Passive RFID Tags Market Size, Share, Growth, and Industry Analysis, By Type (Inlays, Hard Tags), By Application (Health Care, Retail, Aerospace and Automotive, Maritime, Oil and Gas, Surveillance and Security, Logistics and Supply-chain, Others), Regional Insights and Forecast to 2031

Updated On: 15 April 2024

PASSIVE RFID TAGS MARKET REPORT OVERVIEW

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The global passive RFID tags market size was USD 2094.8 million in 2022 and the market is projected to touch USD 3066.9 million by 2028, exhibiting a CAGR of 6.6% during the forecast period.

Passive Radio Frequency Identification (RFID) tags are devices that use radio frequency waves to transmit data between an RFID reader and the tag itself. Unlike active RFID tags, which have their own power source and can transmit signals over longer distances, passive RFID tags do not have an internal power source. Instead, they rely on the energy supplied by the RFID reader to transmit data.

The passive RFID tags market has been experiencing growth due to increased adoption across various industries for applications such as inventory management, supply chain visibility, asset tracking, and access control. Continuous advancements in RFID technology, such as improvements in read range, sensitivity, and data storage capacity, have contributed to the wider adoption of passive RFID tags. The healthcare industry has also been a significant adopter of passive RFID technology. RFID tags are used for tracking medical equipment, managing inventory, and ensuring the proper identification of patients and medical staff.

COVID-19 Impact: Market Growth Hampered By Pandemic Due to Supply Chain Disruptions

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The global supply chain faced disruptions due to lockdowns, restrictions, and changes in consumer behavior during the pandemic. This impacted the production and distribution of various technologies, including RFID components. The demand for RFID technology in certain sectors may have shifted. For example, industries heavily affected by the pandemic, such as travel and hospitality, might have seen a decrease in RFID implementation, while other sectors like healthcare or logistics might have experienced increased demand. Companies involved in the development and deployment of RFID technology may have faced challenges related to remote work, affecting collaboration, testing, and implementation of RFID systems. RFID technology, including passive RFID tags, might have found new applications in ensuring health and safety protocols. For example, RFID systems could be used to track and manage inventory of medical supplies or to monitor social distancing in certain environments.

LATEST TRENDS

"Increased Adoption across Industries to Drive Market Growth"

Passive RFID tags have been increasingly adopted across various industries, including retail, healthcare, logistics, and manufacturing. The ability of passive RFID technology to improve inventory management, streamline supply chain processes, and enhance overall operational efficiency has contributed to its widespread adoption. Continuous advancements in passive RFID technology have been observed, leading to improved performance, longer read ranges, and enhanced data storage capabilities. These advancements have expanded the applicability of RFID tags in diverse use cases. The cost of passive RFID tags has been decreasing, making them more affordable for widespread deployment. This cost reduction has played a crucial role in the scalability of RFID systems, enabling businesses to implement RFID technology on a larger scale. Integration with the Internet of Things (IoT) and cloud technologies has been a significant trend. This integration allows for real-time data access, analytics, and better visibility into operations. The combination of passive RFID with these technologies enhances overall business intelligence.

PASSIVE RFID TAGS MARKET SEGMENTATION

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• By Type

Based on type the global market can be categorized into Inlays, Hard Tags.

RFID inlays are typically made up of an RFID chip (integrated circuit) and an antenna, which are mounted on a substrate or carrier material. It is used in applications where the RFID tag needs to be inconspicuous or integrated into existing items, such as retail packaging, library books, or smart cards. RFID hard tags are rigid, durable structures that typically encapsulate the RFID chip and antenna in a protective casing. The casing can be made of materials like plastic, metal, or composite materials. It is used in industrial settings, logistics, and asset management where durability and resistance to environmental factors are crucial.

• By Application

Based on application the global market can be categorized into Health Care, Retail, Aerospace and Automotive, Maritime, Oil and Gas, Surveillance and Security, Logistics and Supply-chain, Others.

