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The RFID for industrial applications market size is forecast to increase by USD 2.33 billion, at a CAGR of 10.2% between 2023 and 2028. The market is witnessing significant growth due to the evolution of Industry 4.0 and the increasing deployment of rain RFID in manufacturing industries. Industry 4.0, also known as the Fourth Industrial Revolution, highlights the integration of advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI), and RFID into manufacturing processes to enhance productivity and efficiency. Rain RFID, a type of RFID technology, is gaining popularity in industrial applications due to its ability to operate effectively in harsh environments and at longer reading ranges. However, the high initial investments associated with RFID solutions remain a challenge for small and medium-sized enterprises (SMEs) in adopting this technology. Despite this, the benefits of RFID, such as real-time inventory management, improved supply chain visibility, and enhanced productivity, are driving the market growth in industrial applications.
RFID technology continues to revolutionize industrial applications, particularly in manufacturing facilities and logistics. Two primary RFID technologies dominate the market: dual-frequency (DF) series and Near Field Communication (NFC) or High Frequency (HF). DF series, which includes both UHF and HF, offers long-range identification and is ideal for large-scale manufacturing processes and inventory management. Fresenius Kabi, a leading healthcare company, uses RFID technology to track and manage its pharmaceutical products, such as rocuronium bromide injection, ensuring safety and productivity. NFC (HF) is commonly used for short-range applications like electronic toll collection. At toll booths, RFID tags attached to vehicles are read by electronic circuitry to automatically deduct toll fees, enhancing safety and security through vehicle identification.
Rain RFID (UHF) is another popular choice for outdoor applications due to its ability to read tags through various weather conditions. Affordable RFID solutions, such as mountable tags, are increasingly being adopted by industries to streamline processes and improve efficiency. Moreover, the integration of blockchain technology with RFID is expected to further boost the market by ensuring data security and transparency. Tagmaster, a leading RFID technology provider, is at the forefront of these advancements, offering innovative solutions for various industries.
The RFID for industrial applications market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The RFID tags segment is estimated to witness significant growth during the forecast period. RFID (Radio Frequency Identification) technology is a revolutionary innovation in the realm of industrial applications, particularly in sectors such as retail, logistics, and asset management. RFID tags, comprised of an antenna and an integrated circuit (IC), facilitate data exchange with readers using electromagnetic waves. The IC stores and processes data, while the antenna transmits and receives signals. RFID tags offer several advantages over traditional barcode technology, including economies of scale, improved accuracy, and real-time tracking capabilities. In the retail sector, RFID technology streamlines supply chain operations by enabling automated inventory management and reducing stockouts, misplacement, and restocking processes. The retail segment is a significant contributor to the market, with the adoption of RFID technology expanding to omnichannel retail and e-commerce platforms. Logistics and asset management industries also benefit from RFID's cost-effective and efficient identification and tracking capabilities. Technical limitations, such as read range, interference, and tag types, are being addressed through advancements in electronic circuitry, semiconductor chips, resistors, capacitors, and integrated antennas. RFID tags come in various forms, including passive tags, active tags, and battery-assisted passive tags. Passive tags rely on energy from the reader to function, while active tags have their own power source. The tags segment includes ring tags, labels, cards, tickets, wristbands, key fobs, tie wraps, and embedded or mountable tags. RFID readers and software components are essential components of the RFID system.
Readers can operate on low-frequency (LF), high-frequency (HF), or ultra-high-frequency (UHF) electromagnetic waves, with varying transmission ranges. The choice of frequency depends on the specific application and the required read range. In conclusion, RFID technology offers numerous advantages in industrial applications, particularly in retail, logistics, and asset management. Its cost-effectiveness, real-time tracking capabilities, and integration with various industries make it a valuable investment for businesses seeking to streamline operations and improve efficiency. Ongoing advancements in RFID technology continue to address technical limitations, expanding its applications and potential for growth.
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The RFID tags segment was valued at USD 1.17 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 44% to the growth of the global RFID for industrial applications market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market is witnessing significant growth, particularly in the Americas region, driven by economies of scale in manufacturing sectors such as automotive, consumer electronics, and aerospace and defense. The retail sector is another major contributor, with the adoption of RFID technology for inventory management and supply chain operations in the omnichannel retail environment and e-commerce. Technological advancements in RFID include extended read ranges, improved interference resistance, and the development of both passive and active tags, such as ring tags, labels, cards, tickets, wristbands, key fobs, tie wraps, and embedded or mountable tags. The tags segment includes electronic circuitry, semiconductor chips, resistors, capacitors, integrated antenna, battery, and other components. The Americas' strong industrial base, particularly in automotive production, and investments in digitalizing operations are key factors driving the market's growth.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The evolution of industry 4.0 is the key driver of RFID for industrial applications market growth. The market is poised for significant growth due to the increasing adoption of Industry 4.0 technologies. Industry 4.0, characterized by data exchange, automation, and cloud-based services, is revolutionizing manufacturing processes by enabling real-time data access and analysis. This transformation is driving the integration of RFID technology into various industrial applications, such as smart shelves in retail for enhancing shopping experiences, trade connections for supply chain visibility, and manufacturing processes for predictive maintenance and automation. Furthermore, RFID is finding applications in sectors like sports & entertainment for ticketing and asset tracking, and in the automotive industry for RFID-tagged tires.
