According to a recent report published by Allied Market Research, titled, "RFID Reader Market by Product Type, Frequency Band, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2019–2026," the global RFID readers market was valued at $8.87 billion in 2018, and is projected to reach $22.46 billion by 2026, registering a CAGR of 9.8% from 2020 to 2026.
The RFID reader is a device used to gather information from an RFID tag, which is used to track an individual object. The radio-frequency waves are used to transfer data from the RFID tag to the reader. Most of the RFIDs are generally used to store information, which is used when interpreted through user. RFID is a technology similar to bar codes. However, the RFID tag does not have to be scanned directly, nor does it require line-of-sight to a reader. The RFID tags must be within the range of an RFID reader, that is 3 to 300 feet. The RFID reader contains RF module, which acts as transmitter and receiver of radio frequency signals.
Providing robust security to the systems and technological advancements in the automotive industry are major factors that drive the market growth. Despite such advantages, high cost and problem associated with multiple tag reading impede the growth of this market. In future, rapidly updating public transportation system and increase in penetration of RFID sensor in applications such as manufacturing & management, security, retail, and location tracking are the factors expected to create lucrative RFID reader market opportunities during the forecast period.
The RFID reader market holds high potential for various applications in sectors such as retail, defense, aerospace, transportation, healthcare, and others. The current business scenario is witnessing an increase in the demand for RFID reader, particularly in the developed regions such as the U.S, China, and others. Companies in RFID reader market are adopting various innovative techniques to provide customers with advanced and innovative feature offerings.
RFID readers are used in many industries to make the operation feasible. Various transportation companies are using tags on vehicles to identify them when arriving at sites. The vehicle information along with yard space is fed into the IT systems for proper planning of loading or unloading the bay resources. RFID is used in the railway transport to provide information about the route being followed, speed of the railcar, and load that exists in each wagon. RFID is also used to identify whether the vehicles are sent to the right loading bay or filling station.
RFID reader market trends such as rise in adoption of RFID technology in the healthcare sector, which can validate RFID technology as a favorable asset to healthcare organizations is expected to drive the RFID readers market growth. RFID reader helps the healthcare industry to save time and money by providing real-time traceability, communication, identification, and location data for resources. In addition, RFID help workers to access and record data securely via mobile devices. These factors create lucrative opportunities for the RFID reader market during the forecast period.
Major companies in North America are adopting automated item identification systems for supply chain management to improve inventory allocation efficiencies. Furthermore, rise in demand for supply chain management is expected to create lucrative opportunities for the RFID market during the forecast period. In addition, higher need for RFID technology in the healthcare industry is anticipated to create lucrative opportunities for the RFID readers market growth. In addition, presence of largest manufacturers and OEMs in Asia-Pacific and surge in demand for tracking, monitoring, locating objects for security, safety, and resource optimization are the key factors that drive the growth of the RFID readers market during the forecast period.
The retail sector is witnessing high adoption of RFID readers for inventory and supply chain management. RFID reader helps retail enterprises and consumers to identify, transact, engage, locate, and authenticate their assets and personnel. In addition, high growth in retail sector and integration of advance technology in RFID reader boost the growth of the RFID reader market during the forecast period.
Key Findings of the Study:
- Based on product type, the handheld RFID reader segment generated the highest revenue in the global RFID reader market in 2018.
- Based on frequency band, the ultra-high frequency segment generated the highest revenue in the global RFID reader market share in 2018.
- Based on industry vertical, the transportation & logistics segment generated the highest revenue in the global RFID reader market size in 2018.
The key players operating in the global RFID reader industry are Alien Technology, Applied Wireless Identifications Group, Inc., Avery Dennison Corporation, CAEN RFID S.r.l., Honeywell International Inc., Impinj, Inc., Invengo Technology Pte. Ltd., Motorola Solutions, Inc., Zebra Technologies Corp., and Unitech Electronics Co., LTD. These key players adopt several strategies such as new product launch and development, acquisition, partnership and collaboration, and business expansion to increase the global RFID reader market during the forecast period.