Future Market Insights (FMI) has projected the global RFID kanban systems market size to reach USD 1.6 Billion in 2022. With a favorable demand outlook, sales are forecast to increase at an impressive 18.1% CAGR, reaching USD 8.4 Billion by 2032.
A rapid growth in the demand for smart healthcare systems as well as inventory management systems is expected to significantly increase demand for RFID Kanban Systems.
| Attributes | Details |
|---|---|
| RFID Kanban Systems Market CAGR (2022 to 2032) | 18.1% |
| RFID Kanban Systems Market Size (2022) | USD 1.6 Billion |
| RFID Kanban Systems Market Size (2032) | USD 8.4 Billion |
Businesses are experiencing new challenges as a result of the COVID-19 pandemic. When it comes to retailers, they are pushed for making immediate decisions that include returning workers, redeploying them, and protecting shoppers and employees from health and safety hazards.
As technology advances, Radio Frequency Identification (RFID) has become more commonplace and has been widely adopted across a wide variety of applications. Additionally, RFID offers a multitude of benefits, including batch reading, information processing, resistance to harsh environments, and data storage.
The Value Stream Analysis analyzed the current process state to improve it, and the new process state was designed based on the findings. Modern RFID solutions can lower costs and increase revenue by redesigning store economics. Various organizations have come up with an RFID solution to fight the gray market in the beverage industry.
Due to changing market conditions and customer expectations, companies today face more competition than in the past. Small and medium-sized companies are challenged with new ways to improve quality, shorten delivery times, and lower costs at the same time to stay competitive in the marketplace. Among these departments, the logistic department in particular provides a lot of potential opportunities for optimization in the market.
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As e-commerce platforms continue to grow in popularity, increased demand for domestic and international logistics services is boosting the market growth. In addition, the growth of the market is anticipated to be driven by the increasing costs of expired medicines, the growing popularity of FIFO systems, and inventory control procedures.
To manage the massive quantity of data generated by warehouse management and inventory control operations, it is crucial to use RFID Kanban systems.
The implementation of these systems is responsible for reducing the delivery time. In addition, the ever-growing risk of clinical mistakes in manual Kanban processing, coupled with the growing need to streamline medical inventory management, has catalysed the demand for RFID Kanban systems around the world.
A growing need for asset tracking, controlling devices, and eliminating drug stock outs in the medication warehouse are key reasons for RFID Kanban Systems.
Market growth is expected to be driven by growing incidences of clinical errors and the rising need to streamline hospital inventory management as cost-cutting measures. Additionally, RFID Kanban systems are becoming more popular among industries, providing precise container tracking and ensuring efficient production in the market.
In addition to rising automotive demand, overstocked inventories and increasing research and development (R&D) projects can also lead to lucrative opportunities for the market.
Moreover, due to the increasing prevalence of medication expiration, along with the rising popularity of FIFO management, the market is expected to grow rapidly at an increased rate. All these factors stimulate market growth for RFID Kanban Systems in the market.
Often, in the logistics chain, there is insufficient transparency and traceability, which inhibits market growth for RFID in Kanban Systems. A small production size and a lack of product variety challenge the inherent flexibility of Kanban.
When radical demand shifts occur, the problems associated with the Kanban system become even more apparent in the market. Kanban systems can be thrown off by seasonal shifts if they are not understood properly at the start and end of the year.
As technology breaches grow in the market, systems are at increased risk of being hacked by cyber-criminals. The inventory system may go out of order due to a power shortage and a problem may occur in terms of power loss in which case the whole inventory system might go out of order. All these factors hinder the growth of the market for RFID Kanban Systems.
Based on top type the market is segmented into single bin RFID kanban systems and multi-bin RFID kanban systems in the market. Multi-bin RFID kanban systems are expected to grow at a CAGR of 17.9% during the forecast period. The medical and retail industries have a high demand for multi-bin RFID Kanban Systems.
An RFID Kanban multi-bin basket system improves hospital PAR inventory management and stock replenishment system by allowing the hospital to easily locate and replenish stock supplies. The RFID labels and two-bin stock methods make it easy for staff to locate and manage materials, reducing stock-outs, excess supplies, and misplaced merchandise.
Increasing demand from companies to control every step of the production process to ensure smooth product deliveries is expected to drive the market for multi-bin RFID Kanban systems.
Based on component type the market is segmented into RFID box, RFID base, RFID shelf/cabinet, electronic shelf displays, and others. RFID boxes are predicted to grow at a CAGR of 17.5% during the forecast period. Kanban is widely practiced in manufacturing supply chains for managing and optimizing supply chains. In addition to Kanban systems, RFID box facilitates the integration with organizations' digital infrastructures and warehouse management systems.