In healthcare, RFID tags are used for patient tracking and identification to ensure accurate administration of medications and treatments. RFID tags help retailers automate inventory tracking, reduce out-of-stock situations, and improve overall supply chain efficiency. In aerospace and automotive, RFID is used for tracking components and parts throughout the manufacturing process, aiding in quality control and logistics. RFID is used for monitoring and managing the movement of personnel on ships and offshore platforms. RFID is employed to track equipment, tools, and components in the oil and gas industry, enhancing efficiency and reducing downtime. These tags are used for access control systems, allowing authorized personnel to enter secured areas. RFID tags enable real-time tracking of goods in transit, providing visibility into the supply chain.

DRIVING FACTORS

"Growing E-commerce and Retail Industry to Boost the Market Growth"

The e-commerce boom and the need for efficient inventory management in the retail sector have driven passive RFID tags market growth. Retailers use RFID technology to enhance inventory accuracy, reduce out-of-stock situations, and improve the overall supply chain efficiency. RFID technology plays a crucial role in optimizing supply chain operations. Passive RFID tags enable real-time tracking and monitoring of goods throughout the supply chain, leading to better visibility and control over the movement of products. Some industries are subject to regulations that mandate the use of RFID for tracking and tracing purposes. Compliance with these regulations has driven the adoption of passive RFID technology in sectors such as pharmaceuticals and food. Passive RFID tags are generally more cost-effective than active RFID tags. This affordability makes passive RFID technology attractive for a wide range of applications, from inventory management to supply chain tracking.             

"Technological Advancements and Rising Need for Asset Tracking to Expand the Market"

Ongoing advancements in RFID technology, including improvements in tag sensitivity, read range, and data storage capacity, contribute to the broader adoption of passive RFID tags. These innovations enhance the performance and reliability of RFID systems. The integration of passive RFID technology with the Internet of Things (IoT) has expanded the potential applications of RFID tags. The ability of RFID tags to communicate with other devices and systems enhances their functionality in various industries. Industries such as logistics, healthcare, and manufacturing have a rising need for efficient asset tracking systems. Passive RFID tags are well-suited for asset tracking, as they offer a balance between cost and functionality.

RESTRAINING FACTORS

"Cost and Privacy Concerns to Impede Market Growth"

The initial costs associated with implementing passive RFID tags, including the purchase of RFID tags and readers, can be a significant barrier for some businesses. While prices have been decreasing, smaller enterprises or those with limited budgets may find it challenging to invest in RFID technology. The use of RFID technology has raised privacy concerns, particularly in consumer applications. People may worry about the tracking of personal information through RFID tags, leading to resistance in adopting the technology. Striking a balance between the benefits of RFID and addressing privacy concerns is crucial for wider acceptance.

PASSIVE RFID TAGS MARKET REGIONAL INSIGHTS

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"North America to Dominate in the Market due to Presence of a Large Consumer Base"

North America has emerged as the most dominant region in the global passive RFID tags market share. The region particularly the U.S., has been a significant player in the adoption of RFID technology across various industries, including retail, healthcare, and logistics. The region's well-established infrastructure and early adoption of RFID technology for supply chain management and inventory tracking have contributed to its leadership in the market.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The Passive RFID tags market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of wardrobe options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, introducing innovative designs, materials, and smart features in Passive RFID tags, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Market Players Profiled

• Honeywell (U.S.)
• GAO RFID Inc. (Canada)
• HID Global Corporation (U.S.)
• Impinj, Inc. (U.S.)
• Smartrac N.V. (Netherlands)
• The Tag Factory (India)
• Invengo Information Technology (China)

INDUSTRIAL DEVELOPMENT

October 2022: Avery Dennison Smartrac has introduced the AD Minidose U9 RAIN RFID inlay for pharmaceutical applications, unlocking crucial RFID value for healthcare, pharmacy, and laboratory asset management. The AD Minidose U9 is one of the smallest devices on the market with ARC certification (Spec S) from Auburn University's RFID Lab and DoseID industry consortium approval.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.