The global RFID market for industrial applications is expected to grow at a CAGR of 19.2 percent during the period 2016-2020.
According to a new report from Research and Markets, which covers the present scenario and the growth prospects of the global RFID market for industrial applications for 2016-2020, a recent trend in the RFID market is the increased R&D spending by vendors.
Leading vendors such as Honeywell and Datalogic have increased their investment in the R&D of RFID devices.
According to the report, Datalogic spent $43.66 million in 2015 on R&D, an increase of 34.17 percent when compared to $34.54 million in 2014.
Also, many vendors are partnering with software and hardware suppliers to develop technologically advanced products. This focus on R&D has helped vendors introduce RFIDs that are increasingly cost-effective as well as provides data security. Thus, the improved accuracy and reduced prices of RFID devices are leading to increased adoption among several major end-users in the market.
According to the report, a key driver of market growth is the use of RFID to reduce errors during the data entry process. Manual data entry is time consuming and there is a high possibility of introducing errors. With the introduction of RFID and barcode systems, firms can record and recognize data entries automatically and more accurately. These systems help detect warehouse errors such as collecting the wrong goods.