Auto-ID Market to Hit $50.62 Billion by 2031: 2D Barcodes, AI Vision & GS1 Sunrise 2027 Explained - Arizton

Arizton's latest research identifies two technology trends reshaping the global Auto-ID and Labelling Solutions Market: the transition to 2D barcodes and GS1 Digital Links, and the growing adoption of AI-enabled Auto-ID solutions.

The global Auto-ID and Labelling Solutions Market is projected to reach USD 50.62 billion by 2031, supported by the transition from traditional 1D identification to 2D formats and the growing adoption of AI-enabled vision for identification, inspection, and monitoring applications.

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The 1D-to-2D Transition Is Turning Product Identification into a Larger Market Opportunity
The move from traditional 1D barcodes to 2D symbologies and GS1 Digital Links is becoming a major technology shift in the Auto-ID and labelling solutions market. The change is being driven not only by the need to carry more product information, but also by Sunrise 2027, evolving product-information requirements, and increasingly limited packaging space.

GS1's Sunrise 2027 initiative is creating a defined transition point for the retail industry, with point-of-sale systems expected to be capable of scanning and processing 2D symbols by late 2027. At the same time, the European Union's Digital Product Passport initiative is increasing the need to make information such as sourcing, circularity, and recycling data accessible at the product level. These developments are strengthening the case for identification formats that can support more than the basic product identification provided by traditional 1D barcodes.

The value of 2D also extends to the physical package. Brands can currently use separate codes for checkout, marketing, and logistics, adding to packaging complexity. A unified 2D GS1 symbol can support multiple functions within a smaller footprint, while GS1 Digital Link can connect the physical identifier to web-based information that can be updated without reprinting the package.

For the Auto-ID market, the shift is therefore less about replacing one barcode format with another and more about upgrading the identification infrastructure around the product. As retailers, manufacturers, and logistics providers prepare for the 2027 milestone, this transition is influencing scanning infrastructure, labelling requirements, and the technologies used to capture and manage product information.

AI Is Expanding the Capabilities of Auto-ID Systems
AI-enabled Auto-ID solutions are becoming an important development in the market as vision systems move beyond conventional barcode and RFID reading. Traditional systems depend on predefined identifiers and controlled scanning conditions, while AI-powered vision can interpret visual information and combine identification with inspection within the same process.

This is expanding the range of tasks that Auto-ID systems can handle, including identifying damaged packaging, fluid leaks, misaligned labels, and missing warnings. The increasing use of AI in retail also points to broader adoption across operations. Honeywell's AI in Retail Study, conducted by Wakefield Research in December 2024, found that 36% of retailers were investing in AI for returns management, 35% for customer service automation, and 32% for monitoring product availability.

The shift is also being supported by edge-based AI processing, which allows vision systems to process information directly on smart cameras and support rapid decisions in industrial environments. As these capabilities develop, AI is extending Auto-ID beyond conventional scanning toward more automated identification, inspection, and monitoring applications.

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The Next Auto-ID Shift Is About More Than Reading a Code
The transition toward 2D identification is gaining further importance as the GS1 Sunrise 2027 milestone approaches. The barcode segment accounted for around 43% of the market in 2025, and its evolution from traditional 1D formats toward QR Codes, Data Matrix, and GS1 Digital Link is being supported by rising e-commerce package volumes, omnichannel retail requirements, demand for greater product transparency, and upgrades to 2D-ready scanning infrastructure.
At the same time, AI-enabled vision is broadening the role of Auto-ID across identification, inspection, and monitoring, while sustainable and eco-conscious labelling is also gaining importance. Demand continues across retail, healthcare, manufacturing, and logistics.

Arizton's Auto-ID and Labelling Solutions Market report provides detailed coverage of barcode and other Auto-ID technologies, components, applications, regional markets, market forecasts, and the competitive landscape.

Read the Full Report - https://www.arizton.com/market-reports/auto-id-and-labelling-solutions-market

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Founded in 2017, Arizton Advisory & Intelligence delivers data-driven market research and strategic consulting that empowers clients to make informed decisions and drive growth. Combining quantitative and qualitative insights, we provide in-depth analysis across industries including Agriculture, Consumer Goods, Technology, Automotive, Healthcare, Data Centers, and Logistics. Recognized by top-tier media, our expert team transforms complex market data into actionable strategies, helping clients anticipate trends, seize opportunities, and stay ahead of the competition.

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Source: Arizton Advisory & Intelligence

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