The global RFID market will worth USD 11.2 billion in 2017 compared to its previous year’s figure of USD 10.52 billion growing at a CAGR of 4.91 per cent, according to a report.
The research report titled “RFID Forecasts, Players and Opportunities 2017-2027” by IDTechEx believes that RFID market has more room to grow in the coming decade as the penetration for apparel market alone has reached only 20 per cent.
RFID products include reads, tags, software and services for RFID fobs, cards, labels and other form factors for active and passive RFID. “In retail businesses, RFID usage dominates apparel industry with 8.7 billion RFID labels produced in 2017 so far, which is still very less compared to its overall market potential,"IDTechEx explains.
Other areas of RFID usage
About the areas of RFID usage, IDTechEx says: “RFID used for tickets alone would require 825 million tags this year with tagging of animals occupying the substantial portion since this has become a legal compliance in many countries. Over 480 million RFID labels are required for animal tagging in 2017.” RFID tags are used for security purposes and also used as anti-shoplifting tool in retail showrooms, warehouses, super and hyper markets, and apparel industry.
In total, “18.2 billion RFID tags are expected to be used in 2017 compared to 15.2 billion tags produced in 2016. Major chunk of growth came from passive UHF (RAIN) RFID labels", IDTechEx says.
Of the Ultra High Frequency (UHF) and High Frequency (HF) tags, usage for HF RFID was 25 per cent more in 2017 compared to UHF RFID since the former ones offer cheaper security and use disposable labels for tagging things.
IDTechEx says that its report on RFID tag usage was based on their extensive research, including conference and site visits followed by secondary research, interviews with solution providers and RFID adopters which gave them extensive level of insight into the overall RFID industry.
How RFID tags are made
Radio Frequency Identification (RFID) technology encompasses electromagnetic signature that includes a radio frequency to communicate in one way the data or information. This process of making RFID tags is carried out by RFID microchips (RFID tags), RFID printers, RFID middleware components and RFID readers.
The RFID encoder/ label printer prints labels that contain information such as an electronic product code (EPC) or a unique ID and RFID labels are marked with a barcode and readable text by the printers.