Radio Frequency Identification Market Outlook 2024 to 2034
The radio frequency identification market share is estimated to show promising growth throughout the forecast period, expanding at a CAGR of 13.2%. The radio frequency identification market value is expected to expand from USD 16,315.67 million in 2024 to USD 56,372.72 million by 2034.
Trends Analysis of Radio Frequency Identification (RFID) Market
- The advent of sled readers or portable RFID readers has enhanced the possibilities of RFID technologies. Portable RFID readers are used to conveniently and cost-effectively track vehicles. As a result, they are in high demand in the transport sector.
- RFID tags are increasingly adopted in the manufacturing sector to manage and quality control assets.
- Key players are recognizing that the plastic's extra robustness is not required in numerous applications. As a result, they are introducing a sustainable line of RFID tags to help end users drastically reduce their carbon emissions.
- Surging use of RFID technology in logistical applications to enhance production procedures and supply chains across different industries.
- Rising integration of connective technologies like the Internet of Things (IoT) to improve optimal detection of assets in real-time locations. Thus, offering lucrative prospects for leading companies in the market.
| Attributes |
Key Insights |
| Estimated Radio Frequency Identification Market Size (2024E) |
USD 16,315.67 million |
| Projected Radio Frequency Identification Industry Value (2034F) |
USD 56,372.72 million |
| Value-based CAGR (2024 to 2034) |
13.2% |
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Category-wise Radio Frequency Identification Market Insights
RFID Tags to Account for a Prominent Market Share in Upcoming Years
| Leading Component |
RFID Tags |
| Value Share (2024) |
28.60% |
The RFID tags segment is expected to acquire a market share of 28.60% in 2024. Over the forecast period, this segment is anticipated to expand based on:
- RFID tags are compatible with IoT ecosystems. This is increasing its use for data collection and analysis in real time. The rising deployment of RFID tags hinges on the fact that RFID tags help in improving different aspects of operations, including predictive maintenance, personalized customer experiences, etc.
- Businesses are raising their use of RFID tags combined with big data tools to allow businesses to obtain valuable insights into their operations, recognize trends, and make data-driven decisions.
Retail Sector to Account for a Sizeable Portion of RFID Market
| Leading Application |
Retail |
| Value Share (2024) |
21.60% |
The retail sector is excessively using RFID technology. In 2024, this sector is projected to obtain 21.60%. Key factors driving segment growth are:
- Retail stores value RFID tags that are used in self-checkout options as they allow customers to scan and pay for products swiftly and efficiently, thus shortening the checkout queues and wait times.
- RFID tags are highly preferred as they store all product details that can be gathered by customers using their smartphones. Such an informative and interactive shopping experience offered by the use of RFID tags is favoring its adoption in consumer products.
Radio Frequency Identification Market Analysis by Country
| Countries |
Forecast CAGR (2024 to 2034) |
| The United States |
10.10% |
| Germany |
1.70% |
| Japan |
2.00% |
| China |
13.70% |
| Australia and New Zealand |
16.70% |
Analysis of New RFID Capabilities and its Implication in the United States Market
The radio frequency identification (RFID) market in the United States is projected to register a CAGR of 10.1% through 2034. Such promising growth trajectory of this market is driven by:
- The United States is the early adopter of the latest technological breakthroughs, making it a top market for technologies like RFID. In September 2023, for instance, Amazon’s Just Walk Out technology extended to items like softlines, clothing, fan gear, etc.
- Surging demand for effective asset management in the healthcare and retail sectors is contributing to a spike in sales of RFID tags. These tags carry product details and prices that are automatically recorded when the customer reaches the billing counter, saving time and energy for the retail sector.
- The United States is home to consumer products and housing apparel brands, making it a top market for the adoption of RFID technology.
- Increasing the use of RFID tags in the aviation sector in the United States to effectively manage logistics, luggage, and other transportation equipment to facilitate prompt delivery and prevent misplacement.
Popular Brands in China to Use RFID Chips to Better Track Food Products
The China radio frequency identification market is set to expand at a CAGR of 13.7% through 2034. The radiofrequency identification (RFID) market dynamics are driven by factors like:
- Constant growth in the automotive sector is translating to rapid adoption of RFID tags. Stores of automotive constantly use RFID tags to enhance vehicle dealership and identification. These tags help acquire real-time location and status of vehicles, making it a desirable solution in the automotive sector. These tags also enhance productivity in automotive dealerships by providing remote data access in real time and reducing errors.
- RFID is being deployed by leading companies to enhance supply chain efficiencies. For instance, in January 2024, McDonald’s China entered into a partnership with Cainiao, which is Alibaba Group Holding’s logistics business. The former will be deploying the RFID technology of Cainiao to tag and track food packages from factories to restaurants.
