Owing to benefits such as improved visibility, traceability, security, and cost-effectiveness, UHF inlays have become increasingly popular in various industries such as retail, asset management/inventory/documents, logistics, and others. The UHF inlays market has been experiencing a rapid rate of adoption recently.
The need for efficient tracking solutions across different industrial verticals has led to an increased demand for UHF inlays. The rising demand for smart supply chain management solutions is driving the growth of the market. Moreover, technological advancements in RFID (Radio Frequency Identification) technology have enabled companies to develop advanced UHF Inlays with enhanced security features.
Rapid application of UHF inlays in various industrial verticals, such as retail, asset management/inventory/documents, and logistics sector is expected to drive the growth of the market in the near future. In addition, increasing the adoption of UHF inlays for tracking items with improved visibility and traceability is further propelling the growth of the global UHF inlays market. The market consistently undergoes a series of developments in order to provide better services.
The advantages such as reduced labor costs, faster inventory management processes, improved accuracy & traceability of assets, etc., offered by RFID technology has led to its increasing deployment across different sectors including retail, healthcare, logistics & transportation among others.
Furthermore, various governments across the world have been promoting RFID-based solutions for asset management purposes which are further expected to propel the growth of the market during the forecast period.
Considering these factors, it is reasonable to say that the global UHF inlays market is growing at an appreciable compound annual growth rate (CAGR) of 14.8%. It is expected that the market might acquire a size of USD 2214.4 million during the period of forecast, that is, 2021-31.
UHF inlays, also known as RFID (Radio Frequency Identification) tags, are small electronic devices that use radio frequency technology to store and retrieve data from a distance. These inlays are embedded with tiny microchips inside them which can store information such as identification numbers, tracking numbers, and other data. Moreover, these tags contain antennas that enable them to transmit information to an RFID reader. UHF inlays offer enhanced security features as compared to traditional barcodes and other identification technologies due to their ability to read data from a greater distance and without line-of-sight requirements.
A significant rise in the demand for UHF inlays is because of their long read range and efficient data processing capabilities over short distances.
Automation has become an important factor in supply chain management across the world. This is driving the adoption of UHF inlays as they provide greater control and improved accuracy with fewer errors compared to conventional methods. In addition, increasing government initiatives toward digitalization are expected to fuel the use of radio frequency identification (RFID) technology across various sectors such as retail, asset management/inventory/documents, logistics, and others.
However, drawbacks such as the high cost and low readability of UHF inlays are restraining the growth of the UHF Inlays market. In spite of such limitations, the growing demand for efficient supply chain management solutions is the major factor driving the growth of the UHF Inlays market.
The key players in the UHF inlays market are TagSense Inc., Impinj, Inc., Checkpoint Systems, Inc., NXP Semiconductors N.V., Confidex Ltd., Alien Technology LLC, Invengo Technology Pte. Ltd., Smartrac Technology Group GmbH, Avery Dennison Corporation, among others. These players compete with each other in the market and each of them aims to earn higher profits and acquire a position above that of their competitors in the market.
UHF Dry Inlays Type to Remain the Most Lucrative Segment
In terms of type, the UHF inlays market can be divided into UHF Dry Inlay and UHF Wet Inlay. UHF Dry Inlays are designed with a rigid antenna structure which is laminated between two plastic layers with an RFID chip, while the UHF Wet Inlays have a flexible antenna structure that is dipped or printed onto the substrate material along with an RFID chip. Among these two, UHF Dry Inlays are expected to witness the highest growth during the forecast period owing to their ease of integration and low cost.
Retail Segment to Ensure Maximum Revenue Followed by Logistics
Based on application, the global UHF inlays market is segmented into retail, asset management/inventory/documents, logistics, and others. Among the applications segment, retail is also expected to acquire the highest rate of growth due to its wide adoption across several industries such as apparel & footwear, healthcare & pharmaceuticals, automotive & transportation, and others. Logistics are projected to witness a significant growth rate due to their ability to provide real-time data about shipment baggage handling systems at airports.
North America is Expected to Yield Ample Investment Avenues
In terms of region, the market is divided into North America, Europe, Asia Pacific, Middle East & Africa, and South America. North America holds the largest share in the global UHF inlays market due to the high penetration of RFID technology in the retail and logistics industries.
Covid-19 Impact and Market Status
The ongoing pandemic coronavirus (COVID-19) has affected every aspect of life globally. The UHF inlays market is no exception. The outbreak has had a significant impact on the market, with the demand for UHF inlays declining sharply. The main reason for the decline in demand is the slowdown in economic activity due to lockdowns and restrictions on the movement of people and goods. This has led to a decrease in the number of transactions taking place, which has in turn reduced the need for UHF inlays. Another factor that has contributed to the decline in demand is the shift in focus of businesses from growth to survival. In such a scenario, investments in new technologies are often seen as non-essential, which has further dampened the prospects of the UHF inlays market. However, it is important to note that the decline in demand is only temporary and the market is expected to recover once the pandemic ends and economic activity returns to normal. In addition, the long-term prospects of the market remain strong, with increasing adoption of UHF technology across various applications expected to drive growth going forward.
Latest Innovations in the Global UHF Inlays Market: a Snapshot
• In 2022, Gambia International Airlines announced plans to begin operations in 2021 with a fleet of ten aircraft, comprising five Boeing 737-800s and five Airbus A320s. The airline aims to serve destinations in Europe, the Middle East, and Africa.
• In June 2021, Gambia launched its first international flight from Banjul to Brussels on a leased Airbus A321neo from Louxair.
UHF Inlays Market Scope
|Revenue forecast in 2031
|USD 2214.4 million
|CAGR of 14.8 % during 2021-2031
|Type, Application, Asset Management, Regions
|North America, Europe, Asia Pacific, Middle East and Africa, South America
|Key Players Profiled
|TagSense Inc., Impinj, Inc., Checkpoint Systems, Inc., NXP Semiconductors N.V., Confidex Ltd., Alien Technology LLC, Invengo Technology Pte. Ltd., Smartrac Technology Group GmbH, Avery Dennison Corporation, among others
Key Segments of the UHF Inlays Market
By Type Overview, 2021-2031 (USD Billion)
• UHF Dry Inlay
• UHF Wet Inlay
By Application Overview, 2021-2031 (USD Billion)
By Regional Overview, 2021-2031 (USD Billion)
• Rest of Europe
• Rest of Asia Pacific
• Rest of South America
Middle East and Africa