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RFID Market - By Component (Tags, Antennas, Readers, Middleware), By System (Active RFID System, Passive RFID System), By Application (Retail, Financial Services, Healthcare, Industrial, Government, Others) Forecast 2024 – 2032

  • Report ID: GMI8068
  • Published Date: Feb 2024
  • Report Format: PDF

RFID Market Size

RFID Market size was valued at over USD 15 billion in 2023 and is estimated to register a CAGR of over 12% between 2024 and 2032. One key driver for the RFID (Radio-Frequency Identification) industry is the increasing demand for improved supply chain visibility and efficiency.
 

RFID Market

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RFID technology enables automatic identification and tracking of items in real-time, providing a comprehensive and accurate view of the entire supply chain. RFID technology allows for real-time tracking of inventory movements, reducing the likelihood of errors associated with manual data entry. This leads to more accurate inventory levels and helps organizations optimize their stock levels, minimizing both excess and insufficient stock situations.
 

The automation and efficiency introduced by RFID systems can lead to significant cost savings in the supply chain. Enhanced visibility and automated tracking reduce the need for manual labor, minimize errors, and streamline various processes, resulting in overall operational efficiency.
 

For instance, in January 2023, MishiPay Ltd. announced the launch of its new RFID self-checkout kiosk. The kiosk utilizes RFID sensors, enabling customers to scan and remit payment for items without requiring the scanning of each item's barcode. Upon completion of the purchase, the RFID security tags are automatically rendered inactive, permitting customers to exit the store. This makes the checkout process faster and more efficient.
 

The widespread adoption of RFID technology faces a notable constraint due to persistent privacy concerns. RFID involves continuous tracking and data collection, which can include sensitive information related to individuals, products, and assets. This constant surveillance has raised apprehensions among consumers about the potential misuse of personal data. Regulatory bodies, acknowledging the importance of safeguarding privacy, have intensified scrutiny, impacting the seamless integration of RFID in various applications. Addressing these privacy concerns is crucial for building trust and ensuring the ethical use of RFID technology in diverse sectors.
 

RFID Market Trends

The RFID industry is witnessing a trend towards integration with Internet of Things (IoT) and cloud technologies. This integration enhances the capabilities of RFID systems by enabling real-time data sharing, analysis, and accessibility. Combining RFID with IoT allows for a more comprehensive and interconnected approach to data management, leading to improved efficiency in various applications such as supply chain management, asset tracking, and inventory control.
 

There has also been an increasing demand in the aviation sector for RFID labels, especially in providing enhanced services for passengers, such as real-time baggage tracking. According to Avery Dennison, implementing RFID-based labels in the Aviation industry has reduced mishandling rates by 13% and has cut ramp loading time by around 4 minutes per aircraft turn.
 

Passive Ultra-High Frequency (UHF) RFID technology is experiencing increased adoption, particularly in supply chain and logistics applications. The passive UHF RFID tags offer longer read ranges, improved data transfer rates, and cost-effectiveness. This trend is driven by the need for efficient and scalable solutions in large-scale operations. The technology's ability to handle simultaneous multiple tag readings has led to its widespread use in inventory management, retail, and asset tracking, contributing to the market growth.
 

The passive RFID tags are mainly powered by the readers and do not have a battery. However, the active type of RFID tags are powered by batteries. These RFID tags can store a wide range of information, right from one serial number to several pages of crucial data.
 

RFID Market Analysis

RFID Market Size, By Application, 2021- 2032 (USD Billion)
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Based on application, the market is segmented into retail, financial services, healthcare, industrial, government, and others. The Retail segment is estimated to register a significant growth rate of over 12.2% CAGR during the forecast period of 2024-2032.
 

RFID in retail involves the utilization of RFID tags on items that emit signals to RFID readers, which are then processed by the software, providing real-time results for transactions, stock taking, inventory levels, or individual customer purchase order history. RFID in retail eases the typical retail inventory process, which is manual, time-consuming, and only performed at predetermined intervals. Item tracking is one of the major applications that retailers use RFID. RFID in retail can also be used to prevent theft and track items that are usually moved and often misplaced.
 

Several companies have adopted RFID as an approach to control inventories. Leaders include Zara, H&M, Target, Macy's, Uniqlo, Nike, Adidas, Lululemon, Footlocker, Levi's, Tommy Hilfiger, Ralph Lauren, and Victoria's Secret. E-commerce is fueling much of the adoption, with high inventory accuracy levels required to support processes like store fulfillment and BOPIS (buy online, pick up in-store). More adaptive retailers are innovating new applications of RFID, such as streamlining omnichannel offerings, such as BOPIS (buy online and pick up in-store), as well as improving supply chain visibility and self-checkout.
 

