May 27, 2024
Ict

RFID Tag Adoption In The US Logistics Industry Is Driving Growth In The U.S RFID Tags Market

Radio-frequency identification (RFID) tags provide unique identifiers for tracking objects through radio waves. They are widely used across numerous industries for inventory management, supply chain management, and security purposes. RFID tags are affixed to or incorporate into products, documents, pallets, cases and other items to track them through the supply chain. Their use allows high-speed tracking and tracing of goods without line of sight. The logistics industry has been a major adopter of RFID tags to improve supply chain visibility and efficiency. Major logistics companies in the US are increasingly deploying RFID tags to automate processes and gain real-time tracking of shipments.

The global U.S RFID Tags Market is estimated to be valued at US$ 1022 Mn in 2024 and is expected to exhibit a CAGR of 5.4% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

The growing adoption of RFID tags in the logistics industry has emerged as a key trend driving growth of the U.S RFID tags market. Major parcel delivery companies and third-party logistics providers are deploying RFID tags on packages to achieve end-to-end visibility of shipments. For example, FedEx rolled out active RFID tagging of priority mailbags across its network to improve tracking. Similarly, UPS uses passive UHF RFID tags on pallets and containers to gain real-time location data as shipments move through its facilities. Such initiatives are helping logistics firms optimize workflows and reduce shipping costs. Furthermore, mandates by the U.S. Department of Defense (DOD) on suppliers to use RFID tags is another key trend boosting demand. The DOD requires tagging of logistical units like pallets, cases and equipment to gain visibility of military goods movement globally. These regulations are significantly driving adoption of RFID tags amongst defense suppliers.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate. While the cost of setting up an RFID tags manufacturing unit is high requiring significant capital investments, there are low regulatory barriers for new players to enter the market.

Bargaining power of buyers: The bargaining power of buyers is high. The US RFID tags market has several dominant buyers who purchase RFID tags in bulk and can negotiate for lower prices. Substitute products also increase buyer bargaining power.

Bargaining power of suppliers: The bargaining power of suppliers is moderate. Though there are multiple component suppliers, RFID tags require specialized raw materials which gives suppliers some control over pricing but does not create switching costs for buyers.

Threat of new substitutes: The threat of new substitutes is high due to emergence of near field communication (NFC) tags and other wireless identification technologies that can replace traditional RFID tags.

Competitive rivalry: The competitive rivalry is high with presence of numerous global and regional players competing on pricing, product features and performance.

Key Takeaways

The global U.S. RFID Tags market size is expected to witness high growth over the forecast period from 2024 to 2031. The global U.S RFID Tags Market is estimated to be valued at US$ 1022 Mn in 2024 and is expected to exhibit a CAGR of 5.4% over the forecast period 2024 to 2031.

Regional analysis

The Western region is expected to dominate the U.S. RFID tags market during the forecast period backed by increasing adoption of RFID tags across industries such as retail, healthcare, transportation and logistics in this region. States like California, Texas and Florida hold significant market share in the Western region.

Key players

Key players operating in the U.S. RFID tags market are RF Code Inc., HID The U.S. Corporation, AMS AG, Omni- ID Ltd., Impinj Inc., NXP Semiconductors N.V., Alien Technology, Invengo Information Technology Co., Ltd., and Confidex Ltd., Avery Dennison Corporation. RF Code Inc. and Impinj Inc. have strong presence in the US market while Avery Dennison Corporation maintains its leading position globally.

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