With the slumbering giant now awakening RFID is seeing massive growth. in 2015, the total RFID market is worth $10.1 billion, up from $9.5
billion in 2014 and $8.8 billion in 2013. This includes tags, readers andsoftware/services for RFID cards, labels, fobs and all other form factors,
for both passive and active RFID. IDTechEx forecast that to rise to $13.2 billion in 2020.
In retail, RFID continues to be adopted for apparel tagging – that application alone will demand 4.6 billion RFID labels in 2016 – which
still has some way to go with RFID penetrating about 15% of the total addressable market for apparel in 2016
In total, IDTechEx expects that 8.9 billion tags will be sold in 2015 and 10.4 billion in 2016. Most of that growth is from passive UHF RFID (RAIN
RFID) labels. However, in 2015 UHF (RAIN RFID) tag sales by value will only be 11% of the value of HF tag sales, mainly because HF tags where
used for security (such as payments, access etc) have a higher price point versus the cheaper, usually disposable UHF (RAIN RFID) tags used for
The RFID Market Size Will Be Worth $18.68 Billion by 2026:
RFID’s Business Benefits
The use of RFID technology literally redefines business’ margins. Field studies, based on real-world deployments highlight these RFID inventory systems benefits including:
Increased sales – Up-to-the minute inventory ensures you have what you need when you need it. Due to this enhanced visibility retail businesses using RFID typically experience a 4%-20% increase in sales per location
Reduced inventory levels – Knowing what you need ensures you purchase what you need–never short and never over. In fact typically businesses using RFID require 10%-20% less inventory on hand to meet their goals
Reduced inventory shrinkage – Unlike Barcode systems which support annual or bi-annual audits RFID arms ass businesses with the ability to audit their entire stock daily. This visbility provides immediate insite into missing items the moment they occure. Due to this and more, businesses will see a 50%-70% reduction in inventory shrinkage after switching to RFID
Reduced audit costs – Most retailers outsource their inventory audits. These are additional costs businesses often face twice a year. RFID allows businesses to save $3,000-$30,000 per year in audit fees per location because RFID counts are considered more accurate than physical counts, and can be done in-house.
Improved management decisions – At the heart of business is inventory. This represents your dollars. With more accurate and real-time insight clears inventory distortions and allows retail managers to expand the number of SKU’s per square foot often 10%-50%, deploy thinner stocks and replenishing more frequently. This means more sales per square foot for your business.