The global radio frequency identification (RFID) market for industrial applications will increase at a compound annual growth rate (CAGR) of 19% between 2016 and 2020, according to a report from Technavio Research.
The market will surpass $440 million by 2020, the firm says. Increased focus on investments in existing manufacturing units and the growing popularity of smart factories are among the key factors spurring the growth of RFID market for industrial applications around the world.
The Americas dominate the RFID market for industrial applications, accounting for almost 72% of the overall market revenue. The presence of a large number of automotive companies such as Ford and Tesla; consumer electronics such as Apple; and aerospace and defense companies such as United Technologies and Boeing is mainly responsible for the growth of the RFID market for industrial applications in this region, the study says.
“Numerous vendors in the market from across the globe are increasing their expenditure on the [research and development] of RFID semiconductors,” says Sunil Kumar Singh, lead analyst, hard and semiconductors, at Technavio. In addition, vendors are partnering with software and hardware suppliers to develop technologically innovative products, Singh says.
RFID is being implemented in various fields such as transportation, aerospace, IT and logistics due to the advancements in technology. But due to its high IT infrastructure requirements in addition to its already high deployment and implementation costs, the adoption of RFID is limited in small and medium-sized retail chains, the report says.
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