Chipless RFID Market is Anticipated to Witness High Growth Owing to Rising Demand from Supply Chain and Logistics Industry

The global chipless RFID market is primarily driven by the rising demand from supply chain and logistics industry. Chipless RFID tags facilitate real-time visibility of assets across the supply chain and inventory management. These contactless tags help automate tracking of goods from manufacturing to distribution centers and finally to retail outlets. With growing e-commerce activities, maintaining an efficient supply chain has become critical for businesses. Chipless RFID tags can remotely identify products without requiring line-of-sight scanning. This enables logistics companies to optimize inventory levels, route planning for shipments and reduce wastage.

The global chipless RFID market is estimated to be valued at US$ 7474.52 Bn in 2024 and is expected to exhibit a CAGR of 16.% over the forecast period 2024 to 2031.

Chipless RFID tags are seeing increased acceptance over barcodes and traditional RFID due to their lower cost of production. These contactless tags can be affixed to product packages, pallets and containers to track location in real-time. Industry 4.0 is also driving demand as chipless RFID solutions facilitate automation in manufacturing facilities through tracking of work-in-progress inventory and tools.

Key Takeaways
Key players operating in the Chipless RFID Market Demand are Severn Trent Plc, Calgon Carbon Corporation, Xylem Inc., Trojan Technologies, General Lighting, Aquionics, Atlantium Technologies Ltd., Atlantic Ultraviolet Corporation, FirstLight Technologies Ltd., Green Water Technologies, Evoqua Water Technologies LLC, Advanced UV, Inc., Hydro, Photon, makers of SteriPEN, and Enaqua.

Key opportunities in the market include increased penetration in pharmaceutical and medical device tracking. Chipless RFID tags help securely track products across cold chains and monitor temperature variations during transit. They also enable detection of counterfeits in pharmaceutical supply networks.

Global expansion is further spurred by developing applications in retail and industrial IoT. Major players are focusing on the Asia Pacific region through partnerships with local manufacturers and logistics companies. China's "Smart Logistics" initiative and "Made in China 2025" plan present lucrative opportunities for adoption of chipless RFID technologies.

Market drivers
The key driver for the chipless RFID market is the rising demand from supply chain and logistics industry for real-time visibility and optimized inventory management. These contactless tags help automate tracking of goods across the supply chain from manufacturing to distribution and retail.

Market restraints
High infrastructure costs for setting up readers can restrain the chipless RFID market growth initially. Integration of these tags with existing systems also requires investments. Standardization issues around frequency bandwidth and protocols pose challenges.
Segment Analysis
The Chipless RFID market can be segmented on the basis of product, frequency band, tags, end use industry and geography. On the basis of product, the market is dominated by tag which is further bifurcated into dipole tag and backscattering tag. Dipole tags are expected to dominate the market due to superior data carrying capacity, long reading range and ability to support fast read-write operations.

On the basis of frequency band, the market is segmented into high frequency, ultra-high frequency and microwave frequency band. Microwave frequency band holds the largest market share as they can support simultaneous data processing and reading capabilities.

Global Analysis
Regionally, North America holds the largest market share due to increasing adoption of RFID by various industries for supply chain and asset management applications. Europe is the second largest market due increasing adoption to meet stringent supply chain regulations. Asia Pacific is expected to be the fastest growing region due to increasing manufacturing activities and adoption in healthcare, retail and transportation applications. Key growth driving factors are growing need for real-time visibility, asset tracking and supply chain transparency across various industries.

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