India RFID Market Expected to Reach $1,864.5 Million by 2030

According to a new report published by Allied Market Research, titled, “India RFID Market by Product Type, Frequency, and Application: India Opportunity Analysis and Industry Forecast, 2021–2030,” the India RFID market size was valued at $523.7 million in 2020, and is projected to reach $1,864.5 million by 2030, registering a CAGR of 14.1%. The tags segment is expected to be the leading contributor toward the RFID market during the forecast period, followed by readers, and software & services.   

Radio-Frequency Identification (RFID) is the use of radio waves to capture & read data contained in a tag attached to an item. RFID systems consist of a reader and a tag. Generally, RFID tags are integrated with a receiver & transmitter and comprise a specific serial number for one specific object.

The India RFID market growth is anticipated to be driven by factors such as availability of cost-effective RFID solutions and high returns on investment. In addition, increasing installation of RFID systems in manufacturing units to improve productivity boosts the overall market growth. However, high purchase cost acts as major restraint of the India RFID industry. On the contrary, high demand for contact-tracing solutions is expected to create lucrative opportunities for the India RFID industry.

Moreover, India tends to witness high penetration of RFID products, especially in banking & healthcare sectors, which is anticipated to augment the India RFID market growth. The driving factor, such as increase in demand for contactless payments, accelerates the market growth.

The India RFID market share is segmented into product type, frequency, and application. By product type, the market is classified into tags, readers, and software & services. Depending on frequency, it is categorized into low frequency, high frequency, and ultra-high frequency. On the basis of application, the market is fragmented into commercial, animal tracking, transportation, agriculture, security & access control, healthcare, retail, logistics & supply chain, and others.

Covid-19 Impact Analysis

The outbreak of COVID-19 has significantly affected the electronics and semiconductor sector. Business and manufacturing units across various countries were closed, owing to increase in number of COVID-19 cases, and are expected to remain close in 2021. Furthermore, partial or complete lockdown has disrupted Indian supply chains, posing challenges for manufacturers to reach customers.

The COVID-19 pandemic is impacting the society and overall economy across the globe. The impact of this outbreak is growing day-by-day as well as affecting the overall business globally. The crisis is creating uncertainty in the stock market and is resulting in falling business confidence, massive slowing of supply chain, and increasing panic among the customer segments.

Asian countries under lockdowns have suffered major loss of business and revenue due to shutdown of manufacturing units. The operations of the production and manufacturing industries have been heavily impacted by the outbreak of the COVID-19 disease, which further impacted the growth of the India RFID market.

In addition, the COVID-19 pandemic has impacted the electronics sector, as production facilities have stalled, which, in turn, boosted the demand for electronics and semiconductor products in industries. Its major impact includes large manufacturing interruption across India and interruption in Chinese parts exports, which may hinder the India RFID market.

Key Findings Of The Study

• The tags segment is projected to be the major application, followed by readers.
• Security & access control and retail segments collectively accounted for more than 47% of the India RFID market share in 2020.
• The transportation sector is anticipated to witness the highest growth rate during the forecast period.
• Depending on frequency, the high frequency segment generated the highest revenue in 2020. Also, the high frequency segment is expected to witness the highest growth rate in the near future.   

The key players profiled in the report include Alien Technology, LLC, Avery Dennison Corporation, Bar Code India Limited (BCI), Bartech Data Systems Pvt. Ltd, Bartronics India Limited, Honeywell International Inc., Identiv, Inc., Infotek Software & Systems Ltd. (i-TEK), NXP Semiconductors N.V., and Zebra Technologies Corporation. These players have adopted various strategies, such as product launch and partnership, to strengthen their foothold in the India RFID industry.