Enjoy complimentary customisation on priority with our Enterprise License!
The Radio Frequency Identification Market size is estimated to grow by USD 14.20 billion at a CAGR of 12.83% between 2023 and 2028. The adoption of inventory management systems helps businesses improve their operational efficiency, reduce costs, and enhance customer service by ensuring accurate inventory tracking and management. The adoption of RFID solutions, including RFID middleware, in cloud middleware enables businesses to integrate RFID technology into their existing systems more easily, leading to increased adoption of RFID technology in various industries. The increased adoption of RFID in e-commerce and RFID for industrial applications is driven by the need for improved inventory visibility, faster order processing, and enhanced customer experiences, driving growth in the market for RFID solutions in e-commerce.
For More Highlights About this Radio Frequency Identification Market Report, Download Free Sample in a Minute
The RFID tags segment is estimated to witness significant growth during the forecast period. This segment refers to an electronic tag that is integrated into the object/asset that exchanges data with a reader through radio waves. In addition, there are two main components, namely, an antenna and an integrated circuit (IC). Furthermore, an antenna is used to receive the radio frequency.
Get a glance at the market contribution of various segments. Download the PDF Sample
The RFID tags segment was the largest and was valued at USD 4.91 billion in 2018. Moreover, the market is growing in several operational processes across the industrial landscape. In addition, a rising number of end-user industries that require access management and material identification has driven the market, including vehicle RFID tags. Furthermore, these tags decrease the pressure on manual processes, enhance the efficiency of operations, increase asset traceability, and improve reliability. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
The increasing adoption of RFID technology in the industrial segment will increase the market growth. The adoption of this technology in the industrial segment is fuelled by its use for supply chain management and inventory management. In addition, in the industrial segment, both passive and active tags are used. Moreover, the use of active and passive tags depends highly on the application. In addition, the integration helps the end-user in shortening the production process and improving the efficiency of the production process. Furthermore, this technology also enables the end-user to make analytical decisions based on database management and IT service management. Hence, such factors are fuelling the growth of this segment, which in turn will drive the market growth during the forecast period.
For more insights on the market share of various regions, Download PDF Sample now!
North America is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. One of the main factors that are fuelling the growth of the radio frequency identification middleware market in North America is the increased adoption of concepts such as smart factories in the region. In addition, this technology is used in various processes of smart factories and industries to reduce manual work and increase the accuracy of inventory. Moreover, there has been an increase in the adoption in smart factories and industries, as well as supply chain management. For example, According to the Bureau of Transportation Statistics, the total Transponders freight between the US and Canada surged by 76.8% in April 2021 when compared to the same period in the previous year. Hence, such factors are driving the market growth in North America during the forecast period.
The market is witnessing significant growth, driven by its widespread adoption in various industries such as manufacturing, logistics, and warehousing. RFID technology enables efficient inventory management and asset tracking through the use of these tags and readers. In the context of toll collection, RFID solutions like FASTag have revolutionized electronic toll collection systems, enhancing efficiency and reducing congestion at toll booths. With advancements like 5G and Internet of Things (IoT), These systems are becoming more advanced, enabling real-time location systems (RTLS) and sensor networks for improved resource optimization. Expert analysis indicates a positive outlook for the market, with continued growth expected in the coming years. 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.
One of the key factors driving the market growth is the increased adoption of RFID in e-commerce. The market is experiencing rapid growth, which is driving the market. Additionally, in the e-commerce sector, inventory is stored in warehouses and must be regularly updated. RFID technology is used in e-commerce to manage volatile inventory and provide stock updates, leveraging these solutions for efficient inventory management.
The technology in e-commerce saves time and enhances efficiency in inventory checks and new shipments on a daily/monthly basis. RFID scanners can read tags up to 20 feet away and record hundreds of tags per second. Inventory management in the logistics and manufacturing industry requires precise calculations of incoming and outgoing stock, and the technology provides accurate results while reducing data redundancy. This technology leverages sensor networks and tags for efficient warehousing operations. These factors are fueling market growth in the forecast period.
A key factor shaping the market growth is the growing interest in smart retail stores. A smart store refers to a type of brick-and-mortar retail establishment that uses smart technologies, including smart cards, and smart mirrors. In addition, the technology is used in smart stores for the delivery of products to customers and checkout services.
