2024 AIM Outlook and Predictions

AIM Global

Looking Ahead: AIDC Acceleration & Transition

Some of the leading events that will drive AIDC adoption in 2024 could have a much longer-term impact on the industry. We can say with some certainty that enterprise demand for more visibility, consumer desire for more transparency and regulators’ requirements for more traceability will lead many enterprises to explore new uses for AIDC technologies. That exploration could be the start of a sustained adoption increase as those trends continue and many related programs expand, including electronic traceability requirements to satisfy the European Union’s Digital Product Passport (DPP) legislation, the Food Safety Modernization Act (FSMA), the FDA’s separate Drug Supply Chain Security Act (DSCSA) and UDI programs, a resurgence in retail RFID tagging programs, new retail product labeling standards championed by Procter & Gamble and GS1, and more. Here’s a brief look at how those developments could impact the AIDC community in 2024.

Compliance is a common bond among many of the expected 2024 demand drivers. For example, Walmart, Chipotle and American Eagle are among the large chains that are known to be expanding their RFID programs and requiring tagging by their suppliers. There are also ongoing and expanding regulatory requirements that will expand AIDC use. The EU’s Digital Product Passport is being phased in and has requirements that can be satisfied with barcode or RFID. Many companies that will need to comply are currently evaluating their technology strategy, so actual adoption and volume growth will likely increase more in future years. Similarly, the large-scale transition from traditional U.P.C./EAN barcodes to 2D symbols for use at retail checkout is still a few years out. Meanwhile, the DSCSA, FSMA and UDI programs are more mature, and their volumes of AIDC-identified products will continue to grow.

As these transitions occur it is easy to foresee a period where product makers, retailers and their distribution partners will concurrently use 1D and 2D barcodes and RFID tags in combination throughout the value chain. Similar transitions are already taking place in other core markets for AIDC technologies, notably manufacturing and distribution. For example, traditional barcode scanning is being supplemented with machine vision to capture more information, and AI is giving machine vision new capabilities. Barcode, RFID, vision, and robotics components are being combined for picking, put away and other warehousing operations. AIDC technologies are increasingly used within IoT systems that include sensors, cameras, and other inputs. Blockchain has its own place in traceability.

AIDC manufacturers, resellers and users should use 2024 to consider their own transitions. What role will you play in providing solutions that require more traceability and intelligence? Is a new direction for product development needed? Do you have the right products and partners to thrive as converged, multi-technology systems become more common? AIM has been helping organizations navigate the future of AIDC technologies since we were founded 50 years ago and stand ready to help you in 2024 and the following 50 years.

AIM China

In the process of data collection, sensitive information such as private information and business secrets may be involved, which needs to be protected. With the increase of personal data protection regulations, data capture solution providers need to ensure the compliance of collecting, storing, and processing user data, and protect user privacy. At the same time, modern enterprises involve various types and formats of data sources, such as structured databases, unstructured texts, images, audio, and video. It is a challenge to effectively collect, integrate, and analyze data from these diverse sources.

With the popularity of intelligent hardware devices, more and more devices begin to generate a large amount of data. This data needs to be collected and processed by data capture technology in order to provide more abundant, comprehensive, and accurate support for all walks of life. At the same time, intelligent hardware devices also provide more possibilities for data acquisition technology, such as sensor technology and Internet of Things technology.

With the continuous advancement of informatization, the market demand for automated, high-efficiency and low-cost data collection is becoming more and more intense. As one of the most important driving forces in the field of data capture, artificial intelligence technology is constantly upgrading, which also brings more possibilities for data capture. Through machine learning and deep learning and other technical means, machines can continuously improve their data collection capabilities, while also reducing the cost of manual intervention and improving the accuracy and speed of data collection.

AIM D e.V

The biggest threats facing data capture solution providers is the general (global) market situation; wars (Ukraine / Middle East), insecure and unstable political situations and constellations, the global supply chains, and the ongoing chip crisis.

The biggest opportunities for the AIDC-Industry are mostly related to the biggest challenges (see below): automation and autonomous processes will be an answer as well to environmental requirements as to e.g, the shortage of skilled workers. And recycling will become not only a challenge for our industry, but also a chance: AIDC-Technologies are supporting recycling solutions (e.g.: Digital Watermark / Digital Product Passport (DPP) etc.). Furthermore AIDC-Technologies will support border control and homeland security. Finally, applications for an increasingly aging population (health and care) will become growing markets. And, the growing together of different technologies – such as AIDC, AI, Robotics, 5G, LoRaWAN etc.) – will be both: a challenge and a chance. But, foremost, it needs courageous and innovative companies which are developing chances out of threats and challenges instead of complaining about the situation. And I´m optimistic: Our industry is well positioned!

The technology or service that will have the most significant impact on end user customers in the next few years is wireless technologies and `plug and play´ solutions – this means, solutions which might become easily integrated in smartphones (e.g.: multi frequency readers for HF (NFC) and UHF and scanners for Barcodes, QR Codes etc.) and which are driven by easy to use Apps (e.g. in the field of Anti-Counterfeiting) and are directly connected to the (Industrial) Internet of Things (IoT / IIoT).

For 2024 and beyond, the biggest challenge is environmental requirements, energy prices, shortage of skilled workers, EU (Cyber Security) Regulations, global frequency regulations and global standardization. But first, the markets need to calm down and recover again. New projects are needed, projects that have been postponed must become realized.

ACSIS, Inc.

