2D Barcodes Explained: Types, Uses, and 1D vs 2D Comparison (2025 Guide)

In today's digital world, barcodes are crucial for tracking products, managing inventories, and easing transactions. Most people are familiar with 1D barcodes, the ones we see at supermarket checkouts.

However, there's a more powerful and advanced technology out there – 2D barcodes. These barcodes are transforming how businesses and consumers interact with data, and they’re not just for groceries anymore. Let’s dive into the world of 2D barcodes and explore how they work, where they are used, and why they’re important.

What is a 2D Barcode? (Quick Overview)

According to GS1 UK and ISO/IEC 18004, a 2D barcode stores information both horizontally and vertically, enabling up to 7,089 digits or 4,296 alphanumeric characters — more than 350× the capacity of most 1D barcodes.

Unlike 1D barcodes, which use a single row of lines, 2D barcodes use grids or patterns of squares, dots, or other shapes. This allows them to hold rich data such as URLs, product details, and batch numbers — all in a compact, scannable symbol.

See our quick comparison table for an at-a-glance overview of 2D barcode capabilities:

Key Differences Between 1D and 2D Barcodes

Here is a table for you to learn about 1d barcodes vs 2d barcodes quickly.

Error rates: manual data entry ≈ 10 errors per 1,000 keystrokes; barcode scanning ≈ 1 error per 10,000 scans (GS1 data). 

2D Barcodes: Pros and Cons at a Glance

Here’s a more concise comparison of the key benefits and limitations of 2D barcodes, helping you quickly assess their suitability for various applications.

Advantages

• High Data Capacity – Store up to 7,089 digits / 4,296 characters (QR Code, GS1 UK data).
• Small Size & Space Efficiency – Encode more data in less space than 1D barcodes.
• Error Correction (Reed–Solomon) – Can still be read with up to 30% area damage.
• Mobile & Consumer-Friendly – Scan with smartphones and imaging devices from any angle.
• Enhanced Security Features – Support encryption, digitally signed data, or secure URLs for anti-counterfeiting and restricted access.

Disadvantages

• Processing Time – On low-end devices, decoding may take 10–20% longer than 1D barcodes due to higher data density.
• Damage Tolerance Limits – If more than ~30% of the code area is destroyed, even error correction may fail.
• Specialized Scanners Needed – Older laser scanners cannot read 2D barcodes.
• Compatibility Gaps – Some legacy POS systems or ERP platforms may need upgrades.
• Printing Requirements – Needs high-contrast printing and precise module sizing for reliable scans.

A Brief History of 2D Barcodes

• 1987 – Code 49: Invented by David Allais at Intermec Corporation, Code 49 was one of the first stacked linear codes, paving the way for modern 2D barcode formats. 【Source: Intermec historical archives】
• 1991 – PDF417: Developed by Ynjiun Wang at Symbol Technologies, PDF417 introduced a high-capacity, stacked linear symbology capable of encoding binary data, making it suitable for transport, identification, and government applications. 【Source: Symbol Technologies patent records】
• 1994 – QR Code: Created by Denso Wave in Japan, the QR Code (Quick Response Code) became widely adopted due to its fast scanning speed and robust error correction. Initially used in automotive part tracking, it later exploded in consumer marketing and mobile payments. 【Source: Denso Wave QR Code History】
• 2000s – Smartphone Adoption: The spread of smartphones with built-in cameras enabled QR codes to enter mainstream use, powering mobile payments, ticketing, and marketing campaigns.
• 2010s–Present – GS1 DataMatrix and Expanded Applications:  GS1 standards drove adoption of 2D barcodes in retail and healthcare (e.g., GS1 DataMatrix for pharmaceuticals). Initiatives like GS1 Sunrise 2027 aim to make 2D barcodes standard at POS globally. 【Source: GS1.org】

Types of 2D Barcodes: An In-Depth Overview

2D barcodes are available in several types, each serving different purposes based on the application, data storage capacity, and physical space constraints. Here's an overview of main and other 2D barcode types.

