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 Insight- U.S. RFID Tags Market
Radio-frequency identification (RFID) also referred to as RFID transponder is a technology used for automated identification of objects, animals, vehicles, people, and other materials. RFID tags are small radio frequency identification devices used for tracking and identification purposes. These tags are specifically built of an integrated circuit (IC) comprised of an antenna, thin-film, and memory. The RIFD tags store the product’s memory in electronic product code (EPC), which can be tracked and read by RFID readers. Furthermore, RFID tags are classified into two types on the basis of the source of the power namely active RFID and passive RFID. The active RFID makes the use of battery power for the transition of signals to the reader.
The U.S. RFID Tags market was valued for US$ 1,011.3 Mn in 2019 is expected to exhibit a CAGR of 9.0% during the forecast period
Market Dynamics- Drivers
- Rising interest of retail sector in RFID technology is expected to drive growth of the U.S. RFID tags market during the forecast period
The retail sector is increasingly adopting RIFD technology due to enterprises wanting to achieve greater visibility and speed into their supply chains. Moreover, the sector is focused on store effectiveness and operational efficiency. An effective supply chain ensures that the goods are delivered at the scheduled time and designated place. RIFD offers various advantages including reduced labor costs, low inventory maintenance, and increased sales. Thus, these factors are expected to drive growth of the U.S. RFID tags market during the forecast period.
- Advent of automated toll booth payment with RFID is expected to propel the U.S. RFID tags market growth over the forecast period
Transportation systems and infrastructure play a crucial role in economic development of a country. Efficient transport systems offer numerous social and economic benefit including increasing employment, better accessibility to market, and additional investments. This, in turn, makes it critical for the transportation industry to adapt rapidly with technological advancements. Automatic toll collection utilizing RFID allows automated electronic collection of toll costs. Moreover, RFID technology has increased the productivity of automated toll boot payments. Customers can drive their vehicle straight through a toll booth without queuing up the financial transactions and paying for toll fees manually. The toll fee is automatically deducted when a commuter passes. Therefore, these factors are expected to propel the market growth over the forecast period.
Market Dynamics- Restraints
- Extensive base of barcode systems is expected to hinder the U.S. RFID tags market growth over the forecast period
Barcode technology has been extensively installed in many end-use verticals due to low cost and ease of operation. Most of the stakeholders of distribution channels have installed a base of barcode systems to facilitate integrated inventory management. Although RFID technology is more efficient and effective than barcodes, many organizations are reluctant in investing capital in replacing existing barcode technology. Unlike barcodes, there is no requirement for visual content for the reader to read tags. Furthermore, RFID tags can store relatively more information than barcode labels. Thus, these factors are expected to hinder the market growth in the near future.
One of the major challenges for adoption of RFID tags is the possibility of affecting privacy of customers. An RFID tag utilized for inventory tracking purposes may only contain information about that product. However, there is a possibility of computer system to link the product data with customer’s personal data, collected with every debit, loyalty, or credit card swipe, thus creating a detailed profile of customer’s buying habits. This can hamper the market growth in the near future.
- Inclusion of RFID chips in passports and visas can provide major growth opportunities
Governments of many countries are contemplating including RFID chips into passports and visas. These countries are also reforming and changing their migration and immigration legislation to curb illegal immigration. Since the conventional methods of paper-only visas have become obsolete and easy to forge, criminals have various ways to flee the country. The government of the U.S has been at the forefront of pushing the technology. Many security policies have been changed and reviewed in response to the terrorist attacks of 2001. Inclusion of RFID technology in passports and visas can enhance security, making impossible for a person to falsify identity. A person may change the photograph on the passport, but would not be able to change the fingerprints to match forged fingerprints contained on memory chips.
- Advent of RFID asset tracking system is expected to present lucrative growth opportunities
RFID technology is rapidly replacing ScanCode technology for asset tracking and inventory management. Since RFID is fast, reliable, and secure, it is beneficial for organizations to adopt RFID-based solutions. The most compelling advantage is the tremendous gain in ROI (Return on Investment) by replacing all manual components for inventory management and asset tracking. These features of RFID tags can provide lucrative opportunities over the forecast period.
Source: Coherent Market Insights
- Growing use of RFID technology in the healthcare sector
RFID finds major applications in healthcare sector namely in pharmaceutical industry, employing RFID enables the end-user to identify altered dosage and expiry date of medication. Moreover, it allows customers to monitor when and where the products and manufacturing. Thus, RFID can curb illegal activities of some companies and save lives of many. RFID can also be used in tracking medical products and equipment and newborn babies as well as medical records of patients. For instance, if a patient suffers from loss of memory or Alzheimer's, or if the patient is diabetic and experiences diabetic coma, RFID technology presents significant information to the practitioner in order to offer proper care by scanning the wristband of patient that contains the RFID chip. In October 2004, the US Food and Drug Administration (FDA) approved the first RFID tag to be utilized on humans.
- Advancements in RFID technology to improve its usage
In the recent past, North America has started increasingly adopting RFID technology. This is owing to increasing technological advancements in RFID tags as well as a high manufacturing rate of the tags due to increasing usage of RFID technology in many sectors. Moreover, many companies are major focused on presenting integrated targeted software platforms across supply chain and into the store along with RFID tags its readers to offer a better solution to the customers.
In U.S. RFID Tags market, by type segment, passive sub segment dominated the U.S. market in 2019, accounting for 68.9% share in terms of value
Source: Coherent Market Insights
Value Chain Analysis
Key players operating in the U.S. RFID tags market are RF Code Inc., HID The U.S. Corporation, AMS AG, Omni- ID Ltd., Impinj Inc., NXP Semiconductors N.V., Alien Technology, Invengo Information Technology Co., Ltd., and Confidex Ltd.
- Key players operating in the market are focused on product launches, in order to enhance the product portfolio. For instance, in Mach 2017, Alien Technology Corporation launched two new products in UHF passive RFID tag reader antennas.
- Major companies are involved in product launches, in order to expand the product portfolio. For instance, in February 2017, Invengo Information Technology Co., Ltd. introduced slimmest UHF RFID tag to track linen materials. This RFID is expected to be one of the breakthrough towards retail RFIDs.