The global radio frequency identification (RFID) market is estimated to be valued at $21,361.9 million by 2027, surging from $9,966.4 million in 2019 at a noteworthy CAGR of 9.9%.
Impact Analysis of COVID-19 on the RFID Market
The global market for RFID market is estimated to experience significant market growth in the COVID-19 pandemic. The pandemic has weakened most of the sectors and impacted many markets. Government bodies across the world have taken numerous steps to monitor the contaminated areas and curb the spread of the virus. At this time, RFID played an important role as it was used in healthcare sector for various purposes like tracking and identification of samples. Many key companies along with collaboration of the government took multiple steps with the help of RFID technology to digitally verify and authenticate the COVID-19 test and PPE kits with the help of RFID tags.
Global RFID Market Analysis
Increasing demand of the RFID in the commercial sector by multiple end-use industries is predicted to be the major driving factor for the global RFID market in the estimated period. These are also used for tracking of any product or understand production line of different operations and this factor is predicted to drive the global market in the estimated period. For instance, the use of RFID technology in end-use industry will help the manufacturer to achieve the production goal by closely monitoring the product line.
High cost of RFIDs along with installation and maintenance cost is predicted to hinder the global RFID market in the estimated period. The implementation of RFID by the end-use industries requires higher investment that includes purchasing of RFID tags, adopting the tags and reader, and maintain the RFID cost. The RFID tags can be attached to physical money, clothes, or can be implanted in animals and humans for reading personally linked information without consent which give rise to privacy concerns. Moreover, the high cost of RFIDs results in an expensive installation process causing difficulties for small and medium enterprises and start up organizations to adopt the technology. This factor is expected to hamper the growth of the market during the forecast period.
RFID Market, Segmentation
The global RFID market is segmented based on product, type, material, frequency, end-user and region.
The product segment is further classified into tag and reader. Among these, the reader sub-segment is anticipated to have the fastest growth rate in the estimated period. It has been estimated that the sub-segment is predicted to grow with a CAGR of 9.2% by generating a revenue of $8,335.0 million by 2027. The active or passive reader are used in most of the end use industries as the reader tag is used to understand the complete details of the product in a most effective manner and this is predicted to boost the sub-segment market in the estimated period.
The type segment is further divided into passive and active. The active sub-segment is anticipated to have the highest growth rate in the global market. The market is predicted to grow with a CAGR of 10.9% by generating a revenue of $11,089.8 million by 2027. Active tags and readers are powered by battery and thus can be embedded in tracking objects and are used by most of the end-use industries which is predicted to boost the market in the estimated period.
The material segment is further divided into plastic, paper, glass, metal, and others. The plastic sub-segment is predicted to grow with a CAGR of 10.6% by generating a revenue of $4,457.5 million by 2027. Plastic can be considered as one of the best materials for the use of RFIDs because it is the most cost-effective option which is predicted to boost the sub-segment market in the estimated period.
The frequency segment is classified into low frequency, high frequency, and ultra-high frequency. Ultra-high frequency sub-segment is predicted to grow with a CAGR of 10.3% by generating a revenue of $10,548.9 million by 2027. Ultra-high frequency helps in faster data transfer, increases the inventory visibility, and automates workflow due to which various end-use industries use RFID tags, which is predicted to boost the sub-segment market in the forecast period.
The end-user segment is further categorized into retail, BFSI, government, industrial, transport and logistics, healthcare, and others. The retail sub-segment is predicted to generate a revenue of $4,275.9 million by 2027 with a CAGR of 8.9% in the estimated period. Retail helps to trace the items against individual shipments and provides smoother operational flow which is predicted to boost the sub-segment market in the estimated period.
The RFID market for the Asia-Pacific region is projected to witness rapid growth. This market generated a revenue of $2,495.6 million in 2019 and is further projected to reach up to $5,648.1 million by 2027. The companies present in the market are investing more for research and development for developing product, which is predicted to boost the driving factor for the region market in the estimated period. Moreover, presence of skilled labor along with less pay scale is a favorable factor for RFID manufacturers to set up units in the region, and this is predicted to boost the market in the estimated period.
Key Players in the Global RFID Market
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.