Id: CBI_ 1479 | Pages: 257 | Format : PDF | Published : | Author : Pawan Chasta
RFID Tags Market size is estimated to reach over USD 25,420.96 Million by 2031 from a value of USD 12,519.40 Million in 2023 and is projected to grow by USD 13,455.35 Million in 2024, growing at a CAGR of 9.3% from 2024 to 2031.
RFID (Radio Frequency Identification) tags are small electronic devices that store information and communicate with other devices using radio waves. It is essential to track and identify objects, animals, or even people without needing direct contact and line of sight. These tags are small devices that can be attached to a wide variety of items, ranging from products in a retail store to equipment in a warehouse or livestock on a farm. Additionally, there are two main components in tags which include a microchip and an antenna. The role of the microchip is to store information about unique identifiers, product details, and others depending on the application. Further, the information is transmitted through an antenna that interacts with an RFID reader. Moreover, it is widely used in inventory management by providing real-time data on stock levels, tracking medical equipment and items, managing information and contactless payments. Furthermore, it offers scalable, reliable solutions for tracking and managing assets, reducing errors, and improving efficiency. The aforementioned features of tags are major determinants for increasing their deployment in retail, healthcare, logistics, and other industries.
The growth of e-commerce and the ongoing digital transformation within the retail industry have created a fertile environment for the widespread adoption of RFID tags. As consumers increasingly turn to online shopping, retailers face new challenges in managing inventory, preventing theft, and meeting customer expectations for fast and accurate order fulfillment. RFID technology is playing a crucial role in addressing these challenges and driving efficiency across retail operations. Additionally, these tags enable retailers to gain real-time visibility into their stock, helping them track every item from the moment it enters the warehouse to the point of sale by reducing downtime and improving operational efficiency.
Therefore, the rise of e-commerce and the digital transformation of the retail industry have significantly driven the RFID tags market growth.
RFID systems require specialized software for managing and analyzing the data collected. The cost of acquiring, licensing, and maintaining this software can contribute to the overall expense. Data management platforms handle the vast amounts of data generated by tags, including inventory levels, asset tracking, and movement patterns. Licensing these platforms often involves significant upfront costs. Additionally, major version upgrades are necessary to keep the software up-to-date with technological advancements and changes in industrial standards. These upgrades involve substantial costs, both in terms of software licensing fees and the potential demand for new hardware or additional training. Hence, the cumulative costs of software licensing, updates, maintenance, and support contribute to the hefty investment, hindering the RFID tags market demand.
As businesses embrace automation and smart manufacturing, tags have become essential tools in creating interconnected and intelligent environments. RFID technology, when combined with IoT, allows for continuous and real-time data collection from various assets and processes. Additionally, in a smart manufacturing setup, these tags can be embedded in equipment, products, and components to capture data on their status, location, and usage. This real-time monitoring provides valuable insights into the operational health of machinery, inventory levels, and supply chain movements. Moreover, connecting this data with IoT, enables predictive management, efficient asset management, enhanced supply chain, improved decision-making, and enhanced automation.
Consequently, as per the analysis, this synergy between RFID and IoT enhances efficiency and overall operational performance, fueling the RFID tags market opportunities.
Based on product type the market is bifurcated into active RFID and passive RFID.
Trends in the type:
The passive RFID segment accounted for the largest revenue share in 2023.
The active RFID is anticipated to register the fastest CAGR during the forecast period.
Based on the frequency the market is trifurcated into low frequency (30kHz-300kHz), high-frequency (3MHz-30MHz), and ultra-high frequency (300MHz – 3GHz).
Trends in the Frequency:
The ultra-high frequency accounted for the largest revenue share of 43.44% in the year 2023 and is anticipated to register the fastest CAGR during the forecast period.
Based on end-user the market is segmented into retail, transportation and logistics, agriculture and forestry, manufacturing, healthcare, and others.
Trends in the End-User:
The retail segment accounted for the largest revenue share in the year 2023.
Healthcare is anticipated to register the fastest CAGR during the forecast period.
The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.
Asia Pacific region was valued at USD 3,144.77 Million in 2023. Moreover, it is projected to grow by USD 3,389.64 Million in 2024 and reach over USD 6,606.91 Million by 2031. Out of this, China accounted for the maximum revenue share of 33.6%. According to the RFID tags market analysis, Asia Pacific is anticipated to dominate. The region's rapid economic growth, particularly in countries like China, India, and Japan, is driving substantial investments in RFID technology across various sectors, including retail, logistics, supply chain, and healthcare. Additionally, the expansion of e-commerce and retail sectors in Asia-Pacific further fuels the demand for RFID solutions, as businesses seek to improve inventory management, streamline operations, and enhance customer experiences.
North America is estimated to reach over USD 9,405.75 Million by 2031 from a value of USD 4,723.99 Million in 2023 and is projected to grow by USD 5,068.93 Million in 2024. North America is currently dominating the RFID tags market due to its leadership in technological innovation and high adoption rates, particularly in sectors such as retail and logistics. The region's advanced infrastructure, substantial investments in research and development, stringent regulatory requirements, and incorporation with IoT drive widespread deployment and integration of RFID systems.
Europe is experiencing growth in RFID adoption driven by stringent regulatory requirements, especially in healthcare and food safety. European countries are increasingly integrating RFID technology to comply with regulations and enhance operational efficiencies.
Latin America is an emerging RFID tags market for RFID technology, with growing interest in improving supply chain efficiencies and retail operations. Adoption is increasing in sectors such as logistics, healthcare, and retail.
The Middle East and Africa are gradually adopting RFID technology, with a focus on improving supply chain efficiency and enhancing security in various sectors. Growth is driven by increasing investments in infrastructure and technology.
The RFID tags market is highly competitive with major players providing reliable and scalable solutions for identifying and tracking assets to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the RFID tags market. Key players in the RFID tags industry include-
Collaboration:
Product Launches:
Investment:
Report Attributes | Report Details |
Study Timeline | 2018-2031 |
Market Size in 2031 | USD 25,420.96 Million |
CAGR (2024-2031) | 9.3% |
By Product Type |
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By Frequency |
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By End-User |
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By Region |
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Key Players |
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North America | U.S. Canada Mexico |
Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
Middle East and Africa | GCC Turkey South Africa Rest of MEA |
LATAM | Brazil Argentina Chile Rest of LATAM |
Report Coverage |
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RFID (Radio Frequency Identification) tags are small electronic devices that store information and communicate with other devices using radio waves. It is essential to track and identify objects, animals, or even people without needing direct contact and line of sight.
The RFID Tags Market size is estimated to reach over USD 25,420.96 Million by 2031 from a value of USD 12,519.40 Million in 2023 and is projected to grow by USD 13,455.35 Million in 2024, growing at a CAGR of 9.3% from 2024 to 2031.
The Asia-Pacific region is anticipated to lead the RFID market due to the expansion of e-commerce and retail sectors in Asia-Pacific further fuels the demand for RFID solutions, as businesses seek to improve inventory management, streamline operations, and enhance customer experiences.
The key players in RFID tags market are Avery Dennison Corporation (US), Zebra Technologies Corporation (US), Alien Technology, LLC (US), Impinj, Inc. (US), Smartrac N.V. (Netherlands), Checkpoint Systems, Inc. (US), NXP Semiconductors N.V. (Netherlands), Honeywell International Inc. (US), Confidex Ltd. (Finland), RF Code, Inc. (US), Invengo Information Technology Co., Ltd. (China), GAO RFID Inc. (Canada), Omni-ID, Inc. (US), Tageos SAS (France), HID Global Corporation (US) and others.