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RFID Tags Market: Passive Tag Segment Emerges as High-revenue Earning Segment
Demand for Passive RFID Tags Surges as Prices Drop
According to the research report, the U.S. RFID Tags Market is expected to be worth US$1,672.5 mn by the end of 2025 from US$809.4 mn in 2016. The market is expected to surge at a CAGR of 8.5% during the forecast period of 2017 and 2025. Rising affordability of RFID tags is expected to be the primary growth driver for the global market in the coming years. Out of the two types of RFID tags, the demand for passive RFID tags is expected to surpass active RFID tags during the forecast period. This segment is projected to grow at a CAGR of 7.6% during the forecast period. Amongst the end-user industries, the retail industry is estimated to lead the pack with a share of 23.1% in the U.S. market by the end of 2025.
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The growing interest of various industries to improve their supply chains and achieve greater visibility has instigated the uptake of RFID tags across the U.S. Adoption of RFID in industries such as automotive, retail, healthcare, transportation, wildlife, livestock, telemetry, sports, and IT is estimated to soar in the coming years as players are utilizing it for achieving higher standards of operational efficiency and store effectiveness. RFID tags are increasingly being used to ensure timely delivery of goods. Usage of RFID over the years has enabled end users to achieve higher sales, lower labor costs, and minimal efforts on maintaining inventory.
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Automation of Toll Booths Ups Adoption of RFID Tags in Transportation Sector
The uptake of RFID tags in transportation industry for automatic toll collection has made a significant contribution to the soaring revenue of the overall market. Along with increasing the productivity of collection of toll costs, it has eliminated the unnecessary lining up of vehicles, thereby reducing traffic. Installation of RFID tags at toll booths has allowed commuters to drive through the toll booth without any hassles. Thus, all of these factors are expected to propel the growth of the U.S. RFID tags market in the next few years.
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Availability of Cheaper Alternatives Encroach on Market Share and Earnings of RFID Tags
On the flip side, the U.S. RFID tags market is likely to suffer due to wide availability of cheaper alternatives such as the barcode systems. The usage of barcode systems has grown over the years, which has had a negative influence on the overall market. Several end users are opting for barcode systems as they help in integrated inventory management. Furthermore, the higher capital investment in introducing RFID systems over barcodes is also dissuading end users. Growing concerns pertaining to the privacy of customers with RFID technology has also challenged the growth of the overall market.
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