February 21, 2024
RFID Market

RFID Market is Estimated to Witness High Growth Owing to Increased Adoption in Supply Chain Management

Radio Frequency Identification (RFID) technology allows contactless identification and tracking of objects and people using electromagnetic radio waves. It has gained immense popularity across various sectors like supply chain management, healthcare, retail and others due to advantages like unique identification, long-range readability, flexibility and durability over barcode technology. RFID tags are attached or embedded in objects and use electromagnetic fields to automatically identify and track tags attached to objects. It captures data in rapid succession which helps manage inventories efficiently and provide real-time visibility of products across the supply chain. RFID systems have reduced labour costs, improved process efficiency through automation and enhanced customer experiences.

The Global RFID market is estimated to be valued at US$ 18.21 billion in 2024 and is expected to exhibit a CAGR of 3.2% over the forecast period from 2024 to 2030.

Key Takeaways

Key players operating in the RFID market are Basilea Pharmaceutica Ltd, Astellas Pharma Inc., SCYNEXIS, Inc., NovaDigm Therapeutics, Mycovia Pharmaceuticals, Inc., Pfizer Inc, and Viatris Inc., among others. The key players are focusing on strategic collaborations and new product launches to expand their market share. For instance, in 2021, Viatris Inc. collaborated with RFID software provider RFID Discovery to deploy and manage RFID technology across its global supply chain.

The key opportunities in the Global RFID market size include development of RFID-enabled Internet of Things (IoT) solutions, adoption across industrial and manufacturing facilities for asset tracking, and implementation across healthcare sector for medication management and asset tracking. Integration of IoT, cloud and analytics is further expected to enhance the capabilities of RFID solutions.

Advancements in chipless RFID tags that do not require an integrated circuit and ultra-wideband RFID tags with increased range are some of the ongoing technological developments in the RFID market. Miniaturization of tags is also enabling implementation of RFID in diverse applications including consumer goods tracking and branded apparel.

Market drivers

One of the key drivers for the RFID market is the stringent regulations and standards for safety and inventory management across industries. Regulatory bodies worldwide are promoting adoption of track and trace solutions like RFID to prevent counterfeiting of goods and facilitate product recalls. Secondly, the need to improve supply chain visibility and efficiency is also propelling the demand for RFID systems. They help achieve near-100% accuracy in inventory counts and real-time location of products. This in turn optimizes warehousing and logistics operations.

Current challenges in RFID market
The RFID market is currently facing challenges related to technology compatibility across different stakeholders. As RFID systems operate on different hardware and software platforms, it is difficult to share data between systems of different vendors. This limits broader adoption of RFID technology. High initial installation and equipment costs also restrict smaller businesses and organizations from deploying RFID solutions. Ensuring data privacy and security is another area of concern, as RFID tags can be read from distances without user knowledge or interaction. Regulatory compliance related to data protection laws presents a compliance burden for RFID vendors and users.

SWOT Analysis

Strength: RFID provides real-time visibility of assets and inventory. It enables automation of processes and enhances efficiency. Weakness: High costs of equipment, installation and maintenance limits its adoption among small players. Interoperability issues exist due to lack of common standards. Opportunity: Growing e-commerce sector is expanding application of RFID in supply chain management and logistics. Governments are also promoting use of RFID for initiatives like smart cities. Threats: Security and privacy of data collected through RFID tags can be compromised. Alternative technologies like barcodes, QR codes and drones also compete with RFID solutions.

North America holds the largest share in RFID market in terms of value, due to high demand from retail, healthcare and transportation sectors. Presence of major players and early adoption of innovative tech further aids growth. Asia Pacific is fastest growing regional market boosted by large manufacturing bases and government initiatives for national ID projects using RFID. Countries like India, China, Japan and South Korea are major revenue generators.

Europe follows North America in terms of RFID market share led by Germany, UK and France. Transportation and logistics industries have highly adopted RFID for efficient operations. Middle East and Africa provide new opportunities for vendors, as oil & gas and construction industries adopt automated identification solutions. South American market is dominated by Brazil, where farms are increasingly using RFID livestock tags.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it