RFID Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 14.98 Billion |
| Market Size (2029) | USD 26.01 Billion |
| CAGR (2024 - 2029) | 11.68 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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RFID Market Analysis
The RFID Market size is estimated at USD 14.98 billion in 2024, and is expected to reach USD 26.01 billion by 2029, growing at a CAGR of 11.68% during the forecast period (2024-2029).
Supply chain management and logistics make widespread usage of RFID technology. Sensor-based RFID technology is being increasingly integrated into product packaging to track and trace the origin of the product and prevent any source of contamination or tampering within the supply chain.
- Logistics and transportation are major areas of implementation for RFID technology. Warehouse management, yard management, shipping and freight, and distribution centers are some of the areas where RFID tracking technology is usually used.
- Radiofrequency identification (RFID) primarily refers to a wireless system comprising two major components: tags and readers. The reader is basically a device comprising one or more antennas that emits radio waves and receive signals back from the RFID tags. The tags, which make use of radio waves to communicate their identity and other crucial information to the nearby readers, can be passive or active type.
- The passive RFID tags are mainly powered by the readers and do not have a battery. However, the active type RFID tags are powered by batteries. These RFID tags can store a wide range of information, right from one serial number to several pages of crucial data. The RFID readers are offered in a mobile form factor so that they can be carried by hand or can either be mounted on a post or overhead.
- One of the most common usages of RFID technology has been tracking goods in the supply chain, tracking parts moving to a manufacturing production line, tracing assets, security, and payment systems that let clientele pay for items without using cash. In addition, RFID is frequently used in the healthcare industry on patient wristbands to offer tamper-proof, exact identification for facility access control and security.
- Moreover, multiple distribution centers and warehouses around the globe have been investing in improving their process efficiency to increase the efficiency of the overall processes as a part of their improvement programs. Such investments in the market landscape are anticipated to drive the growth and implementation of RFID technology.
- The COVID-19 pandemic has increased challenges for retailers. The pandemic also pushed retailers to adopt RFID on a much larger scale. The pandemic became an accelerator of the digital transformation trend, which was already underway.
RFID Market Trends
Retail Segment is Expected to Hold a Major Market Share
- 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 transactions, stock taking, inventory levels, or individual customer purchase order history. RFID in retail eases the typical retail inventory process, which is manual, time-consuming, and only performed at predetermined intervals. Item tracking is one of the major applications that retailers use RFID. RFID in retail can also be used to prevent theft and track items that are usually moved and often misplaced.
- Several companies have adopted RFID as an approach to control inventories. Leaders include Zara, H&M, Target, Macy's, Uniqlo, Nike, Adidas, Lululemon, Footlocker, Levi's, Tommy Hilfiger, Ralph Lauren, and Victoria's Secret. E-commerce is fueling much of the adoption, with high inventory accuracy levels required to support processes like store fulfillment and BOPIS (buy online, pick up in-store).
- RFID-processed merchandise also makes factual data available to management. It may lead to smarter purchase decisions and give management better expense control, as inventory accuracy is crucial to lowering shrinkage, thus, better profits.
- Usage of RFID may improve overall merchandise management; accurate tracking of inventory and its location saves money. It also drives greater topline revenues, as it becomes easier to assure that sales are completed. Bottom line, adoption of the system ensures more profitable performance, as there is a more accurate accounting of the merchandise wherever it is stored.
- Retailers across the world have been making extensive use of RFID technology, especially in the Apparel business. The Canada-based company, Logistik Unicorp, has been using radio frequency identification as a tool to ensure that Canadian military uniforms are delivered swiftly, along with the guarantee of meeting strict quality requirements. It has been able to reduce the time required to ship goods by 35%. Such initiatives encourage new opportunities and developments and initiatives for RFID in the market and decrease the dependency on retail goods.
- Omnichannel retail strategies to meet the customers' needs on all sales channels became a priority for survival. RFID extended retailers' visibility of merchandise across the stores and the enterprise and distribution centers to meet ever-changing consumer demands.
Asia Pacific is Expected to be the Fastest Growing Market
- The Asia Pacific region is anticipated to hold a significant share of the market and is expected to witness significant growth over the forecast period. The rapidly increasing implementation and research work in the field of automation and a significant expansion of industry 4.0 have been driving the demand for RFID solutions in the region.