AIDC Industry Ecosystem in 2024: Navigating ESG, Sustainability, and Regulatory Compliance

In 2024, the Automatic Identification and Data Collection (AIDC) industry and its partner and channel ecosystem of resellers and solution providers is, facing not only its traditional opportunities and challenges but also the growing emphasis on Environmental, Social, and Governance (ESG) reporting, sustainability, and regulatory compliance.

There are several great opportunities and predictions ahead.

• Digital Transformation and ESG Integration: Providers can capitalize on the global ESG movement by offering solutions that facilitate ESG data capture and reporting. Businesses are increasingly seeking tools to monitor and report their ESG performance, creating a market for AIDC solutions that align with sustainability objectives.
• IoT and Sustainability: The convergence of IoT and sustainability presents a significant opportunity. AIDC solutions can enable the monitoring and optimization of resource consumption, waste reduction, and energy efficiency, contributing to sustainable practices.
• Data Security and Regulatory Compliance: The growing emphasis on data security aligns with regulatory compliance requirements, such as the Food Safety Modernization Act (FSMA) and the Drug Supply Chain Security Act (DSCSA). AIDC providers can expand their offerings to include comprehensive data security and compliance solutions.
• ESG and Reporting Integration: ESG reporting will gain prominence as a critical aspect of corporate governance. AIDC providers should anticipate the integration of ESG-related data capture and reporting features in their solutions.
• RegTech Solutions: AIDC providers will pivot towards Regulatory Technology (RegTech) solutions, streamlining compliance with complex regulations like FSMA and DSCSA. These solutions will encompass data capture, tracking, and reporting functionalities.
• Sustainability as a Competitive Edge: Sustainability initiatives will become a competitive differentiator. AIDC providers embracing eco-friendly materials, energy-efficient manufacturing, and sustainable practices will stand out.

The AIDC industry in 2024 and beyond is navigating the intricate convergence of ESG, sustainability, and regulatory compliance. Meeting these demands necessitates solutions that efficiently capture and analyze data while ensuring data security and compliance with evolving government standards.

• Cybersecurity Risks and Regulatory Fines: With data security and regulatory compliance intertwined, cybersecurity breaches can lead to regulatory fines and legal consequences, posing a dual challenge to AIDC providers.
• Complex Regulatory Landscape: The dynamic regulatory environment, including standards like FSMA and DSCSA, presents a formidable challenge. AIDC providers must remain adaptable and stay current with evolving requirements to ensure compliance.
• Supply Chain Vulnerabilities: Disruptions in the global supply chain can hinder AIDC providers’ ability to deliver critical components, impacting product availability and compliance efforts.
• ESG Integration: Develop ESG data capture and reporting capabilities in your solutions to meet the growing demand for ESG reporting.
• RegTech Solutions: Invest in RegTech solutions that simplify compliance with regulations like FSMA and DSCSA, encompassing data capture, tracking, and reporting.
• Sustainability Commitment: Embrace sustainability practices, including eco-friendly materials and energyefficient manufacturing, to align with market expectations.
• Data Security and Compliance Focus: Prioritize robust data security to mitigate the risks of cyberattacks and regulatory non-compliance. Stay adaptable to evolving regulations.
• Collaboration and Knowledge Sharing: Collaborate with industry peers, regulatory bodies, and compliance experts to stay informed about regulatory changes and best practices.

In conclusion, the AIDC industry in 2024 is not only about seizing opportunities and mitigating threats but also adapting to the demands of ESG reporting, sustainability, and regulatory compliance. By proactively addressing these aspects, AIDC providers can position themselves as trusted partners in an era where data accuracy, security, and compliance is paramount to businesses across industries.

Aware Innovations

Automatic identification and data capture (AIDC) technologies are critical to enabling the future of the internet of things (IoT) and digital twin. IoT is being recognized as a key driver in producing “big data” and then needing “artificial intelligence” to help take action on the data. These will enable digital twin to be effective in helping across the whole manufacturing lifecycle, from designing and planning to maintaining existing facilities.

We also see interfaces with the distributed ledger technologies, e.g., blockchain, developing soon as a validator of IoT transactions, as well as with Cloud Computing for the inclusion of cloud provisioning of IoT services. Again, AIDC will be the key enabler for effective use of these services.

Another emerging trend in a relevant area is Smart Cities. We believe that this work is directly related to IoT and will need automatic identification of “things” to work effectively. This will need to be a focus for the AIDC industry going forward.

Despite these industry drivers, the uncertainty in the world economy and geopolitical conflicts will impact the market opportunities for AIDC. However, in both very good times and very bad times, automation is the key to continued operations. Therefore, we see that the lack of human resources will continue to drive the AIDC market.

BlueStar

Looking ahead at what to expect and where to focus in 2024 is as simple (and as complex) as revisiting some of the most significant talking points in 2023: Labor, AI, and Robotics. These topics have plenty to discuss individually but inevitably weave together into a broader story about the future of AIDC and the supply chain.

Labor is the main issue today and will be for the next few years. The ripple effect from COVID is still being felt, along with more empowered workers and competition. No industry is immune, but we view this as an opportunity for our channel, which delivers efficiency and technology-powered solutions that seek to augment workers, automate redundant tasks, and help businesses do more with less while addressing employee burnout and creating engaged workplaces.

