Radio Frequency Identification (RFID) systems enable unique identification of objects or people via wireless communication between RFID tags and RFID readers. RFID tags contain electronically stored information that can be detected by RFID reader without contact or line-of-sight. RFID technology is being extensively used in fields like manufacturing, healthcare, transport, retail, and logistics. For instance, RFID tags are attached to items in supply chains for tracking shipments, maintaining inventory levels, and automatically billing purchases. In manufacturing setups, RFID tags help monitor production flow from raw materials to finished goods.

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:

The growing application of RFID technology in manufacturing and logistics industries is expected to drive the RFID market growth over the forecast period. RFID systems provide real-time tracking of materials and goods in motion across factories and warehouses. This enables improved operational efficiency through visibility, optimized processes, automated workflows and reduced manual errors. In addition, shifting focus towards supply chain visibility and inventory management will also contribute to the increasing adoption of RFID technology.

Segment Analysis

The global RFID market is dominated by passive RFID sub segment which accounts for over 80% market share. Passive RFID tags do not have an internal power source like batteries and obtain power from reader’s interrogating radio waves. They are very cheap to produce with a lifespan of decades. This makes them ideal for production and retail related applications where large volumes of tags need to be deployed for inventory and asset tracking.

PEST Analysis

Political: Governments across regions are implementing mandates and policies to promote adoption of RFID for applications like e-passports, toll collection etc. Many countries have made e-passports mandatory with embedded RFID chips.
Economic: Automation of processes using RFID is helping many industries improve operational efficiency and reduce costs. Enterprises are investing in RFID solutions to optimize supply chain management and inventory tracking.
Social: With growth in e-commerce, consumers are more comfortable sharing personal data digitally for authentication and loyalty programs. RFID is helping enable contactless payment and access control solutions.
Technological: Advances in semiconductor manufacturing have reduced tag costs. Integrating RFID with IoT, near field communication, and edge computing is enhancing data capture capabilities.

Key Takeaways

The global RFID Market Growth is expected to witness high growth over the forecast period supported by wide range applications across various industries. The global RFID Market is estimated to be valued at US$ 15.8 Bn in 2024 and is expected to exhibit a CAGR of 3.2% over the forecast period 2024 to 2031.

Regional analysis:

The North America region currently dominates the market due to high adoption across verticals like retail, healthcare, manufacturing etc. Countries like the US and Canada are major revenue contributors.

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. RFID tags are optimized for item-level tagging and best suited for applications that need to track high volumes of individual items. Enterprises are deploying advanced RFID solutions integrated withIoT to enable predictive maintenance, remote asset monitoring and optimize supply chain operations.

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