- The region's growth has been significantly driven by the increasing installation of these RFID systems in manufacturing units in order to improve productivity. The growing acceptance of electronic identity cards and RFID tags that are located in smart cards is also acting as a driver for the growth of the RFID market in the region.
- The expanding retail sector, along with the rising retailers' focus on embracing digital technologies in order to enhance the customer's shopping experience and optimize the warehouse management process, has also been one of the key factors contributing to the growth of the RFID market. RFID has been one of the efficient technologies used to handle goods and materials in the production environment.
- The expanding manufacturing landscape in the region, coupled with the increasing adoption of automation and Industrial Internet of Things (IIoT) solutions in the sector, has been propelling the market's growth. Also, the growing investments in asset management by organizations across various verticals and the rising need for contactless infrastructure coupled with government initiatives such as smart cities will further drive the growth of the market during the forecast period.
- Moreover, the public transportation sector is anticipated to be one of the areas in which the market is expected to expand over the forecast period. However, some restraints are limiting the growth of the market. The higher cost associated with installing RFID systems may challenge the market's growth. The device interoperability issues can also hinder the growth of the market over the forecasted period.
- Countries such as India are expected to witness a surge in the adoption of RFID technology as industries mature, and the COVID-19 pandemic is increasing the need for contactless solutions.
RFID Industry Overview
The RFID Market is fragemented and highly competitive and consists of several major players like Avery Dennison Corporation, Alien Technology Corporation, CCL Industries Inc., William Frick & Company, etc. The major players are focusing on expanding their customer base across foreign countries. The companies are leveraging strategic collaborative initiatives to increase their market share and increase their profitability. The competition, rapid technological advancements, and frequent changes in consumer preferences are expected to pose a threat to the market's growth of the companies during the forecast period.
- May 2023 - CCL Industries INC, announced it has acquired eAgile Inc. and the intellectual property of Alert Systems with the USD 54 million purchase price includes an estimated USD 1 million net cash assumed with USD 7 million deferred for five years. The new business will become an integral part of CCL Label’s Healthcare & Specialty business while adding RFID know-how across the company.
- Februray 2023 - Avery Dennison Smartrac invests USD 100milion in new RFID tag making capacity, The investment supports the AIPIA member’s ambition of giving every item a unique digital identity and meeting the growing demand for passive UHF RFID tags as well as increasing how quickly it can fulfil orders.
RFID Market Leaders
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Avery Dennison Corporation
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Alien Technology Corporation
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William Frick & Company
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Invengo Technology Pte Ltd.
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CCL Industries Inc.
*Disclaimer: Major Players sorted in no particular order
RFID Market News
- September 2023 - The AD Pure line launches with, AD Belt U9 Pure inlays and tags which are ideally suited for global apparel, retail, industry and supply-chain applications. They are compact in size and offer excellent performance on difficult-to-tag or low-detuning materials such as cardboard and plastic.
- March 2023 - At EuroShop, Invengo brought and exhibited a variety of new-generation products such as UHF readers, tags, security gates, and antennas, as well as handheld readers from ATID, which demonstrated its advanced technology in the RFID industry. Invengo also showed RFID application cases in smart stores, manufacturing, logistics, and warehouses to visitors. The unreserved and open communication with the guests had brought everyone a new, intelligent, and satisfying experience.
RFID Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHT
- 4.1 Market Overview
- 4.2 Industry Stakeholder Analysis
- 4.3 RFID Tag Types
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4.4 Industry Attractiveness - Porter's Five Forces Analysis
- 4.4.1 Bargaining Power of Suppliers
- 4.4.2 Bargaining Power of Buyers
- 4.4.3 Threat of New Entrants
- 4.4.4 Threat of Substitutes
- 4.4.5 Intensity of Competitive Rivalry
- 4.5 RFID Regulations and Standards
- 4.6 RFID and IoT
- 4.7 Impact of COVID-19 on RFID and Allied Markets
- 4.8 Critical Success Factors for RFID Implementation
- 4.9 Gap Analysis
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Government Policies Favoring Digital Development
- 5.1.2 Increasing Installation of RFID in Manufacturing Units for Productivity Improvement and Security and Access Control Applications
- 5.2 Market Challenges
6. MARKET SEGMENTATION
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6.1 By Technology
- 6.1.1 RFID Tags
- 6.1.2 RFID Interrogators
- 6.1.3 RFID Software/Services
- 6.1.4 Active RFID/RTLS
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6.2 By Application
- 6.2.1 Retail
- 6.2.2 Healthcare and Medical
- 6.2.3 Passenger Transport/Automotive
- 6.2.4 Manufacturing
- 6.2.5 Consumer Products
- 6.2.6 Other Applications
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6.3 By Geography
- 6.3.1 North America
- 6.3.2 Europe
- 6.3.3 Asia Pacific
- 6.3.4 Latin America
- 6.3.5 Middle East and Africa
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles
- 7.1.1 Avery Dennison Corporation
- 7.1.2 Alien Technology Corporation
- 7.1.3 William Frick & Company
- 7.1.4 Invengo Technology Pte Ltd.
- 7.1.5 Impinj Inc.
- 7.1.6 CCL Industries Inc.
- 7.1.7 Nedap NV
- 7.1.8 Zebra Technologies Corporation
- 7.1.9 Trace-Tech ID Solutions SL
- 7.1.10 Hangzhou Century Co. Ltd.
- 7.1.11 SML Group Limited
- 7.1.12 Honeywell Productivity and Workflow Solutions
- 7.1.13 CHILITAG Technology Ltd
- 7.1.14 Ceyon Technology Co. Ltd.
- 7.1.15 JADAK Technologies Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
RFID Industry Segmentation
RFID (Radio Frequency Identification) is a wireless system that comprises two components: tags and readers. The reader is a device with antennas that emit radio waves and receive signals from RFID tags. Tags are passive or active, communicating their identity and other information to nearby readers via radio waves. Passive RFID tags do not have a battery. The reader powers them. Batteries are usually used to power active RFID tags.
The RFID market is Segmented by technology (RFID tags, RFID interrogators, RFID software/services, and active RFID/RTLS), application (retail, healthcare and medical, passenger transport/automotive, manufacturing, and consumer products), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle-East and Africa). The market size and forecasts are provided in terms of value (USD) for all the above segments.
| By Technology | RFID Tags |
| RFID Interrogators | |
| RFID Software/Services | |
| Active RFID/RTLS | |
| By Application | Retail |
| Healthcare and Medical | |
| Passenger Transport/Automotive | |
| Manufacturing | |
| Consumer Products | |
| Other Applications | |
| By Geography | North America |
| Europe | |
| Asia Pacific | |
| Latin America | |
| Middle East and Africa |
RFID Market Research FAQs
How big is the RFID Market?
The RFID Market size is expected to reach USD 14.98 billion in 2024 and grow at a CAGR of 11.68% to reach USD 26.01 billion by 2029.
What is the current RFID Market size?
In 2024, the RFID Market size is expected to reach USD 14.98 billion.
Who are the key players in RFID Market?
Avery Dennison Corporation, Alien Technology Corporation, William Frick & Company, Invengo Technology Pte Ltd. and CCL Industries Inc. are the major companies operating in the RFID Market.
Which is the fastest growing region in RFID Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in RFID Market?
In 2024, the North America accounts for the largest market share in RFID Market.
What years does this RFID Market cover, and what was the market size in 2023?
In 2023, the RFID Market size was estimated at USD 13.23 billion. The report covers the RFID Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the RFID Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What role does government regulation play in the RFID Market?
Government regulations impact RFID adoption through: a) Standards for frequency use b) Data privacy and security c) Encouraging responsible and efficient use of the technology
RFID Industry Report
The RFID industry is witnessing remarkable growth, fueled by the increasing adoption of RFID technology across diverse sectors to enhance productivity, improve inventory management, and ensure safety through government initiatives. This surge in demand is particularly notable in manufacturing, healthcare, retail, and supply chain management, where RFID chip companies are at the forefront of innovation, developing cost-effective solutions to meet market needs. The market, segmented by type, frequency, and application, sees a high demand for passive tags, especially in the retail sector to streamline operations and improve customer experiences. The Asia Pacific region is leading in growth, due to rising trade and technology adoption in key industries. With the cost of RFID tags decreasing, the technology is becoming more accessible, driving expansion and innovation across various industries. For detailed statistics on the RFID market's share, size, and revenue growth, Mordor Intelligence™ offers comprehensive industry reports, including forecasts and historical overviews, available as a free PDF download.