Main Types of 2D Barcodes

QR Code (Quick Response Code)

• Features: Recognizable by its three large square markers at the corners, QR codes are the most widely used 2D barcode globally. These markers help scanners find the code's direction quickly.
• Storage Capacity: Can store up to 4,296 alphanumeric characters, 7,089 numeric characters, 2,953 bytes, or 1,817 Kanji characters, allowing for a significant amount of data.
• Applications: Used extensively in mobile payments, marketing campaigns, event tickets, and product traceability.

Data Matrix

• Features: Known for its small size and high data density, Data Matrix codes consist of square modules arranged in a grid pattern. It's often used in tight spaces.
• Storage Capacity: Can store up to 2,335 alphanumeric characters, 3,116 numeric characters, or 1,556 bytes of binary data, making it highly efficient for encoding information in small spaces.
  Applications: Common in industrial and medical applications, including tracking electronic components, medical device identification, and aerospace applications.

PDF417

• Features: A stacked barcode stores lots of data in rows.It is capable of encoding binary data such as images and signatures.
• Storage Capacity: Can store up to 1,850 alphanumeric characters, 2,710 numeric characters, or 1,108 bytes of binary data, suitable for applications requiring moderate to large data storage.
• Applications: Widely used in identity verification (e.g., driver’s licenses, passports), transportation systems (e.g., boarding passes), and inventory management.

Aztec Code

• Features: Known for its concentric ring structure, Aztec codes are smaller in size compared to QR codes. They can be read quickly and are very resilient.
• Storage Capacity: Can store up to 3,000 characters.
• Applications: Often used in airline tickets, event tickets, and small items where space is limited.

Other Types of 2D Barcodes

MaxiCode

• Features: This barcode consists of hexagonal cells arranged in a matrix with a central locator pattern. It's often used in logistics and shipping.
• Storage Capacity: Holds up to 93 alphanumeric characters or 138 numeric characters, with a fixed physical size.
• Applications: Primarily used by UPS for package tracking and shipping labels.

Micro QR Code

• Features: A smaller version of the standard QR code, designed for applications with limited space. Though small, it has many full-size QR code features.
• Storage Capacity: Offers a smaller data capacity compared to standard QR codes, with the maximum capacity depending on the version and data type, such as up to 295 characters for the largest version.
• Applications: Ideal for small products like electronics, jewelry, and packaging with limited space for encoding information.

Han Xin Code

• Features: Developed in China, the Han Xin Code is designed to store more data than the standard QR code and includes more advanced error correction features.
• Storage Capacity: Offers a high data capacity, capable of holding up to 4,350 alphanumeric characters, 7,827 numeric characters, 3,261 bytes, or a significant number of Chinese characters depending on the version and data type.
• Applications: Used primarily in Chinese government projects, including product traceability and anti-counterfeiting efforts.

GS1 DataMatrix

• Features: A specific version of the Data Matrix barcode designed to comply with the GS1 standard for product identification. It uses a square grid with black and white parts.
• Storage Capacity: As a specific application of Data Matrix, it can store up to 2,335 alphanumeric characters, 3,116 numeric characters, or 1,556 bytes, and is designed to encode GS1 system data structures.
• Applications: Widely used in retail and healthcare for product traceability, including packaging and labeling of pharmaceuticals.

MicroPDF417

• Features: A compact version of the PDF417 barcode that stores less data but is ideal for space-constrained environments.
• Storage Capacity: A compact version of PDF417, its capacity varies by data type and version, capable of storing up to 366 numeric digits, 250 text characters, or 150 bytes.
• Applications: Common in ID cards, small tickets, and packaging where space is limited but data storage is still required.

Code 49

• Features: A two-dimensional barcode that stores data in a stacked format, allowing for more data storage than a traditional 1D barcode.
• Storage Capacity: Offers a higher data density than traditional single-row 1D barcodes, with a capacity of up to 49 characters per row and a maximum of 8 rows, allowing for the storage of up to 1KB of data.
• Applications: Often used in applications requiring higher data capacity than a linear barcode but less than other 2D barcodes like PDF417 or QR codes.