AI is everywhere in conversations and planning, but execution has yet to be fully realized. The foundations are there, and we’re seeing a rapid influx of startups and existing infrastructure investments to prepare for a predictable wave of AI-based solutions. Now is the time for VARs and SIs to develop their ecosystem of partners that will enable explosive growth likely to begin in the next 2-3 years. AI will directly impact labor and dramatically improve data capture, giving businesses that embrace it a dramatic market edge. This is a clear example of a situation where you do not want to be playing catch up.

Despite what most science fiction or technophobes may tell you, robots are our friends. Labor constraints in the supply chain, in particular, can be tackled with automation that makes warehouse processes faster and each worker more productive. Robots can facilitate that, eliminating wasted time, steps, and processes and helping address a never-ending consumer demand to be faster and better than before. The channel continues to develop a play with robots. While the opportunity may only be suitable for some, VARs and SIs with the commitment and discipline to establish RaaS (Robots-as-a-Service) solutions will reap considerable benefits in the future, enabling immediate ROI for existing labor gaps in the budget.

Hardware supply chain is back to normal ranges, with a modest expected growth in demand. A bright spot? Zebra’s 2023 Warehousing Vision Study indicated that decision-makers expect the size and number of facilities to expand, and they are preparing for that by accelerating modernization timelines and funding, but deals seem to be pushed due to economic conditions and a general fear of adopting “unproven” solutions. While interest rates may decrease slightly in 2024, financing is still expensive. It is critical to look to your channel distribution partner to assist with financing options like a Hybrid SaaS model to offer flexibility for end users while addressing both CapEx and OpEx needs. Meanwhile, utilizing the channel to build a partnerassisted ecosystem will give you the foundation to provide solutions that are indeed reliable and replicable (but still customizable to a customer’s specific needs) and deliver on the next generation of innovation.

Digimarc

Product digitization is a vital piece of a modern business toolbox. It provides more transparency into the product lifecycle, helps brands shine a light on the dark corners of the supply chain, and reveals consumers’ behavior. In 2023, we witnessed an exciting development with consumer brands and retailers stepping forward to lead the industry conversation, demonstrating why product digitization is required in today’s global economy.

In 2024, I predict consumer brands and retailers will adopt product digitization platforms at scale. Related, there will be significant advancements in transformative Automatic Identification and Data Capture (AIDC) solutions powered by innovative technologies and standards. The following summarizes what we can expect across industries in the coming year.

Advances in Factory Automation

2024 is likely to see improved detection efficiency in production, fulfillment, distribution, and recycling facilities using digital watermark-powered automatic identification compared to traditional 1D or 2D barcode symbology or vision systems. Improved detection will address business challenges in the following environments:

• Parts Matching (or Anti-Mixing): Automating anti-mixing quality control checks in manufacturing facilities to prevent incorrect matching of finished product components or mislabeling.
• Packaged Goods Processing: Automating the processing, sorting, and shipping of packaged goods to fulfill orders from production and fulfillment to distribution. 
• Packaging Recycling: Automating the identification of packaging materials entering material recycling facilities (MRF) to generate sustainability metrics.
• A video is worth 1000 words. You can observe the technology in action here (https://vimeo. com/882311674/d5138a8cbe?share=copy).

The Sunrise of 2D Codes

We predict consumer brands and retailers will fully embrace product digitization as a business strategy – transitioning from 1D barcodes to 2D codes and from numeric identifiers to web identities. Five years ago, we contributed to the release of the GS1 Digital Link standard, which promised to disrupt the consumer goods industry for the better by allowing products to be digitized at scale – transforming the way brands and consumers interact. GS1 Digital Link upgrades the 1D barcode used by over two million manufacturers on more than four trillion product items yearly. Every product can now connect to the web, be smartphone interactive, and transact with point-of-sale systems. New 2D codes encode GS1 Digital Link.

Over the past five years, the standard has gained momentum, with the industry setting ambitious goals for wide adoption, including setting a date for 2D to be ready at point-of-sale, referred to as Sunrise 2027.

GS1 Global

Innovation in a world of continuous disruption

Uncertainty. That one word captures the continued disruption we’ve seen over the past few years, despite a waning global pandemic: global inflation worries, climate change driven extreme weather events, financial instability due to inflation and interest rate fluctuations, as well as increased geopolitical tensions. Yet, in light of these uncertainties, there is accelerated investment and commitment to combat climate change and improve corporate sustainability. According to Deloitte in their survey of 2,000 corporate executives across 24 countries, 78% are optimistic that steps being taken can help avoid the worst impacts of climate change and 84% believe economic growth can be achieved while also reaching climate change goals.¹ Complementary to the global focus on sustainability initiatives is an increased emphasis on circular economy practices to improve the collection, recycling and reuse of goods and their materials.

While analyzing these and other business trends, the rapid advancement of technologies that can serve to accelerate these business trends is also an essential focus. While 2022 was the year of hype around the Metaverse, 2023 has become the year of massive hype for artificial intelligence (A.I.) after the public launch of ChatGPT 3.0 in November 2022.²

As we continue to evaluate trends impacting the future of the industries, the themes of Flexibility, Collaboration and Innovation are strong principles that will guide companies through periods of uncertainty.

Flexibility

Up and down the supply chain, companies need to continue to look for new ways to be nimble against small and large disruptions. Supply chain digitalization – a new trend featured in this report – is key to gaining visibility into new insights that allow companies to adapt and compete in an ever-changing global landscape.

