RFID market to rise, driven by retail adoption

The global market for passive radio-frequency identification (RFID) technology is forecast to reach US$8.4 billion in 2025, up about 10 per cent from 2024, according to market research firm IDTechEx.

Ultra-high frequency RFID tags will account for more than 88 per cent of total shipments, with the retail apparel sector driving demand through nearly 32 billion labels deployed for inventory tracking, the U.K.-based firm said. Despite this volume, apparel tagging represents only about 40 per cent of the addressable market.

High frequency tags, while making up just 12 per cent of shipments, will generate about 60 per cent of market revenue at US$5 billion due to higher prices in secure applications like contactless payments, access control and passports, IDTechEx said.

The company’s report, “RFID 2026-2036: Forecasts, Players and Opportunities,” found falling tag costs and proven return on investment are lowering adoption barriers beyond apparel into supply chain logistics and other retail categories.

Smart packaging represents the largest untapped opportunity, with potential for more than one billion units annually, but requires tag prices below one U.S. cent for mass adoption, the report said.