
- CipherLab
- Code Corporation
- Cognex
- Datalogic
- Denso Wave
|
- Honeywell
- Logic Controls
- Newland AIDC
- Omron
- Opticon
|
- Socket Mobile
- Unitech
- Zebex
- Zebra Technologies
|
Executive Summary
Global 2024 handheld barcode scanner revenues were the lowest in the last 13 years. The recent market contraction points primarily to a post-COVID market correction as the channel worked through excess inventory and over-capacity was adjusted. While the use case for handheld scanners for established applications remains - be it POS scanning, pick and pack in logistics or medication administration in healthcare - the market is fundamentally changing. Competition from new (wearable) form factors for scan-intensive workflows, viability of entry-class products from emerging market vendors, growing utility of SW-based computer vision tools and alternative form of data capture are all challenging the status quo.
Key market forces impacting a return to growth include the continued migration to 2D scanners from laser and linear imager solutions, upgrades to an aging installed base and support for new data capture workflows. 2D imager investments are being driven by vendors' active focus on expanding their camera-based solution portfolio at the expense of 1D options, as end users are increasingly availing benefits such as ability to read different barcode symbologies / types, omnidirectional data capture, damaged code readability, and support of advanced applications like compliance labeling, serialization, and traceability.
INFOGRAPHICS
For product development, leading competitors focus on the function and form of their designs, aligning them with the unique workflow requirements of each target vertical market and use case. Leading vendors have advanced their AI to deliver better aiming, illumination and reading of damaged codes and are designing advanced devices with color imagers and/or RAIN RFID reading to support more diverse item identification requirements. The five largest vendors (Zebra, Honeywell, Datalogic, Newland AIDC and Code Corporation) collectively garnered market share in 2024, compared toin 2023.
Key Findings:
- Demand for linear imager and laser scanning technology is declining: VDC has long tracked the decline of laser technology, which is now rapid as it is eclipsed by 2D imaging. Sales of handhelds using linear imaging technology are falling almost as fast.
- Integration of RFID reading continued to scale: Zebra initiated this pairing with its DS9908R and sold it to apparel retailers such as Lululemon, which have implemented RFID for inventory management and now to the POS. Zebra also modified its design to produce a healthcare version for traceability of expensive items such as surgical instruments and select supplies and drugs. Meanwhile, Datalogic launched the PowerScan 9600 RFID for loss prevention. Datalogic's design is ruggedized and cordless, and captures images in addition to barcodes and RFID. The PowerScan 9600 RFID is optimized to prevent barcode switching, a major source of shrink for DIY retailers. Dual readers offer additional use cases: inventory management, rapid stock counting, returns management, and more. Multiple additional vendors are developing or exploring handheld barcode scanners with integrated RFID.
- AI-enhanced handheld scanners emerging: Handheld barcode scanners have employed AI for decades to decode symbologies, and vendors routinely refine these algorithms to improve speed, reading of damaged codes, multiple codes, finding correct codes when many are presented. With the general price sensitivity of handheld barcode scanners, design of devices with higher-end components that may support more advanced AI applications is limited. However, applications that require more advanced image processing are areas where AI could play a greater role in handheld scanner applications is emerging..
- Vendors showing agility in responding to threat of tariffs and impact on product pricing: The volatility behind tariff decisions has presented the greatest challenge for vendors to navigate. However, following the post-COVID supply chain disruption, vendor approach to product and component sourcing and location of manufacturing decisions is significantly more resilient. As a result, vendors are better positioned to respond to market factors without significantly impacting customers.