Collaboration

Distributed hybrid and remote workforces have challenged companies to evolve their approaches for ensuring strong collaboration. Additionally, workforce demographics are shifting dramatically: Generation Z workers (those defined as being born after 1997) will make up 30% of the global workforce by 2030.³ Throughout the COVID-19 pandemic, proficiency in leveraging connectivity and cloud-based tools aided in connecting people-to-people, systems-to-systems and people-to-systems.

Innovation

Continuous improvement and reinvention through innovation has never been more important. In fact, over 50% of the Fortune 500 companies in the year 2000 have either gone bankrupt, been acquired, or ceased to exist.⁴ But how can you innovate effectively and stay ahead when everyone else is doing it too? It all comes down to effective problem-solving: knowing how to choose the right problem, deciding what impact solving that problem will have and, most importantly, leveraging internal and external talent, resources, and solutions to create new opportunities for innovation and growth.⁵

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1. Deloitte 2023 CxO Sustainability Report. https://www.deloitte.com/global/en/issues/climate/content/deloitte-cxo-sustainability-report.html

2. Rascoe, Ayesha and Kerr, Dara. (2 April 2023). Amid AI hype, tech companies are taking a step back from the metaverse. [Radio broadcast]. NPR. https://www.npr.org/2023/04/02/1167645442/amid-ai-hype-tech-companies-are-taking-a-step-back-from-the-metaverse

3. Kumar, Vibha Sathesh. (18 April 2023). Gen Z In The Workplace: How Should Companies Adapt? https://imagine.jhu.edu/blog/2023/04/18/gen-z-in-the-workplace-how-should-companies-adapt/

4. When Digital Disruption Strikes: How Can Incumbents Respond? (July 2017). Capgemini Consulting. https://www.capgemini.com/consulting/wp-content/uploads/sites/30/2017/07/digital_disruption_1.pdf

5. Author Talks: Why problem solving is the key to innovation. (6 June 2023). McKinsey Featured Insights interview with Dr. Sheena Iyengar. https://www.mckinsey.com/featured-insights/mckinsey-on-books/author-talks-why-problem-solving-is-the-key-to-innovation

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Honeywell

Navigating Efficiency: The Future of Honeywell’s AIDC Solutions

Honeywell’s foray into the realm of Automatic Identification and Data Capture (AIDC) has been nothing short of transformative for industries reliant on streamlined data management and operational efficiency. As we peer into the future, the outlook for Honeywell’s AIDC solutions is both promising and pivotal in shaping the landscape of data-driven industries.

Revolutionizing Data Management: Honeywell PSS technologies like barcode scanning, mobile computing, and RFID (Radio Frequency Identification), have played a crucial role in revolutionizing how businesses manage and utilize data. Looking forward, we can anticipate an even more profound impact as these technologies continue to evolve.

The integration of artificial intelligence and machine learning into AIDC solutions is set to enhance data processing capabilities. This advancement will not only improve the accuracy and speed of data capture but will also enable businesses to derive valuable insights from the vast amounts of data generated in real-time. As industries become increasingly data-centric, Honeywell’s AIDC solutions will be at the forefront of empowering businesses to make informed decisions efficiently.

Mobile Computing and Connectivity: The proliferation of mobile devices in the workplace has reshaped how businesses operate, and Honeywell is well-poised to leverage this trend in its AIDC solutions. The future is likely to witness a seamless integration of mobile computing and AIDC technologies, allowing for enhanced connectivity and mobility in data capture processes. Even as robotics increase in warehouse applications, Honeywell solutions are utilized at every corner.

With the advent of 5G technology, the speed and reliability of data transfer will reach unprecedented levels. Honeywell’s AIDC solutions can capitalize on this by providing real-time data access, enabling businesses to operate with unparalleled agility. Mobile devices equipped with advanced scanning capabilities will empower workers with the tools needed to efficiently manage inventory, track assets, and streamline workflows on the go.

Elevating Supply Chain Efficiency: In an era where supply chain resilience is of paramount importance, Honeywell’s AIDC solutions are positioned to be instrumental in enhancing efficiency and visibility. The integration of AIDC technologies with cloud-based platforms and analytics will enable businesses to gain real-time insights into their supply chains.

Predictive analytics, powered by Operational Intelligence data, will play a pivotal role in anticipating and mitigating potential disruptions in the supply chain. This foresight will be crucial for businesses looking to optimize inventory management, reduce lead times, and ensure the smooth flow of goods from production to delivery. As supply chains continue to evolve, Honeywell’s AIDC solutions will be a cornerstone in fortifying their foundations.

Challenges and Opportunities: While the future for Honeywell’s AIDC solutions looks promising, challenges such as cybersecurity threats and the need for standardization in data formats may arise. Honeywell’s ability to proactively address these challenges and adapt to evolving industry standards will be critical in maintaining its position as a leader in the AIDC space.

In conclusion, the outlook for Honeywell’s solutions is one of continued innovation and impact. The convergence of AIDC with emerging technologies, coupled with a focus on mobile computing and supply chain optimization, positions Honeywell at the forefront of shaping the future of data-driven industries. As businesses strive for efficiency and agility in an increasingly digital world, Honeywell’s solutions are set to play a central role in enabling them to navigate the complexities of the modern business landscape.

Laxcen Technology/AIM Asia

In 2024, the Automatic Identification industry is likely to face both opportunities and threats, with certain predictions shaping its landscape. As the president of AIM Asia, I would like to share some views focusing on Asia side.

I believe there are still a lot of opportunities, especially from the five areas such as E-Commerce, IOT and Industry 4.0, emerging markets, government initiatives area and retail and hospitality.

