Radio-Frequency Identification (RFID) Market - Growing Demand for Automation and Efficiency to Boost Market Growth

Radio-Frequency Identification (RFID) Market Overview

RFID (radio frequency identification) is a form of wireless communication that incorporates the use of electromagnetic or electrostatic coupling in the radio frequency portion of the electromagnetic spectrum to uniquely identify an object, animal or person. Radio Frequency Identification (RFID) technology uses radio waves to identify a tagged object passively. It is used in several commercial and industrial applications, from tracking items along a supply chain to keeping track of items checked out of a library.

 

In February 2023, the world's largest RFID provider, Avery Dennison announced a significant USD 100 million investment to expand its RFID tag production capacity in the Americas region. The new manufacturing site is located in Querétaro, Mexico, and is expected to be operational by the end of the first quarter of 2024. This is Avery Dennison's largest RFID plant globally, spanning 25,000 square meters. This strategic investment supports Avery Dennison's ambition of giving every item a unique digital identity and meeting the accelerating global growth in demand for passive UHF RFID tags. The technology developed at the new facility will create more connected and transparent supply chains, improving efficiency across multiple industries like retail, food, pharma, and logistics in the Radio-Frequency Identification (RFID) Market.

 

According to SMR, the industry with the highest RFID technology consumption rate of Radio-Frequency Identification (RFID) Market in South Korea is the manufacturing sector, with 69.6% of companies using RFID in 2023. The retail and wholesale trade sector has the second highest RFID usage at 57.1%, followed by the transportation and storage industry at 52.9%. In 2014 research found that the RFID adoption rate in the food and beverage supply chain in South Korea was 69.6%. In 2023 companies developed a structural model to investigate the effects of introducing RFID technology in the South Korean food and beverage supply chain.

 

 

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Radio-Frequency Identification (RFID) Market Dynamics

Growing Demand for Automation and Efficiency are boosting the Radio-Frequency Identification (RFID) Market Growth

The need for RFID solutions is being driven by industries' increased adoption of RFID technology to automate tasks like supply chain optimization, asset tracking, and inventory management in the Radio-Frequency Identification (RFID) Market. RFID helps organizations save money and run more efficiently by avoiding errors, cutting down on manual labor, and streamlining operations. RFID makes it possible to track and monitor products in real-time along the entire supply chain, which improves efficiency and visibility. This is especially important for sectors like manufacturing, retail, logistics, and healthcare. RFID enables automated identification and tracking of items in real-time, providing a comprehensive and accurate view of the entire supply chain of the Radio-Frequency Identification (RFID) Market.

 

Ongoing improvements in read ranges, durability, integration capabilities, and the creation of passive and active RFID tags are making the technology more widely applicable in a greater number of industries. RFID tag technology has evolved from short-range reading to active frequency tags capable of tracking assets over distances exceeding 100 meters. There has been a notable and sustained decrease in the price of RFID tags, making this technology increasingly accessible to a broader spectrum of industries and applications. This cost reduction is primarily attributed to advancements in manufacturing processes, materials, and economies of scale as RFID adoption has grown.

 

The Radio-Frequency Identification (RFID) industry is witnessing a trend toward integration with the Internet of Things (IoT) and cloud technologies. This integration enhances the capabilities of RFID systems by enabling real-time data sharing, analysis, and accessibility. Combining RFID with IoT allows for a more comprehensive and interconnected approach to data management, leading to improved efficiency in various applications.

 

The widespread adoption of RFID technology faces challenges due to persistent privacy concerns. RFID involves continuous tracking and data collection, which include sensitive information related to individuals, products, and assets. This constant surveillance has raised apprehensions among consumers about the potential misuse of personal data. Regulatory bodies, acknowledging the importance of safeguarding privacy, have intensified scrutiny, impacting the seamless integration of RFID in various applications in the Radio-Frequency Identification (RFID) Market.

