Market Overview

RFID technology is a form of near field communication that automatically identifies and tracks objects, with an RFID reader retrieving data from media (such as RFID IC tags or contactless IC cards) and an RFID writer encoding or updating information on them. It enables companies to streamline a wide range of operations, from fabrication and logistics to sales, services, and supply management.
The global RFID solutions market in 2024 was valued at 1,643,100 million yen, 110.8% of the previous year (based on the shipment volume of manufacturers). While shipment grew steadily worldwide in the distribution and retail sector, expansion was witnessed in other sectors as well, including manufacturing, medicine, transportation and logistics.

Noteworthy Topics

Communicate Additional Values for Proving Cost Efficiency

Cost benefit is a critical factor when pitching an RFID solution. To convince client companies, we believe it is beneficial for providers to highlight not only clearly measurable cost savings, but also less quantifiable, potential benefits.
In today’s socio-economic environment that is marked by severe labor shortages, the value of RFID can be described in terms of reduced hiring costs, as it can eliminate the need to recruit additional workers for the same operational processes.
Moreover, if solution providers can position RFID as a tool that enhances job appeal by streamlining and modernizing tasks, they may help address labor shortages by making roles more attractive to both prospective hires and existing employees. This, in turn, can lead to improved recruitment and better employee retention.
These benefits could be particularly valuable for companies struggling to open new locations or extend business hours due to staffing constraints.
Providers may also emphasize the benefit of data that can be obtained by RFID system, which can be utilized for new product development and promotion. This is another example of the advantage of RFID that is difficult to quantify.
These types of “hidden” or “future” costs are often more difficult to quantify than immediate hiring expenses. However, it’s still important to highlight them in the discussion with clients.

Future Outlook

RFID solution is being widely adopted across industries worldwide, driven in part by growing manpower shortages. In Europe, RFID is particularly leveraged in the implementation of Digital Product Passport (DPP), a traceability system that digitally provides comprehensive information about a product and its entire value chain.
In Japan, labor shortage remains a persistent challenge, made even more pressing by so-called “2024 Issue”, a regulatory change that capped working hours in sectors like logistics, healthcare, and construction. From a medium- to long-term perspective, the RFID demand is expected to expand beyond apparel into a broader range of industries.
Under the circumstances, the global RFID solution is projected to grow, with the market size forecasted to reach 2,337,900 million yen by 2027.

Research Outline