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The Radio Frequency Identification (RFID) Market size is estimated to grow by USD 14.20 billion at a CAGR of 12.83% between 2023 and 2028. The adoption of inventory management systems helps businesses improve their operational efficiency, reduce costs, and enhance customer service by ensuring accurate inventory tracking and management. The adoption of RFID solutions in cloud middleware enables businesses to integrate RFID technology into their existing systems more easily, leading to increased adoption of RFID technology in various industries. The increased adoption of RFID in e-commerce is driven by the need for improved inventory visibility, faster order processing, and enhanced customer experiences, driving growth in the market for RFID solutions in e-commerce.
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The report offers extensive research analysis on the market, with a categorization based on Product, including RFID tags, middleware, passive RFID systems, and active RFID systems. It further segments the market by End-user, encompassing industrial, retail, BFSI, logistics, healthcare, and others. Additionally, the report provides Geographical segmentation, covering APAC, Europe, North America, Middle East and Africa, and South America. Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD billion) for all the mentioned segments.
The RFID tags segment is estimated to witness significant growth during the forecast period. This segment refers to an electronic tag that is integrated into the object/asset that exchanges data with a reader through radio waves. In addition, there are two main components, namely, an antenna and an integrated circuit (IC). Furthermore, an antenna is used to receive the radio frequency.
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The RFID tags segment was the largest segment and was valued at USD 4.91 billion in 2018. Moreover, the market is growing in several operational processes across the industrial landscape. In addition, a rising number of end-user industries that require access management and material identification has driven the market. Furthermore, these tags decrease the pressure on manual processes, enhance the efficiency of operations, increase asset traceability, and improve reliability. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
The increasing adoption of RFID technology in the industrial segment will increase the market growth. The adoption of this technology in the industrial segment is fuelled by its use for supply chain management and inventory management. In addition, in the industrial segment, both passive and active tags are used. Moreover, the use of active and passive tags depends highly on the application. In addition, the integration helps the end-user in shortening the production process and improving the efficiency of the production process. Furthermore, this technology also enables the end-user to make analytical decisions based on database management. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth 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. One of the main factors that are fuelling the growth of the radio frequency identification middleware market in North America is the increased adoption of concepts such as smart factories in the region. In addition, this technology is used in various processes of smart factories and industries to reduce manual work and increase the accuracy of inventory. Moreover, there has been an increase in the adoption in smart factories and industries, as well as supply chain management. For example, According to the Bureau of Transportation Statistics, the total transborder freight between the US and Canada surged by 76.8% in April 2021 when compared to the same period in the previous year. Hence, such factors are driving the market growth in North America during the forecast period.
The market is witnessing significant growth, driven by its widespread adoption in various industries such as manufacturing, logistics, and warehousing. RFID technology enables efficient inventory management and asset tracking through the use of these tags and readers. In the context of toll collection, RFID solutions like FASTag have revolutionized electronic toll collection systems, enhancing efficiency and reducing congestion at toll booths. With advancements like 5G and the Internet of Things (IoT), These systems are becoming more advanced, enabling real-time location systems (RTLS) and sensor networks for improved resource optimization. Expert analysis indicates a positive outlook for the market, with continued growth expected in the coming years. 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.
One of the key factors driving the market growth is the increased adoption of RFID in e-commerce. The market is experiencing rapid growth, which is driving the market. Additionally, in the e-commerce sector, inventory is stored in warehouses and must be regularly updated. RFID technology is used in e-commerce to manage volatile inventory and provide stock updates, leveraging these solutions for efficient inventory management.
The technology in e-commerce saves time and enhances efficiency in inventory checks and new shipments on a daily/monthly basis. RFID scanners can read tags up to 20 feet away and record hundreds of tags per second. Inventory management in the logistics and manufacturing industry requires precise calculations of incoming and outgoing stock, and the technology provides accurate results while reducing data redundancy. This technology leverages sensor networks and tags for efficient warehousing operations. These factors are fueling market growth in the forecast period.
A key factor shaping the market growth is the growing interest in smart retail stores. A smart store refers to a type of brick-and-mortar retail establishment that uses smart technologies, including smart cards, and smart mirrors. In addition, the technology is used in smart stores for the delivery of products to customers and checkout services.
