RFID adoption is moving gradually onward to be used for better tracking and stocking of inventory in stores and to make smarter decisions in terms of merchandise ordering and product selection. Adoption of RFID tags with readers and tracking software has enabled store associates to count items across entire sales floors in a more effective way. As more retailers deploy RFID, the technology will gain more momentum.
Frost & Sullivan’s market studies show the continued adoption of Radio frequency identification (RFID) across different end-user sectors and highlights that the technology has gradually gained prominence in commercial and industrial segments across industries.
The potential impact of RFID technology – that makes use of a microchip to identify and transmit information from tagged objects via radio waves – and its benefits is expected to drive several large-scale deployments, as well as market growth in the coming years, predicts Frost & Sullivan’s market research, “Trends in Global RFID Market.”
The research firm also reveals revenues in this market are estimated to reach $5,409.0 million in 2020, with a widespread implementation of RFID technology into the retail industry globally.
The increasing adoption of RFID tagging solutions is the result of its ease of use and pricing. In retail, the point-of-sale (POS) transactions are extremely important and using RFID tags, which store unique numerical identification codes that can be scanned from a distance to record merchandise and function as an inventory-control aid, is essentials for retailers.
RFID has the many potential benefits in stocktaking, as it can provide increased inventory accuracy and visibility and can help in loss prevention. It is also handy for asset tracking and monitoring, as is for traceability recordings.
The RFID Middleware market is also gaining momentum; this includes tools that monitor and maintain RFID systems. Middleware tools are able to ensure data integration when there are differences in RFID tags from multiple suppliers. This is essential and helps making RFID solutions more flexible and scalable. According to the "Global RFID Middleware Market 2014-2018" report, there will be a CAGR of 23.3 percent in terms of revenue over this period. The in-depth market analysis with inputs from industry experts confirms that the adoption of RFID applications in various industries, including retail, is growing steadily due to the ability of this technology to provide users with correct data transfer and the high compatibility.
Future retail stores might continue to rely heavily on item-level RFID solutions to optimize store operations and implement a more efficient supply chain process ensuring products get to their customers quickly.
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Edited by
Stefania Viscusi
