PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1388799
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1388799
Radio Frequency Identification (RFID) is referred to as a form of wireless communication that utilizes tags to track the object's details. The advantages provided by RFID to organizations are removing human error, minimizing overhead expenses, and securing the data from unauthorized access. Moreover, to transfer the data to the RFID reader, the RFID tags are equipped with an integrated circuit and an antenna. An RFID tag received a signal from an RFID reader that responded with a signal containing data.
The rising use of IOT in several verticals such as retailers, manufacturing, and healthcare is the prime factor driving the growth of the market. Additionally, the growing adoption of advanced technologies including smart devices, robots, and sensors in the numerous verticals has positively accelerated the adoption of IoT in the various verticals, in turn, boosting the growth of the market. The growing focus of the multiple verticals towards raising the profit by managing the wastage of resources is increasing the use of IOT among verticals, as the components are required in the IOT environment to perform communication between the objects and devices. Thus, RFID tags are added to items to enable informational communication that will allow organizations to use the information in the decision-making that will improve the performance of the organization. RFID assists organizations in increasing profit by controlling resources, time, and cost, by offering real-time traceability, communication, locations, and identification of the resources and people. Thereby, such factors are predicted to boost the growth of the RFID market. However, a lack of awareness among the enterprises is expected to restrain the market growth.
The global RFID market is segmented on the basis of Component, Frequency, Type, End User, and region.
The market is divided into two categories based on type: passive tags and active tags. The passive tags segment is accounted to register the highest growth rate. Passive tags do not need an external power source as well and these are smaller inexpensive, and easier to make than active tags. Additionally, these tags have several applications and are generally used to track goods in supply chains, pharmaceuticals, enterprises, and retail.
The market is divided into five categories based on raw end users: retail, commercial, transportation, animal tracking/agriculture, logistics and supply chain, and others. The logistics and supply chain segment is likely to possess the largest share of the market over the forecast period. The segment is attributed to the high adoption of tracking systems by logistics organizations to monitor and track their cargo in transit through marine, air, and road. RFID solutions help sectors optimize their supply chain by improving managing warehouse tracking shipments, and inventory, streamlining the best way for the supply chain.
By regional analysis, the RFID market can be segmented into North America, Asia Pacific, Europe, and the Rest of the World. North America is expected to hold a dominant position in the global RFID market throughout the forecast period. The growth is attributed to the rising number of cyber-threats across several verticals including banking and financial, manufacturing, healthcare, and retail. Moreover, Europe is predicted to dominate the market share in terms of revenue due to a significant development in consumer electronics solutions and the Internet of Things.
The surge in government initiatives to boost RFID-based solutions across several industries is fueling the market growth. The rising demand for RFID solutions in the healthcare and banking sectors is majorly propelling market growth. Moreover, the market is highly competitive, due to the strong presence of existing vendors. Vendors of RFID tags and RFID chip-based machines with extensive financial and technical resources are predicted to gain a competitive advantage over their competitors as they can cater to market demands. The competitive environment in this market is likely to rise as product extensions, technological innovations, partnerships, mergers and acquisitions, and collaborations are strategies adopted by key vendors. For instance, in February 2021, Avery Dennison Smartrac has introduced the AD Minidose U9 RAIN RFID insert for use in pharmaceuticals, unlocking crucial RFID values for pharmacy, medical care, and scientific handling of assets. The AD Minidose U9 represents one of the most compact devices on the marketplace with ARC accreditation (Spec S) through Auburn University's RFID Lab as well as DoseID business consortium approval.
For instance, in February 2022, Impinj, Inc. stated that it has joined the DoseID Consortium in order to broaden its emphasis on RAIN radio-frequency identification uses for medical devices and to contribute to the development of guidelines for RAIN RFID healthcare usage.
The scope of this report covers the market by its major segments, which include as follows: