Global RFID market is expected to expand further in 2025
In the UHF sector, the retail business, the largest RFID application sector in terms of tag numbers, adopting RFID continues to grow strongly. According to IDTechEx study, retail apparel alone will require over 31 billion RFID tags in 2025 - though there is still some way to go, with RFID accounting for only about 40% of the total addressable market for apparel. Furthermore, IDTechEx anticipates that the general retail market will continue to grow driven by mandates such as Walmart's on tagging retail items other than apparel. This is anticipated to continue to generate significant volume growth for the sector.
Contactless card sales remain the most successful in the HF sector, driven primarily by contactless payment, transit, and secure access applications, with 3.14 billion cards anticipated to be demanded in 2025. However IDTechEx expects a decrease in demand for this as mobile wallets continue to replace contactless cards.
Animal tagging (such as pigs, sheep, and pets) remains important in the LF sector because it is still a legal requirement in many more areas, with around 930 million tags expected to be used in this sector in 2025.
Overall, IDTechEx forecasts that around 55 billion passive RFID tags will be sold in 2025, up from 50 billion in 2024, indicating a 10% year on year increase. The bulk of this growth is due to passive UHF RFID labels.
However, in 2025, UHF (RAIN RFID) tag sales by value will be just 60% of HF tag sales (including NFC), due to the higher price point of HF tags used for security (such as payments, access, etc) against the cheaper, largely disposable UHF (RAIN) tags used for tagging items. However, the gap between the overall tag sales is shrinking due to increased activity in UHF market and decline of HF market.
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