May 29, 2024
RFID Market
Ict

RFID Market is Expected to be Flourished by Growing Demand for Inventory Management and Asset Tracking Applications

Radio Frequency Identification (RFID) is a tracking technology that uses radio waves to identify objects or people. It consists of a small device called an RFID tag or transponder attached to or embedded in objects. An RFID reader sends an interrogating signal to the tag and reads and records the tag’s response. Key use cases of RFID technology include supply chain management, inventory tracking, equipment monitoring and asset tracking. RFID tags allow objects to be tracked and monitored wirelessly without direct line-of-sight.

The global RFID market is dominated by asset tracking and inventory management applications across various industries such as retail, healthcare, transportation and logistics. Implementation of RFID provides real-time visibility into supply chain operations and asset movement. RFID tags are being increasingly used for tracking medical equipment, laboratory samples and vehicle parts. The technology also enables efficient management of stock levels and automated billing in retail stores.

The global RFID Market is estimated to be valued at US$ 15.8 Bn in 2023 and is expected to exhibit a CAGR of 3.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics

Growing demand for inventory management and asset tracking applications is driving the growth of the RFID market. Implementation of RFID technology enables reduction of operational costs by eliminating manual errors and providing real-time visibility into inventory and asset movement. Key industries such as healthcare, transportation, logistics and retail are rapidly adopting RFID solutions for accurate tracking of equipment, shipments and inventory levels. Increasing penetration of IoT is also augmenting the integration of RFID tags with connected devices for seamless monitoring.

Segment Analysis

The RFID market is dominated by the RFID tags segment, which accounted for over 60% share of the global market in 2019. RFID tags come in various types such as active RFID tags and passive RFID tags. Within RFID tags, passive tags dominated the market in 2019 due to their cost effectiveness as compared to active tags. Passive tags do not require a battery as they obtain power from the reader itself, which has made them highly popular for applications such as supply chain management and inventory tracking.

PEST Analysis

Political: Governments across major countries are supporting investments in RFID technologies through various policy initiatives aimed at digitalization and automation. For instance, governments in Asia Pacific are implementing policies to promote adoption of RFID in sectors such as manufacturing and healthcare.

Economic: The RFID market has been witnessing positive growth over the past few years due to rising adoption across industries globally. Growing economic activities in sectors such as retail, healthcare, and transportation have boosted demand for RFID solutions for supply chain and inventory management.

Social: There is increasing social acceptance of RFID technologies due to growth in usage of contactless cards, electronic toll collection systems, and other daily use applications of RFIDs. However, some privacy concerns persist around potential misuse of RFID data.

Technological: Advancements in chip design have allowed the development of low-cost and miniature RFID tags. Meanwhile, IoT integration is enabling the emergence of innovative RFID applications in areas such as smart homes, smart cities, and industrial IoT. Integration of RFIDs with blockchain is also gaining interest among stakeholders.

Key Takeaways

The Global RFID Market Growth is expected to witness high in the coming years on account of rapidly expanding applications across various industries globally. By 2023, the market size is projected to reach US$ 15.8 Bn, indicating a CAGR of 3.2% during the forecast period from 2023 to 2030.

Regional analysis: Asia Pacific dominated the global RFID market in 2019 and is anticipated to maintain its leading position throughout the forecast period. This can be attributed to robust adoption of RFID in sectors such as manufacturing, retail, and healthcare across major countries like China, India, and Japan. Government support through initiatives promoting digitalization is also driving growth.

Key players: Key players operating in the RFID market are Basilea Pharmaceutica Ltd, Astellas Pharma Inc., SCYNEXIS, Inc., NovaDigm Therapeutics, Mycovia Pharmaceuticals, Inc., Pfizer Inc, and Viatris Inc., among others. These players are focusing on expanding their product portfolios and geographic presence through mergers & acquisitions and partnerships with local players.

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