February 29, 2024
chipless RFID market

The chipless RFID Market Is Estimated To Witness High Growth Owing To Expanding Logistics Industry & Increased Adoption of IoT

The chipless RFID market is estimated to be valued at US$ 1,176.7 Mn in 2022 and is expected to exhibit a CAGR of 28.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Chipless RFID technology uses the entire physical properties of an object to carry information, rather than embedding an electronic chip. It works by encoding data in the physical properties or structure of the tag such as shape, spacing of notches, or its reflected frequency spectrum. Chipless RFID tags are small metallic or dielectric structures that can be screen printed or etched directly onto products and packaging. This makes chipless RFID an affordable solution for item-level tagging of consumer goods, pharmaceuticals, and other low-cost items.

Market Dynamics:

Chipless RFID technology is gaining significant traction owing to the expanding logistics industry. Efficient tracking of parcels and items through the supply chain has become crucial for reducing costs and improving customer satisfaction. Chipless RFID allows encoding information directly on shipping labels and packaging for contactless identification and automated monitoring of goods in transit. Furthermore, the growth of IoT connectivity across various industries is increasing the adoption of chipless RFID due to its low cost and compatibility with IoT networks. Chipless RFID tags can be connected to sensors to monitor freshness, location, and other product parameters during transportation and storage. This helps enterprises optimize inventory management and supply chain efficiency through real-time visibility of shipments and assets.

Segment Analysis

The Global Chipless RFID Market Size is dominated by the chipless barcode tags segment. This segment accounted for around 60% share of the overall market in 2023. Chipless barcode tags find extensive application in supply chain and logistics due to their capabilities to store standardized product information in a compact form. Advantages such as small size, low manufacturing costs and features like anti-collision function make chipless barcode tags highly suitable for various industries.

PEST Analysis

Political: Governments across countries are supporting the adoption of advanced technologies like chipless RFIDs to strengthen supply chain operations. Various regulations have been introduced to standardize the use of chipless tags.

Economic: The growing e-commerce industry is fueling the demand for efficient logistics operations. Chipless RFIDs help reduce logistics costs and improve inventory management.

Social: Rising consumer preference for contactless shopping and need for seamless digital experiences is driving industries to leverage advanced identification solutions.

Technological: Significant improvements in chipless RFID printing technologies have enhanced reliability and read rates. Developments in nanotech-enabled ink formulations are further expanding application areas.

Key Takeaways

The Global Chipless RFID Market Size is expected to witness high growth, exhibiting CAGR of 28.1% over the forecast period 2023-2030, due to increasing adoption across various industries. The market size for 2023 is estimated to be US$ 1,176.7 Mn.

The Asia Pacific region is projected to dominate the market during the forecast period. Rapid industrialization and growing import-export activities across economies like China and India are driving chipless RFID deployment. Government initiatives to modernize supply chains will further propel the regional market.

Key players operating in the chipless RFID market are Zebra Technologies Corporation, Spectra Systems, Molex Inc., Xerox Corporation, Politronica Inkjet Printing S.r.l., Vubiq Networks Inc., Thin Film Electronics ASA, and TagSense Inc. Strategic partnerships and new product launches catering to industry-specific needs are some of the priorities of these players.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it