Organizations use restocking boxes and can locate them from any location when they need restocking, and even outside suppliers can determine through the Internet what materials need to be replenished. Therefore, RFID Kanban boxes are in high demand in the market.
Growing demand for car key storage and prevention of car thefts has led to the wide use of RFID Kanban boxes in the market. The market has increased the demand for these boxes due to the increase in real-time requests from the service warehouse or scanning of Kanban tags or orders sent from the central warehouse.
As of 2022, North America is expected to hold the majority of the market with revenue estimated at 42% of the overall market. Some of the key drivers of this market are the continued economic development, strong demand for process optimization, a growing interest among healthcare providers in RFID Kanban systems, and raising awareness of the advantages associated with technology that makes RFID Kanban Systems successful.
Infrastructures such as well-equipped hospitals and pharmacies in this region have contributed to the growth of the market in this region. As a result of the absence of a comprehensive real-time inventory management solution available to hospitals, there is a large gap between the need and the availability of the data required to manage hospital inventory.
Many healthcare facilities have incorporated RFID-based Kanban Systems. The market is projected to reach USD 3 Billion with a CAGR of 17.9% over the forecast period.
The growing demand for RFID tags in inventory management systems will continue to drive market growth in this region. Tags like these are used in the bins so that the restocking demand of a product can be recorded as part of the inventory systems. All these factors are expected to gain traction over the assessment period.
The Asia Pacific region is expected to grow at a market value of 25% during the forecast period. Healthcare and automobiles are expected to grow rapidly in China in the coming years. According to FMI, the East Asia market will be dominated by China over the next few years. It is estimated that the market will grow at a CAGR of 17.4% during the forecast period.
The Chinese automotive market has become one of the largest markets in the world. Using RFID tags and Kanban boxes can improve vehicle identification, dealership theft protection, and car key storage box in the automotive sector. Tags can provide real-time location and status information of vehicles, making them an ideal solution for the automotive industry.
Market growth for RFID Kanban systems is expected to exceed 16.2% between 2022 and 2032 in Japan. Since the Kanban system was originally developed in Japan, a significant amount of development has taken place within the country since then in terms of automating the two-bin Kanban system.
Japanese hospitals have already deployed prototype RFID Kanban Systems, and such systems are likely to continue to be in demand for further improvement in healthcare in the future.
With a revenue estimate of 28%, the European market is expected to hold a majority of the overall market by the year 2022. The trend toward expanding warehouses in the market and growing demand for logistic services have propelled the market growth of RFID Kanban Systems in recent years.
The Kanban systems market in the U.K. is expected to be the largest in Europe. In the UK, RFID Kanban Systems are expected to grow at a CAGR of 16.6% during the forecast period.
Since RFID Kanban systems are expected to grow lucratively, many companies are focusing their efforts on the development of RFID-enabled Kanban Systems for use in the healthcare, manufacturing, and automobile industries. A large share of the RFID market is attributed to the presence of several companies in the region.
Due to these factors, it's expected that the market will grow substantially through 2022. All these factors propel the growth of the RFID Kanban System in this region.
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Global RFID kanban systems manufacturers are launching innovative products that will help diversify their product portfolios and enable them to invest in research and development, as well as expand their market reach. To gain a competitive edge, players also invest in mergers, acquisitions, and licensing agreements.
For instance:
The RFID Kanban Systems market is expected to grow at a steady CAGR of 18.1% over the forecast period
The global market for RFID Kanban Systems was valued at USD 1.3 Billion in 2021
RFID boxes are projected to have the highest market with a CAGR of 17.5% during the forecast period
USA leads the global RFID Kanban Systems market, expected to reach a value of USD 3 Billion during the forecast period
The market for RFID Kanban Systems is expected to grow by nearly USD 1.6 Billion by 2032
The multi-bin RFID Kanban Systems are expected to reach a CAGR of 17.9% during the forecast period
China is expected to garner USD 598.6 Million, expanding at a 17.4% CAGR from 2022 to 2032
The UK market for RFID Kanban Systems is forecasted to reach USD 341.2 Million by 2032
From 2017 to 2021, RFID Kanban System uptake surged at over 20.1% CAGR
The market for RFID Kanban Systems in Japan is set to grow at a CAGR of 16.2% during the forecast period.
| Expected Market Value in 2024 | USD 4.82 billion |
|---|---|
| Projected Forecast Value in 2034 | USD 8.41 billion |
| Anticipated Growth Rate from 2024 to 2034 | 5.72% |
| Market Size Value in 2023 | USD 12.3 billion |
|---|---|
| Market Forecast Value in 2033 | USD 23.3 billion |
| Global CAGR (2023 to 2033) | 6.6% |
| Estimated Market Value (2022) | USD 138 Million |
|---|---|
| Projected Market Revenue (2032) | USD 5.72 Billion |
| Value-based Market CAGR (2022 to 2032) | 3% |
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