March 5, 2024
RFID Market

RFID Market Technology is Driving Advancements in Inventory Management and Supply Chain Visibility

Radio-frequency identification (RFID) provides an efficient and automated means of tracking items within retail distribution centers and warehouses. RFID tags attached to pallets and individual products can be scanned quickly as they move through facilities, allowing real-time updates to inventory records. Compared to barcode scanning which requires line of sight, RFID eliminates the need for manual processes and reduces errors in tracking. This provides supply chain managers enhanced visibility into inventory levels and item locations.

RFID is increasingly being adopted by retailers and manufacturers to gain operational efficiencies. RFID tags can store more data than barcodes and allow for tracking of individual items rather than just product types. The tags can be scanned simultaneously in batches to capture information which streamlines receiving, put-away, picking, and shipping processes. RFID-enabled solutions automate tasks like warehouse replenishment based on automated inventory checks and allocation. They support just-in-time manufacturing by facilitating accurate communication between different supply chain stakeholders.

The global RFID Market is estimated to be valued at US$ 15.8 Bn in 2024 and is expected to exhibit a CAGR of 3.2% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key Trends:

One of the key trends in the RFID market is the growing adoption of passive ultra-high frequency (UHF) RFID tags. Compared to active RFID tags which require a battery, passive UHF RFID tags obtain power from RF signals during scanning and have a much longer reading range of around 10 meters. They provide a cost-effective solution for tagging large volumes of items and their popularity is increasing in applications like apparel retail, consumer goods packaging, and item-level tracking in warehouses. UHF RFID is also finding increased applications in pallet and container tracking for freight management. Continuous technological advancements to improve tag performance will further drive the demand for passive UHF RFID solutions.

Porter’s Analysis

Threat of new entrants: The threat of new entrants into the RFID market is medium. Significant capital investments are required to develop RFID technology. However, the market opportunity is huge attracting new players.

Bargaining power of buyers: The bargaining power of buyers is medium to high. Buyers have several options to choose from. However, switching costs keep buyer power in check.

Bargaining power of suppliers: The bargaining power of suppliers is medium. Suppliers of raw materials and components have some control over pricing but competition ensures power remains modest.

Threat of new substitutes: The threat of substitutes is low. While alternatives exist, RFID provides unique identification and supply chain advantages over substitutes like barcodes.

Competitive rivalry: Competition in the RFID market is fierce with major players competing on technology, features, and pricing.

Key Takeaways

The global RFID Market Growth is expected to witness high growth over the forecast period of 2023 to 2030. The market size for RFID is projected to reach US$ 15.8 Bn by 2024, growing at a CAGR of 3.2% during the forecast period.

Regional analysis:

North America dominates the RFID market currently due to high adoption across various industries such as retail, healthcare, and transportation. However, Asia Pacific is expected to be the fastest growing market owing to rising adoption in countries such as China and India.

Key players:

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. These players are focusing on developing advanced RFID technology and establishing partnerships to strengthen their market position.

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