RFID Market Share, By Component, 2023
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Based on component, the RFID market is segmented tags, antennas, readers, and middleware. The tags segment accounted for a business share of over 40% in 2023. RFID tags are used to store and transmit data wirelessly via radio waves, enabling them to be read and identified remotely by RFID readers. Some standard applications of RFID tags include inventory management, asset tracking, equipment tracking, vehicle tracking, access control in security, contactless payment, and enhancing customer service, among others. These benefits are significantly contributing to the segment’s increasing share.
 

In addition, technological advancements are reducing the size of RFID tags day by day, making them easy to install/attach in many applications, and are reducing the cost, which bodes well for the segment’s expansion.
 

China RFID Market Size, By Region, 2021- 2032 (USD Billion)
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Asia Pacific witnessed significant share in the global RFID market in 2023, accounting for a market share of over 30%. The market in the Asia-Pacific region has been witnessing substantial growth, driven by increased adoption across diverse industries. The retail and logistics sectors are leveraging RFID for enhanced inventory management and supply chain optimization. The burgeoning e-commerce industry, particularly in countries like China and India, has propelled RFID adoption to improve order fulfillment and package tracking.
 

Government initiatives focused on smart cities in countries such as Japan and South Korea further contribute to RFID deployment, addressing areas like transportation and public safety. The manufacturing sector embraces RFID for process optimization in alignment with Industry 4.0 principles. In agriculture, RFID aids in supply chain traceability and food safety.
 

The healthcare industry benefits from RFID for asset tracking and inventory management, enhancing overall operational efficiency. Continuous technological advancements and a growing awareness of RFID benefits are key factors shaping the RFID landscape in the dynamic Asia-Pacific market.
 

RFID Market Share

3M provides RFID solutions and technologies, including RFID tags and systems. The company is recognized for its diverse range of products and services across various industries, and its RFID offerings cater to applications such as asset tracking, inventory management, and supply chain optimization.
 

Key players focus on integrating sensors, increased memory, and new cloud-based capabilities to enhance their product offerings. In addition, they are investing heavily to integrate these technological advancements, which is anticipated to harness the innovation and growth of the market. Many companies are also engaging in mergers & acquisitions, strategic partnerships, regional expansions, and product launches to strengthen their market position.
 

RFID Market Companies

Major players operating in the RFID industry are:

  • 3M Company
  • Alien Technology
  • Avery Dennison Corporation
  • CAEN RFID
  • Checkpoint Systems
  • Datalogic S.p.A.
  • HID Global Corporation
  • Impinj, Inc.
  • Invengo Technology Pte. Ltd.
  • Mojix, Inc.
  • NXP Semiconductors
  • Smartrac N.V.
  • STMicroelectronics
  • Sato Holdings Corporation
  • Zebra Technologies Corporation
     

RFID Industry News

  • in January 2023, MishiPay Ltd. announced the launch of its new RFID self-checkout kiosk. The kiosk utilizes RFID sensors, enabling customers to scan and remit payment for items without requiring the scanning of each item's barcode. Upon completion of the purchase, the RFID security tags are automatically rendered inactive, permitting customers to exit the store.
     
  • In June 2022 - Fresenius Kabi announced that the company had enhanced its RFID portfolio of radio frequency-tagged medications to make it compatible with AmerisourceBergen's medication tray solution. The medication tray solution is designed to help hospitals improve medication inventory visibility and tracking using RFID.
     

The RFID market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Component, 2018 - 2032

  • Tags
  • Antennas
  • Readers
  • Middleware

Market, By System, 2018 – 2032

  • Active RFID System 
  • Passive RFID System

Market, By Application, 2018 – 2032

  • Retail
  • Financial services
  • Healthcare
  • Industrial
  • Government
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
    • Rest of Asia Pacific 
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • MEA
    • UAE
    • Saudi Arabia
    • South Africa
    • Rest of MEA

 

Authors: Suraj Gujar, Sandeep Ugale

Frequently Asked Questions (FAQ) :

RFID market size crossed USD 15 billion in 2023 and is expected to register over 12% CAGR from 2024-2032 owing to the increasing demand for improved supply chain visibility and efficiency worldwide.
The retail segment in RFID industry is expected to register over 12.2% CAGR from 2024-2032 due to their ability to ease the typical retail inventory process, which is manual, time-consuming, and only performed at predetermined intervals.
Asia Pacific held over 30% share of the RFID industry in 2023 and is expected to register a commendable CAGR from 2024-2032 due to increased adoption across diverse industries, and the burgeoning e-commerce industry in the region.
3M Company, Alien Technology, Avery Dennison Corporation, CAEN RFID, Checkpoint Systems, Datalogic S.p.A., HID Global Corporation, Impinj, Inc., Invengo Technology Pte. Ltd., Mojix, Inc., NXP Semiconductors, and Smartrac N.V. are some of the major RFID companies worldwide.

RFID Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 15
  • Tables & Figures: 296
  • Countries covered: 22
  • Pages: 250
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