RFID Market Set to Grow at the Fastest Rate- Time to Grow your Revenue
Posted by edwardzmusso on September 22nd, 2021
The global RFID market is estimated to be USD 10.7 billion in 2021 and is projected to reach USD 17.4 billion by 2026, at a CAGR of 10.2% during the forecast period. The key factors fueling the growth of this market include growing market competitiveness leading to availability of cost-effective RFID solutions, high returns on investment, increasing regulations and government initiatives for various industries, and increasing installation of RFID systems in manufacturing units to improve productivity due to COVID-19.
Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=446
The RFID market has promising growth potential due to several factors, including the growing trend of hybrid RFID solutions, rising adoption of RFID tags for Industry 4.0, IoT, and smart manufacturing and rising need for contact-tracing solutions due to COVID-19. The adoption of remote working practices due to COVID-19 pandemic and growing automotive and electronics industry in China, Japan, South Korea, and India due to high domestic and export demand for consumer electronics and automobiles has led to the growth of RFID market in manufacturing sector with social distancing norm.
Even, countries in the Americas and Europe region are taking several initiatives to aid the growth of RFID industry. The Americas is home to technology market giants, and the players in this industry focus on R&D activities specifically for the RFID market. Retail, manufacturing, transportation, logistics and supply chain, animal tracking, healthcare, defense, and IT asset tracking are the major applications for the RFID tag market in the US as well as throughout the Americas. The UK, Germany, and France are the major countries contributing to the growth of the RFID tag market in EMEA. Europe is one of the major regions for R&D on location-based solutions. Active RFID and analytics software are deployed by many players in Europe to get real-time data and control of the process in manufacturing plants. These factors are contributing to the growth of RFID market in these region.
The tags is projected to be the largest segment of the RFID market, by products. Tags are the key components in an RFID solution and make up for the major part of the market due to bulk and multiple applications. Due to this, the segment captured the largest share of the market in 2020. The number of tags installed is much higher than the number of readers and software used in the RFID ecosystem of an organization. Additionally, with the rising number of assets, the installation of tags increases; however, existing readers can be used to scan new tags. This is the main reason due to which the market for tags is the largest.
The passive tags segment is projected to register a larger market share by 2026. The market for passive tags is expected to grow in applications such as retail, supply chain, transportation, aerospace, and sports. The factors contributing to the growth of passive tags in these applications are the low cost of tags and their increasing precision in data storage and reading distance. The penetration of RAIN RFID has further boosted the market of ultra-high-frequency passive tags, as this frequency is globally adaptable by manufacturers and customers. This is another key reason for the growth of the RFID market for passive tags.
The ultra-high-frequency (UHF) tags segment of the RFID market is projected to register the highest CAGR during the forecast period. UHF RFID tags offer the longest read range and highest reading speed among all frequencies. UHF passive tags can be read from an average distance of about 5–6 meters; larger UHF passive tags can be read from more than 30 meters in ideal conditions. Active tags have the longest read range of around 150 meters. These tags are more efficient than low- and high-frequency tags. Passive UHF tags are also less costly than low- and high-frequency tags. This is the key reason for customers preferring passive UHF tags.
The logistics and supply chain application is projected to grow at the highest CAGR during the forecast period. The growth of this segment is contributed to the high adoption of tracking systems by logistics organizations to track and monitor their cargo in transit through air, road, or sea. Companies are also using sensor-based RFID tagging systems to monitor environmental conditions around the products being transported. Any deviation in the properties or external parameters is notified to the stakeholders, and appropriate action can be taken to prevent the damage.
The APAC is projected to grow at the highest CAGR during the forecast period. With the growing trade network among the countries in APAC, companies are leveraging RFID solutions to obtain visibility into supply chain operations. RFID is an ideal medium for tracking assets or people in organizations in real time. The adoption of RFID solutions across various industries, such as manufacturing, sports & entertainment, logistics and supply chain, and retail, is expected to increase in APAC during the forecast period.
Like it? Share it!
About the Authoredwardzmusso
Joined: February 8th, 2021
Articles Posted: 278
More by this author