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Global RFID market - Forecast to 2030
Date:[2022/7/6]    Clicks:[128]
    


The RFID Market is projected to reach USD 35.6 billion by 2030 from USD 14.5 billion in 2022; it is expected to grow at a CAGR of 11.9% from 2022 to 2030.

 

RFID technology uses radio waves to identify/detect people or objects. RFID tags are small electronic devices that send/receive data to/from RFID readers. RFID tags can be incorporated into products, animals, or humans for identification and data collection.Tags that use radio waves to communicate their identity and other information to nearby readers, can be passive or active. Passive RFID tags are powered by the reader and do not have a battery. Active RFID tags are powered by batteries.RFID technology is a modern solution for industrial and consumer applications due to the increasing adoption of information technologies. An RFID solution involves a label or tag and a reader to communicate with the tags. The availability of handheld readers or sled readers has enhanced the capabilities of RFID solutions, as they help track the asset more conveniently at a low cost. The RFID tag technology has evolved from reading from a close distance to more than 100 meters, i.e., active frequency tags. Active frequency tags are not only used to track standalone assets but also to track moving assets and personnel in real time. These tags are now being widely used in industries such as transportation, logistics and supply chain, retail, defense, etc., to track assets in real time. With technological advancements and innovations, the passive ultra-high frequency has been further segmented into a new band (860 to 960 MHz), called RAIN RFID. The adoption of RAIN RFID has increased multifold to reach many suppliers in the ecosystem. It is currently the most adopted RFID frequency globally.

 

impact of COVID-19

The outbreak of the COVID-19 virus led to the shutdown of factories globally, along with the implementation of other lockdown measures, which included stringent social distancing norms as well.

The fall in demand for expensive retail products worldwide due to lockdown measures, along with supply chain disruptions, is expected to have slowed down the growth of the RFID market.  Manufacturing facilities across several sectors, such as automotive and consumer electronics, re-opened post-third quarter of 2020 as lockdown measures were lifted in various countries. Still, factories in the European region are yet to function at pre-COVID-19 levels due to social distancing norms. However, this has offered an opportunity to the RFID players for promoting the use of RFID solutions for industrial automation. The manufacturing companies are seeking RFID technology to increase their productivity with fewer employees and complying with social distancing norms. This is expected to boost the RFID market during the forecast period higher than that of the pre-COVID-19 scenario. The recovery path to this has begun in the fourth quarter of 2020. With the logistics and supply chain industry gaining momentum after the relaxation of lockdown measures, the adoption of RFID solutions has increased to fasten the deliveries pending due to lockdown. Many companies might deploy RFID solutions to continuously monitor the assets to reduce delivery time and increase productivity. Thus, the adoption of RFID technology is expected to be more than in the pre-COVID-19 scenario.

 

Market Dynamics:

Driver: Increasing need for RFID systems in manufacturing units for improving productivity

Manufacturing facilities need to monitor equipment condition and performance, defects in processes, and system failures, and ensure predictive maintenance of equipment and systems through the integration of specialized tools and adoption of quality management practices. The use of RFID technology for plant asset management helps manufacturers achieve this goal. A combination of RFID tags and sensors is an ideal solution for various locations in a manufacturing facility, such as conveyors, cameras, boilers, tanks, pipes, etc., to manage and maintain the quality and output of a manufacturing process.

 

Restraint: High initial cost associated with installation of RFID systems

The installation cost of an RFID system can range from USD 2 million to 5 million for a standard active real-time monitoring system. This cost can differ according to end-use industry and installation area. High installation cost is one of the major restraining factors for the implementation of RFID technology. Adoption of RFID systems in any industry requires high investments, including the purchase cost of RFID tags, readers, and software, and the costs associated with replacement services and electricity. Add-on features such as continuous accuracy checking of systems, IoT integration, and training costs make RFID solutions more costly.

 

Opportunity: Increasing demand for hybrid RFID solutions

The RFID market is witnessing a rise in demand for hybrid solutions. Hybrid solutions have been designed to overcome some of the challenges associated with a single technology-based RFID system. A hybrid solution not only helps the end users deploy RFID technology at blind spots but also helps reduce infrastructure cost by utilizing existing technologies such as Wi-Fi or GPS.

 

Challenge: Lack of backup for large volumes of data

The lack of backend data support is one of the major challenges for the market. The data generated by tracking, identifying, and monitoring is huge.

 

In offering segment, the tags sub-segment is expected to hold the largest market share during the forecast period

The tags segment accounted for the highest market share of the total RFID market, by value, in 2021. Tags are the key components in an RFID solution and are used in multiple applications in large quantities, owing to which the segment captured the largest market share in 2021. The number of tags installed is much higher than the number of readers and software used in a complete RFID system of an organization. Additionally, with the rising number of assets, the number of tags installed increases; however, old readers can scan new tags. This is the main reason due to which the market size for tags is larger.

 

In tag type segment, passive tags is expected to grow at higher CAGR and hold the largest market share during the forecast period

The large share of this segment can primarily be attributed to the low cost of passive tags in comparison with active tags. The most commonly used RFID tags are labels and cards. RFID labels and cards are used for identification, access control, asset labeling, and payment applications. Passive RFID tags do not require an external power source, e.g., battery, and are instead powered by electromagnetic waves transmitted by RFID readers. The readers transmit a low-power radio signal through the antenna, which is received by the tag to activate it. The tag then verifies and exchanges the data with the reader. Passive tags can transmit information over a shorter distance (10 feet or less) than active tags. Passive tags do not require an external power source. These are inexpensive and smaller, and easier to manufacture than active tags. Passive RFID tags can be used in various applications and are commonly used to track goods in pharmaceuticals, retail, supply chain, enterprise, and other industries. Based on the range of frequency, passive tags are further segmented into low-frequency (LF), high-frequency (HF), and ultra-high-frequency (UHF) tags.

 

The RFID market in APAC is expected to grow at highest CAGR during the forecast period (2022-2027)

With the growing trade network among Asia Pacific countries, companies are leveraging the benefits of RFID solutions for gaining visibility into the supply chain. RFID is an ideal medium for tracking assets or people in organizations in real time. Adoption of RFID solutions across various industries, such as manufacturing, sports & entertainment, logistics and supply chain, and retail, is expected to increase in Asia Pacific during the forecast period.

The region is witnessing advancements in healthcare, retail, and manufacturing sectors, along with the adoption of new technologies. Countries such as Japan, South Korea, China, India, Australia & New Zealand (ANZ), and ASEAN are also showing interest in RFID technology, as it is affordable and can derive benefits in the long term.

In 2021, China was the largest RFID tag market in Asia Pacific. The growing manufacturing sector in the country is generating huge demand for RFID solutions to improve operational efficiency and lower operational costs by tracking equipment, goods, materials, safety, assembly lines, and distribution in manufacturing facilities in China.

rfid-market-by-region.jpg

 

 

 

Link to the original article:RFID Market Size Share | 2022-2030 | Industry Report (marketsandmarkets.com)


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