Chipless RFID Market

Market Overview

The global chipless RFID market size was valued at USD 1,368.8 million in 2021. It is expected to reach USD 9,081.89 million by 2030, growing at a CAGR of 23.4% during the forecast period (2022–2030).

The term chipless RFID refers to a type of radio frequency identification (RFID) that does not use an integrated circuit made of silicon. It is an evolving wireless technology for access controls, automatic identifications, security and surveillance, tracking, database management, logistics, and inventory control. It uses conductive polymers or plastic as an alternative to integrated circuits made from silicon. The elimination of the expense associated with the silicon IC chip in the circuit is what makes the chipless RFID such a significant step forward in the struggle to overcome the limitations imposed by traditional RFID technology.

Additionally, the chipless RFID is entirely printable, and as a result, it is resistant to extremely severe weather and environmental conditions. The primary benefits of these features enable the use of chipless RFID market in extraordinary applications that, in the past, were not possible with either chipped or barcode RFIDs. These applications include Identification cards, banknotes, drink containers, books, aluminum cans, and customer merchandise are just a few examples of items that can have low-cost tags attached to them. Other possibilities include banknotes and aluminum cans.

To realize the universal networks required by the IoT paradigm, low-cost sensors are needed, and a chipless RFID tag can also be used as a chipless RFID sensor. One of the most common applications for chipless RFID sensors is monitoring CO2 levels. The concept of chipless RFID has been developed to compete with barcodes in specific application areas. Chipless RFID provides several advantages, including reduced operating expenses and an improved user experience, amongst many others. Barcodes only allow for the recovery of a single piece of identifying information, but the technology behind them has stood the test of time and is widely used.

Market Dynamics

Market Driving Factors

Increased Efficiency Offered by Chipless RFID Tags

RFID has made significant strides toward achieving its goals of improving inventory accuracy and providing accurate counts. In addition to this, the RFID technology can collect more data in a shorter amount of time. Because it is unnecessary to have a clear view of the inventory at all times, the counting process only takes a few minutes to finish. When used to collect data on a large number of items simultaneously, RFID eliminates the possibility of transcription errors, duplicate data entries, and "missed items." Cloud-based systems allow everyone in the organization to view up-to-date information at any time. This data may pertain to the location of items or their status.

Increase in Demand for Chipless RFID in the Banking and Healthcare Industries

The global market for chipless RFID tags is anticipated to be driven by the expanding demand for chipless RFID tags in the banking and healthcare sectors. Chipless RFID tags Market are becoming increasingly popular for inventory management across various business sectors, including healthcare, banking, financial services, and insurance (BFSI). Chipless RFID tags, on the other hand, are available at a price significantly lower than traditional RFID tags due to the absence of a silicon chip and the elimination of the need for maintenance procedures. Therefore, these factors have contributed to a rise in the use of chipless RFID tags in identification documents such as passports and banking cards. Also, several companies are considering adopting chipless RFID because of its cost-effectiveness and anti-counterfeiting properties. The global chipless RFID market is anticipated to grow at a faster rate as a result during the projection period.

Market Restraining Factors

Struggle to Overcome the Obstacle Posed by the Possibility of a Confidential Information Breach

Chipless RFID lacks a locking framework and a security password despite its numerous benefits, which means sensitive information can be stolen. Because of the risk of a data breach associated with the use of medication and its constituents, many businesses, including those in the healthcare industry and others, try to avoid using chipless RFID labels for resource tracking. It is necessary to include these components to prevent its appropriation and, as a result, to restrict the growth of the global market throughout the forecast period.

Key Market Opportunities

Growing Trend of Retailers toward Chipless RFID Products

The retail sector is increasingly adopting chipless RFID tags in its retail chain and stores, driving the growth of the global chipless RFID market. Chipless RFID tags are utilized most frequently in the retail industry for item-level tagging and smart shelving. To avoid problems such as running out of a product, "smart shelves" are manufactured with an RFID reader system integrated into their design. These shelves also alarm whenever the amount of product on the shelf decreases, thereby avoiding the possibility of the shelf running out of its supply. In addition, with item-level tagging, customers can view information about tagged products by scanning them to access the information. In the long run, this results in time and staffing savings. As a result, its suppliers, distributors, and other mediators use RFID-enabled logistic units to record every inventory detail.

Regional Analysis

The global chipless RFID market has been segmented into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.

North America is the highest contributor to the global chipless RFID market, growing at a CAGR of 22.2% during the forecast period. Most of the largest companies in North America are moving toward implementing automated item identification systems for supply chain management to improve the efficacy of inventory allocation. During the forecast period, there is anticipated to be a rise in demand for supply chain management, which is expected to create lucrative opportunities for the chipless RFID market. A further development that creates lucrative opportunities for the expansion of the chipless RFID market is the growing demand for RFID technology in the healthcare sector.