Moreover, Amazon.com Inc. and Walmart Inc. have successfully adopted RFID developments, allowing them to outperform physical retail establishments. For example, in February 2021, Lojas Centauro (a sports goods retailer) started deploying this technology at its stores to track apparel as they were received, displayed, and sold. Hence, the emergence of smart stores integrated with this technology is anticipated to impact the market positively. Therefore, it is expected to drive the market growth during the forecast period.
Data security and consumer privacy issues are one of the key challenges hindering the market growth. The technology has the feature to encrypt the stored data based on the requirements of the end-user. In addition, without encryption, the data stored can be found with the help of the frequency. However, data security is a threat to RF communication that happens between the tags and the readers
Moreover, alternative technologies such as beacons send a signal with a beacon identifier that says, I am here. Still, in RFID communication, it transmits the data related to the product, such as code and other details. Furthermore, some of the data security threats are clone tags, unauthorized riders, and side-channel attacks. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market during the forecast period.
The Radio Frequency Identification market 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 Radio Frequency Identification market forecasting report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market 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.
The Radio Frequency Identification research report also includes detailed analyses of the competitive landscape of the market and information about 24 market 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.
The Radio Frequency Identification market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments
The market is experiencing robust growth driven by advancements in technology and increasing applications across various sectors. RFID technology, utilizing high-frequency (HF) and ultra-high frequency (UHF) signals, enables Accurate Data Unit capture and real-time location services (RTLS). It finds extensive use in sset tracking & payments systems, and automatic item identification, enhancing efficiency in logistics and manufacturing facilities. Despite challenges such as electromagnetic interference and regulatory complexities, RFID's deployment in retail applications and security access control continues to expand. Government mandates and compliance requirements further bolster market demand, while strategic growth analysis identifies emerging revenue pockets and opportunities. With improvements in tag costs and technical capabilities, RFID solutions promise enhanced operational effectiveness and substantial return on investment (ROI) across diverse industries, reinforcing its pivotal role in modern supply chain and inventory management solutions.
In addition, these innovations are crucial for accurate data unit management, asset tracking, and automated payments in sectors like logistics and manufacturing. Compliance with data protection regulations and effective store handling are facilitated through RFID solutions, which also address challenges such as electromagnetic fields and technical limitations. RFID systems incorporating real-time location systems (RTLS) and RFID readers enhance operational efficiency by providing real-time intelligence and bolstering security measures. Despite regulatory challenges and trade regulations, RFID technology continues to expand its footprint in retail applications and shipping/receiving applications. Strategic market growth analysis highlights opportunities arising from changes in market regulations and the growing demand for category market growth, positioning RFID as a pivotal technology in modern industrial and commercial environments.
Further, the advancements in high-frequency (HF) and ultra-high frequency (UHF) RFID technology. These technologies are revolutionizing asset tracking & payments, automation, and security & access control across various industries including logistic and Manufacturing Industry and retail. Compliance experts are crucial in navigating regulatory and legal challenges associated with RFID implementation. Gantry and Real Time Location Systems (RTLS) enhance operational efficiency by providing accurate real-time data for logistic and manufacturing applications. RFID systems, including NFC and mixed pallet solutions, optimize production and shipping/receiving processes. Despite challenges such as Radio-frequency signals or fields and technical limitations, RFID's market ecosystem continues to expand, driven by opportunities identified through Pestle Analysis and Production Analysis. Retailers are increasingly adopting RFID for enhanced inventory management and customer experience, solidifying its role as a cornerstone technology in modern supply chains and commercial environments.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.83% |
Market Growth 2024-2028 |
USD 14.20 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
11.65 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 40% |
Key countries |
US, Canada, China, 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., CipherLab Co. Ltd., CoreRFID Ltd., CYBRA Corp., Datalogic SpA, FEIG ELECTRONIC GmbH, Fujitsu Ltd., GAO RFID Inc., Honeywell International Inc., Impinj Inc., Mojix Inc., Nedap NV, NXP Semiconductors NV, RFID Inc., RFID4U, SATO Holdings Corp., Siemens AG, SML Group Ltd., TIBCO Software Inc., Unitech Computer Co. Ltd., Zebra Technologies Corp., and eAgile Inc. |
Market dynamics |
Parent market growth analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this Radio Frequency Identification market research report to meet your requirements.
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 End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.