RFID Tags Market

RFID Tags Market- The Inorganic Route Of Mergers And Acquisitions And Organic Route Of
Product Development And Diversification
Key players in the U.S. RFID tags market are Atmel Corporation, HID USA Corporation, Invengo
Information Technology Ltd. Co., and NXP Semiconductors N.V. Competition among them and
among other players are expected to heat up further over the course of next few years as they
try to expand their market shares both via the inorganic route of mergers and acquisitions and
organic route of product development and diversification.
A report on the market published by Transparency Market Research finds that it would rise at
an 8.5% CAGR over the course of the forecast period starting from 2017 and ending in 2025. At
this pace, the market which was valued at US$809.4 mn in 2016, will likely become worth
US$1,672.5 mn by 2025-end.
The two types of RFID tags available in the market are active and passive tags. Between the
two, the demand for passive RFID tags is predicted to outdo that of their active counterparts.
The former is expected to rise at a 7.6% CAGR over the forecast period. Some of the key
products in the market are commercial tags, healthcare tags, correctional tags, and others. The
commercial tags at present account for maximum share in the market and going forward too
will likely retain their leading share by clocking 8.9% CAGR from 2017 to 2025.
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Companies’ Focus on Bettering Supply Chain Mainly Serving to Drive Demand
Numerous factors are serving boost the market for RFID tags. Foremost among them is the
thrust by various industries to better their supply chains and attain higher visibility. Adds the
lead analyst of the TMR report, “Uptake of RFID tags in sectors such as retail, automotive,
wildlife, healthcare, livestock, transportation, sports, telemetry, and IT is expected to rise over
the course of the next few years. This is because of the efforts by savvy players in the market to
accomplish greater operational efficiency. Such tags bring about timely delivery of goods. In the
long run they can bring about greater sales and reduced labor costs by lessening inventory
maintenance costs.
A major application of RFID tags is in the transportation sector for automatic toll collection. This
usage has generated substantial revenue in the market. Apart from upping collection of toll at
reduced prices, it has also reduced long lines thereby making the process much more efficient.
Availability of Cheaper Barcode Systems Dampens Sales
However, despite such bright prospects vis-à-vis revenue, the market for RFID tags will likely be
dampened to a degree by the availability of the cheaper barcode systems. The barcode systems
over the years has increased with many entities using them for integrated management of
inventory. Another factor crimping sales is the greater amount of upfront capital needed for
installing RFID systems over barcodes. Besides, rising concerns of customers pertaining to
privacy with usage of RFID technology is also challenging growth of the market.

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