Growing demand for real-time inventory tracking spurs market expansion for retail RFID solutions
By Retail4Growth Bureau | August 03, 2023
As the core elements of the RFID system, the growth of the market for RFID tags is directly correlated with the growth of the worldwide RFID market for retail applications. RFID tags have benefits such as increased data storage capacity, efficiency in tough environmental conditions, and durability. As a result, in recent years, many retailers have switched from using barcodes to RFID tags, says a new report from Research and Markets.
In 2021, the RFID market was valued at US$7.48 billion. RFID (Radio Frequency Identification) is used in asset tracking systems to read data from RFID tags using a reader and store it in a tracking database. The retail industry benefits from RFID technology by improving the customer shopping experience, automating inventory tracking, reducing the risk of loss and theft, and streamlining processes such as logistics, inventory, and fulfillment. A new report from Research and Markets highlights the growing government initiatives to adopt Automatic Identification and Data Capture (AIDC) technology and the advancements in RFID technology, which offer significant growth opportunities for the retail RFID market. Government organizations are implementing laws to increase the adoption of AIDC technology in various industries, aiming to improve information visibility, operational effectiveness, and customer satisfaction. The retail sector is one of the industries that extensively employs RFID tags for tracking goods and stock.
Key Market Developments:
- The American retailer Lowe's presented a new solution in December 2022 that was created in its Innovation Labs division and intended to fight retail theft in a way that is hidden from customers by utilizing RFID chips and the blockchain. The brand-new Project Unlock technology combines inexpensive RFID chips and IoT sensors to turn on power tools at the point of sale while also building a safe, transparent, and anonymous blockchain record of authorized purchases.
- H&M revealed in November 2022 opened a distinctive store in Williamsburg, Brooklyn, using the most recent retail technology. The 7,000-square-foot retail space will continue to operate through January 2024 and has experimental design, progressive programming, and a community-focused area where customers may experiment with their personal style. The store uses RFID technology, which gives complete real-time visibility of the store's inventory and sizing options. According to H&M, the smart mirrors only collect data about the products; they also employ RFID technology to track things a buyer has brought into the fitting room.
- In November 2022, Checkpoint Systems, a leader in retail technology, announced that it would present its RF and RFID solutions at Euroshop 2023 in Dusseldorf, Germany. SFERO is a fully customized modular RFID solution for the textile industry that enhances shop security and reduces losses in ways that were never before conceivable. RFreshIDT is a platform that uses RFID technology to assist stores in properly managing and rotating the stock by enhancing inventory visibility and precisely identifying produce with approaching or past sell-by dates.
In the retail RFID industry's component segmentation, RFID tags hold a sizable market segment.
As the core elements of the RFID system, the growth of the market for RFID tags is directly correlated with the growth of the worldwide RFID market for retail applications. RFID tags have benefits such as increased data storage capacity, efficiency in tough environmental conditions, and durability. As a result, in recent years, many retailers have switched from using barcodes to RFID tags.
The RFID market in retail has a substantial presence in the Asia Pacific region, where growth is anticipated to be the fastest. Due to its development, North America's retail RFID market currently maintains a sizable proportion.
A sizeable portion of the global RFID market for retail outlets was controlled by Asia-Pacific. This is primarily attributable to expanding government security infrastructure investments, particularly for the retail industry, as well as the rising demand for RFID solutions in the region. The fastest growth of the region in the RFID market is also attributed to digital transformation, as well as the requirement for improved supply chain monitoring for tracking assets in real-time. The RFID market in North America is predicted to grow even more as a result of the enhanced implementation of RFID in manufacturing facilities for productivity improvements.