For E-commerce growth, Asia is experiencing rapid e-commerce expansion, creating significant opportunities for automatic identification technologies. Efficient supply chain management, order fulfillment, and inventory tracking will be in high demand. About IoT and Industry 4.0, the adoption of IoT and Industry 4.0 concepts in manufacturing and logistics will drive the need for automatic identification systems to enable seamless data collection and process optimization. As emerging markets in Asia continue to develop, there is a growing need for efficient and accurate identification systems, especially in sectors like healthcare, agriculture/food traceability, aviation, and transportation. In the areas of Government initiatives, governments in Asia are investing in smart cities, digital transformation, and infrastructure development, providing opportunities for automatic identification technologies in areas like aviation, transportation, access control, and public services. The retail and hospitality industries in Asia are expanding, offering opportunities for automatic identification systems to improve customer experiences and streamline operations.

Of course, there are threats for AIDC industry too. Data Privacy Concerns in Asia has seen an increasing focus on data privacy and cybersecurity. Automatic identification systems may face threats related to data breaches and regulatory challenges. And the competitive market: The industry is highly competitive, with local and global players vying for market share. This competition can lead to price pressures and the need for innovation to stay relevant.

In the predictions, biometric adoption such as facial recognition and fingerprint scanning, will see increased adoption in Asia for applications in access control, payments, and security. There is an increased demand for traceability: Growing concerns about product authenticity, safety, and sustainability will drive demand for advanced automatic identification systems. Industries such as food, pharmaceuticals, and aerospace will require robust traceability solutions. In the wake of global disruptions, there will be a heightened focus on improving supply chain resilience through enhanced tracking, traceability, and automatic identification systems. And governments across Asia are likely to introduce or update regulations related to automatic identification, particularly in areas like data protection and consumer rights. In addition, there will be a growing emphasis on sustainable and eco-friendly automatic identification solutions, driven by environmental concerns and government incentives. Automatic identification technologies will increasingly be integrated across industries, creating more versatile and interconnected solutions. Also, it will extend to rural and remote areas in Asia, improving access to services, healthcare, and education.

In 2024, the Automatic Identification industry in Asia is poised for growth and innovation, driven by technological advancements, economic expansion, and government initiatives. However, it must also address challenges related to data privacy, cybersecurity, and competition to maintain sustainable development.

Loftware

In an era characterized by rapid technological advancement, it has become increasingly apparent that cloud technology stands on the frontline of innovation, poised to transform the way businesses and end-users experience and interact with digital services.

As we look ahead to 2024 and beyond, the omnipresence of the cloud, coupled with its ongoing evolution, holds the promise of reshaping not just the technology landscape, but also the very essence of how companies harness the power of data and computing. One area undergoing such a transformation is labeling.

The future of labeling lies in the cloud

Cloud adoption is proving to be the cornerstone of impactful digital transformation programs, as evidenced by the strong feedback we have received from our customers and partners. Among the many benefits on offer, cloud technology provides quick deployment times, lower upfront costs, easy access, the ability to scale, and automatic updates.

This trend is backed up by the research: According to Gartner, more than 50% of enterprises will use industry cloud platforms to accelerate their business initiatives by 2027. Furthermore, our 2023 ‘Top 5 Trends’ survey revealed that nearly three-quarters (71%) of business leaders believe the cloud or a hybrid solution will be their preferred deployment method for labeling within the next three years.

Enabling traceability for greater supply chain efficiency

One area in which cloud-based labeling will play a vital role in the coming years is its capacity to establish and promote a transparent and sustainable supply chain. According to a 2022 EY study, not only do supply chains account for more than 90% of an organization’s greenhouse gas emissions (GHG), but also 50%-70% of their operating costs. So, how do companies go about solving this issue?

Part of the equation is around how social, ethical, and environmental performance factors into the process of selecting suppliers. With sustainability at the forefront, digital traceability can help companies deliver on their environmental commitments. Being able to trace products both upstream and downstream will become important for managing the product lifecycle and ensuring sustainable sourcing.

These intelligent supply chains can track, trace, and authenticate products at every stage of the journey, from raw materials to consumer goods. Additionally, cloud-based labeling solutions reduce inventory, eliminate a large global footprint, and ensure that all products are made, shipped, and delivered to the right place, thereby avoiding unnecessary loss and waste.

As companies of all sizes strive to drive growth, green their operations, and streamline processes, we expect to see a growing number of forward-thinking organizations adopt the cloud for mission-critical business processes including labeling.

RAIN Alliance

The RAIN Alliance is a consortium of companies that together want to create a smarter and more sustainable world by using RAIN RFID to connect trillions of everyday items, across an item’s entire lifecycle, simply and inexpensively.

For me, the topic of sustainability offers the single biggest opportunity that we have. In fact, I don’t regard this as an “opportunity” so much as an “imperative”. I believe that as an industry, we MUST do everything we can to:

1. 1. Firstly, ensure we do no harm
   2. Secondly, do whatever we can with our technologies, solutions and the supporting standards and guidelines, to enable our members, their customers, and their customers’ customers to minimize their impact on our planet.

And I regard this as not an imperative for the far distant future. Rather, it’s a challenge we need to be addressing right now, together.

I am encouraged to see many initiatives paying attention to this topic.

Legislation is emerging globally related to waste, recycling, circularity, and safety – driving us in the right direction. We must collectively engage to ensure there is standardization across these legislative initiatives, so that we can build scalable solutions that can be deployed globally.

