The global RFID market is projected to grow from USD 10.7 billion in 2021 to USD 17.4 billion by 2026; it is expected to grow at a CAGR of 10.2% from 2021 to 2026. The key factors fueling the growth of this market include growing market competitiveness leading to availability of cost-effective RFID solutions, high returns on investment, increasing regulations and government initiatives for various industries, and increasing installation of RFID systems in manufacturing units to improve productivity due to COVID-19.
The RFID market is dominated by key global established players such as Avery Dennison, Zebra Technologies, Honeywell, NXP Semiconductors, Impinj, HID Global, GAO RFID, Identiv, Invengo, and Nedap. These companies focus on adopting both organic and inorganic growth strategies, such as product launches and developments, partnerships, collaborations, expansions, and acquisitions to strengthen their position in the market.
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Avery Dennison has been one of the major global players in RFID market in 2020. The company has focused on designing, developing, and manufacturing RFID solutions for various applications across different industries leading to its market growth. Zebra Technologies is another major player with a wide product portfolio of RFID market. The demand for RFID tags in retail, logistics and supply chain, transportation, and healthcare applications could increase as governments ease the lockdown measures, allowing movement of the public and goods and re-opening of retail stores, malls, and other places of mass gatherings in a limited capacity. Manufacturing companies are expected to increase the deployment of RFID solutions to automate the manufacturing process to increase productivity with fewer employees and social distancing. These factors have together led to the market growth of these companies.
Avery Dennison has main 3 business segments–Label and Graphic Materials, Retail Branding and Information Solutions, and Industrial and Healthcare Materials. The company’s product portfolio includes UHF RFID inlays, HF RFID inlays, and near-field communication (NFC) RFID inlays. The Retail Branding and Information Solutions (RBIS) segment offers branding solutions, including creative services, brand embellishments, graphic tickets, RFID inlays, tags, and labels; and packaging solutions, which the company markets to retailers, apparel manufacturers, and brand owners. In September 2020, Avery Dennison introduced the AD-332u8 RAIN RFID inlay that excels in high density, close proximity conditions and can be used for inventory accuracy (item-level tagging) and supply chain management.
Another important player in the RFID market is Zebra Technologies. The company operates through 2 business segments: Asset Intelligence & Tracking and Enterprise Visibility & Mobility. The Asset Intelligence & Tracking segment deals in barcode scanners and imagers, printers, location solutions, printing supplies, and related services. The company caters to its customers in the RFID market through this segment. It majorly serves the healthcare, retail, manufacturing, hospitality, and transportation and logistics industries. The company’s RFID solutions are equipped with active and passive RFID tags, beacons, and other tracking devices to locate, track, manage, and optimize high-value assets, equipment, and people. The company also focuses on new product launches as key strategy to grow in the market. For example, in June 2019, the company introduced Zebra Data Services, a cloud-based capability that provides a complete picture of a business to help transform operations. This new capability was launched as a part of its breakthrough data intelligence platform, Zebra Savanna, which allows users to collect and process data from Zebra hardware in real time, turning raw data into actionable insights.
Other major players in the RFID market are mainly focusing on partnerships and collaborations along-with new product launches to achieve continuous and sustainable development.