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The radio frequency identification (RFID) market size is estimated to grow at a CAGR of 10.9% between 2022 and 2027. The radio frequency identification (RFID) market size is forecast to increase by USD 10,456.94 million. The growth of the market depends on several factors, including the adoption of inventory management systems, the adoption of RFID solutions in cloud middleware, and the increase in the adoption of RFID in the e-commerce market.
This radio frequency identification (RFID) market report extensively covers market segmentation by end-user (industrial, retail, BFSI, logistics, and healthcare and others), product (RFID tags, middleware, passive RFID systems, and active RFID systems), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The adoption of inventory management systems is notably driving the market growth, although factors such as the high deployment cost of active RFID systems may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The adoption of inventory management systems is notably driving market growth. The equipment or product's database was managed manually in end-user segments like industrial and retail, which resulted in more errors and inaccuracies and was a time-consuming process. However, the user can more precisely record and identify the product database with the introduction of RFID tags. Additionally, the end user can also correct data entry mistakes with the aid of RFID tags. For instance, RFID tags are used in machinery or equipment for many medical applications in the healthcare sector. It aids in the accurate locating or identification of equipment in hospitals. Currently, a lot of hospitals make individual IDs using RFID tags. This can help keep a record of a patient's medical history current.
An accurate product database is necessary for sectors like manufacturing, logistics, and warehousing as it will improve decision-making within the end-user industries. Simple mistakes in entity management, tracking, or counting can cause significant losses. The use of RFID systems can help prevent this. With the introduction of RFID tags, vendors, manufacturers, and other end-users have found major improvements in overall data entry. Therefore, these factors will fuel the radio frequency identification market growth during the forecast period.
The growing interest in smart retail stores is an emerging trend in the market. A brick-and-mortar retail location that makes use of smart technologies like smart cards and mirrors is known as a smart retail store. Smart stores use RFID technology to both deliver goods to customers and allow them to browse the goods and services these businesses have to offer. Walmart Inc. and Amazon.com Inc. have successfully incorporated RFID developments into their daily business operations, outperforming traditional retail stores.
As they give customers a variety of shopping, delivery, and payment options, smart retail stores appeal to the target demographic. For instance, Amazon.com Inc. launched Smart Stores in India in June 2020. These small stores offer a variety of products. Aside from larger retailers like Amazon.com Inc. and Alibaba Group Holding Limited, smaller vendors also intend to take advantage of the opportunities presented by smart retail stores. For instance, Vivo Smart Retail was launched in India in May 2020 to help retailers meet the demand for smartphones through its smart retail network. Therefore, during the forecast period, the growth of the global RFID market is anticipated to be fueled by the emergence of smart retail stores that incorporate RFID technology.
The high deployment cost of active RFID systems is a major challenge impeding market growth. The price of RFID solutions varies depending on the kind of readers and the kind of tags. For instance, the least expensive automation solution is inventory tracking passive RFID tags. Inventory management passive tags typically cost USD 0.21. Passive tags, however, are inapplicable to widespread applications. In these situations, active tags are used in extensive applications because they can read the frequency at a greater range. However, the installation of active RFID systems is expensive.
The middleware, active readers, and active tags make up the active RFID system. SMEs generally do not have a lot of funds on hand to spend on active RFID tags. One of the main difficulties is the cost of implementing active RFID. Deploying and integrating management solutions (middleware) with active RFID involves significant upfront costs. As a result, it has an impact on vendors' profit margins. Thus, the adoption of active RFID systems is being slowed, which in turn, will hinder the growth of the global RFID market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Radio Frequency Identification (RFID) Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
NXP Semiconductors NV - The company designs semiconductors and software for mobile communications, consumer electronics, security applications, and networking. The key offerings of the company include radio frequency identification solutions such as hard tags and labels.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the industrial segment will be significant during the forecast period. Supply chain management and inventory management are two uses of RFID technology in the industrial sector. Both passive and active RFID tags are used in the industrial sector. The use of these tags is application-specific. For instance, active tags with an expanded frequency range are used by large industrial end users. The end-user can speed up and increase the effectiveness of the production process by integrating RFID tags.
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The industrial segment was valued at USD 3,110.50 million in 2017 and continued to grow until 2021. The end-user of RFID technology can make analytical choices based on database management. The technology enables industrial end-users to track inventory that is stalled at various production or assembly stages and to better understand inventory management. The manufacturer can better understand the time required for a component or raw material to move through the various stages of the production cycle or assembly line by integrating RFID solutions like RFID tags, RFID middleware, and RFID readers. Utilizing RFID middleware in the production process also makes it easier to comprehend and monitor the movement of semi-finished goods that become stuck at various production or assembly line stages. For instance, to track each manufacturing step that the engine block or cylinder head underwent, General Motors Co. has implanted RFID tags directly into cylinder heads and engine blocks. Thus, it is expected that the industrial segment in the global radio frequency identification market will grow owing to the increasing applications of RFID in the industrial processes during the forecast period.
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North America is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
During the forecast period, a significant rate of growth in the regional radio frequency identification market is anticipated. This is a result of the region's increased adoption of ideas like smart factories. RFID technology is utilized in a number of smart factory and industry processes to decrease manual labor and improve inventory accuracy. It has become more widely used in supply chain management, smart factories, and other industries. Additionally, nations like Mexico and Canada are also investing more money in the construction of transportation infrastructure to support the growth of domestic industries and third-party logistics, which is anticipated to propel the market for chip-less RFID solutions in the logistics sector in North America during the forecast period.
The development of Industry 4.0, which combines digital and physical systems to enable M2M communication using RFID, as well as increased investment in smart factories is anticipated to increase demand for RFID technology. With the advent of Industry 4.0, the manufacturing of customized products is becoming more flexible and effective due to the use of data stored in RFID tags. Additionally, increasing automation and standardization benefits the industrial sector, thereby boosting the industrial sector's growing need for RFID solutions. Thus, these factors are anticipated to propel the growth of the regional RFID market during the forecast period.
The regional RFID market witnessed a slowdown in 2020 owing to COVID-19. However, in 2021, the demand for RFID products rebounded as regional end-user activities resumed due to the initiation of large-scale COVID-19 vaccination drives. As this trend is expected to continue, the regional radio frequency identification market also is estimated to witness growth during the forecast period.
The radio frequency identification (RFID) market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the global radio frequency identification (RFID) market as a part of the global technology hardware, storage, and peripherals market within the overall global information technology market. The parent global technology hardware, storage, and peripherals market covers manufacturers of cellular phones, personal computers, servers, electronic computer components, and peripherals. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
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Radio Frequency Identification (RFID) Market Scope |
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Report Coverage |
Details |
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Page number |
181 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 10.9% |
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Market growth 2023-2027 |
USD 10,456.94 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
10.1 |
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Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
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Performing market contribution |
North America at 40% |
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Key countries |
US, Canada, China, Japan, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Alien Technology LLC, Avery Dennison Corp., CipherLab Co. Ltd., CoreRFID Ltd., Datalogic Spa, eAgile Inc., FEIG ELECTRONIC GmbH, Fujitsu Ltd., GAO RFID Inc., Honeywell International Inc., Impinj Inc., Mojix Inc., Nedap NV, NXP Semiconductors NV, RFID4U, SATO Holdings Corp., Siemens AG, Unitech Computer Co. Ltd., Zebra Technologies Corp., and ASSA ABLOY AB |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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