The rising adoption of automation by diverse industries and the growing concern towards safety, security, minimization of defects, asset control and tracking for proper management of business operations has led to the growing implementation of RFID (Radio frequency identification) automated systems in various firms. RFID systems are used for various applications globally. These applications are categorized based on the end-user segments, including industrial, financial security, retail, logistics, and healthcare.
The analysts at Technavio predict that the global RFID market will grow rapidly at a CAGR of nearly 9 percent to reach above $15 billion by 2021. The growth in the market is driven by the growing e-commerce market and increase in technological integration in the manufacturing and retail sectors. The global RFID market can be segmented by products into RFID tags, middleware, passive RFID systems, and active RFID systems.
Widespread Adoption of RFID: What are the Driving Factors?
The software solution firms have a huge opportunity to offer services that include tracking, data management or analytics, and inventory management owing to the increased emergence of cloud based supply chain management systems. This creates a favorable situation for the growth in global RFID market as the industries can make use of these solutions.
Manufacturing industries are dealt with excess product portfolios distributed in multiple stages. This creates difficulty in keeping track of the inventory distribution and accurate details of distribution. Thus, these circumstances make a strong point to implement RFID systems in the firms.
RFID systems are highly used in e-commerce market owing to its high efficiency and volatility in stock inventory and faster scanning of new stock. The shift from barcodes to RFID has helped end-users to save time and improve the efficiency in checking the existing inventory levels and new inventory shipment including both inward and outward flow of stock. Additionally, RFID system also helps e-commerce firms in reducing labor, increasing data accuracy, and decreasing data redundancy. Hence, the market growth of e-commerce automatically drives the growth in the global RFID market.
The earlier methods for identification including barcodes and QR codes are time consuming and the possibility of errors is high compared to RFID systems. With the introduction of RFID, vendors, manufacturers, and other end-users have found major improvements in the overall data entry.
With the use of RFID systems, the information can be fed into the database faster compared with manual data feeding. RFID system helps in avoiding theft by tracking the inventory and they can also be used to analyze demand and trends by observing which items are leaving the inventory faster.
Technavio Privileged Solutions
Technavio, the premier market research company has put together a comprehensive market research study to provide detailed insights on the market to firms in the associated industry. The report contains a detailed analysis of key trends, challenges, vendors and other aspects to help firms in Global RFID Market.
