February 28, 2024
RFID Market
Ict

RFID Technology is Driving the Adoption of Smart Supply Chain Management

Radio Frequency Identification (RFID) technology helps in tracking inventory faster by automatically identifying products without line of sight scanning requirements. RFID uses electromagnetic radio waves to automatically identify objects equipped with RFID tags. It enables organizations to track products and improve supply chain efficiency across manufacturing, retail and logistics operations. RFID tags can contain vast amounts of information including product serial numbers, expiration dates, manufacturing details, and other metadata. RFID systems offer improved logistics management capabilities through real-time visibility of inventory levels across the supply chain. The technology eliminates manual product scanning requirements and helps optimize workflows in warehouses and distribution centers.

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 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends driving growth in the RFID market is the increasing adoption across various industries for asset tracking and inventory management applications. RFID technology allows efficient tracking of high-value assets and inventory in different environments including hospitals, manufacturing plants, warehouses, and retail stores. It helps enterprises optimize supply chain operations, gain real-time visibility of inventory levels, automate stock counting processes, and reduce human errors. Additionally, continued technological advancements are enabling the development of innovative RFID products such as wearable and implantable RFID tags, chipless RFID tags, and battery-free RFID sensors. These next-generation RFID solutions are expanding application in areas including healthcare, defense, hospitality, and asset tracking. Growing investments by leading technology companies to develop advanced RFID products integrated with Internet of Things (IoT) capabilities are further augmenting market growth.

Porter’s Analysis

Threat of new entrants: The RFID market requires high capital investment in R&D and product development. Established players enjoy economies of scale which make market entry difficult for new players.

Bargaining power of buyers: Buyers have moderate bargaining power due to the presence of multiple RFID solution providers. However, switching costs are relatively low.

Bargaining power of suppliers: Suppliers have low to moderate bargaining power given the availability of substitute components and inputs. The RFID technology market is highly fragmented.

Threat of new substitutes: While alternative identification technologies exist, RFID provides distinct advantages in terms of range of reading and tagging of multiple items. Substitute threat is moderate.

Competitive rivalry: The global RFID market is highly competitive with major players differentiating based on technology, product quality, and services.

Key Takeaways

The Global RFID Market Size is expected to witness high growth over the forecast period of 2023 to 2030. 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 2023-2030.

North America currently dominates the market owing to extensive application of RFID technology across industries such as healthcare, retail, and transportation in the region. Asia Pacific is expected to be the fastest growing region during the forecast period supported by growing acceptance of RFID technology across industries and increasing penetration in countries such as China and India. Europe and Latin America also present significant opportunities for market expansion.

Key players: 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. Major players are focusing on partnerships and acquisitions to strengthen their geographic presence and product portfolios.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it