Analysis On The Characteristics Of Uhf Rfid Industry Chain In China

by Bob Smith on Jul 19, 2022 Hardware 55 Views

The characteristics of China's UHF RFID industry chain are as follows:

The general label chip market is very concentrated, and foreign chip enterprises have formed scale advantages in this field. The opportunities of domestic label chip enterprises are mainly in the markets with special needs in the vertical application field.

The RFID reader chip market is relatively flexible. According to the demand, there are from low-end to high-end products in the market, and there are also many products of discrete devices.

Tag antenna is a link that pays attention to production. After market competition and the impact of environmental protection policies, the gross profit of tag antenna can be maintained at a good level. The reader antenna market is fragmented, because the volume is small, the overall gross profit is also relatively high.

The UHF general market has a large number of labels, especially some large projects, with consumption of hundreds of millions. Therefore, the current price of label production is very transparent, the competition is also very fierce, and the gross profit level of the market is relatively low.

In addition to the cost of chips and antennas, the production equipment of labels is also a very large cost. At present, the main equipment in label production includes binding machine, laminating machine, printer and testing equipment. These devices range from hundreds of thousands to millions. The investment in equipment also consumes the profits of many label manufacturers. In order to maintain a high profit level, some equipment manufacturers also carry out label production business, and extending the business line is also a way to deal with it.

RFID Reader/writer is a link that focuses on solutions. Because the market demand for reader / writer products is relatively small, RFID reader/writer manufacturers need to plan their business in order to improve revenue and profits. On the one hand, reader / writer products need to be highly customized in terms of performance and shape; On the other hand, reader / writer products also need to have good compatibility in the development of application software and integration with other solutions.

At present, the production capacity of most UHF RFID tags in the world is concentrated in China, but the application manufacturers are mainly foreign brands. The main reasons for the high acceptance of foreign brands for RFID tags are: foreign customers have clear needs, the use of RFID can solve clear needs, and the profits and cash flow of foreign brands are also relatively advantageous and have the ability to invest.

In addition to the general market, UHF RFID is also widely used in customization markets such as power, washing, transportation and industry. The customization market accounts for a small proportion in terms of quantity, but the added value of the customization market is high, and the output value of the whole system is also high.

In conclusion, UHF RFID market competition is relatively fierce, and the price of products has decreased significantly in recent years. This also means the prosperity and maturity of the whole industrial chain, which is conducive to the continuous expansion of industrial market share. In order to avoid the situation of "increment without profit", more and more enterprises choose diversified businesses and differentiated products and services.

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