The global chipless RFID Market is estimated to be valued at US$ 1,176.7 Mn in 2022 and is expected to exhibit a CAGR of 28.1% over the forecast period 2023-2030.
Market Overview:
The chipless RFID market refers to radio frequency identification technology that does not require an electronic chip. Chipless RFID tags encode data using patterns in the tag’s physical properties like shape, resonance or material. These tags have advantages like lower production cost than chipped tags as they have no circuits or memory. They are also better suited for embedding in harsh or conductive materials. The growing need for supply chain visibility and anti-counterfeiting is driving demand from industries like manufacturing, retail and logistics.
Market key trends:
The chipless RFID market is witnessing increased adoption due to one major trend – the need for low-cost RFID solutions. As chipless RFID tags have no chip, their manufacturing cost is a fraction of chipped tags. They are proving affordable for tagging items in bulk. Industries want RFID-enabled inventory management without a huge investment. Chipless RFID fulfills this need, accelerating its uptake. Additionally, the technology is advancing to overcome limitations like storage capacity. New encoding techniques enable storing several kilobytes of data without chips. This is furthering applications in industrial goods tagging.
Porter’s Analysis
Threat of new entrants: Low capital requirements and technological barriers make the chipless RFID market susceptible to new entrants. However, established players enjoy economies of scale and high brand loyalty.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes. However, the unique selling proposition of chipless RFID solutions makes buyers dependent on a few major established brands.
Bargaining power of suppliers: Key raw material and technology suppliers enjoy high bargaining power due to the differentiated technology, limited number of suppliers, and high switching costs for buyers.
Threat of new substitutes: Technological advancements have enhanced the capabilities of alternative solutions like barcodes, reducing the threat of substitution. However, the unparalleled advantages of chipless RFID make it difficult to completely replace.
Competitive rivalry: The global chipless RFID market is highly fragmented with the presence of several international and regional players. Intense competition exists among players based on pricing and service offerings.
Key Takeaways
The Global Chipless RFID Market Size is expected to witness high growth, exhibiting CAGR of 28.1% over the forecast period, due to increasing demand for supply chain digitization and utility of RFID tags in manufacturing plants.
Regionally, North America is expected to dominate the chipless RFID market owing to the presence of major players and aggressive adoption of advanced RFID solutions across industries like aerospace, healthcare, and retail. Europe also captures a significant market share due to the rising investments in RFID technologies by the automotive industry in Germany.
Key players operating in the chipless RFID market are Zebra Technologies Corporation, Spectra Systems, Molex Inc., Xerox Corporation, Politronica Inkjet Printing S.r.l., Vubiq Networks Inc., Thin Film Electronics ASA, and TagSense Inc. Zebra Technologies leads the market with its extensive product portfolio of ultra-high frequency and passive ultra-high frequency chipless RFID tags for supply chain and manufacturing applications.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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