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The global RFID market is projected to reach $32.4 billion by 2029, with a compound annual growth rate (CAGR) of 10.8% during the forecast period of 2022–2029. This growth is primarily attributed to the increasing demand for cost-effective RFID solutions, the need to reduce manual data capture errors, and government initiatives mandating RFID tags on vehicles. Additionally, the adoption of RFID in smart city projects and the rise of Industry 4.0 present significant growth opportunities.
However, challenges such as vulnerability to cyber threats and high capital expenditure for RFID deployment restrain market growth. Emerging technology trends like artificial intelligence (AI) in RFID and chipless RFID solutions are noted.
The COVID-19 pandemic had a notable impact on the RFID market, disrupting supply chains and business operations. However, it also drove demand for real-time asset tracking solutions, especially in sectors like retail, healthcare, manufacturing, and logistics. Government initiatives, particularly in healthcare, led to increased RFID adoption to enhance patient safety and operational efficiency.
Several companies, including Equinix Inc. and Tageos, focused on providing RFID solutions for various industries during the pandemic. The Indian Railways and Central Drugs Standard Control Organization (CDSCO) in India, as well as the Government of Australia, implemented RFID initiatives for safety, efficiency and security purposes.
In terms of market segmentation the hardware segment, particularly ultra-high frequency (UHF) RFID, is expected to dominate, driven by the need for convenient product tracking and technological advancements. Asia-Pacific leads in RFID market share due to increased awareness, government investments, and demand for supply chain monitoring.
Key players in the RFID market include HID Global Corporation, Avery Dennison Corporation, Zebra Technologies Corporation, GAO RFID Inc., and others. The market encompasses various components, frequencies, types, end-users, and geographical regions, indicating a diverse and dynamic landscape.