Worldwide RFID Industry is Expected to Reach $17.4 Billion by 2026
The market has a promising growth potential due to several factors, including growing market competitiveness leading to the 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 could play a key role in driving the growth of the RFID market.
The tags are projected to be the largest segment of the RFID market, by products. Tags are the key components in an RFID solution and make up for the major part of the market due to bulk and multiple applications. Due to this, the segment captured the largest share of the market in 2020. The number of tags installed is much higher than the number of readers and software used in the RFID ecosystem of an organization. Additionally, with the rising number of assets, the installation of tags increases; however, existing readers can be used to scan new tags. This is the main reason due to which the market for tags is the largest.
The passive tags segment is projected to register a larger market share by 2026. The market for passive tags is expected to grow in applications such as retail, supply chain, transportation, aerospace, and sports. The factors contributing to the growth of passive tags in these applications are the low cost of tags and their increasing precision in data storage and reading distance. The penetration of RAIN RFID has further boosted the market of ultra-high-frequency passive tags, as this frequency is globally adaptable by manufacturers and customers. This is another key reason for the growth of the RFID market for passive tags.
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