Many of our AIDC industry associations already have Working Groups focused on this topic. Some are tracking and influencing legislation. Others are identifying opportunities for technical advancement and solution development in response to the emerging legislation. More are producing proof of concepts and guidelines showing exactly how our technologies can provide quantifiable benefits in the sustainability space.

And amongst our membership bases, it’s truly inspiring to see the level of commitment there is to sustainability. Many of our members have committed to science-based targets and have ambitious internal programs to reduce their scope 1, 2 and 3 emissions. Others are already measuring how their solutions are enabling their customers to reduce waste, enable better recycling, create rental and re-use markets for their goods, and ensure the correct disposal of items at their end of life.

As the RAIN Alliance enters its 10th Anniversary year in 2024, I look forward to working collaboratively with our AIDC community to seize this opportunity, ensure these initiatives grow, and collectively deliver a significant, positive impact that we can all be proud of.

Seagull Scientific

The era of 2D barcodes

The AIDC industry has been working toward the conversion from 1D to 2D barcodes for a few years now, building a technological infrastructure to support the transition — BarTender has included “one-click” Digital Link encoding since 2018, and our hardware partners have been building scanners and printers to facilitate this change.

But the GS1 Sunrise 2027 initiative marks an inflection point. The retail and logistics verticals are now grappling with the nuts and bolts of a mandate to migrate from a UPC-based retail supply chain to one that runs on 2D web-enabled codes.

While industry works through the challenges, it should not lose sight of the tremendous opportunity this evolution in data carriers presents. Web-enabled 2D codes provide the ability to capture and convey information in real time for every individual item in the supply chain: data that consumers want including allergen, nutrition, and provenance; data to expedite recalls like handling, chain of custody, lot and batch; and the item’s most current location and states.

Digital connections to the physical world are going to become expected, not exotic.

RFID as an enhancement, not a replacement

New encoding schemes (TDS 2.0, for example) are being implemented so that RFID can also carry the same data payload as 2D barcodes, enabling the physical – digital (or “physical”) connection.

Rather than becoming a replacement for barcodes, though, RFID is used as a complement. By encoding RFID and printed data carriers with the same information — in the case of Digital Link, pointing them to the same web resolver — each node of the supply chain can access identical, real-time product data in the most efficient way. Bringing a pallet into a storage facility? Its location is logged via RF interrogators at the dock door. Stocking shelves with a case from that pallet? Purchasing an item from that case? A barcode scan at stocking or point-of-sale records that.

Using the two technologies in tandem builds real interoperability into the supply chain.

Seamless experiences across devices

Industry is just beginning to appreciate the benefits of labeling in the cloud: the resources required to manage infrastructure are vastly reduced; centralized access and management creates efficiency and flexibility; and fifth generation cellular (5G) enables design and data access from anywhere.

Cloud customers expect a seamless experience, wherever in the world they are, and it’s a mistake to assume that everyone is working from a Windows device. Labeling needs to be device agnostic, accommodating the user’s preference. Zebra and Android devices are common in the field and in the warehouse, and our customers expect to be able to work with their labeling where they are.

SpotSee

The world of AIDC is changing fast. 2023 was a hangover year as supply chains “destocked” after a robust and supply constrained 2022. Fortunately, it appears markets are starting to normalize.

Track and trace regulations are growing around the world, which will be a tailwind for the industry going forward, most recently with the US Drug in the Supply Chain Security Act (DSCSA) in November 2023. Given that the USA represents over 50% of the global pharmaceutical demand, these regulations will impact global pharmaceutical supply chains, not just the USA. Most importantly, these regulations pave the way for standardized track and trace at a “saleable unit level” that is interoperably shared across supply chain participants, creating a supply chain information highway that can and will be applied to multiple industries in the future. It is already happening. For example, in 2026, the US Food Safety Modernization Act will utilize similar methods for gathering (2D Code) and communicating (interoperability) supply chain information such as recalls and even point of origin for food.

Standardization and interoperable information sharing will also start to drive supply chain benefits that extend beyond just protecting patients from counterfeit products. For example, recent changes to the DSCSA guidelines define pharmaceuticals that have had a temperature excursion that could affect efficacy of medicines or cause other harm as “unfit for distribution” under the law. Given the issues with temperature sensitive pharmaceuticals, it is only a matter of time before enforcement begins.

Fortunately, new technologies are emerging that leverage the 2D codes, RFID, or other low-cost standardized track and trace methods to detect and communicate temperature excursions or other changes in environmental conditions that may affect fitness for use by end users. These innovations will only expand the value proposition of track and trace and increase the return on infrastructure investment.

Best of all, technologies are starting to combine to bring traceability down to a consumer level – which is very important in the growing ship-to-home economy. For example, combined RAIN (UHF) and NFC RFID chips enable consumers to provide supply chain feedback via their mobile phones using NFC. Imagine a patient receiving their medication where the temperature is compromised. A tap of the phone reads the information and sends the feedback to the rest of the supply chain all the way back to the pharmaceutical manufacturer. Meanwhile, distributors, manufacturers, and last mile carriers (such as UPS) can utilize the RAIN (UHF) functionality for fast, automated shipping, receiving and cycle counting. This is also true with the use of QR codes and mobile phones with 2D code reading capability (all Android…iPhones still require an app). As products continue to adopt these standardized track and trace technologies, supply chains and consumers can be smarter about the origin, status, and condition of the products they receive on their doorsteps. This will propel our industry to the next level. Get ready!

