RFID Market worth $40.9 billion by 2032: MarketsandMarkets™
11 November 2023: RFID Market is projected to reach USD 40.9 billion by 2032 from USD 15.8 billion in 2023; it is expected to grow at a CAGR of 11.1% from 2023 to 2032 according to a new report by MarketsandMarkets™. Increasing need for RFID systems in manufacturing units for improving productivity, increasing government initiatives and regulations for safety and security and rising need for improving inventory management for logistics and supply chain to drive the growth of RFID market.
RFID market has a promising growth outlook due to its increasing adoption across various industries. With the integration of RFID into the Internet of Things (IoT) ecosystem and its expanding use in sectors such as healthcare and pharmaceuticals, retail, logistics, and manufacturing, the market is set to expand. Logistics & Supply Chain application is expected to hold the largest market share of RFID tags market during the forecast period.
In 2022, the logistics and supply segment held the largest market share and this pattern is expected to persist in the forecast period. The predominance of this sector can be attributed to the extensive adoption of tracking systems by logistics companies to monitor and oversee their cargo in transit. Additionally, organizations are increasingly implementing sensor-based RFID tagging systems to oversee environmental conditions surrounding transported products. Any deviations in product attributes or external factors trigger notifications to relevant stakeholders, enabling timely action to prevent damage. RFID tags have proven invaluable to government authorities for asset monitoring and ensuring the legal flow of products. These proactive measures against transit product loss have significantly bolstered the adoption of RFID tags in logistics and supply chain applications. This sector encompasses RFID tag usage in diverse applications, including postal and courier services, asset tracking, freight tracking, cargo monitoring, container tracking, and other supply chain operations. RFID solutions empower industries to optimize their supply chains by enhancing warehouse inventory management, shipment tracking, and route optimization. Transitioning to an electronic and paperless environment via RFID technology allows suppliers and wholesalers to achieve inventory accuracy exceeding 99.9%, eliminating human errors.
In terms of value, label tags represent the largest share in the RFID tag market. Labels are the most prevalent, cost-effective, and widely employed tags, commonly affixed to assets in various settings such as IT parks, industrial materials, industrial equipment, data center assets, hospital equipment, pharmaceuticals, and a multitude of other products and items. Manufacturers typically supply labels in bulk as reel/bundle purchases. These tags are predominantly designed for single-use applications, resulting in their widespread use across various end-user industries. Some companies also offer durable, tear-resistant labels suitable for long-term and challenging environmental conditions.
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