Driven by the global wave of digitization and cost reduction, RFID, as a low-cost IoT technology, demonstrates a good development trend. UHF RFID tag shipments in the next few years to maintain an annual growth rate of about 15%, HF and LF tag shipments are relatively stable performance, in addition to footwear and apparel, retail, logistics, these shipments are relatively large scenarios, industrial, electric power, transportation, medical and other applications continue to penetrate.

While the RFID tag market is growing, we should see that the market competition is intensifying and gross margins are declining.

RFID tags have been gradually applied in many niche scenarios, most of the current tire manufacturers, such as Goodyear, Michelin, Bridgestone, Qingdao Soft Control have been using RFID technology in tires, of which Michelin plans to sell all the tires are placed into the RFID tag by 2023. According to Michelin's annual report, global tire sales reached 1.75 billion in 2022, and the future to maintain steady growth, which will likely bring a billion level of RFID tire tag market volume per year.

With the popularity of the battery passport, this "passport" is designed to provide detailed information about the battery, including its source, manufacturing process, technical specifications, carbon footprint and ESG indicators, the future brings. The volume of battery RFID tags is hundreds of millions or even billions.

Management of medical and surgical equipment, surgical procedures often occur in the case of lost or misused instruments, which is common when the medical gauze, steel wire, surgical instruments and so on. These instruments due to the small size should not be found, sometimes left in the patient's body causing serious medical errors. 2022 the number of hospitals nationwide is 37,000, each hospital's medical and surgical equipment is about 2-3 million pieces of RFID tags, the demand for 7-10 billion, the current volume of the market in the medical special tags is more than 100 million, that is, the popularity of RFID special tags in the healthcare only Percent or so, there is a lot of room for the future.

RFID + on behalf of the development direction of customized tags, the future in the customized market RFID integration capabilities will have higher and higher requirements, sensor tags as passive sensors, in specific scenarios will be more advantageous than traditional sensors, the most common sensor tags have RFID + temperature, RFID + pressure, RFID + humidity, etc., and is currently in the electric power, bearings, cold chain and other industries are gradually beginning to be Application.