Chipless RFID tags are radio frequency identification tags that do not require a microchip in the transponder. It is an evolving wireless technology that enables access control, security, and surveillance, database management, automatic identification, inventory control, and logistics. These RFID tags are produced from conductive Polymers for plastics, which eliminates the need for silicon-based ICs.

The production of these tags is a breakthrough in the electronics segment that has eliminated the expenses linked with the silicon IC chip in a circuit. In addition, the chipless RFID tags are completely printable and are resistant to very harsh and climatic conditions. It can also be used as a low-cost item tagging product in ID cards, drink containers, aluminum cans, books, etc.

Why choose chipless RFID tags?

The chip-embedded RFID tags enable the storing and processing of data. It also can be used during the modulation and demodulation of radio waves sent or received by the antenna. On the other hand, the chipless tags enable the communication between tag and antenna via two transponders, including spectral signature-based transponders and time domain reflectometry (TDR).

Moreover, the manufacturing cost of chipless RFID tags is less as compared to chip embedded tags, owing to their printability. The manufacturers can print this tag using an RFID printer, which makes it more feasible for industrial applications.

Market dynamics

The chipless RFID tag market is expected to have a double-digit growth rate in the near future, accounting for the low cost of manufacturing, enhanced efficiency, and robust demand for these tags in the banking and healthcare sectors. In addition, the reduction in manpower cost coupled with the growing utilization of access control and security applications are also expected to favor the market growth in an upward direction.

On the other hand, the risk associated with the breaching of confidential information and the high capital installation cost is responsible for hampering the market growth during the forecast period. Besides, the innovation of cloud-based systems and diverting shift of retailers and manufacturers towards the use of chipless RFID products will offer profitable growth opportunities, favoring the growth of the market.

Impact of COVID-19 on the chipless RFID tags market

The outbreak of coronavirus has impacted the production procedure of the industries associated with the chipless RFID tags market, owing to the lockdown imposed worldwide. This further affected the production adversely, hindering the overall market growth. The coronavirus pandemic also impacted the supply chain and created uncertainty in the stock market.

The slowdown in the growth of the chipless RFID tags market also impacted the electronics sector, majorly its production facility. Some of the major indications account for the interruptions in large-scale manufacturing in European countries coupled with the challenges faced by the Chinese exporters.

Market segments

The chipless RFID tags market is fragmented based on industry and region. Based on the industry the market is segmented into retail & consumer goods, logistics & manufacturing, healthcare, government, aerospace & defense, and others. Among all, the retail and consumer goods subsegment is expected to dominate the global market, followed by logistics and manufacturing, healthcare, and government segment. Factors such as the growing focus of companies on improving the operational efficiency, decreased cost of tags, and the growing counterfeit items industry are responsible for favoring the segmental growth of the retail and consumer goods segment.

Region-wise, North America is calculated to have maximum market share, followed by Europe and Asia Pacific regions, accounting for the high adoption of this technology in effective supply chain management and for increasing the visibility of inventory. Besides, the initiatives taken by the US Department of Defense and the Food and Drugs Association, for encouraging the use of RFID technology in supply chain management and for easy tracking of the product is also likely to boost the growth of North America chipless RFID tags market during the predicted time frame.

Competitive scenario

The key companies operating in chipless RFID tags accounts to Zebra Technologies Corporation, Spectra Systems, Molex Inc., Xerox Corporation, Politronica Inkjet Printing S.r.l., Vubiq Networks Inc., Thin Film Electronics ASA, and TagSense Inc.

Key developments

In September 2020, Avery Dennison introduced the AD-332u8 RAIN RFID inlay, which can be used for inventory accuracy and supply chain management.

In June 2020, NXP Semiconductors N.V. introduced its new MIFARE DESFire EV3 IC, which dominates in next-generation performance, seamless integration, and advanced security of mobile services for a new era of security and connectivity in smart city services.

In March 2019, Kit Check and Avery Dennison entered into a partnership to apply RFID tags to medication packaging. This helped in improving patient safety by enabling more accurate tracking and authentication of medication through the entire supply chain.