The Downstream Demand of the RFID Industry Is Strong

RFID is a type of automatic identification technology. It uses wireless radio frequency to carry out non-contact two-way data communication, and uses radiofrequency to read and write recording media to achieve the purpose of identifying targets and data exchange.

As early as World War II, RFID technology was used to identify enemy targets in the air traffic control field and later used in shopping malls for its anti-theft effect. However, considering factors such as cost and technology, RFID technology was not widely used at that time. In recent years, the Internet of Things industry has developed vigorously, which has promoted the widespread application of RFID technology worldwide. Data show that from 2014 to 2019, the global RFID market has continued to grow. In 2019, the global RFID market is close to US$40 billion.

In China, since the Internet of Things was officially included in the national development strategy in 2010, RFID has ushered in new development opportunities and the industry has developed rapidly. Data show that from 2011 to 2019, the scale of China's RFID market continued to rise. But the growth rate gradually slowed down. In 2019, China's RFID market reached 110 billion yuan, with a growth rate of 15.2%.

Distribution of Travel Demand

Domestic RFID was first used in logistics, anti-theft, and anti-counterfeiting. As the technology matures, its application range continues to expand, and then covers multiple industries such as medical care, transportation, and food safety. At present, domestic RFID technology has formed a relatively mature application mode in mobile payment, and access control, and the applications in these fields are mostly concentrated in low and high-frequency bands. In the demand structure of RFID, the financial delivery field also accounts for the highest proportion, at 18%, followed by retail and traffic management at 15% and 13% respectively. Secondly, military and security accounted for 11%, identity recognition accounted for 9%, logistics and warehousing accounted for 8%, asset management accounted for 8%, and anti-theft and anti-counterfeiting and public utilities accounted for 5%.

RFID is widely used in the field of financial payment. For example, RFID cards are used to replace magnetic cards with lower security, electronic tags are used to prevent counterfeiting tickets, RFID technology is used to manage bank data center equipment, and RFID technology can be used for asset management. With the rise of the modern retail industry, RFID technology plays an important role in positioning, container utilization, and energy saving.

In the military field, RFID technology is used to collect, transmit, and process equipment information to improve management efficiency and reduce logistics costs. In addition, in traffic management, RFID has been applied to vehicle identification and railway locomotive identification and plays an important role in the development of intelligent transportation systems. At the same time, RFID has a wide range of identification applications, which can be used to quickly collect and store user information, such as access control systems and medical fields.

The role of RFID in the healthcare system and patient experience is gradually emerging. RFID can not only identify and track patients and medical accessories, reduce the labor cost of configuring and testing patients and medical equipment, but also control the inventory of samples and medicines, so as to effectively detect the condition of patients, reduce labor costs, and reduce original shrinkage.

Data shows that the Institute of Medicine can reduce the shrinkage and write-off of expired products by 70%; medical equipment companies can reduce the time for manual inventory inspection by 15,000 hours per year.

For high-frequency applications, local companies continue to enhance their core competitiveness in chip design, ticket manufacturing process, and packaging technology. After steady and steady operations, industry advantages have gradually become prominent. After several years of development, domestic RFID high-frequency technology is catching up with the international level and becoming a new force in the global market.

IoT Boosts the Development of RFID Industry

In the process of developing the Internet of Things, not all items can realize self-identification. Therefore, it is necessary to use external means to connect these non-self-powered items to the Internet. Only RFID can complete this link. RFID has higher accuracy, longer detection distance, and can provide more data information. Therefore, RFID technology stands out with its own advantages and becomes an essential factor in building the Internet of Things and accelerating the implementation of the Internet of Things. The key to the Internet of Things is object recognition, and RFID is the core technology for processing high-quality data.

The development of the Internet of Things is driving the vigorous development of the RFID industry, and there is considerable room for growth in the RFID industry. Data shows that the scale of the Internet of Things market continues to grow. In 2020, China's Internet of Things market will reach 1.55 billion yuan, and by 2022, China's Internet of Things market will reach 2.13 billion yuan. In addition, the scale of China's Internet of Things connection continues to grow and is expected to reach 7 billion in 2022. The huge potential of the Internet of Things market will promote the development of the RFID industry.

National Policy Assistance

The government is also promoting the application of RFID technology. From public transportation to electronic toll collection systems, it can reduce congestion, realize automatic payment collection, and make it more convenient for users to use. In recent years, the country has successively introduced a number of policies to help the development of the Internet of Things and RFID industry. in June 2018, it was proposed to initially establish an industrial Internet infrastructure and industrial system. On the whole, the RFID industry will be in an environment with favorable policies for a long time.