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 digitisation 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.

Anticipated surge in demand

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.

Significant growth trend expected

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, favourable government initiatives from countries, such as India and Japan, are driving the infrastructure development of the RFID market in the region, thus also contributing to its growth.

Market snap shot

Some of the key figures and findings from the report offer a summarised snap shot of the sector as follows:

• The RFID tag segment dominated the market in 2022 and is anticipated to register significant growth over the forecast period. The growth is attributed to the RFID tag's capacity to provide faster and more accurate data, and its applications, including real-time inventory tracking and enhanced supply chain visibility.
  

• The passive RFID system segment is anticipated to witness the highest growth over the forecast period due to its cost-effectiveness, easy integration, and small size. Passive RFID systems are used in applications, such as inventory management, supply chain & logistics, asset tracking, and access control.

• The high-frequency (HF) segment is anticipated to register significant growth over the forecast period. The growing demand for HF RFID technology from the retail and healthcare industries in applications, such as access control, contactless payment, and enhanced security, will drive the segment's growth according to the research.

• The retail segment dominated the market in 2022 and is anticipated to retain its dominance over the forecast period. RFID technology's wide range of applications in the retail industry, including inventory management, asset tracking, in-store customer engagement, and contactless payments, contribute to the retail segment's growth.