RFID Tags Market Size, Share, Growth, and Industry Analysis, By Type (Low frequency, High frequency, Ultra high frequency, and Microwave frequency band), By Downstream Industry (Logistics, Food and retail, Healthcare, Identification, Asset Management, Automobile and Transportation, and Aerospace), and Regional Forecast to 2032

Updated On: 11 November 2024

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RFID TAGS MARKET OVERVIEW

The Global RFID Tags Market size was USD 9.3992 Bn in 2023 and is projected to touch USD 22.22 Bn by 2032, exhibiting a CAGR of 8.99% during the forecast period.

RFID is termed as Radio Frequency Identification tag. They are mini electronic devices that can store data and communicate with other devices using radio waves. It contains a microprocessor and an antenna. The microprocessor stores records of identity numbers or records about the object it is linked to. While the antenna assists the tag to send and receive radio waves with an RFID reader. They enable efficient and automated data gathering and identification actions.

The incorporation with IoT and big data analytics are making the RFID Tags Market to witness remarkable growth. On the other hand, high initial investment costs hinder the RFID Tags Market growth. RFID tags with personalization and customization are providing great chances for market expansion in the coming years.

GLOBAL CRISES IMPACTING RFID TAGS MARKET

COVID-19 IMPACT

"RFID Tags Industry Had a Positive Effect Due to Rapid Digitalization during COVID-19 Pandemic"

The Global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

The COVID-19 pandemic has caused issues for the healthcare industry. Since healthcare facilities around the world are increasingly burdened with a large number of patients, the need for efficient patient management and tracking solutions continues to heighten. The RFID technology has played an essential role in digitalization of healthcare facilities worldwide. RFID tags played a key role in curbing the transmission of the novel coronavirus by aiding the staff and personnel at healthcare facilities with social distancing guidelines, track patient, and staff location, and prevent the non-patient population from infecting staff.

LATEST TREND

"Growing Demand for RFID Tag from Retail Segment Boost Market Growth"

RFID in retail involves the utilization of RFID tags on items that emit signals to RFID readers, which are then processed by the software, providing real-time results for transaction, stock taking inventory levels, or individual customer purchases order history. RFID in retail eases the typical retail inventory practice that is manual, time consuming, and only performed to predetermined intervals. Item tracking is one of the major applications that retailers use RFID to prevent theft and track items that are usually moved and often misplaced.

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RFID TAGS MARKET SEGMENTATION

BY TYPE

Based on Type, the global market can be categorized into low frequency, high frequency, ultra high frequency, and microwave frequency band

• Low frequency: The low frequencies RFID tags are suitable for applications requiring short read ranges, such as access control and animal tracking, offering reliable and cost-effective solutions.

• High frequency: This frequency is widely used in applications, for instance smart cards and payment systems, allowing a balance between read range and data transfer speed.

• Ultra high frequency: This type of tag allows extended read ranges and high-speed data transfer and makes them the ultimate choice for logistics, retail, and industrial settings.

• Microwave frequency band: The microwave frequency RFID is generally employed in applications that involve high-speed data transfer, such as toll systems and vehicle identification.

BY DOWNSTREAM INDUSTRY

Based on downstream industry, the global market can be categorized into logistics, food and retail, healthcare, identification, asset management, automobile and transportation, and aerospace

• Logistics: The tags offer efficient tracking and monitoring of goods in transit. It is optimizing logistics operations, reducing errors, and improving overall supply chain visibility.

• Food and retail: This application segment utilizes RFID tags to improve inventory accuracy, prevent stockouts, improve the customer shopping experience, and allow omnichannel retailing.

• Healthcare: RFID tags are employed in healthcare for asset tracking, patient identification, and stock management contributing to operational effectiveness and patient safety.

• Identification: Tagging items with RFID tags permit users to automatically and uniquely identify and track inventory and possessions.

• Asset management: RFID technology is used to recognize and trail the assets. The data is captured at source and robotically transferred to the database.

• Automobile and transportation: The device is often placed on vehicles such as cars, trucks, and buses to mechanically spot them and grant secure access to the premises.

• Aerospace: RFID tags can be used to track the parts such as aircraft engines, and other components as well as tools at the manufacturing and maintenance facility.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

DRIVING FACTORS

"Rising Demand for RFID in Electronic Toll Collection Boosts Market Expansion"

A factor in the RFID Tags Market growth is the rising automatic toll collection utilizing RFID is a technology that allows automated electronic collection of toll costs. This technology has increased the productivity of automated toll booth payment services. Commuters can now drive their vehicle straight through the toll booth with no lining up for financial transactions and paying toll in the booth physically. This is made achievable by exploiting RFID tags that are located inside the vehicle, and receivers located in the toll booth. The toll is automatically deducted from the commuter’s account when the vehicle passes through.

"Adoption of RFID in Healthcare Sectors to Expand the Market"

The healthcare sector increases the demand of RFID tags for tracking the patient’s history which has been witnessing the growth of the market. Due to the increase in the numbers of patients related to chronic as well as non-chronic diseases, RFID tags have become mandatory because it simplifies tracking of the patient’s history and the course of treatment. Furthermore, the most common use of RFID tags in the supply chain has been tracking parts moving to a manufacturing production line, tracking things in the supply chain, security, tracking asset and payment systems which let clienteles pay for items without using cash.

