by Market Overview:
Radio frequency identification is a tracking system that uses tags or labels attached to objects to identify and track them wirelessly using radio waves. RFID tags contain electronically stored information that can be used for variety of purposes including identification of animals, inventory management in warehouses, tracking of goods in transit and automatic toll collection on roads. The RFID technology provides advantages such as tracking of multiple items continuously, high data accuracy, high reading speed and ability to read through various materials like boxes, paper, plastic etc.
Market key trends:
One of the major trends driving growth of The RFID Market Share is its rising adoption across supply chain management applications. RFID technology enables effective tracking of shipments and inventory levels throughout the supply chain from the point of manufacturing to the end consumer. It allows identification, sorting and tracking of goods at individual item level which improves visibility and efficiency in supply chain operations. The technology is increasingly being used by various industries such as retail, healthcare, automotive etc. for applications like electronic product code (EPC) compliance tracking, returns management, reverse logistics and warehouse management. For instance, Walmart requires its top 100 suppliers to tag all pallets and cases with RFID tags to improve inventory visibility. With rapid growth of global trade, RFID is expected to witness substantial adoption across supply chain management over the forecast period.
Porter’s Analysis
Threat of new entrants: Low barriers to entry can threaten existing players. However, high capital requirements and established buyer-supplier relationships create entry barriers.
Bargaining power of buyers: Large buyers have strong bargaining power due to their sizeable purchase volumes. They can negotiate lower prices and demand better services.
Bargaining power of suppliers: A few major vendors control the supply of key raw materials. This gives them bargaining power over smaller players.
Threat of new substitutes: No major threat as RFID technology has advantages over barcodes for supply chain applications.
Competitive rivalry: Intense competition among existing players results in price wars and new product launches.
SWOT Analysis
Strengths: RFID provides real-time visibility, prevents theft and improves operational efficiency. It has a growing application scope beyond supply chain.
Weaknesses: High costs of tags and readers limit usage. Compatibility issues arise during integration with legacy systems.
Opportunities: Growing e-commerce sector, mandatory regulations, and adoption beyond retail create market opportunities. Technological advances will reduce costs further.
Threats: Privacy and security concerns if tags are not disabled post-usage. Economic slowdowns can delay investments.
Key Takeaways
The global RFID market is expected to witness high growth, exhibiting CAGR of 11% over the forecast period, due to increasing demand for supply chain visibility and automation. North America currently dominates due to extensive industrial usage of RFID tags for asset tracking. Asia Pacific is anticipated to grow at the fastest pace due to rising manufacturing investments in countries like China and India.
Regional analysis: North America will continue to lead the RFID market owing to strong automobile and pharmaceutical industries mandating RFID adoption. Asia Pacific is estimated to grow at the fastest rate with over 15% CAGR due to increasing factory automation in major economies. China contributes largest to regional revenues.
Key players operating in the RFID market are Alien Technology, LLC, Avery Dennison Corporation, Bar Code India Limited, Bartech Data Systems PVT. LTD., Bartronics India Limited, Honeywell International. Inc., IDENTIV, Inc., Infotek Software & Systems Ltd. (I-TEK), NXP Semiconductor N.V., and Zebra Technologies Corporation.
Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
