The global RFID market size 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 market has a promising growth potential due to several factors, including growing market competitiveness leading to availability of cost-effective RFID solutions, high returns on investment, and increasing regulations and government initiatives for various industries. Moreover, increasing installation of RFID systems in manufacturing units to improve productivity due to COVID-19 could play a key role in driving the growth of the RFID market.
“Tags is projected to be the largest segment of the RFID market during the forecast period”
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.
“Passive tags segment is projected to register a larger market share by 2026”
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.
“Ultra-high-frequency (UHF) tags segment of the RFID market is projected to register the highest CAGR during the forecast period”
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.
“Logistics and supply chain application is projected to grow at the highest CAGR during the forecast period”
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.
“APAC is projected to become the fastest geographical market between 2021 and 2026”
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.
Breakdown of profiles of primary participants:
- By Company: Tier 1 = 35%, Tier 2 = 45%, and Tier 3 = 20%
- By Designation: C-level Executives = 40%, Directors = 35%, and Others (sales, marketing, and product managers, as well as members of various organizations) = 25%
- By Region: APAC = 25%, Americas = 45%, and EMEA=30%
Major players profiled in this report:
The RFID market is dominated by a few globally established players such as Avery Dennison (US), Zebra Technologies (US), Honeywell (US), NXP Semiconductors (Netherlands), Impinj (US), HID Global (US), GAO RFID (Canada), Identiv (US), Invengo (China), and Nedap (Netherlands).
This report offers detailed insights into the RFID market based on product type (tags, readers, and software and services), wafer size (8 inch and others), tag type (active tags and passive tags), frequency (low frequency, high frequency, and ultra-high frequency (UHF)), application (agriculture, commercial, transportation, healthcare, logistics & supply chain, aerospace, defense, retail, security and access control, sports, animal tracking, and ticketing), form factor (card, implant, key fob, label, paper ticket, band, and others), material (plastic, paper, glass, and others), and region (Americas, Europe, Middle East, and Africa (EMEA), and Asia Pacific (APAC)).
The report also provides a comprehensive review of market drivers, restraints, opportunities, and challenges in the RFID market. The report also covers qualitative aspects in addition to the quantitative aspects of these markets.
Key Benefits of Buying the Report
The report will help the leaders/new entrants in this market with information on the closest approximations of the revenue numbers for the overall market and the sub-segments. This report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and plan suitable go-to-market strategies. The report also helps stakeholders understand the pulse of the RFID market and provides them information on key market drivers, restraints, challenges, and opportunities.