Intense competition between HID USA., Atmel Corp., NXP Semiconductors N.V., and Invengo Information Technology Ltd. Co. characterizes the business landscape of the U.S. RFID tags market. This competition is expected to heat up further over the coming years, thanks to their continuous efforts towards expanding their businesses.
Be it the organic route of product development and portfolio diversification or the inorganic way to mergers, acquisitions, and alliances, these players are keeping no stone unturned to gain an edge over each other. For instance, Invengo recently introduced LinTRAK-Slim, a new generation linen tag, which is the thinnest UHF RFID tag to be used in the laundry and textile services industry, until now. Other prominent players in the U.S. RFID tags market are Omni- ID Ltd., AMS AG, Alien Technology, Impinj Inc., Confidex Ltd., and RF Code Inc.
Transparency Market Research (TMR), a leading market research and intelligence firm, has recently published a report on the U.S. RFID tags market. According to the report, this market was worth US$0.80 bn in 2016. Expanding at a healthy CAGR of 8.50% over the period from 2017 to 2025, the U.S. RFID tags market is estimated to reach US$1.67 bn by the end of the forecast period.
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Rising Application of RFID Tags in Various Industries to Boost Market Growth
The U.S. RFID tags market is gaining considerably from the efforts made by manufacturing companies to deepen their supply chain and enhance their visibility. An analyst at TMR stated, “RFID tags are increasingly being adopted in various industries, such as automotive, retail, healthcare, livestock, IT, and transportation. Other sectors, where RFID is finding considerable application, are wildlife, telemetry, and sports.”
“The increasing efforts by leading organizations in these industries to attain greater operational efficacy has resulted in increased application of RFID tags,” he added. Since RFID tags bring about efficient and timely delivery of goods, experts believe the increasing usage of them will lead to greater sales and decreased labor cost in the long run.
On the other hand, already installed and relatively cheaper barcode systems are limiting the demand for RFID tags in the U.S. Over the years, barcode systems have proliferated with a number of organizations utilizing them for integrated inventory management across the country. Also, it requires a considerably large amount of money to install an RFID system at a premise, which has left companies sceptical over their deployment. However, the increasing need to improve security in passports and visas is creating novel opportunities for RFID chips and tags in the U.S., states the research report.
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Demand for Commercial Tags to Remain High
The report presents a detailed analysis of the U.S. RFID tags market based on the product type, tag type, and the end user. Based on the type of the product, the market is classified into commercial tags, healthcare tags, and correctional tags. Among the three, the commercial tags segment led the global market in 2016 and is foretold to remain at the same position over the forecast period.
In terms of the type of tag, active and passive tags have surfaced as the key segments of the U.S. RFID tags market. Passive tags have a bigger market than active tags. However, with an increasing demand from the security and surveillance and sector, active tags are likely to gain momentum in the near future.
The healthcare, automotive, logistics and transportation, retail, and surveillance and security sectors have surfaced as the key end users of RFID tags in the U.S. Among these, the logistics and transportation industry possesses the most prominent share in the U.S. RFID tags market. Experts anticipate this situation to remain same over the next few years.