RFID Market worth $17.4 billion by 2026
The key drivers fueling the growth of this market include growing market competitiveness leading to availability of cost-effective RFID solutions, high returns on investment, and increasing regulations and government initiatives for various industries. Moreover, increasing installation of RFID systems in manufacturing units to improve productivity due to COVID-19 can play a key role in driving the growth of the RFID market.
The tag segment of the RFID market, by product is projected to grow at a higher CAGR during the forecast period. Tags are the most widely used components in the RFID market. These devices are attached to several industrial and commercial assets, including manufacturing equipment and other industrial machinery, industrial materials, products, retail products, inventory, logistic containers, labels on products and groups of products, IV pumps, ECGs, and wheelchairs. The large-scale use of tags and ease of use for tracing any kind of asset is the major reason for the adoption of RFID tags. This could drive the demand for RFID tags in years ahead.
The passive tags segment of RFID tag market, by tag type, is expected to register higher CAGR during forecast period. Passive tags do not require an external power source. These are inexpensive and smaller, and easier to manufacture than active tags. Passive RFID tags have various applications and are commonly used to track goods in pharmaceuticals, retail, supply chain, enterprise, and other industries. Zebra Technologies, Avery Dennison, Alien Technology, Omni-ID, HID Global, Honeywell, and Mozix are some of the leading providers of passive RFID tags. With the increasing penetration of passive tags as RAIN RFID frequency, the market for these tags is expected to grow at the highest CAGR during the forecast period.
UHF tags can be classified into 2 types on the basis of frequency range: passive tags and active tags. UHF passive RFID tags offer the longest read range and highest reading speed among all passive tags. These tags have a frequency range of 860–960 MHz. UHF passive tags can be read from an average distance of about 5–6 meters; larger UHF passive tags can read more than 30 meters in ideal conditions. UHF active tags have 2 major operating frequencies: 433 MHz and 2.45 GHz. These tags have the longest read range among all tags, i.e., around 150 meters. These tags are largely used for applications such as asset tracking, asset counting, inventory management, supply chain management, vehicle tagging, and manufacturing equipment and product part tagging. Due to rising adoption of UHF tags in these applications, the market for UHF tags is high and is expected to be the same during the forecast period.
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