Asia Pacific is Expected to be the Fastest Growing RFID Market

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The Asia Pacific region is anticipated to hold a significant share of the RFID market and is expected to witness significant growth over the forecast period. The rapidly increasing implementation and research work in the field of automation and a significant expansion of industry 4.0 have been driving the demand for RFID solutions in the region. The region’s growth has been significantly driven by the increasing installations of these RFID systems in manufacturing units in order to improve productivity. The growing acceptance of electronic identity cards and RFID tags that are located in smart cards is also acting as a driver for the growth of the RFID market in the region.

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The expanding retail sector, along with the rising retailers’ focus on embracing digital technologies in order to enhance the customer’s shopping experience and optimize the warehouse management process, has also been one of the key factors contributing to the growth of the RFID market. RFID has been one of the efficient technologies used to handle goods and materials in the production environment. The expanding manufacturing landscape in the region coupled with the increasing adoption of automation and Industrial Internet of Things (IIoT) solutions in the sector has been propelling the growth of the market. Also, the increasing investments in asset management by organizations across various verticals and the rising need for contactless infrastructure coupled with government initiatives such as smart cities will further drive the growth of the market during the forecast period.

Moreover, the public transportation sector is anticipated to be one of the areas in which the RFID market is expected to expand over the forecast period. However, some restraints are limiting the growth of the RFID market. The higher cost associated with the installation of RFID systems may challenge the growth of the market. The device interoperability issues can also hinder the growth of the market over the forecasted period.

Countries such as India are expected to witness a surge in the adoption of RFID technology as industries mature, and the COVID-19 pandemic is increasing the need for contactless solutions. The biggest boost for technology is also coming from the government side. For instance, in Aug 2021, the South Delhi Municipal Corporation (SDMC) announced that it mandated commercial vehicles to carry RFID labels to enter the national capital. SDMC has also issued a notice regarding the payment of toll tax or environment compensation charges, which can only be made through an RFID tag for commercial vehicles. Also, to protect inventory loss from shoplifting and theft, optimize store performance, and enable inventory intelligence solutions along with traffic counting, Chinese companies have been deploying RFID solutions in their clothing stores, restaurant, cosmetics stores, supermarkets, jewelry, and other retail stores.

Moreover, according to a study conducted by the China Commerce Association for General Merchandise (CCAGM) in 2020, 84.4% of China’s 90 major departmental store operators planned to explore O2O (Online to Offline) integration. With the growing popularity of O2O integrations, shops are expected to focus on adopting RFID solutions. In contrast, those that have already been installed will likely focus on improving their theft protection solution. As a result, demand for RFID is anticipated to increase, contributing to the market’s expansion.

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