TSC Printronix Auto ID

The biggest threats facing data capture solution providers are weak economic conditions, supply chain issues and complex regulatory environments.

Data capture solution providers rely on a healthy economy to power their customers. If the end-user customer base is facing weak demand from their customers, this translates into reduced demand for data capture solutions. Many believe that 2024 will be a challenging year for the general economy, which may translate into weak demand for AIDC products and services.

Although most of the critical supply chain issues have been resolved, their effects have not been completely worked out. 2022 was a banner year for the AIDC channel as supply chains came back online. However, many AIDC providers and end-users “overbought”, creating an inventory glut for many AIDC products.

Complex regulations are both a threat and an opportunity for data capture solution providers. They are a threat in that solution providers expose themselves to liabilities if they make an error. Solution providers must invest heavily into unraveling and understanding all the nuances involved to ensure they offer compliant solutions. Conversely, regulations and mandates are an opportunity for the AIDC channel, as capable, competent solution providers can provide a genuine value-added service and gain a competitive advantage.

From a technological perspective, RFID is a major opportunity for 2024. Retailer mandates are in full swing, and solution providers are now well poised to help their customers comply. Additionally, RFID is gaining traction in the Food and Healthcare industries. RFID implementations will not be large-scale in 2024 for Food and Healthcare, but there will be numerous proof-of-concept and pilot implementations. Additionally, RFID products and the requisite skillset have matured sufficiently for RFID to become commonplace as an Asset Tracking solution.

Regulations and mandates can be viewed as a major opportunity for the AIDC channel. Buzzwords such as FSMA 204, DSCSA, Retailer mandates, and ATA Spec2000 all need to be decoded by our channel. Resellers who can clearly explain the requirements to their customers, explain how AIDC solutions can help flip the switch from non-compliance to compliance, and finally implement such AIDC solutions will have numerous opportunities in 2024.

The ability to implement standards-based solutions is another opportunity for 2024. Regulations and mandates do not work unless trading partners and regulatory authorities are using the same standards. This may sound obvious, but the reality is that many standards are not clearly understood, and other standards are not yet fully developed. Data capture solution providers who can implement standards-based solutions – and explain the standards in use – have a major competitive advantage for 2024 and beyond.

RFID has crossed multiple critical thresholds in terms of cost, ease-of-deployment, functionality, and market acceptance. End-users are getting the message that RFID does work and, if implemented correctly, can have a significantly positive ROI.

In connection with RFID, we have significant improvements in their associated standards. Historically, RFID adoption has been hampered by a lack of maturity in RFID-related standards, but we have crossed a threshold in this area too. Standards are no longer an obstacle; standards are now a driver of RFID adoption.

Finally, “trend setters” like Walmart and Chipotle and regulatory authorities are now factoring RFID into their labeling requirements and guidelines. We do not have RFID regulations connected with Food or Pharma yet, but don’t be surprised if we do in a few years. In any case, numerous entities that generate labeling requirements are now on board to some extent or another for RFID. Over the next few years, this will drive the adoption of RFID.

Wiliot

The Biggest Opportunities Facing Data Capture Solutions Providers In 2024?

The biggest opportunity for our ecosystem is “ambient IoT”, a segment that almost everyone reading this has been preparing for (whether they know it or not) and can participate in, that is vaulting on shoulders of the hard slog that has been invested for decades by the players in the UHF RFID IoT ecosystem.

Beyond the work by some of the early adopters, some of the largest retailers, a postal service and major airline, using the first ambient IoT tags (>150m of them last year), 2023 saw momentum build in the standards that will provide the common set of rails for this ecosystem to grow beyond billions to trillions of connected things. This scale was implicit in the original vision of IoT, an internet that went beyond just expensive things to include the everyday things that are the life blood of our economy and daily lives.

When we open the gates and apply the power of the cloud and (generative) AI to packaging, food, clothing, medicine, luggage we reclaim this vision. But as we metaphorically go from using flashlights in darkened rooms to turning on the lights everywhere, the visibility we enable will not be just in parts of the supply chain but end-to-end through the entire product lifecycle. At this point, the internet of things will be truly ambient.

By ambient we mean everything all around us talking to most of the radios that surround us. The key difference between the first wave of mass deployed electronic auto-ID, is the use of the commodity radios that are in every phone, smart speaker, car, Wi-Fi access point, TV; every device that has a Bluetooth, cellular or Wi-Fi chip in it. That’s ambient IoT.

In 2023 large numbers of engineers have been doing the hard work of architecting extensions to 5G Advanced and 802.11 to enable more of those devices that surround us to talk to low-cost tags that resemble RAIN RFID but have more compute, security, and sensing, and are pushing data out to the cloud without the labor required to tap or scan. Bluetooth is already powering the version of ambient IoT that we are deploying today, but this standard too may evolve further to reduce friction and cost, opening the technology and making deployments more plug-and-play.

At one level there are a myriad of use cases enabled by ambient IoT, but fundamentally one can look at it as one change, running our businesses and our lives knowing, to quote the Oscar winning movie – where is “everything, everywhere, all at once”. How did we get this far without being able to do this effortlessly? We will look at the days before ambient IoT rather like we do at the days before the Internet itself.

There is still a lot to do, a lot to learn, but anyone that has been immersing themselves in serialization, RF or data capture standards has a head start on a new wave of auto-ID that can unlock huge value, savings and profits , with what I believe will prove to be our most potent weapon for reducing waste, crime, food safety issues, health care inefficiencies, supply chain issues and the climate crisis.

