May 29, 2024
RFID Market

The Growing RFID Market Is Trending Due To Mass Adoption Of Iot Devices

The radio frequency identification (RFID) market consists of smart labeling solutions that use electromagnetic fields to automatically identify and track tags attached to objects. RFID tags contain electronically stored information that can be read from several meters away and beyond the line of sight of the RFID reader. RFID systems streamline business operations by providing real-time visibility of assets and inventory across supply chains. RFID tags are increasingly being used in manufacturing, transportation & logistics, retail, healthcare and other industries to enhance productivity, reduce costs and improve customer experience.

The Global RFID Market is estimated to be valued at US$ 18.21 Bn in 2024 and is expected to exhibit a CAGR of 3.2% over the forecast period from 2024 to 2030.

RFID plays a key role in facilitating the Internet of Things (IoT) by providing a seamless way to uniquely identify products, assets and people. With the wide scale adoption of IoT across various sectors, there is growing demand for networks of interconnected physical objects embedded with sensors, software and network connectivity to enable data exchange.

Key Takeaways

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. RFID technology enhances supply chain transparency, improves inventory management and helps identify waste and redundant processes. Major industries are investing aggressively in RFID solutions to streamline operations and gain a competitive edge. North America dominates the global RFID market due to stringent regulations regarding product safety in industries such as healthcare and automotive. Asia Pacific exhibits lucrative opportunities for RFID vendors driven by increasing manufacturing activities in China, India and other developing nations.

Market Key Trends

The penetration of RFID tags is increasing consistently with the growing adoption of IoT devices across major application areas. IoT connects physical objects through internet connectivity which enables automatic identification, location tracking and real-time data gathering from electronically tagged items. RFID acts as the fundamental identification layer for IoT infrastructure and plays a vital role in seamless communication between connected devices. Furthermore, cloud-based RFID solutions are gaining traction as they provide centralized monitoring of real-time inventory levels and asset movement across dispersed facilities. The increasing reliance on analytics is also driving the growth of RFID by facilitating data-driven decision making through insights gleaned from tags.

Porter’s Analysis

Threat of new entrants: The large initial investments required to enter the RFID market and establish manufacturing and distribution networks pose barriers for new companies. Bargaining power of buyers: Individual buyers have limited bargaining power due to the numerous players in the Global RFID market size that provide similar products. However, large volume buyers can negotiate favorable terms. Bargaining power of suppliers: Suppliers of raw materials such as semiconductors, tags and readers have moderate bargaining power due to the differentiated nature of their products and the inability of RFID companies to change suppliers quickly. Threat of new substitutes: The threat of substitutes is moderate as RFID tags can potentially be replaced by alternate auto-ID technologies like barcodes in certain applications. However, RFID provides enhanced functionality that is difficult to replicate. Competitive rivalry: The RFID market is fragmented with the presence of numerous global and regional players. However, intense competition exists between key players to gain market share and expand their product portfolios.

Geographical regions: North America currently accounts for the largest value share in the global RFID market owing to high adoption across various verticals such as retail, healthcare, manufacturing and others. The United States represents the most important country market in North America.

The Asia Pacific region is expected to be the fastest growing geographical segment for the RFID market during the forecast period. Increased government investments towards smart city projects and initiatives for digital transformation are fueling the demand for RFID solutions across APAC nations such as China, India and South Korea. Rapid industrialization and growing e-commerce sector further support market growth in Asia Pacific.

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