Technavio Expects the Global RFID Readers Market to Exceed USD 7 Billion by 2020

The retail sector was the major revenue contributor to the global RFID readers market, accounting for 55% of the total revenue in 2015.

According to Navin Rajendra, lead research analyst for embedded systems at Technavio, “The high adoption of RFID in the retail sector is primarily to improve efficiency in the supply chain. RFID does not need a line of sight to track items, and thus, has become the preferred choice for inventory management, asset management, and supply chain management in the retail sector.”

In addition, RFID tags offer advantages such as faster checkout times (as almost 40 RFID tags can be read at the same time), long read range, and reuse of tags. These advantages have prompted large retailers such as Wal-Mart and Gillette to switch to RFID tags instead of barcode system, thus boosting market growth.

The global RFID readers market in the transportation segment is likely to grow at a CAGR of over 25% during the forecast period. RFID tagging is being used in public transportation systems for passenger tickets, contactless cards such as driver's license, toll collection, and registration certificate. For instance, in London, UK, travelers use Oyster cards on trains, buses, and ferries. The card contains the identification of the user and calculates the fare.