2D Barcodes vs QR Codes

While QR codes dominate consumer-facing applications, other 2D barcodes—such as Data Matrix, PDF417, and Aztec Code—are often the better choice in industrial, government, or space-constrained scenarios.

Key Takeaway: QR codes are optimized for quick consumer interactions, while other 2D barcodes excel where space is limited, data density is critical, or regulatory compliance is required. Now you have learn the difference between 2d barcodes and QR codes.

How does GS1 US guide the shift from 1D to 2D barcodes?

GS1 US is at the forefront of pushing industries toward adopting 2D barcodes over traditional 1D barcodes. By supporting the transition to 2D barcodes, GS1 US is improving supply chain transparency, product traceability, and consumer engagement. The key advantages of transitioning include:

• Increased Data Storage: 2D barcodes can store much more information than 1D barcodes, allowing businesses to encode product details, batch numbers, and expiration dates all in one code.
• Improved Consumer Interaction: With 2D barcodes, consumers can scan codes to access detailed product information, promotions, and real-time updates, enhancing their overall shopping experience.
• Enhanced Supply Chain Efficiency: 2D barcodes enable seamless tracking of goods through the entire supply chain, improving inventory management and reducing errors.

As more industries shift towards 2D barcode adoption, businesses will benefit from the greater flexibility, security, and data capacity that 2D barcodes provide. 

2D Barcode Standards & Usage

Standardization ensures that 2D barcodes can be created, printed, and scanned consistently across industries and regions. Without standards, compatibility issues can arise between different scanners, printers, and databases.

Key Global Standards for 2D Barcodes

GS1’s Role in 2D Barcode Adoption

GS1 is actively driving the transition from 1D to 2D barcodes through initiatives such as Sunrise 2027, which aims to make 2D barcodes scannable at retail POS worldwide.
Key benefits of GS1 2D barcodes:

• Store multiple data points (e.g., GTIN, expiry date, batch/lot number) in a single symbol.
• Improve product traceability and recall efficiency.
• Enhance consumer engagement through web-linked content.

Best Practices for 2D Barcode Implementation

• Select the Right Symbology – Match your industry needs (QR Code for consumer engagement, Data Matrix for small items, PDF417 for ID documents).
• Follow Printing Quality Guidelines – Maintain proper contrast, module size, and quiet zones to meet ISO print quality grades.
• Ensure Scanner Compatibility – Use imaging-based scanners for full 2D reading capability.
• Validate with Compliance Tools – Use verification devices to check GS1 or ISO compliance before mass deployment.
• Plan for Scalability – Choose a symbology that can handle future data needs, not just current requirements.

Where 2D Barcode Standards Are Applied in Practice

• Retail – GS1 QR Codes linking to product data sheets.
• Healthcare – GS1 DataMatrix on medicine packaging for regulatory compliance.
• Logistics – PDF417 or Data Matrix on pallets for shipment tracking.
• Transportation – Aztec Codes on train and air tickets.
• Government IDs – PDF417 or QR codes for identity verification.

How Does a 2D Barcode Work?

2D barcodes are a sophisticated form of encoding data, and their operation hinges on a few key principles:

1. Encoding Data into a Grid: The process starts by converting data (text, numbers, URLs) into binary code (0s and 1s). These are arranged in a two-dimensional matrix of modules—tiny black and white squares—each representing part of the data.

2. Error Correction: Using Reed–Solomon algorithms, extra redundant data is embedded into the code. This allows accurate reading even if up to 30% of the symbol is damaged or obscured.

3. Orientation Detection: Positioning markers, like the three large squares in a QR code, let scanners identify the code’s alignment instantly. This enables omnidirectional scanning—the code can be read upside-down, sideways, or rotated.

4. Decoding and Output: An image-based scanner or camera captures the matrix, translates the module pattern back into characters, and delivers the result—whether that’s a product ID, a web link, or other encoded data.

Creating and Scanning 2D Barcodes: A Simple Guide

Making and scanning 2D barcodes is simple and helpful for personal and business use. Let’s walk through the basics.

