How Large-Scale Sectors are Ramping up Supply Chain Management with the Help of RFID Technology

The RFID technology is revolutionizing the supply chain management in various verticals. While RFID tags have already become an essential cog in the retail sector, its adoption in healthcare sector has been surprisingly robust of late. It might sound a bit unusual but the technology is turning into a massive hit in the healthcare. RFID tags are primarily being used for tracking and segregating medical instruments and other associated components. A new research conducted by Future Market Insights (FMI) reveals that the global market for RFID is set to register a staggering 13.2% compound annual growth rate during 2017 and 2027.

RFID Market

In healthcare, RFID technology can play a major role in enhancing supply chain efficiency and facilitate superior patient care. Moreover, use of RFID technology will help mitigate human errors in several of the healthcare procedures to a significant extent.  Monitoring of critical care is considered another potential area of RFID application. Over the next couple of years, sales revenue of the global market for RFID is estimated to gain surplus growth owing to increasing demand for RFID technology in supply chain management, especially in retail and healthcare sector. The U.S. Department of Defense is one of the major consumer of RFID solutions, at the same time, it is also being rapidly adopted by top aircraft manufacturing companies such as Boeing and Airbus. Aerospace companies are aiming to leverage for the technology as it holds immense scope in the areas dealing with improving supply chain visibility, work-in-process (WIP) tracking, asset management and maintaining efficiency in logistics and manufacturing operations. The US$ 12.03 Bn global RFID market is estimated to surpass a market valuation in of US$ 47 Bn towards the end of 2027. An expanding application base of RFID solutions is identified as the driving force behind the growth in revenue of its global market.

The adoption of RFID technology is on the rise in North America, owing to increasing requirements for advanced systems that can manage vast supply chain network of various industries that are present in the region. RFID tag is capable of storing detailed information related to various consumer goods and products. Just by a single scan of RFID tags, a retailer is able to get the price and other important details of a product, moreover the technology allows a quicker cost tally saving the time of the customer. Factor as such, are prompting retail and manufacturing companies to use RFID for tagging their products.

Amongst the major RFID apparatuses, global sales of RFID tags raked in around US$ 3,646.2 Mn in revenues last year. By the end of 2017, this figure is anticipated to further increase to nearly US$ 4,200 Mn. Meanwhile, global sales of RFID readers are likely to garner close to US$ 5,500 Mn in 2017, which is anticipated to increase to a staggering 18 Bn towards to the end of 2027, reflecting a CAGR of over 12% between 2017 and 2027.

Abhishek Budholiya

Abhishek Budholiya is a tech blogger, digital marketing pro, and has contributed to numerous tech magazines. Currently, as a technology and digital branding consultant, he offers his analysis on the tech market research landscape. His forte is analysing the commercial viability of a new breakthrough, a trait you can see in his writing. When he is not ruminating about the tech world, he can be found playing table tennis or hanging out with his friends.