Global RFID Market Analysis (2012–2016) and Forecast (2017–2027)
The global RFID market is expected to witness significant revenue growth during the forecast period. This growth is mainly driven by rising demand for RFID solutions in supply chain management, healthcare sector and the retail and consumer sector. The global RFID market is projected to register a CAGR of 13.2% in terms of value during the forecast period 2017 – 2027. The global RFID market was valued at US$ 12.03 Bn in 2016 and is estimated to reach a market valuation in excess of US$ 47 Bn by 2027 end. The global RFID market is expected to represent incremental opportunity of US$ 30.80 Bn between 2017 and 2027.
RFID tags segment by component likely to create high incremental opportunity in the global RFID market
Revenue from the RFID tags segment in the global RFID market was US$ 3,646.2 Mn in 2016, representing a CAGR of 17% from 2012 to 2016. According to Future Market Insights forecast, revenue from the RFID tags segment in the global RFID market is anticipated to increase from more than US$ 4,200 Mn in 2017 to over US$ 16.3 Bn by 2027 end, representing a CAGR of 14.3% from 2017 to 2027. The RFID tags segment is expected to create incremental opportunity of US$ 12.05 Bn between 2017 and 2027. Revenue from the RFID readers segment in the global RFID market is anticipated to increase from more than US$ 5,500 Mn in 2017 to over US$ 18 Bn by 2027 end, representing a CAGR of 12.2% from 2017 to 2027. The RFID readers segment is expected to create incremental opportunity of US$ 12.3 Bn between 2017 and 2027.
Increasing use of RFID tags in supply chain management and in the healthcare sector anticipated to boost segmental revenue growth in the global RFID market
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 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 at the same time reducing human errors in healthcare processes. Healthcare management and monitoring of critical care equipment represent other interesting areas of application for the RFID market.
The adoption of RFID solutions has increased from larger customers such as Airbus, Boeing and the U.S. Department of Defense. Aerospace companies are increasingly leveraging RFID technology to garner benefits such as improved supply chain visibility, asset management and utilisation, work-in-process (WIP) tracking, improved maintenance tracking and efficient logistics and manufacturing operations. An increasing use of RFID solutions is the main driving force behind revenue growth in the global market.
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 the products with RFID tags are automatically recorded when the customer approaches the counter, without the need to scan each and every product, which saves the time of the customer. Moreover, it allows cost tally in one scan, which saves the time of the user as well as the product retailer. These advantages have encouraged retail and manufacturing companies to adopt RFID for tagging their products.
North America and APEJ were the dominant markets in 2016 in terms of sales in the global RFID market. Over the next few years, Asia Pacific countries are expected to be the key countries for sustainable revenue generation from RFID sales. Significant market potential exists in the growing markets of China, India and Japan. We have found that technological innovations are expected to remain the key strategy of manufacturers to facilitate business growth. Our analysts have observed that long-term contracts with business partners help increase revenue and new innovation strategies enable RFID vendors to reach new growth markets. We have also observed that the growth of the logistics and transportation industry increases the demand for RFID tags, readers and software solutions to track vehicles, assets and inventory. Our findings have been encapsulated in a new report titled “RFID Market: Global Industry Analysis 2012 – 2016 and Opportunity Assessment 2017 – 2027.” Governments across the globe have been taking major steps to track and streamline their import and export transactions by using innovative tracking solutions.
In this report, we have concentrated on the micro-economic factors and their relevance and impact on the global RFID market. For instance, we have come to a conclusion after inspecting this market in detail that increases in global GDP are likely to have a medium impact on the market over the forecast period; on the other hand, increase in global urbanisation is anticipated to have a low-medium impact over the forecast period. While assessing the market opportunity, our analysts have noticed two important traits:
Retail and consumer goods application segment is estimated to hold the highest market share in the global RFID market by 2027, and RFID solution providers need to offer innovative solutions to cater to this growing demand in the coming future
Agriculture, farming and livestock is the fastest growing application segment with livestock displaying the highest potential in the market
In-depth assessment of capabilities and detailed profiles of key competitors is the highlight of our report
Besides forecasting the global RFID market over a 10 year period and providing detailed information on the key market dynamics, we have included a competitive landscape to provide clients with a dashboard view, based on categories of providers in the value chain, presence in the RFID portfolio and key differentiators. This section has been primarily designed to provide clients with an objective and detailed comparative assessment of key providers specific to a market segment in the RFID supply chain and the potential players for the same. Report audiences can gain segment-specific vendor insights to identify and evaluate key competitors based on an in-depth assessment of capabilities and success in the marketplace. Detailed profiles of providers are also included in the scope of the report to evaluate their long-term and short-term strategies, key offerings and recent developments in the RFID market.
Given the ever-fluctuating nature of the global economy, we have not only conducted the market forecast in terms of CAGR but have also analysed the global RFID market on the basis of key parameters such as year-on-year (Y-o-Y) growth to understand the predictability of the market and to identify the right opportunities across the market. As previously highlighted, the global RFID market is split into a number of segments. All market segments are analysed in terms of basis point share to understand segmental contribution to overall market growth. This detailed level of information is important for identification of various key trends in the global RFID market. A key feature of this report is a comprehensive analysis of all key segments by absolute dollar opportunity. This is traditionally overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales and delivery perspective in the global RFID market. We have considered macro-economic indicators such as GDP, wholesale and retail trade, merchandise trade, and prices to arrive at the indicated market numbers.