 

Interference from other radio frequency signals disrupt the performance of RFID systems, limiting their effectiveness. Additionally, the high costs associated with RFID hardware, software, and implementation is barrier to adoption, especially for smaller businesses. Ensuring seamless interoperability between different RFID systems and components is a challenge as, the lack of standardization and compatibility between various RFID technologies, tags, and readers hinder the widespread integration of RFID solutions across different industries and applications.

 

Radio-Frequency Identification (RFID) Cost Structure

No.	Cost Structure	Description	Amount
1.	Equipment Costs	Equipment costs for passive RFID systems are high, including expensive readers, cabling, and antennas. Active RFID systems are much cheaper, with equipment costs roughly ten times less than passive systems, although ultra-wideband (UWB) systems offer higher accuracy at a higher price.	USD 3,000
2.	Installation Costs	Passive RFID systems require expert installation, adding to the cost due to the need for precise tuning and calibration of antennas. Active RFID systems, like AirFinder, are easier and cheaper to install.	USD 10000
3.	Tag Costs	Passive RFID tags are inexpensive, usually less than a dollar, except for specialized tags. Active RFID tags are significantly more expensive and require battery maintenance, impacting overall system costs.	USD 5 to USD 15
4.	Software Costs	RFID systems need robust asset management software, which can be costly, varying in complexity from open-source options to expensive enterprise applications. Active RTLS systems often use a cloud SaaS model, bundling software costs with other components.	USD 500 to USD 50,000
5.	Ongoing License Costs	Passive RFID systems often incur ongoing licensing fees for support and software upgrades, which can be substantial. Active RFID systems typically bundle licensing costs with the software, streamlining the cost structure and reducing separate fees.	-
6.	Maintenance Costs	Maintenance costs for passive RFID systems can be high due to complex readers and cabling, prone to damage in industrial settings. Active RFID systems require regular maintenance of battery-powered tags, and staff training adds to ongoing maintenance costs.	USD 6,400 (Active RFID) USD 58,700 (Passive RDIF)
7.	Integrator Costs	Purchasing RFID solutions from integrators adds a premium but provides valuable expertise and support. Integrators can help select the best technology, and some companies, like AirFinder, bundle installation, design, and support services into their system costs, simplifying the process.	USD 1,500 to USD 10,000

 

Radio-Frequency Identification (RFID) Market Regional Analysis

Asia Pacific Set for Highest Growth Rate in Radio-Frequency Identification (RFID) Market by 2030

The Asia Pacific region is poised for significant growth in the Radio-Frequency Identification (RFID) Market, with the highest expected growth rate during the forecast period from 2024 to 2030. The increasing trade connections among Asia Pacific countries are encouraging companies to adopt RFID solutions for better supply chain visibility. RFID technology is proving essential for real-time tracking of assets and personnel across various sectors in the region, including manufacturing, sports and entertainment, logistics, supply chain, and retail.

 

Noteworthy advancements in healthcare, retail, and manufacturing sectors, along with the adoption of new technologies, are driving the interest in RFID in countries like Japan, South Korea, China, India, Australia and New Zealand (ANZ), and the ASEAN nations. The cost-effectiveness and long-term benefits of RFID technology make it an attractive option. In 2023, China emerged as the leading market for RFID tags in the Asia Pacific, with its expanding manufacturing sector fuelling the demand for RFID solutions in the Radio-Frequency Identification (RFID) Industry. These solutions are being used to optimize operations, cut costs, and monitor equipment, materials, safety, assembly lines, and distribution processes within manufacturing facilities.

 

 

Radio-Frequency Identification (RFID) Market Segment Analysis

By Product Type, in 2023, Radio Frequency Identification Tags (RFID tags) dominated the Radio-Frequency Identification (RFID) market, capturing the largest market share. RFID tags are electronic tags that communicate data with RFID readers using radio waves. They significantly influence daily operations across various sectors due to their versatile applications. These advanced barcodes leverage radio frequency technology to identify items and facilitate seamless communication with other devices.

