Global RFID market on a steep growth trajectory

October 20, 2016 // By Jean-Pierre Joosting
As the IoT industry booms, the global RFID market has grown rapidly, with the market size exceeding USD10 billion in 2015. According to the latest market intelligence fromRnRMarketResearch, this figure is expected to surpass USD17 billion in 2020.

At present, the global RFID industry is mainly concentrated in European and American markets, where RFID technology has more mature applications, accounting for nearly 70% of the global total in 2015.

In contrast, China is at the stage of RFID exploration and has no mature standards and technologies, thus leading to lower market penetration. In future, with improvements in RFID standards, technical breakthroughs, lower tag costs, as well as the advancement of smart IoT industry, the Chinese RFID market is expected to grow at an annual rate of around 20% in 2016-2020.

In terms of RFID tags, China has become the world's largest production base, representing roughly over 70% of the world's total. In 2015, China's RFID market size approached RMB3 billion, 90% of which came from passive RFID. Comparatively, however, active RFID boasts long-distance identification, big data transmission, low transmitting power, and excellent reliability and compatibility, among others. As a result, starting in 2004, the active RFID market showed rapid growth, and a large number of enterprises such as Shanghai Super Ele&Tec, ZTE Intelligent IOT Technology, and Shenzhen Aerospace Innotech have already entered the market.