Radio Frequency Identification (RFID) is a technology used for the identification and capture of data using radio waves. A basic RFID system consists of antenna or coil, transceiver (with decoder), and transponder (RF tag).In the recent times, there have been many advances in the RFID technology, which account for reduction in the cost of its components with an increase in its capabilities.
The RFID market has gone through a transition; with focus on meeting compliances with regulations. In addition, the focus is on revenue generation and innovation. Innovation in the RFID applications comprises tracking inventory on a real-time basis and using it for production, storage, shipping, and distribution. The RFID technology buyers are driven by greater functionality features and return on investment. Another driving force for the RFID market is that the governments of different countries are focusing on allocation of frequency and harmonization of RFID bands.
This is likely to ensure greater interoperability and credibility to the market. For example, the Chinese government had invested in RFID for the national identification card scheme; the US government for military; and the British government for passports. Moreover, the governments of different countries are looking for RFID to combat terrorism, crime, and epidemics.
The retail sector is experiencing intense competition and every retailer is striving to reduce expenses, increase sales, and enhance customer satisfaction. The benefits of RFID in retail helps in reducing stock-outs, improves stock replenishment speed, stock relevance and customer service. Further, item-level tagging, which is already mandated by few of the large retailers, is expected to gain in popularity to offer real-time inventory management. All this indicates a significant rise expected in the investment of RFID software and hardware among the retailers to sustain in the competitive environment.
The report by TechNavio Insights forecasts the size of the Global Radio Frequency Identification (RFID) market in retail industry over the period 2008-2012. It segments the Global RFID market in the retail industry into various geographic regions (representing the market size for each of these regions). Further, it discusses the key market trends, drivers and challenges of the RFID market in retail industry, and profiles some of the key vendors of this industry.