The “Global Chipless RFID Market, by Component Type (Direct Thermal and Thermal Transfer), by Industry (Retail & Consumer Goods, Logistics & Manufacturing, Healthcare, Government, Aerospace & Defense, and Others), and by Geography (North America, Europe, Asia Pacific, and Latin America, Middle East & Africa) - Global Forecast to 2027”, is expected to be valued at US$ 5,190.6 million by 2027, witnessing a CAGR of 23.6% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.
Chipless radiofrequency identification (RFID) is a next-generation technology that uses radiofrequency (RF) energy to transfer data. Chipless RFID is touted to replace optical barcode, owing to various benefits such as flexibility in its functioning, adaptability in the application, and large data carrying capacity. RFID tags have been used in various industries such as healthcare, retail, transportation, supply chain, logistics, and manufacturing. The chipless RFID tags offer various advantages such as animal tracking, smart tickets, anti-forgery, asset tracking, and security to high volume documents.
Growing demand for efficient supply chain management is expected to drive growth of the global chipless RFID market during the forecast period
Increasing demand for efficient supply chain management has increased the adoption of chipless RFID tags significantly in the recent past. Chipless RFID tags can store detailed information up to 2KB associated with the tagged products. The prices and other details of the product are automatically recorded when the consumer approaches the counter, without screening every product, eventually saving time of the consumer. Furthermore, it enables the cost tally in a signal scan, which also saves time for the user as well as product retailers. Such advancements in technology have encouraged retail and manufacturing organizations to adopt chipless RFID tags for their respective products.
Proactive government policies for the incorporation chipless RFID tags are expected to provide lucrative business opportunities
Governments of various countries are encouraging the adoption of chipless RFID tags, in order to provide convenience for citizens. Various industries such as transportation and healthcare are actively including the use of chipless RFID tags for asset and medicine tracking. Proactive initiatives by government agencies to promote use of RFID tags is expected to pose lucrative growth opportunity for market players in the near future. For instance, in August 2017, the Government of India launched a mobile application to purchase FASTags (radio frequency identification or RFID cards) for highway users.
Low memory capacity of RFID tags is expected to restrain the global chipless RFID market growth over the forecast period
Chipless RFID tags have very low memory capacity, as compare to other tagging and tracking systems. The memory capacity for chipless RFID tags ranges between 256 bites and 2KB, which is extremely low to store valuable information. Thus, many companies in healthcare and banking industries are reluctant to use chipless RFID tags. This, in turn, is expected to hinder the adoption and thereby restrain the global chipless RFID market during the forecast period.
Extensive use of chipless RFID tags in retail sector is a major trend in the region
Many key players in the U.S. retail sector market such as Wal-Mart are deploying chipless RFID technology in their supply chains. Retail companies are proactively adopting these chipless RFID tags to improve asset tracking process in a cost-efficient manner. However, these tags are single-frequency bands and thus, cannot be used for controlling product payment in stores. Growing expansions of retail chains have boosted the demand for RFID tags, in order to identify basic product details such as manufacturing date, shipping time, expiry date, temperature, and other information. Furthermore, retail chains in the region are also increasing adopting these chipless RFID tags to improve transparency in the supply chain. This, in turn, is expected to boost the regional market growth.
Sluggish adoption of RFID tags, owing to lack of supporting technologies
Various industries in Middle East & Africa region are adopting advanced technologies albeit at slower pace. This is owing to lack of supporting technologies and robust IT infrastructure. Although many pharmaceutical and retail companies have adopted chipless RFID tags, they do not have other technologies such as RFID readers and others. Furthermore, lack of well-established IT infrastructure and facilities such as cloud applications, high-speed internet, and others in various countries is slowing down the adoption of chipless RFID tags. Chipless RFID tags are cheaper though supporting technologies such as readers require significant investment, which small- and mid-sized enterprises cannot afford.
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.
Coherent Market Insights is a prominent market research and consulting firm offering action-ready syndicated research reports, custom market analysis, consulting services, and competitive analysis through various recommendations related to emerging market trends, technologies, and potential absolute dollar opportunity.