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Radio Frequency Identification Market

Radio Frequency Identification Market by Component (RFID Tags, RFID Readers, RFID Software and Middleware), Application (Logistics & Transportation, Automotive, Retail & Consumer Goods, Agriculture, Healthcare, Government), and Region for 2022 –2028

Radio Frequency Identification Market by Component (RFID Tags, RFID Readers, RFID Software and Middleware), Application (Logistics & Transportation, Automotive, Retail & Consumer Goods, Agriculture, Healthcare, Government), and Region for 2022 –2028

Radio Frequency Identification Market - Analysis, Outlook, Growth, Trends, Forecasts

Radio Frequency Identification Market Snapshot

[196 Page Report] Future Market Insights (FMI) has projected the global radio frequency identification (RFID) market size to reach US$ 22.5 Bn in 2022. With a favorable demand outlook, sales are forecast to increase at an impressive 15.9% CAGR, reaching US$ 54.7 Bn by 2028.

Attribute

Details

Radio Frequency Identification Market Estimated Size 2022

US$ 22,585.9 Mn 

Radio Frequency Identification Market Value-based CAGR (2022-2028)

~15.9%

Radio Frequency Identification Market Projected Size in 2028

US$ 54,761 Mn

Increasing adoption of RFID tags in the manufacturing sector for asset management and quality control is expected to boost the market. Besides this, growing demand for contact tracing driven by the outbreak of COVID-19 is anticipated to continue pushing sales in the market.

The increasing focus on security and management of assets in the retail, healthcare, and automotive sectors also will create growth opportunities. As per FMI, sales of radio frequency identification are projected to represent 55% of the global asset tracking market share in 2022.  

Radio Frequency Identification Market 2013-2021 Outlook in Comparison to 2022-2028 Growth Forecast

Demand for RFID systems and software is projected to grow at a 15.9% CAGR, in comparison with the 9.4% CAGR registered between 2013 and 2021, as per FMI.

Growth of the market is expected to be driven by rising demand for supply chain management and asset management solutions in the retail, automotive, and manufacturing sectors. In the healthcare sector, increasing adoption of RFID tags for medical equipment management will continue augmenting the growth of the market in the forthcoming years.

Besides this, RFID technologies are widely being adopted in the aviation industry, especially in Airbus, Boing, and other defense aircraft for improving supply chain visibility, work-in-progress tracking (WIP), and logistics management.

In response to growing demand, manufacturers are focusing on the integration of connective technologies such as the Internet of Things (IoT) to facilitate the optimal identification of assets in real-time locations. Such developments are indicative of lucrative prospects for players in the market.

How Are Ongoing Advancements in RFID Technology Impacting Sales?

The structure and functioning of RFID tags make them uniquely versatile, but new integrations in this technology are making them more acceptable and adaptable in a variety of end-use sectors.

In the manufacturing sector, warehouse management systems (WMS) based on RFID are being used, thereby improving the traceability and precision in operations ranging from picking to delivery.

With the integration of IoT, RFID solutions can be turned into smart sensors, enabling manufacturers to track temperature, real-time location, and other aspects that influence supply chain management.

Earlier, manufacturers avoided active solutions due to limited shelf life and high costs. Thanks to recent developments in battery performance, active RFID is being adopted as they offer greater accuracy in long-range monitoring.

This has emerged as a key factor encouraging their applications in the healthcare sector for equipment management and maintaining strict access control. Also, mobility is one of the key advantages offered by RFID systems. To improve this aspect, manufacturers are integrating cloud-based data storage systems, making them an integral component in RFID technology.

When stored in the cloud, real-time data becomes more accessible and manageable, which in turn is enhancing stock accuracy, replenishment, and product availability. Cloud systems can potentially streamline processes in all areas of the supply chain, thereby enhancing productivity and accuracy in warehouses, IT departments, and other end-use sectors.

Backed by aforementioned factors, sales of RFID are expected to gain traction at a considerable pace over the assessment period, opines FMI.

Country-wise Insights

Why is the U.S. Radio Frequency Identification Market Witnessing High Demand?

Growing demand for effective asset management in the retail and healthcare sectors in the U.S. is propelling sales in the country, placing it as a dominant market in North America. The U.S. is home to a robust retail sector, housing global apparel, and consumer products brands.

Increasing focus on improving asset management in this sector will continue pushing sales. Prices and details of products with RFID tags are automatically recorded when the customer approaches the billing counter, which saves time and improves productivity in the retail sector.

In addition to this, the growing adoption of RFID tags in the aviation sector in the U.S. is expected to bode well for the market. These tags are being used in the aviation sector for the management of luggage, logistics, and other transportation equipment to facilitate timely delivery and avoid misplacement.

Against this backdrop, demand in the U.S. market is expected to gain traction over the assessment period.

