RFID or Radio Frequency Identification is a wireless identification and data capturing technology that uses radio waves for identifying objects and assets. RFID tags are attached to objects and assets to be tracked and these tags emit radio signals that are picked up by RFID readers facilitating unique identification and automatic data capture. RFID systems enable advanced tracking of goods across the supply chain and provide real-time insights for better inventory management, asset tracking, and supply chain optimization.
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 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
With growing complexities across supply chain networks globally, there is a rising need for improved visibility and optimization across supply chain operations. RFID technology allows real-time tracking of goods across the supply chain from the point of manufacture to distribution and retail stages. This enables continuous monitoring of inventory levels, avoids stock-outs, and facilitates just-in-time fulfillment. The ability of RFID to provide end-to-end supply chain transparency presents a major opportunity for the technology to witness increased adoption for supply chain optimization applications across industries in the coming years. Automating workflows related to inventory, fulfillment, and asset management using RFID is expected to deliver significant productivity and cost savings for businesses.
Porter's Analysis
Threat of new entrants: Lowentry barriers with high initial capital requirements. Technological advancements make it difficult for entrants to match in cumbents.
Bargaining power of buyers: Moderate bargaining power depend in go size and value addition. Buyer’s can shift between existing players easily not creating dependency.
Bargaining power of suppliers: Concentrated supplier base with a few large players giving some control. Switching costs low due to incremental technology and availability of alternatives.
Threat of new substitutes: Emerging new tracking technologies like sensor-enabled QR codes and DD Systems also present threats.
Competitive rivalry: High with many large equipment manufacturers and solutions providers competing aggressively on price, performance and services. Frequent new product launches and M&A to consolidate positions.
SWOT Analysis
Strengths: Non-line of sight tracking, security features, and large data base handling, real-time tracking.
Weaknesses: Upfront infrastructure costs, interoperability challenges, lack of standards.
Opportunities: Growth infrastructure sectors, mandates in supply chain, healthcare and industrial sectors. Integration with IoT, analytics and of term solutions.
Threats: Privacy concerns over data use, regulatory compliance issues, and cyber security risks. Slow adoption in alternative technology sectors.
Key Takeaways
The global RFID Market Growth 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 to 2030.
Regional analysis shows that Asia Pacific dominating region currently with countries like China, Japan and South Korea rapidly deploying RFID infrastructure across industries. North America and Europe are other major regional markets growing at a steady pace led by penetration across transportation, manufacturing and healthcare sectors.
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. RFID isincreasingly being integrated with IoT platforms and analytics software to leverage real-timedata collection and turnitintoinsightfuldecision-making. Adoptionacrossdifferentendmarkets is expected to help drive further investments and innovation. However, slow uptake in some sectors coupled with regulatory compliances and privacy issues could restrain faster growth. Overall, the technology is still in growth phase globally providing opportunities for long term expansion.
For more insights, read- https://www.ukwebwire.com/rfid-market-trends-size-and-share-analysis/
