Radio Frequency Identification (RFID) for Industrial Applications Market by Product, Type and Geography - Forecast and Analysis 2023-2027

Radio Frequency Identification (RFID) for Industrial Applications Market Forecast 2023-2027

The Radio Frequency Identification (RFID) for Industrial Applications Market size is forecast to increase by USD 2.67 billion at a CAGR of 10.63% between 2022 and 2027. RFID is a technology used to track and identify objects using radio waves. RFID technology enables automated data collection, improving inventory management and supply chain efficiency. The growth of the market depends on several factors, including the evolution of Industry 4.0, the increase in industrial applications, and the high preference for RFID tags over barcodes. This market report includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Market During the Forecast Period?

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The market provides affordable RFID solutions for electronic toll collection, ensuring safety and security while efficiently managing vehicle identification and toll fees at toll booths. Leveraging advanced electronic circuitry and blockchain technology, RFID systems seamlessly integrate with EHR/ERP systems and applications, enhancing operational efficiency and facilitating seamless data management. Key players such as TagMaster and the DoseID Consortium offer innovative mountable tags, further advancing the capabilities of RFID technology in industrial applications.

Market Segmentation

The Market for Industrial Applications Market offers a range of RFID solutions, including Dual-Frequency (DF) series, NFC (HF), and RAIN RFID (UHF), such as the AD Slim DF EM4425 tag, meeting regulatory standards like those set by the Food and Drug Administration (FDA). Leveraging Real-Time Location Systems (RTLS) and Internet of Things (IoT) technology, these solutions enhance productivity in manufacturing facilities, providing affordable RFID solutions for various industrial applications.

By Product

In the product segment of the market, the mountable tags segment is poised for significant growth. These tags, employing electronic circuitry, enable data exchange with a reader via radio waves. Consisting of key components such as antennas and integrated circuits (ICs), these tags play vital roles. Antennas receive radio waves, while ICs handle data storage, processing, as well as modulation and demodulation of radio waves transmitted or received by the antenna.

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The RFID tags segment was the largest segment and was valued at USD 1.23 billion in 2017. The RFID tags segment, encompassing the Dual-Frequency (DF) series, NFC (HF), RAIN RFID (UHF), and AD Slim DF EM4425 tag, stood as the largest sector. The adoption of these tags for supply chain management as an alternative to barcode technology is steadily increasing. Despite their relatively higher cost compared to barcode stickers, end-users are increasingly opting for RFID tags due to their numerous advantages. One key advantage is their resilience—RFID tags do not easily fall off, become dirty, or necessitate an unobstructed line of sight between the tag and the reader. As a result, these factors are anticipated to drive the growth of this segment, consequently fueling market expansion during the forecast period.

Regional Overview

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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. Some of the main factors that are significantly contributing to the growth of the market in North America are the presence of a large number of prominent automotive manufacturers, such as Ford Motor and Tesla, as well as consumer electronics companies, including  Apple, and aerospace and defense industries.

Additionally, there is an increase in investments in the automation of operations through the integration of digitalized processes which is expected to positively impact the market growth in the region. Hence, such factors are expected to drive market growth in North America during the forecast period.

Market Dynamics and Customer Landscape

The market is witnessing significant growth with the adoption of advanced RFID technology such as the Dual-Frequency (DF) series and NFC (HF), exemplified by the AD Slim DF EM4425 tag, approved by regulatory bodies like the Food and Drug Administration (FDA) for products like Rocuronium Bromide Injection by companies like Fresenius Kabi. These innovations are enhancing real-time location systems (RTLS) and Internet of Things (IoT) capabilities, improving inventory management, safety, and security in manufacturing facilities, while offering affordable RFID solutions that ensure returns on investment through efficient toll fees collection and reliable vehicle identification across different frequency bands, including APK Identification with RAIN RFID (UHF).

Key Market Driver

One of the key factors driving the market growth is the evolution of Industry 4.0. Industry 4.0 offers manufacturers the key advantage of accessing detailed, real-time data at any stage of a process. This advancement facilitates a connected ecosystem through the utilization of the Internet of Things (IoT), which plays a crucial role in empowering manufacturers and consumers alike. It enables improved communication and monitoring systems, heightened automation, self-diagnosis capabilities, and advanced analytical tools, all contributing to a more efficient future.

Furthermore, Industry 4.0 has brought about significant transformations across various industrial sectors, marked by advancements in data exchange, automation, cloud-based services, cyber-physical systems, robotics, big data analytics, and artificial intelligence (AI), along with semi-autonomous techniques. Consequently, these developments are positively influencing the market. As a result, it is anticipated that the market will experience substantial growth during the forecast period.

Significant Market Trends

A key factor shaping the market growth is the market players offering cloud-based solutions. There is an expansion of technology across different fields, such as transportation, aerospace, IT (Information Technology), and logistics, because of technological advances. However, there is limited adoption across small- and medium-sized retail chains or stores due to high IT infrastructure requirements that include databases, servers, and inter-/intra-networks, which add to its already high deployment and implementation costs.

