Radio-Frequency Identification (RFID) refers to small electronic devices that consist of a small chip and an antenna. RFID is basically used to provide unique identification to the objects. The use of RFID technology came in use since last four decades. Because, it is expensive and its practical use is limited for many commercial applications. Use of the RFID in applications such as retail & supply chain management and automation & transportation has penetrated globally and expected to reflect dynamic trends over the forecast period.
Globally, RFID market is segmented on the basis of product, type, communication frequency and application. On the basis of product, global RFID market is segmented into – RFID tag, RFID reader and RFID middleware & services. The largest market share is held by RFID reader and RFID tag is expected to reflect the highest CAGR over the forecast period. Global RFID market can also be segmented on the basis of type such as active RFID, passive RFID and Battery-Assisted Passive (BAP). Passive RFID holds largest market share and BAP is expected to reflect highest CAGR over the forecast period. RFID operates in wide ranges of communication frequencies and can be categorized into – low frequency (LF) band, high frequency (HF) band and ultra-high frequency (UHF) band. As the UHF RFIDs are used in wide range of applications, they are expected to reflect the fastest growth over the forecast period. RFID has various applications in automation & transportation, government, medical and healthcare, media & entertainment, retail & supply chain management, enterprise access control, Defense & Military, banking & finance and manufacturing. Automation & transportation application holds the largest market share and medical & healthcare application is expected to exhibit the highest CAGR over the forecast period.
Various RFID products and solutions are developed in response to increase in demand for affordable and efficient solutions to track and trace for various application in retail, transportation, smart card, supply chain etc. Government of various countries such as US, UK, china etc. have mandated use of RFID for projects related to citizen identification and counterfeiting. Government policies to mandate use of RFID has fueled the growth of RFID market globally. Research and development of RFID technology has paved the ways to emerging application of RFID along different industry verticals.
On other hand, High cost associated with manufacturing and implementation RFID system hinders the growth of RFID market. Furthermore, lack of standardization and lack of backend data support pose challenge for full-fledged market growth. A tremendous opportunity lies in development of point-to-point solution as per customer requirement.
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