RFID Market Size, COVID-19 Impact Analysis, Regional Outlook, Application Development Potential, Price Trend, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI3888
RFID Market size is set to grow at a commendable pace over 2021-2027, owing to the increasing availability of efficient and affordable RFID solutions. RFID, also known as Radio Frequency Identification, refers to a wireless communication system, that comprises of two main components, readers and tags. RFID systems transmit data using radio waves at varying frequencies.
The growing integration of RFID systems into manufacturing applications to enhance productivity is a major trend bolstering market outlook over 2021-2027. Manufacturers worldwide are shifting their focus towards utilizing RFID technology to aid in several manufacturing processes, from asset tracking to maintaining inventory oversight. RFID systems also help manufacturers mitigate risk of error and time-consuming activities. Tire brand Michelin, for instance, has announced its intention to fix all its tires with RFID tags by 2023. These tags are expected to serve a number of purposes, including allowing suppliers to identify their most installed tire models and avoid out-of-stock incidents.
The global RFID market revenue from the tag segment is poised to register a substantial growth rate through 2027, given the significant advantages of the products over conventional barcodes. Items with RFID tags can be automatically identified, without having to conduct contact reading. Also, RFID tags demonstrate higher reliability than barcodes, facilitating 100% real location throughout the supply chain.
Regionally, the Europe RFID market value is expected to account for a considerable share of the global industry by 2027. This is a result of the burgeoning demand for the product from supply chain applications, as well as the growing focus on manufacturing efficiency in the region. For instance, in 2019, France-based sports gear company Decathlon began fitting its high value items like surfboards, skis and snowboards with RFID labels, linked to electronic article surveillance security tags. This was done with an aim to improve inventory management and ensure better product availability.
Avery Dennison, Alien Technology, Zebra Technologies, CAEN RFID S.r.l, NXP Semiconductors, Impinj, and Applied Wireless Identifications Group, Inc. are among the main players operating in the RFID industry. These entities are implementing various strategies including partnerships, collaborations and new launches to enhance their global portfolio and market presence.
In September 2020, CAEN RFID introduced a new reader module for RAIN RFID in embedded applications. The technology, dubbed Hadronmini, is a high-performance and complete reader module in a compact form, well suited for integration in kiosks, mobile terminals, wearables or any other identification devices with embedded RAIN RFID technology. In April 2021, RAIN Alliance, a global collection of companies including NXP Semiconductors and Zebra Technologies Corporation, among others introduced the European Road Charging Workgroup. This working group was launched with an aim to promote the use of RAIN RFID as an electronic toll collection and roach charging technology on European roads.
Rising Focus on Industrial Automation During The COVID-19 Era May Impact RFID Market Trends
The ongoing coronavirus pandemic has created an unprecedented and massive global scale impact, with major industries like manufacturing and logistics bearing the brunt. As a result of the lockdowns and social distancing protocols that ensued following the declaration of the COVID-19 disease as a pandemic, many manufacturers observed a drastic slowdown in their operations.
In an attempt to alleviate the adverse impact of this slowdown, companies worldwide began looking for novel solutions to help revive operations, improve efficiencies and manage the disruptions in halted or slowed business operations. This is likely to prove beneficial for the RFID market over the forecast spell, as the IoT-based technology is helping to rapidly usher in an era of industrial automation and enhance efficiency in manufacturing. A notable example of this is Plexus, which witnessed 30% warehouse space savings, 97% reduction in product searching times and nearly 100% customer shipment accuracy upon implementation of a RAIN RFID solution.
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