RFID Market Worth $35.6 Billion by 2030: MarketsandMarkets

According to a research report “RFID Market by Offering (Tags, Readers, Software & Services), Tag Type (Passive, Active), Wafer Size, Frequency, Form Factor (Card, Implant, Key Fob, Label, Paper Ticket, Band), Material, Application & Region – Global Forecast to 2030” published by MarketsandMarkets, the RFID market is projected to reach USD $35.6 billion by 2030 from USD $14.5 billion in 2022. It is expected to grow at a CAGR of 11.9% from 2022 to 2030.

RFID technology uses radio waves to identify/detect people or objects. RFID tags are small electronic devices that send/receive data to/from RFID readers. RFID tags can be incorporated into products, animals, or humans for identification and data collection.

The RFID market for real-time monitoring has witnessed rapid growth, with an increasing number of players entering this market with innovative features. More than 150 players are active in the market, offering solutions for real-time monitoring. The top companies majorly focus on healthcare, retail, logistics and supply chain, and manufacturing industries, and have introduced industry-specific solutions.

The logistics and supply segment accounted for the largest market share in 2021, and this trend is expected to continue during the forecast period. The dominance of this segment is due to the high adoption of tracking systems by logistics organizations to track and monitor their cargo in transit. Companies are also using sensor-based RFID tagging systems to monitor environmental conditions around the products being transported.

RFID tags has helped government officials in monitoring assets and assort the legal supply of products. Such measures to prevent loss of product in transit have largely contributed to the adoption of RFID tags in the logistics and supply chain application.

The logistics and supply chain segment includes the use of RFID tags in applications such as postal and courier, asset tracking, freight tracking, cargo tracking, container tracking, and other supply chain activities. RFID solutions help industries optimize their supply chain by better managing warehouse inventory, tracking shipments, and streamlining the best route for the supply chain.

By adopting an electronic and paperless environment through RFID technology, suppliers and wholesalers can attain inventory accuracy of over 99.9% by avoiding human errors. Using RFID solutions, real-time information can be kept in a database, including information on stocks in warehouses and transit.

Label tags account for the largest share, in terms of value, of the RFID tag market. Labels are the most common, inexpensive, and extensively used tags. Labels are put on assets in IT parks, industrial material, industrial equipment, data center assets, hospital equipment and drugs, and many other products and objects.

Labels are mostly provided by the manufacturer in reel/bundle as a bulk purchase. The tags are mostly used as single-use products; therefore, the number of tags used is high in every end-user industry.

The Asia Pacific region is expected to witness the highest growth in the RFID tag market during the forecast period. In 2021, China was the largest RFID tag market in Asia Pacific. The market in Japan is expected to grow at the highest CAGR during the forecast period. The healthcare and retail industries in Japan are among the early adopters of RFID solutions.