Wilmsmeier Solutions

The world needs AutoID – or does it?

In my role as the AIM delegate for standardization topics with a focus on European standardization activities, I can directly emphasize that the opportunities for the AutoID market outweigh the risks. Depending on the AutoID technology, there are certainly current challenges. For example, the frequency harmonization of the UHF RFID spectrum here in Europe – unfortunately, not all European countries have yet cleared the way for the use of the 915 to 921 MHz frequency range – which would be a benefit for global logistics chains, as all countries worldwide would then support this frequency range. In addition, some frequency bands are also desired by other technologies. We must be careful here to ensure that AutoID applications continue to enable the globally established applications in the usual way in the future. Co-existence of the individual technologies must be guaranteed – standardization is also a key issue here.

Digitalization and automation continue to advance. AutoID is a basic technology for achieving this. The industry is growing. Initiatives such as the European Green Deal include many ideas that cannot be realized without AutoID. Just look at topics such as Digital Product Passport, Product Carbon Footprint or Asset Administration Shell – without AutoID technology, none of these requirements can be implemented effectively, if at all.

In addition, the merging of AutoID technology with the sensor world results in completely new applications. AutoID in combination with sensor technology is becoming more and more established – mainly RFID based. The possibilities have not yet been exhausted. Passive solutions in which sensors are powered by energy harvesting from the RFID field are particularly interesting, but semi-active systems in which only the radio transmission is passive, without a battery, are also gaining ground. I am delighted to be able to drive this exciting topic for AIM here in Germany as head of the relevant working group.

In addition to the general global economic situation, which will certainly be felt by the AutoID and digitization industry, some important and far-reaching requirements in cyber security will take effect in the coming months and years. In Europe, for example, the amendment to the RED, which will take effect in August 2025, or the subsequent Cyber Resilience Act (CRA). The CRA will affect all digitalization products, not just radio devices, and includes far-reaching requirements for cyber security and maintainability over the life cycle of products. All providers need to take this challenge seriously and address it now to be prepared for the future.

Will the world still need AutoID in the future? The answer is, of course, more than ever! As mentioned above, AutoID is and will remain an important basic building block for implementing future-oriented automation solutions and environmental standards.

Zebra Technologies Corporation

2023 was not just another year of RFID growth. In our view it marks the begging of a new, accelerating phase of adoption. We saw milestone deployments from several blue-chip organizations in key verticals. With tag silicon supply challenges squarely in the rear-view mirror, use-case expansion and innovation returned. A major T&L carrier deployed RFID across their full network for package-level visibility. In retail, adoption of RFID for apparel inventory continued to expand and a major retailer expanded source tagging to include general merchandise. In food and restaurant, a major chain began requiring suppliers to source tag fresh foods and we’re seeing initial adoption of the new GS1 DSGTIN+ that includes important date and lot traceability data within the tag data. As demand for visibility grows – for items, packages, cases, pallets, containers, assets, etc. – it will take all of us in AIDC to continue to partner and collaborate.

It’s hard to believe that 2024 will mark 20 years since GS1’s first publication of the EPC “Gen2” protocol. While no longer a “new” technology, there’s so much innovation in use cases, readers, tags, data standards, software solutions, etc. — that RFID is entering a modern era. A new stage of growth lies ahead of us where RFID will become even more ubiquitous and impactful to the world than was envisioned nearly 20 years ago. I hope that all AIM members share Zebra’s excitement about the opportunity ahead!

Zugang Technology Connections

Our industry has been blessed over the last 4 years by the enormous update of our technology by end users who wish to benefit from the efficiency, trust and transparency that is brought to fruition through deployment. This could be the uptake in new industries such as RFID in the cannabis supply chain, the expansion of RFID deployment with the largest retailers in the world, or the at scale implementation of QR, data matrix and 2D barcode technology supported by ever increasing standardization often through AIM’s engagement and council.

We have seen normal cyclical activity in the RFID and NFC world as the market comes off the boil, demand decreases, stocks are high and price pressures – well, aren’t they supposed to reduce in such environments?

So that’s our challenge in 2024 – times are tougher, demand reducing and, one would expect prices for deployment, should start decreasing. This, however, will impact margins that industry may have enjoyed in stronger times.

The opportunities facing data capture solutions providers are value added in nature and the fact that the value proposition from the enormous deployments over the last few years have been proven which will hopefully lead to broader adoption by new verticals and by more players in the existing verticals already using auto id at scale. Industries such as the food, automotive (EVBs) and pharmaceutical verticals are looking to achieve greater transparency and efficiency not to mention support legislated initiatives around trust. So, the opportunity in 2024 is new adopters under well-structured and often legislated requirements e.g., DSCSA by the US, Food and Drug Association or the European Union’s Product Passport initiatives.

As far as the technology or service that will have the most significant impact on end user customers is the obvious cliché; Artificial Intelligence and to some extent this may be so, but, and a big but, it is legislation, trust and transparency that will drive Auto ID adoption over the next few years. This will be supported by the changing internet where yes, AI, blockchain (smart contracts) and machine vision will underpin a connected world like we’ve never seen before.

In these times, our industry’s biggest challenge in 2024, is often the smaller companies that suffer as the large global organizations have the capacity to flex their muscle when there’s not a lot to go around. Smaller players in industry can address this through innovation, agility, and smart focus on their strengths. AIM participation is a worthwhile play for smaller players in 2024 as the exposure and networking supported through AIM membership can prove invaluable.