An Incisive, In-depth Analysis on the Rfid Market
This study offers a comprehensive, 360 degree analysis on the Rfid market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Rfid market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.
RFID, as considered under the scope of the report, is used in various industries for supply chain management.
The global RFID market is estimated to be valued at US$ 12,912.0 Mn by the end of 2017 and is expected to grow in the coming years at a CAGR of 14.5% in terms of value over the forecast period. The global RFID market is anticipated to represent a large incremental opportunity between 2018 and 2028.
On the basis of application, the global RFID market can be segmented into logistics & transportation, aerospace & defence, automotive, retail & consumer goods, agriculture, healthcare, government and others. The retail and consumer goods segment is expected to account for a sizable share of the overall RFID market by the end of the forecast period. The growth of the RFID market is predominantly driven by the rising need for efficient supply chain management in the developing economies of South East Asia & Others of APAC, Middle East & Africa and China. In the healthcare sector, the focus on RFID technology for the tracking and classification of medical instruments is rising, and this is expected to drive the demand for the technology. The adoption of RFID technology by customers of aircrafts, such as Airbus, Boeing and the U.S. Department of Defence, for improving supply chain visibility, asset management & utilization, work-in-process (WIP) tracking, improved maintenance tracking and efficient logistics & manufacturing operations has increased.
The North America RFID market holds a major value share in the global market and is likely to maintain its dominance in the global RFID market over the forecast period. The market in this region is projected to represent a significant incremental opportunity between 2018 and 2028. Rising need for efficient supply chain management is expected to support the growth of the North America RFID market during the forecast period. RFID stores detailed information related to the product on which it is tagged. The prices and details of products with RFID tags are automatically recorded when the customer approaches the counter without the need to scan every product, which saves the time of the customer. Moreover, it allows the cost tally in one scan, which saves the time of the customer as well as the retailer. These advantages have encouraged retail and manufacturing companies across developing regions such as SEA & Others of APAC and China to adopt RFID for tagging their products. China is expected to present attractive opportunities for RFID manufacturers followed by countries located in the South East Asia & Pacific. The China RFID market is estimated to grow at a significant CAGR in terms of value over the forecast period. Sales of RFID in the Western Europe market are projected to represent a total incremental opportunity of US$ 6,802.7 Mn and the Latin America RFID market is also anticipated to witness significant growth.
At present, the vendors in the market are focusing on the integration of RFID with IoT to be able to identify an object and its real-time location. Some of the market vendors in the global RFID market include Zebra Technologies Corporation; HID Global Corporation; Thin Film Electronics ASA; Invengo Information Technology Co., Ltd.; GAO RFID Inc.; Impinj, Inc.; Xerox Corporation; Omni-ID; Alien Technology, LLC and Molex, LLC.
Key developments in the RFID market
In January 2017, Zebra Technologies Corporation launched Zebra SmartSense RFID for application in the retail sector for identifying and tracking the location of merchandise, associates and shoppers in a retail store in real-time
In May 2017, HID Global Corporation launched IoT solutions to offer enterprises solutions for asset management and equipment management. HID Location Services is used for item management, and it monitors the location and movement of assets & equipment across multiple locations or in a particular area
In February 2017, Impinj, Inc. entered into a partnership with STANELY Healthcare, a leading provider of healthcare products, to integrate Impinj’s Platform with MobileView Real-Time Location Systems (RTLS) software platform to offer RFID products for application in the healthcare industry.
The global RFID market is expected to register a CAGR of 14.5% during 2018 – 2028 with SEA and Others of APAC, Western Europe and North America accounting for significant market value shares by the end of the forecast period.
FMI delivers key insights on the global RFID market in its report titled “RFID market: Global Industry Analysis 2013 – 2017 and Opportunity Assessment 2018 – 2028.” Growth in the value of the global RFID market is estimated to remain attractive as the market is expected to grow continuously at a CAGR of 14.5% in terms of value during the forecast period 2018 – 2028. On the basis of components, the RFID software and middleware segment is expected to register attractive growth over the forecast period. Based on application, the agriculture segment is estimated to gain high penetration in terms of market share during the forecast period.
The annual revenue of the global RFID market was US$ 12,912.0 Mn by the end of 2017, which is expected to grow at a steady pace over the coming years. The dominating regions, i.e., North America, SEA & Others of APAC and Western Europe, are expected to collectively account for a majority share in the global RFID market. These regions are likely to dominate the global market over the forecast period.
Over a decade ago, RFID technology was used by large enterprises. With improvements in technology and economical cost, this technology has been adopted by small and medium enterprises. RFID technology is widely used by all tier companies to streamline operations and enhance the visibility of their supply chain and logistics operations. The usage of RFID technology in automated item identification systems is gaining importance in the retail sector.
The increasing need for RFID tags across the globe is driven by robust opportunities in the healthcare sector. In the healthcare sector, an increasing focus on RFID technology for the tracking and classification of medical instruments has been driving the demand for RFID tags worldwide. This technology holds immense potential for improving supply chain efficiency and ensuring patient safety while reducing human errors in healthcare processes at the same time. Healthcare management and monitoring of critical care equipment represent other interesting areas of application for the RFID market. The automotive and aerospace industry is adopting the RFID technology especially for the tracking of vehicles, inventory management of spare parts and visibility in logistics operations. Also, vendor management has become smoother with use of RFID technology since it provides detailed performance metrics.
On the basis of FMI analysis, the RFID tags in the component segment are expected to dominate the market due to the high penetration of advanced technologies such as RAIN RFID tag in various industry verticals. The High Frequency (HF) sub-segment in the RFID tags segment is estimated to remain dominant in terms of market share during the forecast period. On the basis of applications, the agriculture segment will be a dominating segment due to the wide adoption of RFID technology for the tagging of animals through which the farmers can easily trace them and improve supply chain efficiency.
The North America RFID market is expected to dominate the global RFID market due to the large automotive tires market in the country. The market has huge potential in China owing to major technological advancements in the healthcare, retail and consumer goods markets. The SEA and Others of APAC RFID market will be a target market for market participants looking to penetrate the retail and consumer goods segment. Latin America is estimated to grow with an above-average CAGR over the forecast period. Brazil is expected to hold a major revenue share in the Latin America RFID market over the forecast period.
According to FMI analysis, long-term contracts with business partners are estimated to help increase revenue and new innovation strategies are likely to enable RFID vendors to reach new growth markets. Some of the market participants in the global RFID market report include Zebra Technologies Corporation; HID Global Corporation; Thin Film Electronics ASA; Invengo Information Technology Co., Ltd.; GAO RFID Inc.; Impinj, Inc.; Xerox Corporation; Omni-ID; Alien Technology, LLC and Molex, LLC.