Radio Frequency Identification Technology Market Size, Share & Trends Analysis Report By Component (Tags, Readers), By Application (Retail, Industrial), By Frequency (UHF RFID, HF RFID), By System, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global radio frequency identification (RFID) technology market size was estimated at USD 15,769.8 million in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 15.1% from 2023 to 2030. The market is poised to witness steady growth over the forecast period due to the growing demand for asset tracking, inventory management, resource optimization, and monitoring assets of security and safety. Moreover, the proliferation of Real Time Location Systems (RTLS), sensor networks, 5G, and the Internet of Things (IoT) has made RFID devices more significant in the connected world. RFID devices are anticipated to be increasingly important in capitalizing on these technologies, contributing to the market’s growing demand.

The RFID systems that are deployed in the market are composed of three major components, namely tags, readers, and middleware. The RFID tags form the largest part of the market and are subject to prime development activities. While the deployment of passive tags is the largest in the industry, active tags are also gaining momentum as numerous new applications have sprung up in recent years, and the tag size has persistently been reducing. The growth of the market can also be attributed to the benefits provided by RFID tags, including identifying objects without being in direct line of sight, the ability to scan objects from a large distance, real-time data updates, and less than 100 milliseconds per tag reading time.

The significant trends aiding in adopting RFID technology are automation, supply chain management, real-time intelligence, asset tracking & payments, and NFC. The government mandates for using RFID tags for tracking various industry products, such as defense, livestock, and data centers, are also essential factors in the industry’s development. Moreover, technological advancements in UHF technology, the convergence of RFID with other communication technologies, and the growth in semi-passive and printed tags are anticipated to drive market growth in the coming years.

As the industry grows, efforts have increased to standardize industry products and frequency bands. Organizations, such as Electronics Product Code Global Incorporated (EPCglobal), International Organization for Standardization (ISO), and International Electrotechnical Commission (IEC), are at the forefront of regularizing the market. Product licensing, intellectual property rights, innovations, and a well-developed supply chain are the key factors that are anticipated to shape the future of organizations over the forecast period, thereby harnessing market regularization and driving growth. While the market has grown significantly in recent years, some constraints limit product adoption and market expansion.

One of the main constraints is the high initial cost of implementing RFID technology, which includes the cost of tags, readers, and software systems. This can be a significant barrier, particularly for SMEs. In addition, concerns about data privacy and security remain challenging for the widespread adoption of RFID technology, particularly in sensitive industries, such as healthcare and finance. However, rapid technological advancements are making RFID technology more sophisticated, which is anticipated to eliminate these challenges and thus, boost the growth of the market.

COVID-19 Impact Analysis

The pandemic had a mixed impact on the market. Global shutdowns and remote working created significant challenges for implementing RFID technology at manufacturing facilities. In addition, the overall economic downturn led to decreased investments in the research and development of technology. However, the pandemic accelerated the adoption of this technology in various applications, particularly in healthcare and logistics, where there is a need for real-time tracking of supplies and equipment. The pandemic also augmented the demand for contactless payment options, which boosted the adoption of RFID-enabled payment systems. Despite the challenges posed by the pandemic, the market has shown resilience, and the continued adoption of the technology is expected to drive market growth post-pandemic.

Component Insights

The tags segment dominated the market in 2022 and accounted for a share of more than 37.0% of the overall revenue. RFID tags are used to store and transmit data wirelessly via radio waves, enabling them to be read and identified remotely by RFID readers. Some standard applications of RFID tags include inventory management, asset tracking, equipment tracking, vehicle tracking, access control in security, contactless payment, and enhancing customer service, among others. These benefits are significantly contributing to the segment’s increasing share. In addition, technological advancements are reducing the size of RFID tags day by day, making them easy to install/attach in many applications, and are reducing the cost, which bodes well for the segment’s growth.

The middleware segment is anticipated to witness significant growth over the forecast period. Middleware RFID technology is a software product type that bridges RFID hardware and enterprise-level software systems. Middleware can filter, aggregate, and transform raw RFID data into a more usable format, which can be integrated with other business systems, such as ERP, WMS, and CRM. The growth of this segment can be attributed to the demand for actionable intelligence in many application industries. In addition, middleware is anticipated to play a significant role in smart factories, the IoT, and smart wearables, which is expected to drive the segment’s growth over the forecast period.

System Insights

The passive RFID system segment dominated the market in 2022 and accounted for a share of more than 82.0% of the overall revenue. These systems consist of RFID tags that do not require a power source, relying instead on the energy emitted by RFID readers to activate and transmit information. The adoption of passive RFID technology is increasing due to its cost-effectiveness, small form factor, and ease of integration into existing processes. Key players are taking strategic initiatives to strengthen their passive RFID system portfolio to cater to the growing demand. For instance, in May 2022, HID Global announced its acquisition of Vizinex RFID to strengthen its high-performance passive RFID tags portfolio. The acquisition strengthened HID Global's industry position and enabled it to enhance its presence in key vertical markets.

Such initiatives are anticipated to drive the segment's growth over the forecast period. The active RFID system segment will also witness significant growth over the forecast period. An active RFID system consists of a reader, an active tag, and an antenna. An active tag has its own power supply, usually an integrated long-life battery that allows it to transmit data continuously and uninterruptedly. The adoption of active RFID technology is increasing due to its longer read ranges, robust performance in challenging environments, and advanced features like real-time location tracking. Moreover, active RFID can provide accurate and reliable data, enhance security, and enable more advanced applications, such as real-time inventory management, condition monitoring, and predictive maintenance.

