Technavio Expects the Global RFID Readers Market to Exceed USD 7 Billion by 2020
According to the latest market research study released by Technavio, the global RFID readers market is expected to reach USD 7 billion by 2020, growing at a CAGR of almost 21 percent during the forecast period.
This research report titled "˜Global RFID Readers Market 2016-2020', provides an in-depth analysis of the market in terms of revenue and emerging market trends. This market research report also includes an up to date analysis and forecast for various market segments and all geographical regions.
Retail
The retail sector was the major revenue contributor to the global RFID readers market, accounting for 55 percent of the total revenue in 2015.
According to Navin Rajendra, lead research analyst for embedded systems at Technavio, "The high adoption of RFID in the retail sector is primarily to improve efficiency in the supply chain. RFID does not need a line of sight to track items, and thus, has become the preferred choice for inventory management, asset management, and supply chain management in the retail sector."
In addition, RFID tags offer advantages such as faster checkout times (as almost 40 RFID tags can be read at the same time), long read range, and reuse of tags. These advantages have prompted large retailers such as Wal-Mart and Gillette to switch to RFID tags instead of barcode system, thus boosting market growth.
Transportation
The global RFID readers market in the transportation segment is likely to grow at a CAGR of over 25 percent during the forecast period. RFID tagging is being used in public transportation systems for passenger tickets, contactless cards such as driver's license, toll collection, and registration certificate. For instance, in London, UK, travelers use Oyster cards on trains, buses, and ferries. The card contains the identification of the user and calculates the fare.
"This wide application of RFID tags in the transportation sector has broadened the RFID readers market and will contribute to its growth," says Navin.
Logistics
The global RFID readers market by logistics sector will also grow at a CAGR of over 25 percent during the forecast period. RFID tags are used to track vehicle movement and cargo in planes and ships. RFID tags are also being used in the railroad industry for tagging locomotives.
For instance, India is planning to fit its locomotives, wagons, and coaches with RFID technology. RFID system also helps in detecting and retrieving stolen cars.
Manufacturing
The global RFID readers market in the manufacturing sector will grow at a CAGR of around 21 percent during the forecast period. Inventory management and asset tracking are the important applications of RFID systems in manufacturing. RFID tags help in optimizing the inventory, and also allow the manufacturers to focus on total quality management (TQM). RFID systems also help in cost reduction in inventory management.
Others
The global RFID readers market in the others segment will grow at a CAGR of over 14 percent during the forecast period. The others sector includes the healthcare, defense, libraries, school, and museums.
In the healthcare sector, RFID tags encoded with data such as the person's ID and laboratory records are employed. Though only a few hospitals in the US and Japan have adopted this practice, the demand from this sector is expected to rise. Animal tagging is another area where RFID tags are used.
RFID tags have also replaced barcodes in many libraries. Over 30 million libraries use the RFID system, including the Vatican library in Rome, Italy.
The tags are also being implemented in sports to analyze various aspects of performance of sportsmen such as distance, speed, and direction traveled by each player in real-time.
Technavio analysts highlight the following four vendors as the top contributors to the the global RFID readers market:
Alien Technology
Honeywell
Impinj
Zebra Technologies