Moreover, Amazon.com Inc. and Walmart Inc. have successfully adopted RFID developments, allowing them to outperform physical retail establishments. For example, in February 2021, Lojas Centauro (a sports goods retailer) started deploying this technology at its stores to track apparel as they were received, displayed, and sold. Hence, the emergence of smart stores integrated with this technology is anticipated to impact the market positively. Therefore, it is expected to drive the market growth during the forecast period.
Data security and consumer privacy issues are one of the key challenges hindering the market growth. The technology has the feature to encrypt the stored data based on the requirements of the end-user. In addition, without encryption, the data stored can be found with the help of the frequency. However, data security is a threat to RF communication that happens between the tags and the readers
Moreover, alternative technologies such as beacons send a signal with a beacon identifier that says, I am here. Still, in RFID communication, it transmits the data related to the product, such as code and other details. Furthermore, some of the data security threats are clone tags, unauthorized riders, and side-channel attacks. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market during the forecast period.
The market 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 Market Customer Landscape
Companies 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.
Alien Technology LLC: The company offers radio frequency identification solutions such as IDs, antennas, and readers.
ASSA ABLOY AB: The company offers radio frequency identification solutions such as tags, antennae and readers.
Avery Dennison Corp: The company offers radio frequency identification solutions such as tags and labels for inventory accuracy and loss prevention.
The research report also includes detailed analyses of the competitive landscape of the market and information about 24 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028.
The market is experiencing significant growth driven by technological advancements and strategic market growth initiatives. The market is influenced by government mandates and compliance experts, with asset tracking and payments being key applications. This is pivotal in automation across logistic and manufacturing industries, optimizing resource and value chain. Challenges include high costs, technical limitations, and regulatory hurdles. However, with real-time intelligence and RFID readers, the market is poised for geographic expansions and emerging revenue pockets, creating an opportunity for global and localized players.
The market is influenced by technological innovations and strategic market growth analysis. Expert analysis drives advancements, but challenges include high cost and regulatory hurdles. IoT integration and real-time location services enhance security and access control in logistic and manufacturing industries. This enables product approvals and efficient shipping in retail applications, impacting return on investment. Market dynamics include import/export analysis and value chain optimization, with UHF technology and transponders playing vital roles in resource optimization and production consumption analysis. The market is evolving rapidly with product launches and expansions in manufacturing facilities to meet demands. However, regulatory and legal challenges and RFID tag costs pose significant restraints. Pestle analysis helps navigate trade regulations and optimize return on investment (ROI) in this dynamic sector.
The market is driven by technological innovations like Ultra-high frequency RFID and Active tags. It finds application niches in asset tracking & payments, automatic item identification, and electronic toll collection. Market growth is influenced by factors such as changes in market regulations, NFC integration, and Market Ecosystem developments. Challenges include interference and the high cost associated with RFID products. Recent developments in technology, such as real-time location services (RTLS) and guardRFID, have led to effective store handling and improved logistics in the manufacturing industry. Its impact is evident in retailers seeking ROI through Pricing Analysis and efficient shipping in shipping and receiving applications.
Radio Frequency Identification (RFID) Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.83% |
Market Growth 2024-2028 |
USD 14.20 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
11.65 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 40% |
Key countries |
US, Canada, China, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alien Technology LLC, ASSA ABLOY AB, Avery Dennison Corp., CipherLab Co. Ltd., CoreRFID Ltd., CYBRA Corp., Datalogic SpA, FEIG ELECTRONIC GmbH, Fujitsu Ltd., GAO RFID Inc., Honeywell International Inc., Impinj Inc., Mojix Inc., Nedap NV, NXP Semiconductors NV, RFID Inc., RFID4U, SATO Holdings Corp., Siemens AG, SML Group Ltd., TIBCO Software Inc., Unitech Computer Co. Ltd., Zebra Technologies Corp., and eAgile Inc. |
Market dynamics |
Parent market analysis, Market Forecasting, 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. |
Customization purview |
If our market 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 Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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