Creating 2D Barcodes

The success of any 2D barcode program begins with proper design and printing. International standards, such as ISO/IEC 15415 and the GS1 General Specifications, recommend maintaining a minimum module size of 0.25 mm, a quiet zone equal to at least four times the module size on all sides, and a light reflectance contrast of at least 40%.

For high-density codes, especially Data Matrix symbols on small components, use high-resolution printers and durable label materials that can withstand the intended environment. Before mass production, verify print quality with a barcode verifier to ensure compliance with ISO print grades (Grade C/2.0 or higher).

Scanning Best Practices

Modern 2D imagers can read codes from any orientation, eliminating the need for precise alignment. For optimal performance:

• Use scanners with ambient light resistance when operating in bright or outdoor environments.
• Select devices with advanced error-correction decoding to handle smudged or partially damaged codes.
• For scanning from mobile screens or reflective surfaces, choose imagers optimized for backlit displays.
• In high-volume operations, consider devices with storage mode for batch scanning before data upload.

Recommended Scanners

While many brands offer capable 2D imagers, three models stand out for their durability, decoding speed, and industry versatility:

• Tera 8100 Industrial 2D Handheld Scanner – IP66-rated for dust and water resistance, built to survive drops, and able to read printed and digital 1D/2D codes including QR, Data Matrix, PDF417, Aztec, and MaxiCode. It offers Bluetooth, 2.4G wireless, and USB wired connections, with a range of up to 100 m in open environments. A 2,500 mAh battery delivers up to 35 hours of continuous scanning and 170 days on standby. Custom symbology editing rules and vibration/sound alerts make it suitable for demanding industrial, retail, healthcare, and logistics applications.
• Zebra DS3600 Series – Known for extreme durability (IP67), ultra-fast decoding, and reliable performance in harsh industrial and cold-chain environments, with full GS1 compliance.
• Honeywell Xenon 1950g – Features advanced image processing for low-light and motion scenarios, making it ideal for healthcare, pharmaceuticals, and retail inventory systems.

By aligning barcode creation with international standards and selecting a scanner that matches your operational needs, businesses can ensure consistent, fast, and error-free data capture—whether in a retail checkout line, a warehouse aisle, or a hospital ward.

Real-World Applications of 2D Barcodes

2D barcodes are transforming various industries, making processes more efficient, secure, and user-friendly. Their diverse applications extend far beyond what many people realize. Let's look at key sectors and their creative 2D barcode uses.

Retail: In large-scale retail operations, 2D barcodes are being adopted not just for product identification but also for compliance with traceability laws. For example, under the U.S. Food Safety Modernization Act (FSMA) Section 204, Walmart and other major grocery retailers require produce suppliers to implement 2D barcode-based traceability by January 20, 2026. This allows detailed product origin, batch number, and expiration information to be scanned at point of sale, improving recall speed and reducing food waste.

Healthcare: In the United States, the FDA Unique Device Identification (UDI) Rule mandates that all Class II medical devices carry a GS1 DataMatrix symbol since September 24, 2022. This requirement ensures each device is traceable from manufacturing through patient use, improving safety and facilitating recalls. Hospitals often scan patient wristband QR codes linked to electronic health records, reducing medication errors by up to 50% compared to manual entry.

Logistics & Supply Chain: Shipping and warehousing companies integrate 2D barcodes for shipment tracking and automated sorting. The International Air Transport Association (IATA) standardizes Aztec and PDF417 codes for boarding passes and cargo documentation, allowing real-time tracking. In high-volume logistics hubs, switching from 1D to 2D barcodes has been shown to reduce misrouting errors by over 35%.

Food & Agriculture: Producers are using 2D barcodes to meet EU Regulation 1169/2011 on food information for consumers. By scanning a QR code, shoppers can access allergen details, nutritional values, and full farm-to-fork traceability. For exporters to markets like China, the Han Xin Code is sometimes used to meet local product authentication requirements.

Transportation & Aviation: Airlines worldwide use Aztec or PDF417 barcodes on mobile boarding passes in compliance with the IATA Bar Coded Boarding Pass (BCBP) standard. This has cut average check-in times by 30–40%. Baggage handling systems that integrate 2D barcodes have also reduced lost-luggage incidents by up to 25%, according to IATA operational data.

