A Data Matrix code is a 2D barcode defined by an international standard that can encode large amounts of data in a small space. It consists of black and white modules arranged in either a square or rectangular pattern. Data Matrix codes are commonly used in industrial applications where small codes are needed, like electronic component labeling, due to their high data density and error correction. They have advantages over barcodes in encoding more data in less space and withstanding more damage but require specialized scanners. While both Data Matrix codes and QR codes are 2D codes that can encode large amounts of data, Data Matrix codes are better suited for industrial use while QR codes are more common for consumer and marketing applications.