How Will the China Radio Frequency Identification Market Fare?

Ongoing expansion of the healthcare and automotive sectors in China is expected to boost the market in the forthcoming years. As per FMI, China is expected to command a lion’s share in the East Asia market over the assessment period.

China is one of the largest automotive markets in the world. Applications of RFID tags in the automotive sector can improve vehicle identification and dealership. Through these tags, real-time status and location of vehicles can be acquired, which is a much-desired solution in the automotive sector.

Using RFID tags also improves productivity in automotive dealerships by reducing errors and offering remote data access in real-time. Favored by these factors, sales in the China marker are projected to remain high over the forecast period.

Will the U.K. Radio Frequency Market Emerge as a Lucrative Pocket?

Increasing adoption of RFID tags in vehicles for automated toll deduction on highways and roadways is propelling sales in the market. This is expected to place the U.K. as a lucrative pocket in the Europe market.

Increasing international tourism in the country is another factor spurring demand for RFID. In the aviation and hospitality sectors, these tags are actively being adopted to keep a track of luggage, passenger information, and other elements to improve security and accommodation of goods and packages. This is expected to continue boosting the U.K. market in the forthcoming years.

Category-wise Insights

Why is the Demand for RFID Tags Rising?

In terms of component type, sales in the RFID tags segment are projected to remain high over the forecast period. These tags are actively being used in sectors such as healthcare, retail, livestock management, customer service, logistics, and security, thereby augmenting the growth of the market.

RFID tags also facilitate tap-and-go credit card payments. Growing preference for contactless payment and delivery driven by the COVID-19 pandemic is spurring demand in the market. This trend is projected to continue in the forthcoming years, thereby fueling the growth of the market over the assessment period.

Which is the Leading Application Segment?

Based on applications, demand in the retail sector is projected to continue gaining momentum during the forecast period, finds FMI. These tags carry a unique product number, through which payment and inventory are managed. Sensor-based tags that incorporate IoT are in high demand in the retail sector, and the trend is expected to continue in the forthcoming years.

Real-time management and accessibility of product data in the retail sector improve inventory optimization, resource management, and location tracking. Owing to these benefits, small and large-scale retailers are actively adopting RFID tags and readers, thereby boosting the growth of the market.

Competition Landscape

Leading players operating in the global radiofrequency identification market are focusing on research and development to launch innovative products, thereby diversifying their product portfolios. In addition to this, players are investing in mergers, acquisitions, and collaborations to gain a competitive edge in the market. For instance:

  • In December 2021, Zebra Technologies Corporation announced that Crystal, a Colombina retailer and owner of popular brands Punto Blanco, Glax, Gef, and Babyfresh has selected the company’s RFID solutions to enable accurate and fast omnichannel sales while minimizing safety overstocks.                                                                            

Scope of Report

Attribute

Details

Forecast Period

2013-2021

Historical Data Available for

2022-2028

Market Analysis

Units for Volume and US$ Mn for Value

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia, Oceania, and MEA

Key Countries Covered

United States, Canada, Brazil, Mexico, Germany, UK, France, Italy, Spain, Nordic, Russia, Poland, China, India, Thailand, Indonesia, Australia and New Zealand, Japan, GCC countries, North Africa, South Africa, others.

Key Market Segments Covered

Component, Applications, and Region

Key Companies Profiled

Pricing

Available upon Request

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Radio Frequency Identification Market by Category

Component:

  • RFID Tags
    • Low Frequency (LF)
    • High Frequency (HF)
    • Ultra-High Frequency (UHF)
    • Microwave Frequency
    • Ultra-Wideband (UWB)
  • RFID Readers
  • RFID Software and Middleware

Applications:

  • Logistics and Transportation
  • Aerospace and Defense
  • Automotive
  • Retail and Consumer Goods
  • Agriculture
  • Healthcare
  • Government

Region

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East & Africa

Key Questions Answered in the Report

What is the global radio frequency identification market size?

The global radio frequency identification market is expected to reach a valuation of US$ 22.5 Bn in 2022.
The global radio frequency identification market grew at a robust 9.4% CAGR between 2017 and 2022.
Growing focus on security and asset management in the retail and healthcare sector, along with shifting consumer preference towards active RFID tags will continue boosting sales in the market.
Zebra Technologies Corporation, Invengo Information Technology Co., Ltd., Xerox Corporation, Thin Film Electronics ASA, HID Global Corporation, GAO RFID Inc., Impinj, Inc., Alien Technology, Omni-ID, Ltd. and Molex Inc. are some of the leading players operating in the global radio frequency identification market.
North America is projected to account for a dominant share in the global radio frequency identification market share during the forecast period.
The radio frequency identification market in Europe is anticipated to expand at a remarkable pace over the assessment period.

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