Chipless RFID Market Is Estimated To Witness High Growth Owing To Enabling Mass Tracking Opportuniti

Author : Raj Dhote | Published On : 12 Jan 2024

Chipless RFID, also known as chipless radio frequency identification, is a technique for encoding data on physical objects using electromagnetic scattering principles rather than an RFID microchip. Chipless RFID tags are cheaper and more environmentally friendly than traditional RFID chips as they do not require integrated circuits. The growing need for mass tracking and inventory management across industries has increased the demand for low-cost tagging solutions. Chipless RFID technology serves as a viable alternative to conventional barcodes and RFID chips for maintaining digital records of a large number of items.

The global Chipless RFID Market is estimated to be valued at US$ 6488.29 Mn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity

The ability of chipless RFID tags to enable mass tracking of items at significantly lower costs than traditional RFID chips presents a major market opportunity. By eliminating the integrated chip component, chipless RFID tags can be produced at fractions of the price of conventional RFID tags. This cost-effectiveness allows industries to digitally track and trace even low-cost goods costing under a dollar. Chipless RFID thus facilitates applications involving tagging of large volumes of items such as apparel, footwear, bags and accessories. The technology is anticipated to witness increased adoption across retail and consumer goods sectors for applications ranging from inventory management to supply chain visibility. The growing need for affordable mass tracking solutions globally will drive significant demand for chipless RFID technology over the forecast period.

Porter's Analysis

Threat of new entrants: The threat is moderate as the chipless RFID technology requires heavy initial investments in R&D. However, opportunities exist for niche players to disrupt the market.
Bargaining power of buyers: The bargaining power is high as buyers have multiple vendors to choose from and the technology is replaceable with alternatives like barcodes.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as chipless RFID raw material suppliers face competition.
Threat of new substitutes: The threat is high from substitutes like QR codes and barcodes that offer similar contactless identification at lower costs.
Competitive rivalry: The competition is intense among existing vendors to gain market share through innovations.

SWOT Analysis
Strength: Chipless RFID provides contactless identification without batteries or chips at low unit costs. It also allows for unlimited information storage and remote reading.
Weakness: The technology has limitations in terms of data storage, read range, and speed of identification compared to traditional RFID. Standardization challenges also exist.
Opportunity: Growing demand for IoT solutions across industries offers opportunities for chipless RFID integration in applications like supply chain management, access control, and authentication.
Threats: Substitutes like barcodes and QR codes are more cost-effective for certain applications. Security and privacy concerns also threaten adoption.

Key Takeaways

The global Chipless RFID Market Share is expected to witness high growth during the forecast period of 2023 to 2030 on account of increasing adoption of IoT technologies across industries. The technology offers an affordable solution for item identification and is increasingly being used in supply chain management and asset tracking applications. The global Chipless RFID Market is estimated to be valued at US$ 6488.29 Mn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030.

Regional analysis - North America dominates the chipless RFID market currently due to presence of major tech companies and rapid technological adoption. Asia Pacific is expected to grow at the fastest rate due to a large manufacturing industry and government initiatives for smart infrastructure development in countries like China and India.

Key players operating in the chipless RFID market are Severn Trent Plc, Calgon Carbon Corporation, Xylem Inc., Trojan Technologies, General Lighting, Aquionics, Atlantium Technologies Ltd., Atlantic Ultraviolet Corporation, FirstLight Technologies Ltd., Green Water Technologies, Evoqua Water Technologies LLC, Advanced UV, Inc., Hydro, Photon, makers of SteriPEN, and Enaqua.

For more insights, read- https://www.ukwebwire.com/chipless-rfid-market-trends-size-and-share-analysis/