Active and passive RFID tags are key components in radio frequency identification systems. Active RFID tags are battery-powered devices that continuously transmit signals, enabling real-time tracking with extended read ranges – ideal for logistics and asset management. Passive RFID tags, which are more cost-effective and lightweight, operate by harvesting energy from reader signals, making them suitable for inventory management and access control applications. While active tags offer superior range and data transmission capabilities, their higher costs and maintenance requirements create adoption barriers in price-sensitive markets.
The market growth is driven by increasing adoption across retail, logistics, and manufacturing sectors, with passive tags dominating unit shipments due to their affordability. However, active tags are gaining traction in specialized applications requiring real-time visibility, such as healthcare equipment tracking. Recent technological advancements in battery life for active tags and improved read ranges for passive solutions are expanding potential use cases, while IoT integration is creating new growth opportunities across both segments.
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Passive RFID Tags Dominate the Market Due to Cost-Effectiveness and Wide Application Flexibility
The market is segmented based on type into:
Warehousing and Logistics Segment Leads Owing to Enhanced Supply Chain Visibility Needs
The market is segmented based on application into: