Enormous Potential in the Special RFID Tag Market

With the development of RFID technology and market demand, its applications are becoming increasingly widespread. Electronic tags are being used in various complex environments, some of which need to be applied to the surface of metal objects, while others need to withstand environmental pressures and collisions. They find applications in temperature-resistant (chemical environments), anti-metal, industrial, municipal management, washing, automotive, and various other special scenarios. Ordinary RFID tags are no longer able to meet all application requirements, and the market is calling for new products with different forms, technologies, and functions to promote further application development. In response to these market demands, various new materials and innovative designs of ultra-high-frequency RFID special tags have emerged, which can be applied to different items and different environmental installation scenarios.

Tires: Michelin plans to incorporate RFID tags into all tires sold by 2023. According to Michelin’s annual report, global tire sales reached 1.75 billion units in 2022.

Power Batteries: The EU’s new Battery Regulation came into effect on August 17th. According to the “New Battery Regulation,” starting from 2027, power batteries exported to Europe must have a compliant “battery passport” that records information such as the battery manufacturer, material composition, carbon footprint, and supply chain.

Electricity Industry: In 2022, there were nearly 800 million smart meter tenders, and with the promotion of national energy digitization, the use of power asset management tags has increased. According to our industry research, the usage of power tags exceeded 300 million for the entire year of 2022, and it is expected to maintain a compound growth rate of around 10% annually.

As smart manufacturing gradually takes root, RFID, as a foundational digital technology, is finding increasingly widespread applications in the industrial sector, with its most prominent use cases seen in high-end manufacturing such as automotive manufacturing and new energy production.

In the field of automotive manufacturing, according to data released by the China Association of Automobile Manufacturers (CAAM), in 2022, China produced and sold 27.021 million and 26.864 million vehicles, respectively. Additionally, when considering scenarios like pallets and warehouse location tags, with an estimated usage of 10 RFID tags per vehicle, the RFID tag market saw a usage of over 200 million tags.

In the battery industry within the realm of new energy production, data from SNE Research’s latest global battery shipment figures indicate that in 2022, the total global shipments of power batteries and energy storage batteries reached 812 GWh, marking an 86% year-on-year growth. It is projected that by 2030, the global demand for power and energy storage batteries will reach 5,800 GWh. With the widespread adoption of battery passports, aimed at providing detailed information about batteries, including their origins, manufacturing processes, technical specifications, carbon footprint, and ESG (Environmental, Social, and Governance) indicators, the volume of battery RFID tags in the future is expected to reach the hundreds of millions, if not billions.

However, it’s important to note that the data presented above represents theoretical values and reflects the potential of the future market. Currently, the actual usage is not as extensive because industrial applications involve complex environments, demanding a high level of understanding of technology and scenarios. It takes time for continuous experimentation and upgrades to better meet the requirements of these industrial scenarios.