Europe is the second-largest contributor to the market and is estimated to reach around USD 1831.6 million at a CAGR of 23.7% during the forecast period. Because of the rapid expansion of the e-commerce industry around the world, there is an increasing demand for efficient asset tracking from warehouses. In addition, a surge in the retail sector in Europe is expected to fuel the growth of the chipless RFID market during the forecast period.

Asia-Pacific is the third-largest contributor to the market. A surge in demand for tracking, monitoring, and locating objects for security, safety, and resource optimization are the primary factors expected to drive the chipless RFID market during the forecast period. The presence of the largest original equipment manufacturers (OEMs) in Asia-Pacific is another factor expected to drive the market.

LAMEA is the growing market for chipless RFID. It is anticipated that the market's growth in this region will be bolstered by the technological developments in Latin America and the Middle East. Additionally, the rise of automation in retail has created new opportunities for the chipless RFID market to expand.

Segmental Analysis

The global market for chipless RFID Abalysis has been divided into product type, frequency, application, and end-user.

By Product Type

Based on the product type, the global chipless RFID market has been categorized into tag and reader.

The tag segment is the highest contributor to the market, growing at a CAGR of 23.7% during the forecast period. Recently, there has been a rise in the demand for RFID tags due to recent advancements in RFID technology. For example, chipless RFID technology now provides tags with increased data storage capacity to stay competitive with optical barcodes. Because the cost of an active RFID tag is primarily determined by its chip, the concept of chipless RFID tags appears to be a promising solution for low-cost item tagging. This is because active RFID tags contain chips. The efficient and low-cost IT70 RFID tag can be attached to the windshield and used for various purposes, including electronic vehicle registration and highway tolling applications, vehicle access, and parking or fuel payment systems.

By Product Frequency

Based on the frequency, the global market has been categorized into low frequency, high frequency, and ultrahigh frequency.

The ultrahigh-frequency segment is the highest contributor to the market, growing at a CAGR of 23.5% during the forecast period. RFID tags that use UHF technology have a wide range of applications, such as electronic toll collection and parking access control, which contribute to the growth of the UHF RFID market. These factors create several opportunities for the chipless RFID market because of the high data transfer rate, which makes UHF RFID tags ideal for applications that need to read multiple items at once, such as boxes of goods that pass through a door into a warehouse or racers that cross a finish line. 

The high-frequency segment is the second-largest segment. The growth of the chipless RFID market can be attributed to the increasing demand for high-frequency RFID products, which are used in applications such as ticketing, payment, and data transfer. These high-frequency RFIDs are also used to identify metal parts subjected to harsh conditions, such as those in the processing and manufacturing industries.

By Product Application

Based on the application, the global market has been categorized into smart cards and smart tickets.

The smart cards segment is the highest contributor to the market, growing at a CAGR of 22.4% during the forecast period. The expansion of the market for smart cards can be attributed to the widespread demand for them in various sectors, including the health care industry, the banking industry, the entertainment sector, transportation, access control, and government identification, amongst others. The most recent fashion trend is the utilization of smart cards that feature a mirror-like finish and a surface resistant to scratching. These cards also accurately reproduce the artwork.

The smart tickets segment is the second-largest segment. The global chipless RFID market has grown as a result of the advantages of smart tickets. RFID smart tickets have anti-collision technology to scan and identify multiple objects. Numerous lucrative opportunities exist in the chipless RFID market for various applications such as ticketing, logistics, warehouse, and library book check-outs.

By Product End-User

Based on the end-user, the global market has been categorized into retail, healthcare, logistics, and transportation.

The logistics and transportation segment is the highest contributor to the market, growing at a CAGR of 23.2% during the forecast period. The ultra-high frequency reader is primarily used in transportation and logistics to track shipping and containers and can identify bottlenecks or blind spots to modernize container traffic. Several high-adhesion ultra-high frequency readers can be found throughout a supply chain. Container numbers, import or export codes, and shipping data can all be tracked using these tags. It is predicted that the RFID reader market will grow due to these factors.

The retail segment is the second-largest segment. Chipless RFID is gaining traction in retail for inventory and supply chain management. Retailers and customers can use chipless RFID to identify, transact, engage, locate, and authenticate their assets and staff more quickly and efficiently than ever before. Chipless RFID technology and the integration of cutting-edge technology into the retail sector are also driving the RFID reader market's expansion.

Recent Developments

• February 2022, Check Point Software Technologies Extends its Cloud Security Offering with a Developer-First Security Platform.

• January 2022, Check Point Software Enhances its Secure Access Service Edge Solution to Securely Connect the Remote and Hybrid Workforce.