Moreover, several market players such as Terso Solutions, Tellago, and Nedap are offering cloud-based solutions which have fuelled the adoption of systems across small- and medium-sized retailers without incurring high initial procurement costs of servers. Hence, such factors are positively impacting the market. Therefore it is expected to drive the market growth during the forecast period.

Major Market Restrain

High initial investments associated with solutions are one of the key challenges hindering market growth. A majority of UHF readers cost approximately USD 500-USD 2,000 (excluding antenna charges) as well and HF and LF readers can cost around USD 100-USD 750, which makes it difficult to afford for several enterprises. As a result, it limits the adoption of systems

Moreover, the implementation of systems creates the requirement for middleware to manage and transfer data to a destination without redundancy or volatility. As a result, it will add to hidden costs, including the cost of maintenance, licenses, and training in data implementation, monitoring, and management, associated with the deployment of systems. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market growth during the forecast period.

Market Customer Landscape

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.

Market Customer Landscape

Who are the Major  Market Companies?

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-RFID for industrial applications such as retail or apparel, transportation and life sciences. The company offers RFID products which include Higgs RFID Ics, Higgs EC, ALR F800 X With Emissary, and ALR F800.

ASSA ABLOY AB: The company offers radio frequency identification-RFID for industrial products such as HID EXO RFID Tags, RFID Tags and Beacons, and BluTAG.

Avery Dennison Corp: The company offers radio frequency identification-RFID for industrial applications such as the automotive industry, aviation, logistics, and healthcare.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• CAEN S.r.l.
• CCL Industries Inc.
• CipherLab Co. Ltd.
• CoreRFID Ltd.
• Datalogic SpA
• GAO Group Inc.
• Honeywell International Inc.
• Impinj Inc.
• Mojix Inc.
• NXP Semiconductors NV
• Pepperl and Fuchs SE
• RFID4U
• Terso Solutions Inc.
• Ubisense Ltd.
• Unitech Computer Co. Ltd.
• Willion Frick and Co.
• Zebra Technologies Corp.

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.

Market Analyst Overview

This technology has transformed the manufacturing sector, providing efficient asset tracking solutions for organizations. With RFID-enabled sensors and RFID solutions, businesses can effectively monitor their assets throughout the production process and across the warehouse. This technology meets the demand for real-time data collection and enhances tracking capabilities across a wide range of industrial applications. This industry has seen significant growth, particularly in the industrial application market, where RFID is extensively used for production and inventory management. As more organizations embrace RFID for manufacturing, the RFID business continues to expand, offering diverse RFID applications to meet industry-specific needs.

The market is experiencing significant growth with the introduction of advanced technologies like the Dual-Frequency series and NXP NTAG Semiconductors. Solutions from companies like Impinj, AccelerateGov, and Contrinex are leveraging Impinj UHF RFID chips for enhanced performance. These systems, along with technologies such as USB and Trace-ID, are revolutionizing industries like toll collection, improving processes such as automatic identification and toll deduction. With electronic toll collection systems like FASTag gaining popularity, government initiatives like those from the Ministry of Road Transport and Highways are driving adoption. However, concerns about privacy and data protection remain paramount, necessitating compliance with regulations like the Health Insurance Portability and Accountability Act and Payment Card Industry Data Security Standard. Additionally, logistics and supply chain companies are exploring RFID solutions to optimize operations and reduce costs through efficient tag management and manufacturing processes.

The market is witnessing remarkable advancements with the integration of technologies like Near Field Communication (NFC) and Impinj UHF Radiofrequency Identification (RFID) chips. These solutions, coupled with the convenience of Universal Serial Bus (USB) connectivity and innovations from companies like PervasID, are driving productivity in various industrial sectors. Particularly in the realm of toll collection, RFID systems' architecture facilitates the seamless toll deduction process, minimizing manual involvement. Electronic toll collection (ETC) systems utilize transponders to provide unique identification information, streamlining operations at toll booths and gantries. This market is poised for further growth as industries worldwide adopt RFID technologies to enhance efficiency and optimize processes.

Segment Overview

This market research and growth 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. 

• Product Outlook 
  • RFID-tags
  • Middleware
  • Passive RFID-systems
  • Active RFID-systems
• Type Outlook
  • High frequency
  • Ultra-high frequency
  • Low frequency
• Geography Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

 

Market Scope
Report Coverage	Details
Page number	174
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 10.63%
Market growth 2023-2027	USD 2.67 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	9.85
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., CCL Industries Inc., CipherLab Co. Ltd., Datalogic SpA, GAO Group Inc., Honeywell International Inc., Impinj Inc., Mojix Inc., NXP Semiconductors NV, Pepperl and Fuchs SE, Terso Solutions Inc., Ubisense Ltd., Unitech Computer Co. Ltd., Willion Frick and Co., and Zebra Technologies Corp.
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.
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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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the market size and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market Growth Analysis across North America, APAC, Europe, South America, and the Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of market companies

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