Additionally, the integration of Blockchain technology with RFID is expected to bring transparency and security to industrial applications. Chip technology advancements are also contributing to the market growth by enabling smaller, more cost-effective RFID tags.
Companies offering cloud-based RFID solutions is the upcoming trend in the RFID for industrial applications market. RAIN RFID, a cutting-edge technology synonymous with UHF RFID, is revolutionizing various industries, particularly retail and manufacturing. In retail, RAIN RFID enhances the shopping experience by enabling item-level tagging and real-time inventory management. Smart shelves equipped with RFID technology provide accurate stock information, ensuring optimal product availability. Beyond retail, RAIN RFID is making strides in manufacturing, where it enhances supply chain visibility and streamlines operations. Manufacturers are leveraging RFID-tagged components to monitor production and improve efficiency.
In the sports & entertainment sector, RFID technology is used for contactless ticketing and crowd management. Furthermore, the integration of Blockchain technology with RFID is expected to bring transparency and security to industries, such as automotive, where RFID-tagged tires are being used for tracking and maintenance. The increasing demand for rugged industrial RFID scanners, including wearable ring scanners, is driving growth in the RFID scanners market, with the rugged handheld scanner segment witnessing significant expansion.
High initial investments associated with RFID solutions is a key challenge affecting radio frequency identification market growth. The RFID market for industrial applications is experiencing significant growth, driven by advancements in chip technology and the increasing demand for improved supply chain visibility, manufacturing efficiency, and enhanced shopping experiences. RFID systems are being implemented in various industries, including manufacturing, sports & entertainment, and retail, to streamline operations and optimize trade connections. Smart shelves utilizing RFID-tagged products offer real-time inventory management, enabling businesses to maintain accurate stock levels and reduce out-of-stock situations.
Furthermore, RFID technology is being integrated with Blockchain to ensure secure and transparent data transfer, enhancing trust and accountability in business transactions. In the automotive industry, RFID-tagged tires are being used for real-time monitoring and maintenance, improving safety and reducing operational costs. Despite the high initial investments required for RFID systems, the benefits outweigh the costs, making it a valuable investment for businesses seeking to optimize their operations and gain a competitive edge.
The radio frequency identification market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the RFID for industrial applications market growth analysis report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alien Technology LLC - The company offers radio frequency identification RFID for industrial applications such as retail or apparel, transportation and life sciences. The company offers RFID products which include Higgs RFID Ics, Higgs EC, ALR F800 X With Emissary and ALR F800.
The radio frequency identification for industrial applications market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
RFID technology has revolutionized industrial applications, particularly in manufacturing facilities, inventory management, safety, and security. The dual-frequency series, with its ability to read both low-frequency and high-frequency RFID tags, has gained significant traction in various industries. Fresenius Kabi and NXP NTAG are among the key players providing RFID solutions. Government initiatives, such as AccelerateGov, promote the adoption of RFID technology in areas like vehicle identification and toll fees. Avery Dennison, a leading provider of RFID labels, ensures affordable solutions for businesses. The RFID system's architecture includes RFID tags or transponders, radio-frequency signals, readers, and a database. The automatic identification process enables fast and efficient inventory management, reducing manual involvement and increasing productivity.
In the manufacturing sector, RFID tags provide unique identification information for tracking and managing materials, ensuring safety and security. In healthcare, RFID technology and semiconductor technology is used for patient safety and asset management. In finance, RFID technology is used for toll deduction processes, with systems like Fastag streamlining the travel experience by using vehicle registration numbers for automatic identification. Privacy and data protection are crucial considerations in RFID technology implementation, with privacy laws and liability issues requiring careful attention. The cost of RFID tags and materials continues to decrease, making RFID technology an increasingly attractive solution for businesses.
Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10.2% |
Market Growth 2024-2028 |
USD 2.33 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.0 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 44% |
Key countries |
US, China, Canada, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alien Technology LLC, ASSA ABLOY AB, Avery Dennison Corp., CAEN RFID S.r.l., CCL Industries Inc., CipherLab Co. Ltd., CoreRFID Ltd., Datalogic SpA, GAO Group Inc., Honeywell International Inc., Impinj Inc., Mojix Inc., NXP Semiconductors NV, Pepperl and Fuchs SE, RFID4U, Terso Solutions Inc., Ubisense Ltd., Unitech Computer Co. Ltd., Willion Frick and Co., and Zebra Technologies Corp. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our radio frequency identification for industrial applications market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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