 

RFID tags are crucial in optimizing inventory tracking in warehouses and monitoring livestock movements, among other uses. They consist of an antenna and integrated circuit that transmit data to the RFID reader. The RFID reader, in turn, relays the information to a host computer system through a communication interface, where the data is stored in a database for analysis. This functionality underlines RFID tags' indispensable role in the Radio-Frequency Identification (RFID) Market growth.

 

 

The increasing healthcare expenditure is expected to further drive the growth of the Radio-Frequency Identification (RFID) market. For instance, the Office for National Statistics in the UK reported a significant rise in healthcare spending in May 2023, with an increase of 9.4% in nominal terms and 9.7% in real terms. In 2021, the UK's total healthcare expenditure reached USD 357.25 billion, with pharmaceutical expenditure at USD 53.84 billion. This surge in healthcare spending underscores the growing adoption of RFID technology in the sector, as it enhances efficiency and accuracy in tracking medical supplies and patient information. The integration of RFID in healthcare systems is poised to contribute substantially to the Radio-Frequency Identification (RFID) Market, reflecting the broader trend of technological adoption driven by increased financial investment in healthcare.

 

Radio-Frequency Identification (RFID) Market Competitive Landscape

In May 2023, CCL Industries acquired eAgile Inc. and the intellectual property of Alert Systems for USD 54 million. This strategic acquisition aims to bolster CCL Label's Healthcare & Specialty business with advanced RFID technology, positioning CCL Industries to compete aggressively in the Radio-Frequency Identification (RFID) Market. By integrating eAgile's expertise and Alert Systems' intellectual property, CCL enhances its ability to offer comprehensive RFID solutions, intensifying rivalry with other leading players like Invengo and Etisoft.

 

In March 2023, Invengo showcased its latest RFID innovations at the EuroShop trade fair, unveiling new-generation RFID readers, tags, security gates, and antennas. Invengo's demonstration of RFID applications in smart stores, manufacturing, logistics, and warehouses highlights its commitment to technological advancement. This aggressive push into various sectors signals Invengo's intent to outpace competitors like CCL Industries and Etisoft, intensifying the rivalry in the Radio-Frequency Identification (RFID) industry.

 

In 2024, Etisoft invested USD 1.09 million to expand its RFID label production capabilities, aiming to increase production capacity and explore new business opportunities for its partners. This strategic investment strengthens Etisoft's position in the Radio-Frequency Identification (RFID) Market, enabling it to compete more effectively against CCL Industries and Invengo. By enhancing its production capabilities, Etisoft is poised to meet growing demand and offer more efficient and scalable RFID solutions, contributing to the competitive tension among leading RFID providers.

Radio-Frequency Identification (RFID) Market Scope
Market Size in 2023	USD 16.23 Bn.
Market Size in 2030	USD 34.56 Bn.
CAGR (2024-2030)	11.40%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segments	By Product Type Tags Reader Software
	By Frequency Low Frequency (LF) RFID High-Frequency (HF) RFID Ultra-high frequency (UHF) RFID
	By End-User Industrial Transportation Retail Consumer Package Goods Healthcare Education Others
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Russia, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

Key Players in the Radio-Frequency Identification (RFID) Market

1. Impinj (Seattle, Washington, USA)
2. HID Global (Austin, Texas, USA)
3. STMicroelectronics (Geneva, Switzerland)
4. CAEN RFID srl (Viareggio, Italy)
5. GAOTek Inc. (Toronto, Ontario, Canada)
6. FEIG ELECTRONIC GmbH (Weilburg, Germany)
7. Bernstein (Porta Westfalica, Germany)
8. K. A. Schmersal GmbH & Co. KG (Wuppertal, Germany)
9. Denso Wave Incorporated (Agui, Aichi, Japan)
10. PHYCHIPS Inc. (Seongnam, South Korea)
11. Murata Manufacturing Co., Ltd. (Kyoto, Japan)
12. Zebra Technologies (Lincolnshire, Illinois, USA)
13. Avery Dennison (Mentor, Ohio, USA)
14. Honeywell International (Charlotte, North Carolina, USA)
15. Alien Technology (San Jose, California, USA)