Government & Public Services: Governments embed QR or PDF417 codes in digital IDs, driver’s licenses, and vaccination certificates. For example, the EU Digital COVID Certificate Regulation requires QR codes to securely encode vaccination or test data for cross-border verification across all member states.

Here's a brief look at their uses:

The Future of 2D Barcodes

The evolution of 2D barcode technology is closely tied to emerging trends in connectivity, data security, and automation. Several developments are likely to shape the next decade:

1. Integration with IoT & Blockchain: Future 2D barcodes will act as digital “bridges” between physical products and IoT networks. A scan could instantly trigger a smart sensor reading, upload data to a cloud platform, or verify authenticity via a blockchain ledger. For example, in supply chains, blockchain-verified QR or Data Matrix codes could provide tamper-proof product histories, reassuring both regulators and consumers.

2. Dynamic & Color 2D Barcodes: Advancements in printing and scanning may enable real-time updating of barcode data. This would allow, for instance, promotional offers to change after the product has been shipped, or safety alerts to be pushed to consumers instantly. Color-layered barcodes are being explored for even higher data density, though standardization remains a challenge.

3. AR (Augmented Reality) Integration: Scanning a 2D barcode could open an AR interface with 3D product views, usage tutorials, or real-time assembly instructions — creating immersive post-purchase experiences.

4. Market Growth Outlook: According to MarketsandMarkets, the global 2D barcode reader market is projected to grow from USD 8.9 billion in 2024 to USD 12.7 billion by 2029, at a CAGR of 7.3%. Growth drivers include the adoption of 2D barcodes in healthcare, e-commerce, and logistics, alongside stricter regulatory compliance requirements worldwide.

5. Global Retail Shift (Sunrise 2027): The GS1-led Sunrise 2027 initiative will make 2D barcodes scannable at every retail POS globally, unlocking new consumer engagement opportunities and streamlining recalls. This transition will likely accelerate innovation in code design, printing technology, and omni-channel data delivery.

Conclusion: Embrace the Power of 2D Barcodes

2D barcodes are revolutionizing industries from retail to healthcare, offering powerful solutions for mobile payments, product tracking, and more. With their efficiency and versatility, the future of data interaction is at your fingertips.

Ready to use 2D barcodes to their fullest? Choose Tera’s Android Barcode Scanners to streamline your processes, enhance security, and take advantage of the power of 2D barcodes in your business. Don’t miss out on this transformative technology!

FAQs

Can 2D barcodes replace 1D barcodes entirely?
Not yet. While 2D barcodes offer higher data capacity and error correction, 1D barcodes remain cost-effective for simple identification tasks like price lookups. Many industries will run hybrid systems for years — for example, GS1’s Sunrise 2027 initiative plans to make POS scanners 2D-capable, but 1D codes will still coexist during the transition.

Which 2D barcode type is best for small items?
Data Matrix codes are the top choice for small or space-constrained items. They remain readable even when reduced to a few millimeters and can store up to 2,335 alphanumeric characters. This is why they’re common on electronic components, surgical instruments, and aerospace parts.

Are 2D barcodes secure?
On their own, 2D barcodes are not inherently encrypted, meaning anyone can scan them. However, security can be enhanced by embedding encrypted URLs, using digital signatures, or integrating with blockchain for tamper-proof verification. Regulatory sectors like healthcare and aviation often combine these measures to protect data integrity.

How to scan a 2D barcode without a smartphone?
You can use a 2D barcode scanner (imager) — handheld, fixed-mount, or integrated into POS systems. Brands like Tera, Zebra, and Honeywell offer devices that work with PCs, industrial terminals, and embedded systems, making them ideal for warehouses, retail counters, and production lines.

What is the maximum capacity of a Data Matrix code?
According to ISO/IEC 16022, a Data Matrix can store up to 2,335 alphanumeric characters, 3,116 numeric characters, or 1,556 bytes of binary data — with error correction allowing accurate reads even if up to 60% of the symbol is damaged.