The Market Scale and Development Prospect of China's UHF RFID Industry in 2022

1. Overview of UHF RFID industry
1.1 definition and classification
Radio frequency identification (RFID) technology mainly uses alternating magnetic field or electromagnetic field to realize information communication, so as to realize target identification. The basic principle of RFID is to send a certain frequency signal through the transmitting antenna. When the RF tag enters the vicinity of the transmitting antenna, it will generate an induced current. At this time, the RF tag is activated and sends its own coding and other information through the transmitting antenna. After receiving the information, the system transmits the information to the reader through the antenna regulator, and decodes the signal through the reader. Finally, through the data processing of the background host, we can judge whether the card is legal or not, and make corresponding instructions according to the judgment results.
According to different working frequencies, RFID tags can be divided into low frequency (LF), high frequency (HF), ultra-high frequency (UHF) and microwave. At present, the frequencies widely used in the world are distributed in four bands: low frequency (125-134khz), high frequency (13.54mhz), ultra-high frequency (860MHz ~ 928mhz) and microwave (2.45ghz/5.8ghz). Different frequencies have different characteristics and different application fields.
1.2 analysis of UHF RFID industry chain: the downstream of the industry chain is wide
The industrial chain of UHF RFID is divided very carefully. The upstream of the industry is mainly chip manufacturers and antenna manufacturers. The midstream of the industry can also be divided into label product line and reader product line. The label product line covers the inlay middleware production, blank label production, inkjet printing and the integration of RFID labels to end users; The reader / writer product line covers reader / writer modules, finished reader / writer products (including handheld devices and fixed readers / Writers), solution providers and integrators. Downstream industries include various application end users and integrators.
2. development history of China's UHF RFID industry: the industry is in a period of rapid development
The development of China's UHF RFID industry has gone through the following four stages. From 2004 to 2006, RFID technology began to be popularized all over the world, and China's RFID industry entered the cultivation period; From 2006 to 2010, China began to establish RFID industry standards, and the industry entered a period of development; From 2010 to 2014, RFID technology began to be applied in ticket, food and other industries, and the industry entered a rapid growth period; Since 2014, RFID applications have gradually entered aviation, construction and other fields. Since 2010, with the continuous expansion of RFID downstream industry applications, the requirements for RFID technology are increasing day by day. UHF RFID technology has begun to be popularized and applied in other fields, and the industry has entered a period of rapid development.
3. policy background of China's UHF RFID industry: policy support, the industry gradually moves towards standardization
Radio frequency identification (RFID) industry is one of the national priority industries. Since 2012, the Ministry of industry and information technology, the Ministry of agriculture, the Ministry of Commerce, the Ministry of Finance and other departments have issued policies to promote and regulate the development of UHF RFID industry.
4. analysis on the development status of UHF RFID industry in China
RFID system is mainly composed of four parts: one is tag. This part is mainly composed of built-in antenna; The second is the reader writer. It is mainly used to read label information; The third is middleware, which is a common service between the platform (hardware and operating system) and the application; The fourth is the application system, which mainly stores and processes relevant information.
4.1 Tags: in 2020, the market scale of UHF RFID tags in China will be about 1.9 billion yuan
China is a major producer of UHF RFID tags, and its production capacity accounts for about 80% of the world. With the wide application of UHF RFID in electronic tickets, highways, railways, commodity anti-counterfeiting, access control, etc., the demand for RFID tag market has been driven. According to the data disclosed by IOT media, the market application of UHF RFID tags in China in 2019 was about 4.5 billion. Due to the impact of the epidemic, the application of UHF RFID tags in China decreased in 2020, and IOT media preliminarily estimated that there were 4.2 billion.
4.2 RFID reader and writer: in 2020, the market scale of reader and writer in China will be about 1.7 billion yuan
Reading and writing machines are a part of RFID hardware. Compared with tags, Chinese local enterprises have made great breakthroughs in the R & D of reading and writing machines and occupy a certain position in the reading and writing machine market. Driven by the rapid development of China's mobile payment, rail transit and other industries, the demand for readers and writers is strong. According to the forecast data disclosed by IOT media, the number of UHF RFID readers and writers in China will be about 330000 in 2020. Affected by the epidemic, it will decrease by 6% year-on-year. According to the average price of reading and writing machines in 2020 of 5000 yuan / set, the size of China's reader and writer market will be about 1.7 billion yuan in 2020.
4.3 middleware: in 2020, the market scale of UHF RFID Middleware / software in China will be 2.3 billion yuan
Middleware acts as an "intermediary" between RFID tags and applications. Middleware is a common service between platform (hardware and operating system) and application. These services have standard program interfaces and protocols. For different operating systems and hardware platforms, they can have a variety of implementations that meet the interface and protocol specifications to solve the problem of distributed heterogeneity. In 2020, affected by the epidemic, the overall output value of UHF RFID in China fell by 6%. According to the data disclosed by IOT media, the scale of China's UHF RFID Middleware / software market in 2020 was 2.3 billion yuan.
4.4 system integration: in 2020, the scale of China's UHF RFID system integration market will be 4.4 billion yuan
From the development of several links of the industrial chain, domestic system integration is the fastest growing link. Since the vast majority of UHF RFID products are applied to various industries in the form of system level applications, system integration occupies a dominant position in China's UHF RFID industry chain. From the early access control and security systems to the current supply chain management, production line management and other applications, the integration of RFID systems has become more and more extensive and is gradually penetrating into various fields. Given that the system integration is not a manufacturing industry and is less affected by the epidemic, it is preliminarily estimated that the scale of China's UHF RFID system integration market in 2020 will be 4.4 billion yuan, basically the same as that in 2019. It is expected that the scale of the system integration market will grow rapidly in the future.
5. Development prospect and trend forecast of UHF RFID industry in China
Development trend: in the future, UHF RFID technology will be applied to positioning, encryption and sensor integration
With the strong support of the government, the rapid economic development and the use of information technology to improve the efficiency and quality of the whole society, the application of UHF RFID in China will be gradually promoted. In the future, UHF RFID will be mainly applied to positioning, encryption and sensor integration.

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