RFID is a data collection system that uses low-power radio waves to automatically classify artifacts. A device comprised of RFID tags, an antenna, an RFID scanner, and a transceiver that sends and receives data. RFID is similar to barcoding in the sense that data from a tag or label is collected by a computer and stored in a database. RFID, on the other hand, has a number of advantages over systems that use barcode asset monitoring tools. The most notable difference is that RFID tag data can be read even when the tag is not in direct view, while barcodes must be matched with an optical scanner.
Impact of COVID-19 on the Industry
The coronavirus pandemic has created a chaos in several end-use industries and negatively impacted various markets. However, the RFID market has witnessed a remarkable rise in the market growth rate during the COVID-19 pandemic. RFID technology automates data processing and significantly decreases human effort and error in monitoring information. During the pandemic, RFIDs were used in the healthcare sector in a variety of ways, including monitoring surgical equipment and other valuable medical instruments so that workers could easily identify the equipment inside the hospital grounds. These advantages of RFIDs are predicted to boost the growth of global RFID market at the time of pandemic.
Key Developments in the Industry
The key companies operating in the RFID market are adopting several growth strategies & business tactics such as mergers & acquisitions, collaborations, partnerships, and launches to maintain a strong position in the overall market, which is subsequently assisting the market to grow across the world.
For instance, in August 2019, Murata Manufacturing Co., Ltd., a global leader in manufacture and sale of passive ceramic-based electronic components & solutions, power supply modules, and communication modules, announced that they have developed LXTBKZMCMG-010, a small RFID IC tag that can be used on metal surfaces for surgical instruments Since surgical instruments are used after being cleaned and sterilized several times, attached IC tags must be sturdy and precautions taken to prevent them from falling off.
Moreover, in January 2020, FEIG ELECTRONIC, a leading global supplier of radio frequency identification (RFID) readers and antennas with fifty years of industry experience, announced the UCODE DNA RFID protection and parking contactless identification solution has been deployed in the Moscow International Business Center, also known as Moscow-City, one of the world's largest business district projects..
Furthermore, in February 2021, Murata Manufacturing Co., Ltd. announced that they received the award “Logistics of the year 2020” along with Bayer S.p.A. for the “RFID and Blockchain project”. The Italian logistics Association “Assologistica” presented them this award for the innovative approach to Technology and Logistics 4.0.
Analysis of RFID Market
The global RFID market is estimated to witness significant growth in the analysis period as several end use industries involved in manufacturing units make use of RFID technology. RFID tags are used to transfer data to RFID readers via wireless non-contact radio frequency waves. This technology enables users to automatically recognize and monitor goods held in inventories, as well as track the stage of development of a product.
The costs associated with producing RFID tags and readers are high. RFID technology is ten times more expensive than barcode readers. Barcode readers are a significant alternative product to RFIDs. While RFID is a more flexible and practical technology, barcoding will remain a dominant technology in a variety of ways, one of which is its low cost. RFIDs are used in the retail sector to manage inventory items, where the product can be marked and monitored all the way before it is delivered to different department stores. For example, in the United States (US), all of Walmart's department stores use RFID technology to monitor merchandising and distribution all the way through to delivery in the department stores.
These factors are estimated to surge the growth of the RFID market, throughout the analysis period. As per a newly published report by Research Dive, the global RFID market is predicted to garner $21,361.9 million by 2027. Geographically, North America market for RFID is estimated to dominate the global industry, owing to the increasing adoption of RFID technology for various operational use in several end use industries.
- NXP Semiconductors
- Avery Dennison
- Zebra Technologies
- HID Global
- GAO RFID