New Report: RFID Market Projected to Double to $22 Billion USD by 2020
Zion Research has published a new report ‘Radio Frequency Identification (RFID) (Tags, Reader, Middleware) Market – Global Industry Perspective, Comprehensive Analysis, and Forecast, 2014 – 2020’. According to the report, the worldwide RFID market was valued at around USD 9.50 billion in 2014 and is expected to reach USD 22.0 billion in 2020, growing at a CAGR of around 15% between 2015 and 2020.
RFID is an acronym of radio frequency identification. RFID is a small electronic device which consists of tags, readers and middleware. RFID device serves the same purpose as a bar code that provides a unique identifier for an object. RFID exhibits several advantages against bar code such as RFID device does not need to be positioned precisely relative to the scanner. RFID technology is commonly used in companies to increase the efficiency level in operational management. It also used to track and manage the inventory, assets, people, etc. Reader collision and tag collision are some commonly occurring problems with RFID.
Tags, readers and middleware are the key product segments of the RFID market. RFID tags and readers are further categorized into active and passive on the basis of their mechanism. The active RFID devices needs power, which they get from inbuilt power source. On the other hand, passive RFID devices get it from the electromagnetic waves discharge by the readers. The tags segment dominated the global RFID market in 2014. Passive tag accounted for over 70% share of the total RFID market in 2014. Reader is expected to be the fastest growing segment of RFID market during the forecast period.
On the basis of applications RFID market can be segmented as retail, supply chain, aviation, healthcare, smart cards, public transit and other applications. Retail application market holds the largest share of RFID market. Retail accounted for over 30% of the total RFID market in 2014. Strong economical growth in emerging economies has been resulted into increased demand for transport and logistics. This in turn fueled the rapid growth of RFID in emerging economies. Transport and logistics is expected to be the major application market over the forecast period followed by retail. Additionally, increasing applications of RFID in inventory, product management, asset tracking, and provide solutions for anti-counterfeiting is expected to have a positive impact on the market. However, lower level of awareness among end-users is expected to hold back the growth of RFID market to some extent.
RFID market was dominated by North America with around 44% shares of total market in 2014. Strong demand for RFID in North America is mainly stemmed from U.S. North America is followed by Asia Pacific and Europe. However, Asia Pacific is expected to be one of the most lucrative regional markets in the coming years. Furthermore, rising awareness about patient safety and tracking of expensive medical devices, are among the key factors contributing to the market growth in all the regions.