Frequency Insights

The high-frequency segment dominated the market in 2022 and accounted for a share of more than 49.0% of the overall revenue. High-frequency RFID technology (HF RFID) operates at frequencies between 13.56 MHz and 27.5 MHz and is commonly used in applications, such as access control, contactless payment, and inventory management. There has been a growing trend toward adopting HF RFID technology in recent years, particularly in the retail and healthcare industries. The high-frequency RFID segment is anticipated to witness significant growth over the forecast period, driven by the increasing adoption of IoT and the need for efficient and secure data exchange.

The ultra-high frequency segment is anticipated to witness the fastest growth over the forecast period. This growth can be attributed to their growing demand in inventory management, pharmaceutical applications, and wireless device configurations. Ultra-high-frequency RFID has overtaken high-frequency tags in terms of volume; however, owing to the high cost of high-frequency tags, they still generate large revenue for the vendors. The varied applications of ultra-high frequency RFID devices in supply chain management, asset tracking, healthcare device tracking & monitoring, livestock monitoring, and security and access control further harness the segment’s growth.

Application Insights

The retail segment dominated the market in 2022 and accounted for a revenue share of more than 27.0%. The retail industry benefits from RFID technology through its multiple applications, including inventory tracking and control, retail item tagging, supply chain, and access control, to name a few. These benefits are driving critical retail market players to adopt RFID technology. For instance, in early 2022, Walmart, a large retail corporation, announced the expansion of its RFID mandate program. The program mandated suppliers to tag sporting goods, home goods, electronics, and toys with RFID by September 2022, with plans to extend the requirement to more categories. This initiative aimed to give Walmart more control over its inventory in the store and ultimately provide a better customer experience.

Such initiatives are harnessing the retail segment’s growth in the market. The industrial segment is anticipated to witness the fastest growth over the forecast period. RFID technology has a massive potential to automate and streamline industrial processes. RFID enables real-time data, improves decision-making, increases efficiency, and reduces human errors. Wirelessly identifying and tracking objects or assets is invaluable in improving operational efficiency, inventory management, and supply chain visibility. CYBRA Corporation, distributors & manufacturers who adopt RFID technology into their supply chain, saw an 80% improvement in shipping/picking accuracy. Thus, the significant benefits of RFID technology drive its adoption in various industrial applications, including manufacturing, logistics, warehousing, and asset allocation.

Regional Insights

North America dominated the global market in 2022 with a revenue share of more than 36.0%. The region is expected to witness increasing adoption of RFID technology as industries mature and COVID-19 pushes the need for contactless solutions. The retail sector in North America is witnessing significant demand for RFID technology. According to an article published by the Loss Prevention Magazine (LPM), over 93% of surveyed retailers in North America reported using RFID technology in various stages of deployment. Thus, the large-scale use of RFID tags in retail contributes to the regional market’s growth.

Asia Pacific is anticipated to witness the fastest CAGR over the forecast period. Favorable government mandates from emerging countries, including China and India, are anticipated to fuel the market’s growth. For example, in February 2021, the Government of India mandated using RFID-based tags, known as ‘FASTag,’ on all vehicles for electronic toll collection at national highway toll plazas. Moreover, the government announced that over 350,000 railway wagons would be RFID tagged to track them easily. Such initiatives contribute to the country’s demand and growth of the regional market. Furthermore, the presence of many manufacturers and OEMs in the region is also supporting market growth.

Key Companies & Market Share Insights

The market is consolidated with a few players holding the dominating share. The industry has been proliferating due to increasing technology adoption in various industries, such as retail, healthcare, transportation, and logistics, among others. Key players focus on integrating sensors, increased memory, and new cloud-based capabilities to enhance their product offerings. In addition, they are investing heavily to integrate these technological advancements, which is anticipated to harness the innovation and growth of the market. Many companies are also engaging in mergers & acquisitions, strategic partnerships, regional expansions, and product launches to strengthen their market position.

For instance, in January 2023, MishiPay Ltd. announced the launch of its new RFID self-checkout kiosk. The kiosk utilizes RFID sensors, enabling customers to scan and remit payment for items without requiring the scanning of each item's barcode. Upon completion of the purchase, the RFID security tags are automatically rendered inactive, permitting customers to exit the store. This makes the checkout process faster and more efficient. Such initiatives are harnessing the growth of the market. Some of the prominent players in the global radio frequency identification technology market include:

• Honeywell International Inc.

• Zebra Technologies Corp.

• Avery Dennison Corp.

• Nedap

• Impinj, Inc.

• NXP Semiconductors

• Unitech Electronics Co., Ltd.

• HID Global Corp.

• Invengo Information Technology Co., Ltd.

• Datalogic SpA

Radio Frequency Identification Technology Market Report Scope

Global Radio Frequency Identification Technology Market Report Segmentation

The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global radio frequency identification technology market report based on component, system, frequency, application, and region:

• Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Tags

  • Antennas

  • Readers

  • Middleware

• System Outlook (Revenue, USD Million, 2017 - 2030)

  • Active RFID System

  • Passive RFID System

• Frequency Outlook (Revenue, USD Million, 2017 - 2030)

  • Low Frequency (LF) RFID

  • High Frequency (HF) RFID

  • Ultra-high Frequency (UHF) RFID

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Retail

  • Financial Services

  • Healthcare

  • Industrial

  • Government

  • Transportation & Logistics

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa

    • Kingdom of Saudi Arabia (KSA)

    • UAE

    • South Africa