RESTRAINING FACTOR

"Data Security and Privacy to Potentially Impede Market Growth"

A limiting factor that is hindering the market growth is the preaching of privacy and data security involved in the service. The high cost of deployment is another factor that could hamper the market expansion. The expenditure of repairing smart sensor controls used with the support of IoT raises the cost of working capital. In addition, the presence of less expensive and more effective alternatives is discouraging market enlargement. Security issues among the end-user segments are raised by privacy invasion in radiofrequency identification systems, which employ wireless frequencies that by default react to any form of signal in the absence of suitable verification criteria.

OPPORTUNITY

"Healthy Gluten-Free Cooking Options To Create Opportunity for the Product in the Market"

The recent technological modernizations in the RFID Tags Market is the Chip less RFID tags with passive circuit. These equipment are 3D printed which is making them economically sustainable and easy to manufacture. Moreover, due to the non-line of tag detection features and low manufacturing cost, chipless RFID tags are suitable to replace the use of barcodes. Printing on many materials is especially helpful in the business context. The manufacturer has the autonomy to label the RFID as per their guidelines, which is not the case for barcodes.

CHALLENGES

"Technical Limitation with RFID Integrated System to be a Challenge for Market Expansion"

RFID technology has come with certain technical limitations that can impact its efficacy in various applications. The read range varies to maximum distance at which RFID tags can be dependably read by RFID readers. This range varies depending on the type of RFID technology used and the specific frequency band employed. Additionally, RFID tags are susceptible to interference from certain materials and environmental factors. Metal and liquid can absorb or reflect RFID signals leading to reduced read accuracy and range.  This susceptibility can pose challenges. Additionally, intervention from other electronic devices operating at the same frequency band can interrupt RFID communication causing tag misinterpretation and data corruption.

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RFID TAGS MARKET REGIONAL INSIGHTS

• NORTH AMERICA

North America accounted for the largest revenue share in the global radio frequency identification market. This is due to the increasing number of RFID industry participants which provide RFID goods and services. These industry companies are persistently working to improve their product lines by offering customers innovative solutions. The United States RFID Tags Market accounted for the largest profits because of the existence of top companies such as Apple Inc. and Intel Corporation, who made considerable investments in next generation portable device solutions for the development of next generation digital display devices.

• EUROPE

Europe is expected to register the fastest revenue growth rate in the global radio frequency identification market attributed to the rising number of companies in the region which are extending their regional footprint. The manufacturing unit broadens to reach across continents with a competitively priced specialty UHF product line. The Germany market is the largest revenue generator due to rising adoption of RFID technology, both in terms of usage and innovation.

• ASIA

Asia Pacific witnessed significant share in the global RFID market driven by increased adoption across diverse industries. The retail and logistic sectors are using RFID for better inventory management and supply chain optimization. The growing e-commerce industry, mainly in countries such as China and India, has propelled RFID implementation to improve order fulfillment and package tracking. Government initiatives focused on smart cities in countries such as Japan and South Korea further contribute to RFID deployment, addressing areas including transportation and public safety.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Integration of Technological Advancement and Market Expansion"

Key players focus on integrating sensors, enlarged memory, and innovative cloud-based facilities to enhance their product offerings. They are investing heavily to integrate these technological advancements to design innovative systems and enhance their market growth. There are many companies in the market that use some techniques such as merger, acquisitions, partnership and developing new products and stay ahead in the market.

LIST OF TOP RFID TAGS COMPANIES

• GAO RFID Inc. (Canada)
• Alien Technology (U.S.)
• Smartrac N.V. (Netherlands)
• Atmel Corporation (U.S.)
• HID Global Corporation (U.S.)
• The Tag Factory (India)
• Honeywell international Inc. (U.S.)
• RF Code Inc. (Austin)
• NXP Semiconductors N.V. (Netherlands)
• Confidex Ltd (Finland)
• Invengo Information Technology Co. Ltd (China)
• CoreRFID Ltd (U.K.)
• Omni-ID Ltd (U.S.),
• Impinj, Inc. (U.S.)
• Ageos (Netherlands)

KEY INDUSTRY DEVELOPMENT

November 2023: Avery Dennison has delivered the AD Maxdura Flexile Laundry UHF Hard Tag, designed for the laundry management enterprise. This RFID tag withstands harsh conditions making it best for hotels, hospitals, and restaurants.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The RFID Tags Market is poised for an unrelenting boom owing to increasing usage of RFID tags in vehicles for mechanical toll collection is expected to propel the growth of the market and in the healthcare area the demand of RFID tags for tracking the patient’s history has been witnessing the growth of the market. Regardless of challenges such as two key technical limitations include read range and susceptibility to interference. The rising requirement for chinless RFID solutions are estimated to present a growth chance for the manufacture and supplier in the RFID Tags Market worldwide. Key industry players are focused on assimilating sensors, increased memory, and new cloud-based capabilities to improve their product supply.