UHF RFID tag application market and future growth potential

In recent years, with the rapid development of Internet of Things (IoT) technology, RFID (radio frequency identification) technology, as an important part of the perception layer of IoT, has been increasingly widely used. In particular, UHF (ultra-high frequency) RFID tags have been widely used in many fields due to their advantages such as long reading distance, fast recognition speed, and large data capacity. This article will explore the current application market of UHF RFID tags and their future growth potential.

Current application market of UHF RFID tags

Shoe and clothing brands

Shoe and clothing brands are one of the important areas of application of UHF RFID tags. According to statistics, the global use of UHF RFID tags for shoe and clothing brands in 2023 is about 20 billion pieces, and the leading companies of global shoe and clothing fast-moving consumer goods brands have basically popularized RFID tags. RFID technology effectively solves the core problems of high inventory, untimely replenishment, inaccurate data, low logistics efficiency, and long inventory in the shoe and clothing Retail Industry. Through RFID tags, companies can track every link of goods from production to sales in real time, improve operational efficiency, reduce inventory backlogs, and optimize supply chain management.

Supermarket retail

Supermarket retail is another major application area of UHF RFID tags. Supermarket retail giants represented by Walmart use RFID tags extensively to improve inventory management and customer shopping experience. RFID technology can quickly and accurately identify product information, reduce checkout time, and improve customer satisfaction. At the same time, through RFID tags, supermarkets can monitor inventory in real time, adjust sales strategies in time, and avoid out-of-stock or backlogs. In 2023, the use of UHF RFID tags in this scenario will be about 18 billion, showing huge market demand.

Express logistics

The express Logistics industry is also an important application scenario for UHF RFID tags. The application of RFID tags in express parcels can greatly improve logistics efficiency and reduce human errors. For example, UPS has begun to popularize the use of RFID tags on a large scale for the identification and management of package bags. In China, Cainiao Network has also popularized RFID tags on international express orders in Europe, and plans to further expand the scope of application in the future. According to statistics, the use of UHF RFID tags in the express logistics field in 2023 will be about 3 billion, and there is huge potential for future growth.

Other fields

In addition to the above three major fields, UHF RFID tags are also widely used in many other fields. For example, in the healthcare sector, RFID technology is used for identity identification, location tracking and quality control management; in the field of food safety, RFID tags are used for product traceability and cold chain transportation; in the field of Asset MANAGEMENT, RFID technology is used for inventory and management of fixed assets, etc. Although the application scale of these fields is relatively small, they also have market potential that cannot be ignored.

Future growth market

Express logistics

In the next five years, the largest incremental market for UHF RFID tags is expected to come from the express logistics industry. With the rapid development of e-commerce and the growing demand for logistics, the application of RFID tags in express parcels will become more and more extensive. Global logistics giants such as UPS, FedEx and DHL are accelerating the application of RFID technology, which is expected to bring a growth of tens of billions of PCS in the next few years. Domestic express delivery companies are also actively deploying RFID technology to improve logistics efficiency and customer satisfaction.

Shoes and clothing and supermarket retail

Although the application of UHF RFID tags in the field of shoes and clothing and supermarket retail has been relatively popular, there is still a lot of room for growth in the future. For example, Walmart currently only uses RFID tags on some products in North America. If it expands the application scope of RFID tags to other regions around the world or more SKUs, it will bring a huge incremental market. In addition, as RFID technology continues to mature and costs gradually decrease, more small and medium-sized footwear and clothing brands and supermarket retailers will adopt RFID technology to enhance their competitiveness.

Healthcare and food safety

In the fields of healthcare and food safety, the application of UHF RFID tags will also usher in rapid growth. With the increasing demand for smart healthcare and food safety traceability, RFID technology will play a greater role in identity recognition, location tracking, quality control management, product traceability, etc. Especially in countries such as China where the aging trend is obvious, the medical industry will have a more urgent demand for RFID technology. At the same time, as the cost of RFID drops, the application of RFID tags in the field of food safety will also become more extensive.

Technological innovation and cost reduction

The future growth of UHF RFID tags also depends on technological innovation and cost reduction. With the continuous advancement of chip manufacturing technology and the optimization of antenna design, the cost of RFID tags will be further reduced and the performance will be further improved. This will make RFID technology more popular and expand to more fields and scenarios. At the same time, with the continuous development of Internet of Things technology, RFID technology will form a complementary relationship with other sensing technologies (such as QR codes, barcodes, etc.), and jointly promote the development of the Internet of Things industry.

In summary, UHF RFID tags have been widely used in many fields such as footwear brands, supermarket retail, express logistics, etc., and have shown great market potential. In the next five years, with the rapid development of the express logistics industry and the continuous maturity and cost reduction of RFID technology, UHF RFID tags will usher in a broader growth space. At the same time, fields such as medical care and food safety will also become important growth points for RFID technology. Therefore, for companies related to RFID technology, they should seize market opportunities, increase R&D investment and market expansion efforts to occupy a favorable position in the fierce market competition.