RFID market expected to reach US$ 6 Bn by 2028
The market size is estimated to be US$ 2 Bn in 2022. It is further found in the publisher's study that the market size is expected to reach US$ 6 Bn by 2028.
Global Chipless Radio Frequency Identification Market is expected to grow at a CAGR of 25% over the next six years (2022-2028) owing to high precision and advanced features for banking, healthcare, retail, and logistic industries.
Furthermore, chipless RFID technology offers a wide number of characteristics at a lower price than conventional RFIDs, such as exceptional read/write capabilities, automation, and the ability to individually identify each asset or item.
The growing need for high accuracy and advanced features in RFID technology for banking, healthcare, retail and logistic industries, among other verticals is expected to propel the growth of the chipless radio frequency identification market. Moreover, the low cost of Chipless RFID tags over traditional RFID tags further accelerates the market growth.
Manufacturing of a chipless RFID tag is relatively inexpensive as it does not require a silicon chip or batteries inside the tag for tracking of product which reduces the hassle of maintenance and prices of these tags.
According to a report published by the Institute of Electrical and Electronics Engineers (IEEE) International Symposium, a silicon chip-based RFID tag costs US$ 0.10-0.05 per tag whereas a chipless RFID tag costs about US$ 0.01 per tag. It was observed that the cost of tagging 75 billion products using silicon chip-based RFID tags could cost around US$ 3.75 Bn whereas the cost of tagging the same amount of products with chipless RFID cost about US$ 0.75 Bn. Therefore, by using chipless RFID, product tagging can be 80% cheaper than chip-based RFID tags. The below chart depicts the cost comparison between chipless RFID and chip-based RFID tags.
Information breach is a major challenge faced by the end-users in the Global Chipless Radio Frequency Identification Market. Additionally, the issues concerning data storage and utilization from a database are expected to hinder market growth.
Despite all of its benefits, chipless radio frequency identification has an increased risk of a data breach as it lacks a locking system or security passcode. Owing to the risk of data breaches involving the use of medications and their composition, many businesses in the healthcare and other sectors avoid using chipless RFID tags for asset tracking. During the forecast period, this factor is expected to hamper the seamless growth of the market.
According to a report shared by the Identity Theft Resource Center, in 2022, the security breach incidents in the USA reached 1862 breaches in 2021, which is almost 68% more than that of 2020. These security breaches involved a significant number of chipless RFID-based situations.
The outburst of the COVID-19 pandemic harmed the Chipless Radio Frequency Identification Market. Supply chain disruption was among the significant issues which led to reduced component manufacturing, component shortages, shipping delays, and restrictions.
Additionally, in areas with high infection rates, operations had shut down entirely leading to largescale manufacturing interruptions across Europe and China which hindered the demand for chipless RFID. Restrictions on travel during the COVID-19 pandemic period resulted in a low deployment rate of RFID tags on vehicles for electronic toll collection. Moreover, low footfall in retail stores also reduced the need for product tagging on new stocks.
The Global Chipless Radio Frequency Identification Market is highly competitive with ~200 players which include globally diversified players, regional players as well as a large number of country-niche players. Large global players control the majority share of the market in terms of revenue, while regional players hold the second largest share.
The leading global companies such as Zebra Technologies Corporation, Avery Dennison Corporation, and Alien Technology highly focus on acquisition and partnership to increase their market presence. Additionally, these companies constantly develop their existing products and provide advanced chipless RFID solutions that can be used across the globe in various end-use applications.
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