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Analysis of the Global RFID Market in Retail : Omni-channel Retailing Coupled With Item-level Tagging Will Drive Market Growth

Analysis of the Global RFID Market in Retail : Omni-channel Retailing Coupled With Item-level Tagging Will Drive Market Growth

  • March 2015
  • 97 pages
  • ID: 2779415


Table of Contents

Key Findings

•Historically, the adoption of radio frequency identification (RFID) technology in the retail industry has been slower than expected. Low awareness levels about return on investment (ROI), skepticism, and concerns regarding privacy were among the key challenges for RFID adoption.
•The global RFID market in the retail industry offers considerable growth potential. Market revenue was $ x million in 2013, at a growth rate of x %.
•During the past year, retailers slowly started to witness the benefits in particular business cases for RFID use. Hence, the future of RFID adoption looks bright.
•Rising interests in omni-channel retailing lays greater emphasis on efficient inventory management, loss prevention, and shrinkage. Hence, omni-channel retailing is and will continue to be the key driver for RFID adoption.
•Growing interest in item-level tagging is expected to drive demand for tags in the retail industry. Applications such as inventory management, loss prevention, and customer behavior understanding are expected to augur well for the growth of RFID.
•Apparel constitutes the major share of the total RFID market in retail. Other growth areas include footwear, perishables, jewellery, and personal care.
•North America and Europe are expected to contribute to the short-term growth prospects while Latin America and Asia contribute to long-term growth prospects.
•The market for RFID in retail is estimated to reach $ x million by 2020, growing at a compound annual growth rate (CAGR) of x % between 2013 and 2020.

CEO’s Perspective

M-commerce is expected to act as a major catalyst for RFID adoption.
Ultra-high frequency (UHF) Gen-2 constitutes the largest share of the total revenue.
North America and Europe continue to offer near-term growth opportunities.
The Middle East and Russia are expected to witness faster growth than other regions.
Retailers are looking to source tags from multiple vendors as against sourcing from a single vendor.

Radio Frequency Identification: RFID is a technology that uses radio wave communication to identify items and personnel individually or as a group. On the basis of their frequency of operation, radio waves are classified as low frequency (LF), high frequency (HF), and ultra-high frequency (UHF).
Products involved as a part of revenue calculation include RFID tags, readers, printers, and middleware (such as services and integration). End-user scope includes selling of goods such as apparel, food, consumer products, personal care, jewellery, and footwear. Applications wherein RFID is used include inventory management and loss prevention.

Key Questions This Study Will Answer

Is the market growing, how long will it continue to grow and at what rate?
What are the key growth drivers and restraints for the market?
What are the likely trends of individual components in this market?
Are the products/services offered today meeting customer needs or is additional development needed?
What are the potential areas of growth within Europe?
Are the vendors in the space ready to do it alone, or do they need partnerships to take their businesses to the next level?

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