Radio Frequency Identification (RFID) a $47.63 Billion Market by 2030

The global radio frequency identification technology market size is expected to reach USD 47.63 billion by 2030, growing at a CAGR of 15.1% from 2023 to 2030. Various benefits provided by RFID technology, including asset tracking, automation, better control over production, enhanced traceability, increased revenues, and higher operational efficiency, are anticipated to drive the market's growth over the forecast period. RFID technology has been in use for the past several years. However, the recent digitization and overall growth in technological adoption from various industries have propelled RFID technology even further. The retail industry is at the forefront and has witnessed its technological reconnaissance with RFID tags.

The retail industry is leveraging RFID technology in supply chain management for inventory management, tracking, and shortening overall processes. The growing adoption of RFID technology from the retail industry significantly contributes to the market's growth. An essential aspect of the market is the varying nature of manufacturing and related costs. The past decade has seen a considerable reduction in production costs with the advent of many new technologies, such as printing and ink-jet. As the vendors benefit from these trends in the market, the high penetration of cost-to-volume benefits is expected to perpetuate to the end-users, thereby contributing to the market's growth. RFID devices are anticipated to witness a surge in demand as technological proliferation has led to extensive use of smart cards, access control, and other wireless communication applications.

In addition, the proliferation of 5G and the Internet of Things (IoT) across industries is creating significant demand for wireless communication and smart devices, subsequently creating market demand for RFID devices. To sum up the trends in the market, RFID technology is anticipated to witness significant growth in the coming years in terms of size, cost, and technology, fueling its rapid deployment. Asia Pacific is anticipated to register the fastest CAGR over the forecast period. The growing e-commerce industry in the region is creating higher demand for reliable supply chain management solutions, which RFID technology can provide. Moreover, favorable government initiatives from countries, such as India and Japan, are driving the infrastructure development of the RFID market in the region, thus contributing to its growth.