Germany Observing Growing Demand for RFID Tags in the Automotive Sector
RFID technology market in Germany to record a growth rate of 1.7% through 2034. Factors contributing to the market’s growth are as follows:
- RFID tags are increasingly being adopted in automobiles for automated toll deduction on roadways and highways.
- Growing international tourism in Germany is also spurring demand for RFID. In the hospitality and aviation sectors, these tags are actively being used to track passenger information, luggage, and other elements to enhance the accommodation and security of packages and goods.
RFID Technology to Transform Customer Experience in Australia and New Zealand
The Australia and New Zealand RFID market is projected to expand at a CAGR of 16.7% from 2024 to 2034. The market is being catalyzed by:
- The retail industry is continuously evolving with the integration of online as well as physical shopping experiences, which has become a necessity in modern times. RFID, often an underutilized tool, is expected to redefine retail inventory management and play an important role in the present retail landscape.
- In the proceeding years, a rising count of retailers are expected to utilize RFID’s capacities by replenishing processes and automating tracking, integrating online and in-store operations, and improving data analytics for actionable insights into customer behavior.
RFID Tags are Being Used in Japan to Control Food Wastage at Grocery Stores
The Japan radio frequency identification (RFID) market is expected to register a 2% CAGR through 2034. Key factors that are promoting market growth are as follows:
- Japan has started using RFID tags to check food wastage to take a step toward the prevention of millions of tons of food waste every year. The system permits stores to provide discounts or premium points for products whose consume-buy and sell-by dates are approaching. This program helps reduce the rate at which food is wasted in Japan.
- In the historical period, the Ministry of Economy, Trade, and Industry (METI) in Japan revealed its intention to build on the project’s successful pilot, which saw three convenience stores, including RFID tags to products to enhance item-level inventory monitoring.
Competitive Strategies to Get Ahead in Radio Frequency Identification Market
Key players are finding significant growth in the RFID market. This can be attributed to the rising market competition and the international presence of premium RFID solutions. Key players in the market are concentrating on research and development activities to introduce distinct products, thus expanding their product portfolios.
Market players are expected to invest in acquisitions, mergers, and collaborations to have an upper hand in the market. Industry participants are customizing their services and products to resolve unique challenges and leverage opportunities presented by certain sectors. This targeted approach is expected to allow companies to serve niche markets.
Market contenders are collaborating with government agencies, industry associations, and research institutions to foster standardization efforts, knowledge sharing, and the development of new applications for RFID technology. This is broadening market awareness and facilitating wider adoption.
Latest Developments in the Radio Frequency Identification Market
- In October 2023, Fresenius Kabi reportedly revealed that it has launched +RFID smart labels for Diprivan® (Propofol) Injectable Emulsion that are sold in the United States. These smart labels have become fully compatible with all prominent RFID kit and tray systems in the United States.
- In July 2023, Beontag launched four new RFID tags, leveraging the new Impinj RAIN RFID tag chips of M800 series. These RFID tags are used for industrial and retail applications.
- In October 2023, Avery Dennison Smartrac launched a line of sustainable RFID tags and inlays intended for healthcare, logistics, and retail industries. These tags are either 95% or 100% plastic-free. This allows them to be recycled at the end of life in situations where they are linked to cardboard or paper items.
Key Coverage in the Radio Frequency Identification Industry Report
- Adjacent Study of the Passive RFID Market, Active Radio-Frequency Identification (RFID) Market, and RFID Readers Market
- Emerging Opportunities in the RFID Market
- Evaluation of Revenue Trends in the RFID Market
Key Players in Radio Frequency Identification 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.
- Molex Inc.
- Others
Frequently Asked Questions
How Big Will be the Radio Frequency Identification Industry in 2024?
The market is estimated to account for US$ 16,315.67 million in 2024.
At What Rate Will the Radio Frequency Identification Industry Grow?
Throughout the forecast period, the radio frequency identification industry is projected to register a CAGR of 13.2%.
What is the Expected Value of the Radio Frequency Identification Industry by 2034?
By 2034, the radio frequency identification industry is forecast to be worth US$ 56,372.72 million.
Which Component is Expected to Acquire a Significant Share in the Radio Frequency Identification Industry?
RFID tags segment is expected to obtain a considerable value share in the radio frequency identification industry.
Which Countries are Projected to Find Significant Growth Opportunities?
China, Australia, and New Zealand are expected to find substantial growth prospects in the future.
Who are the Leading Companies in the Radio Frequency Identification Industry?
Leading companies in the radio frequency identification industry include Alien Technology, Omni-ID, Ltd., and Molex Inc.
