Automatic identification and data capture or AIDC refers to the process involving identification of objects, collecting the related data, and entering it directly into computer systems or other microprocessor-controlled systems without resorting to the manual method of data entry. AIDC primarily consists of three principal technologies applied sequentially viz. data encoding, machine reading, and data decoding.

Through the AIDC process, external data is obtained by analyzing sounds, images, or videos, wherein the received data may be in the form of videos, images, or sounds. In this process, the data is first converted into a digital file and then, entered into the computer system. A transducer is employed for converting the actual data into a digital file.

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After this, a database is fed into the computer system, after which the data file is analyzed by the computer. This data file is then compared with other files present in the database for verification or authentication before entering it in the secured system. This helps in reduction of dependency on manual labor and results in growing usage of AIDC systems across different industries. The global market for automatic identification and data capturing systems has been segmented on the basis of technology, end-use industry, and geography.

Based on technology, the market has been divided into barcodes, biometrics, optical character recognition (OCR), voice recognition, radio frequency identification, magnetic stripes, and smart cards. Various end-use industries of AIDC systems include automotive; manufacturing; health care; retail; banking, financial services & insurance (BFSI); and aerospace & defense.

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Based on geography, the global automatic identification and data capturing systems market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Reduction in the dependency on manual labor has been a major driver for the market. Application of AIDC systems eliminates the dependence on manual labor, thereby saving a lot of time of the companies. AIDC further helps in identification of objects more efficiently and accurately, especially in case of automation of documents. Furthermore, these systems provide exclusivity to people along with restricted access.

This ensures that the information is accessed by the right person, without compromising on confidentiality. However, certain restraints such as high cost have posed challenges for the implementation of AIDC systems across different industries. Moreover, security-related issues may refrain different organizations from using the AIDC technology.