RFID Market is Estimated to Witness High Growth
Author : Sneha Biswal | Published On : 18 Jan 2024
Radio Frequency Identification (RFID) refers to the wireless use of electromagnetic fields to transfer data, for the purposes of automatically identifying and tracking tags attached to objects. RFID tags can replace traditional barcode labels in many applications, as they are capable of storing more data and do not require line of sight scanning to be read. Increasing adoption of RFID technology across manufacturing, retail, healthcare and other industries allows automatic real-time identification and tracking of goods, assets and inventory movement.
Market Opportunity:
The opportunity for real-time asset tracking and automation is driving growth of the RFID market. Implementation of RFID systems allow organizations to automate many inventory tracking and supply chain processes. RFID tags attached to products, shipping containers and assets can be scanned continuously without requiring direct line of sight or human intervention. This provides real-time visibility of asset locations throughout the supply chain and enables automated asset movement tracking. RFID based systems replace error prone and inefficient barcode scanning with instant, accurate identification and localization of items. The real-time tracking data allows optimizing operations through automated workflows and proactive decision making based on real-time inventory status. Increasing digitization is increasing demand for such automation solutions, which is propelling adoption of RFID technology across industries.
Porter's Analysis
Threat of new entrants: The RFID market requires significant investment in R&D and manufacturing infrastructure which makes entry difficult for new players.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of alternative identification technologies.
Bargaining power of suppliers: Major players control the supply chain which gives them bargaining power over manufacturers.
Threat of new substitutes: Emerging technologies like mobile positioning, facial recognition pose a threat, but RFID still has advantages in terms of cost and compatibility.
Competitive rivalry: The market is consolidated with key players competing on technology innovation and integration capabilities.
SWOT Analysis
Strength: RFID provides improved inventory management, traceability and optimized operations. It has robust capabilities for item-level tracking.
Weakness: Upfront costs associated with hardware, software, installation and training are high. Privacy and security concerns exist regarding consumer data collection.
Opportunity: Growing e-commerce and need for supply chain visibility across industries offers scope for RFID adoption. Government regulations will boost tracking of regulated goods.
Threats: Slow upgrade of existing infrastructure poses implementation challenges. Technological obsolescence is rapid with new generations of RFID tags emerging.
Key Takeaways
The Global RFID Market Growth is expected to witness high driven by increasing demand from key verticals like retail, healthcare, and transportation. The global RFID Market is estimated to be valued at US$ 15.8 Bn in 2023 and is expected to exhibit a CAGR of 3.2% over the forecast period 2023 to 2030.
Regional analysis shows that North America will continue to hold a significant market share led by the US where Walmart, Target, Kroger and other major retailers have implemented RFID-based supply chain systems. The European market is fragmented with strong presence in the UK, Germany, and France. Standards are getting harmonized to encourage cross-border communications.
Key players operating in the RFID market are Basilea Pharmaceutica Ltd, Astellas Pharma Inc., SCYNEXIS, Inc., NovaDigm Therapeutics, Mycovia Pharmaceuticals, Inc., Pfizer Inc, and Viatris Inc., among others. They compete based on proprietary tag designs and integration with existing IT infrastructure. Strategic partnerships are gaining prominence to tap new geographical areas and application segments.
Explore more information on this topic, Please visit -
https://www.ukwebwire.com/rfid-market-share-and-demand-analysis/
Explore more trending article on this topic -
https://www.ukwebwire.com/rfid-market-trends-size-and-share-analysis/
