Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Market Insights - Global Chipless RFID Market
A chipless RFID is a type of RFID tag that does not use microchip transponder, instead it uses radiofrequency (RF) energy to communicate data. Some of the chipless tags use conductive polymers or plastics instead of silicone microchip, wherein these chipless tags are digitally encoded and work at one-millimeter range. Furthermore, chipless RFID tags have features such as magnetically encoded stripe in banknotes, unique signature, and microwave reflecting fiber. These tags are predominantly used in e-passport, banking cards, and item-level tagging. The chipless RFID tags are used for asset tracking, smart tickets, anti-counterfeiting, animal tracking, air baggage, and high volume secure documents.
The global chipless RFID market was estimated to account for US$ 955.3 Mn in terms of value in 2019.
Market Dynamics - Drivers
- Growing demand for chipless RFID tags in banking and healthcare sector is expected to drive the global chipless RFID market during the forecast period
Various industries such as healthcare and the BFIS sector are adopting chipless RFID tags to keep track of their products. These chipless RFID tags are relatively less expensive since they do not have silicone chip and do not require maintenance operations. Thus, these factors have increased the adoption of chipless RFID tags in passports and banking cards. Moreover several companies significantly adopting chipless RFID due to its cost-efficient and anti-counterfeiting properties, which in turn, is expected to boost the global chipless RFID market growth during the forecast period.
- Low cost of manufacturing is expected to propel growth of the global chipless RFID market over the forecast period
Manufacturing of chipless RFID tag is relatively inexpensive as it does not require silicone chip or any batteries inside the tag for product tracking which decreases the prices of these tags. Moreover, these tags do not have specific applications, hence they can be used in numerous industries. These tags are printed with help of inkjet printers, which is comparatively cheaper and allows time for multiple tag printing, making the entire manufacturing process easy and simplified. This, in turn, is expected to propel the market growth over the forecast period.
North America region dominated the global chipless RFID market in 2018, accounting for 38.9% share in terms of value, followed by Europe, Asia Pacific, Latin America, and MEA, respectively.
Source: Coherent Market Insights
Market Dynamics- Restraints
- Risk associated with breach of confidential information is expected to restrain growth of the global chipless RFID market during the forecast period
Despite its numerous advantages, chipless RFID does not have locking system or security passcode, which increases the risk of information breach. Many companies in healthcare and other industries often avoid using chipless RFID tags for asset tracking due to risk associated with information breach related to usage of medicine and its composition. These factors are expected to hinder its adoption and thereby restrain the global market growth over the forecast period.
- Issues associated with data characteristics of chipless RFID are expected to hinder growth of the global chipless RFID market over the forecast period
One of the major issues with chipless RFID is the data collected through these tags have only two identifiers, i.e. reader and middleware. It also has single timestamp, due to which the data becomes pointless without other information. When vast amount of data is gathered through these tags, it is stored in database, which includes observations that are not useful. Furthermore, in some cases, these tags generate incorrect observations, resulting in duplicate and wrong anomalies thereby negatively affecting the sale of a product. Hence, these issues related to data characteristic are expected to hamper the market growth in the near future.
- Integration of sensors in chipless RFID tags is expected to pose lucrative business opportunities
Chipless RFID is a combination of communication technologies and sensors that help companies to tack their asset and manage shipment for their products. Key companies in the market are focused on research and development activities, in order to innovate novel products, owing to increasing use of chipless RFID in numerous industries. Moreover, various manufacturers in the market are developing sensors that can withstand factors such as pressure, moisture, temperature, and other with RFI. This, in turn, is expected to pose lucrative business opportunity for market players.
- Innovation of cloud-based system is expected to present excellent growth opportunities
Manufacturers can combine cloud-based applications for various sectors such as retail and logistics, in order to combine with chipless RFID tags. These tags are majorly used in healthcare, logistics, retail, manufacturing, and other sectors. Deployment and management of data recorded on chipless RFID tags is challenging, thus, integration of cloud-based applications with chipless RFID tags can assist in providing central management without increasing deployment cost.
Source: Coherent Market Insights
Global RFID tags market was valued at US$ 323.6 Mn market in 2018 and is forecasted to reach a value of US$ 3,145.5 Mn by 2027 at a CAGR of 27.9% between 2017 and 2027.
- Technological advancements printed electronics is a major trend in the market
Development of novel technologies in printed electronics has aided RFID developers to create thin and flexible RFID tags. These tags can be combined thin-film photovoltaic solar cells, printed sensors, and other technologies. Furthermore, growing use of ink technologies and electronic printing is expected to support RFID developers to print their own chipless RFID tags onsite as per demand. Numerous key players in the market are focused on 3D printing technology for companies, in order to directly print RFID tags and on/in products. Therefore, constant development in printed electronics is expected to boost the demand for chipless RFID tags in the near future.
- Growing adoption of chipless RFID tags in retail sector is another key trend
Retail sector is increasingly adopting chipless RFID tags in its retail chain and stores, thereby driving the global chipless RFID market growth. In the retail sector, chipless RFID tags in item-level tagging and smart shelves. Smart shelves are designed with built-in RFID reader system and raise an alarm whenever the stock on the shelf is lower, thereby preventing situations such as out-of-stock. Furthermore, in item-level tagging, consumers can view details of tagged products by scanning them. This eventually saves time and personnel at work. For instance, in Germany, Metro AG, a supermarket chain, implemented RFID in its supply chain due to which its suppliers, distributors, and other middlemen use RFID enabled logistic unit for recording each and every detail of the inventory.
In Global Chipless RFID market, by industry segment, the retail & consumer goods sub-segment dominated the global market in 2018, accounting for 42.8% share in terms of value, followed by logistics & manufacturing, healthcare, government, aerospace & defense, and others, respectively.
Source: Coherent Market Insights
Key companies operating in the global chipless RFID market are Zebra Technologies Corporation, Spectra Systems, Molex Inc., Xerox Corporation, Politronica Inkjet Printing S.r.l., Vubiq Networks Inc., Thin Film Electronics ASA, and TagSense Inc.
- Major market players are focused on partnerships and collaborations, in order to gain competitive edge in the market. For instance, in January 2017, Thin Film entered into partnership with Beneli AB, which is a self-adhesive label and related solution provider based in Europe. Thin Film and Beneli are collaborating to deliver Thin Films NFC solutions with SpeedTap and Open Ensenada tags that are supported by a cloud-based software platform.
- Key companies in the market are involved in product development, in order to enhance their market presence. For instance, in January 2019, Vubiq Networks Inc. developed Millimeter Wave RFID Hyperimaging System.