The global radio frequency identification technology market size was estimated at USD 20.10 billion in 2024 and is projected to grow at a CAGR of 15.8% from 2025 to 2030. The market is poised to witness steady growth over the forecast period due to the growing demand for asset tracking, inventory management, resource optimization, and monitoring assets of security and safety. Moreover, the proliferation of Real Time Location Systems (RTLS), sensor networks, 5G, and the Internet of Things (IoT) has made radio frequency identification (RFID) devices more significant in the connected world. RFID devices are anticipated to be increasingly important in capitalizing on these technologies, contributing to the market’s growing demand.
The RFID systems deployed in the market are composed of three major components: tags, readers, and middleware. The RFID tags form the largest part of the market and are subject to prime development activities. While the deployment of passive tags is the largest in the industry, active tags are also gaining momentum as numerous new applications have sprung up in recent years, and the tag size has persistently been reducing. The market growth can also be attributed to the benefits provided by RFID tags, including identifying objects without being in direct line of sight, the ability to scan objects from a large distance, real-time data updates, and less than 100 milliseconds per tag reading time.
Component Insights
The tags segment accounted for the largest share of 37.4% in 2024. RFID tags are used to store and transmit data wirelessly via radio waves, enabling them to be read and identified remotely by RFID readers. Some standard applications of RFID tags include inventory management, asset tracking, equipment tracking, vehicle tracking, access control in security, contactless payment, and enhancing customer service. These benefits are significantly contributing to the segment’s increasing share. In addition, technological advancements are reducing the size of RFID tags day by day, making them easy to install/attach in many applications. They are reducing the cost, which bodes well for the segment’s growth.
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System Insights
The passive RFID segment held the largest market share in 2024. These systems consist of RFID tags that do not require a power source, relying instead on the energy emitted by RFID readers to activate and transmit information. The adoption of passive RFID technology is increasing due to its cost-effectiveness, small form factor, and ease of integration into existing processes. Key players are taking strategic initiatives to strengthen their passive RFID system portfolio to cater to the growing demand. For instance, in May 2022, HID Global announced its acquisition of Vizinex RFID to strengthen its high-performance passive RFID tags portfolio. The acquisition strengthened HID Global's industry position and enhanced its presence in key application markets.
Frequency Insights
The high-frequency segment dominated the market in 2024. High-frequency RFID technology (HF RFID) operates at frequencies between 13.56 MHz and 27.5 MHz and is commonly used in applications such as access control, contactless payment, and inventory management. There has been a growing trend toward adopting HF RFID technology in recent years, particularly in the retail and healthcare industries. The high-frequency RFID segment is anticipated to witness significant growth over the forecast period, driven by the increasing adoption of IoT and the need for efficient and secure data exchange.
Application Insights
The retail segment dominated the market in 2024. The retail industry benefits from RFID technology through its multiple applications, including inventory tracking and control, retail item tagging, supply chain, and access control, to name a few. These benefits are driving critical retail market players to adopt RFID technology. For instance, in early 2022, Walmart, a large retail corporation, announced the expansion of its RFID mandate program. The program mandated suppliers to tag sporting goods, home goods, electronics, and toys with RFID by September 2022, with plans to extend the requirement to more categories. This initiative aimed to give Walmart more control over its inventory in the store and ultimately provide a better customer experience.
Regional Insights
The North America radio frequency identification technology market accounted for a 37.6% share of the overall market in 2024. The region is expected to witness increasing adoption of RFID technology as industries mature, and COVID-19 pushes the need for contactless solutions. The retail sector in North America is witnessing significant demand for RFID technology. According to an article published by the Loss Prevention Magazine (LPM), over 93% of surveyed retailers in North America reported using RFID technology in various stages of deployment. Thus, the large-scale use of RFID tags in retail contributes to the regional market’s growth.
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