Global Radio Frequency Identification (RFID) Market - 2021-2028

Global Radio Frequency Identification (RFID) Market - 2021-2028

Market Overview

The Global Radio Frequency Identification (RFID) Market is Expected to reach growing at a CAGR of 14.5% during the forecast period (2021-2028).

Radiofrequency identification (RFID) is a passive wireless technology that employs radio waves to identify tagged objects. It is utilized in various commercial and industrial applications, from tracking things along a supply chain to keeping track of goods checked out of a library. Radiofrequency identification operates through a tiny electronic device, normally a microchip, stored information. These devices are usually quite small, sometimes the size of a grain of rice, and can hold huge amounts of data.

Tags and readers are the two major components of the system. The reader sends out radio waves and receives signals from the RFID tag, while the tag communicates its identity and other information via radio waves. Some contain a stored power source or batteries, even if they don't always emit electricity. The scanners used to read these devices can also offer enough power to read the microchip. The technology has several applications, but it is most typically used to track objects, animals, and cash.

Market Dynamics

The advancements in the technology to read and store information have led RFID more affordable to adopt for several applications. However, the susceptibility of data breaching is expected to restrain the market.

The advancements in the technology to read and store information has led RFID more affordable to adopt for several applications

Gen2 RFID chips are cutting-edge technology that is already in general use. The size of these new RFID chips is one of the factors that sets them distinct. The chips have a diameter of 125 micrometers. As a result of technological advancements, manufacturers can produce RFID tags and chips at a low cost, allowing consumers to use tags and expand their applications.

Another benefit is that the circuit design is now compatible with a wide range of semiconductor technologies, including those used in traditional computer chips. It allows RFID tags to be embedded in computer chips, allowing users to track individual chips throughout their lives. Henceforth, this could aid in the reduction of counterfeiting while also allowing for verification.

In April 2021, the RAIN Alliance formed a working group to promote RAIN RFID (ultrahigh-frequency radio-frequency identification) for electronic toll collection on highways of Europe. The European Road Charging Workgroup (EURCWG) of the RAIN Alliance will push for EU legislation to allow RAIN RFID as a road charging technology.

Furthermore, MIT's Auto-ID Labs has long been at the forefront of RFID research and development. In June 2018, they developed a new ultra-high-frequency, or UHF, RFID tag-sensor setup that detects glucose spikes and wirelessly sends the data. The team aims to modify the tag in the future to detect chemicals and gases in the environment, such as carbon monoxide.

The susceptibility of data breaching is expected to restrain the market

The amount of data that has been compromised is increasing as more businesses suffer severe security breaches. In 2020, for instance, according to Inside Out Security, there were 3,950 verified data breaches. Because of the way RFID devices work, it's not impossible for someone who shouldn't have access to the information on the microchips to do so.

Thus, there is a fear of breaching personal information as they can send frequencies over longer distances than their counterparts, such as barcodes. Unlike barcodes and barcode scanners, the information on a microchip may be accessed without seeing it. Moreover, evaluating a pilot or launching a large-scale RFID program is a difficult task that demands buy-in from all levels and consideration of the entire organizational ecosystem.

COVID-19 Impact Analysis

The outbreak of the COVID-19 in 2019 has expedited the digital revolution even more. For many manufacturers, transformational digital technologies, the adoption of safety measures and innovative workflows and setups have proven to be lifelines. The characteristics enable them to automate processes, strengthen supply chains, predict rising client demands and protect employees from COVID-19. As firms have already adjusted their operations to the new normal, manufacturing conditions are rebinding more than a year after the pandemic.

Segment Analysis

The global radio frequency identification (RFID) market is segmented into type, frequency, product, material, application, and others based on application.

A passive RFID does not contain any internal battery. Instead, it uses all the radio wave's energy from the reader's antenna to power its operation and communicate back to the reader. A passive RFID system has three main parts – an RFID reader, an RFID antenna and RFID tags. Passive tags wait for an RFID reader to provide them a signal.

Because there is no need for a battery, a passive RFID tag can survive for 20 years and has the lowest tag cost. A passive tag's read range is normally around 3-5 meters, which is more than enough to cover a typical door, dock, or shop floor area. Although an active tag may communicate over a much greater distance, a passive RFID tag is still the favored option since it is significantly less expensive and offers a wide range of alternatives thanks to widely accepted standards. Access control, file tracking, race timing, supply chain management, smart labels and other applications use passive RFID. Passive RFID systems are cost-effective for various businesses due to the reduced price per tag.

Geographical Analysis

The global radio frequency identification (RFID) market is segmented into North America, Europe, South America, Asia-Pacific, and Middle East & Africa based on geography.

According to the global RFID Business Association, Asia-Pacific will overtake Europe and catch up to U.S. in terms of RFID service deployment in the next years. Asia-Pacific is the world's industrial hub and businesses strive to better their supply chain management, which will be major driving forces behind the region's RFID market's rise to prominence. In 2010, the region accounted for 25% of the global RFID market, a rapid uptake from 3% 40 years ago. U.S. accounts for 45% of the market, while Europe accounts for the remaining 30%.

India is expected to witness a surge in the adoption of radio-frequency identification (RFID) technology as industries mature and the COVID-19 pandemic increases the need for contactless solutions. For instance, in February 2021, the government of India mandated RFID-based tags on all vehicles for electronic toll collection at national highway toll plazas.

Competitive Landscape

The global radio frequency identification (RFID) market is competitive with the presence of local and global companies. Major companies contributing to the market's growth include Impinj, Inc., Identiv, Nedap, Honeywell Global Inc., Zebra Technologies, NXP Semiconductors, Invengo, Avery Dennison, GAO RFID and HID Global, among others. Further, the players have used various organic and inorganic growth strategies, such as contracts and alliances, new product development, acquisitions and expansions to strengthen their offers in the market.

Impinj, Inc.

Overview: Impinj, Inc. is a U.S.-based company specialized in manufacturing radio-frequency identification (RFID) devices and software. The company is headquartered in Washington, U.S.

Product Portfolio: Impinj, Inc. offers RAIN RFID technology and extends connectivity from physical items to edge devices to the cloud. The series provides RFID Tag Chips, RFID Reader Chips and RFID Readers.

Key Development:

Impinj, Inc. launched three new RAIN RFID reader chips to help IoT device makers fulfill the growing need for item connection in retail, supply chain and logistics, consumer electronics and various other applications.

Why Purchase the Report?

Visualize the composition of the radio frequency identification (RFID) market segmentation by type, frequency, product, material, application and region, highlighting the key commercial assets and players.

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Excel data sheet with thousands of radio frequency identification (RFID) market points - level 4/5 segmentation.

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Target Audience

IT Companies

Logistic & Supply Chain Businesses

Animal Husbandry and Pet Care

Regional Manufacturers Associations and General RFID Associations

Investment Research Firms