According to a study released by market research firm Technavio, the global RFID readers market is expected to reach $US7 billion by 2020, growing at a CAGR of almost 21% during the forecast period. The retail sector was the major revenue contributor to the global RFID readers market, accounting for 55% of the total revenue in 2015.

According to Navin Rajendra, lead research analyst for embedded systems at Technavio, “The high adoption of RFID in the retail sector is primarily to improve efficiency in the supply chain. RFID does not need a line of sight to track items, and thus, has become the preferred choice for inventory management, asset management, and supply chain management in the retail sector.”

In addition, RFID tags offer advantages such as faster checkout times (as almost 40 RFID tags can be read at the same time), long read range, and reuse of tags. These advantages have prompted large US retailers such as Wal-Mart and Gillette to switch to RFID tags instead of barcode system, thus boosting market growth.

The global RFID readers market in the transportation segment is likely to grow at a CAGR of over 25% during the forecast period. RFID tagging is being used in public transportation systems for passenger tickets, contactless cards such as driver's license, toll collection, and registration certificate.

The global RFID readers market by logistics sector will also grow at a CAGR of over 25% during the forecast period. RFID tags are used to track vehicle movement and cargo in planes and ships. RFID tags are also being used in the railroad industry for tagging locomotives.

For instance, India is planning to fit its locomotives, wagons, and coaches with RFID technology. RFID system also helps in detecting and retrieving stolen cars.

In the healthcare sector, RFID tags encoded with data such as the person's ID and laboratory records are employed. Though only a few hospitals in the US and Japan have adopted this practice, the demand from this sector is expected to rise. Animal tagging is another area where RFID tags are used.

The Americas dominate the RFID market for industrial applications, accounting for almost 72% of the overall market revenue. The presence of a large number of automotive companies such as Ford and Tesla; consumer electronics such as Apple; and aerospace and defense companies such as United Technologies and Boeing is mainly responsible for the growth of the RFID market for industrial applications in this region, the study says.

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