RFID continues to gain momentum across global supply chains.  AIM’s 2025 Automatic Identification and Data Capture Industry Direction Report highlights just how rapidly the technology is advancing.

Drawing from more than 200 responses across end users and AIDC professionals, the report offers an interesting and comprehensive view of RFID adoption, demand expectations, and the market forces shaping the next two years.

Some Report Insights: RFID’s Growth Outlook Is Strong Even Amid Tight Budgets

While many enterprises face pressure from budget constraints and competing technology priorities, the report found that 84% of AIDC industry professionals expect RFID demand to increase through 2026. RFID readers and smart label printers are among the very top categories for expected demand growth, with more than half of industry respondents anticipating moderate or significant increases.

End users are more cautious than vendors, but the trend still points upward.

The report also shows that organizations investing in traceability, ERP upgrades, industrial IoT, and AI are significantly more likely to increase their RFID spending than those without these initiatives. RFID’s ability to feed real-time, trusted data into higher-order systems (AI, robotics, WMS, 5G infrastructure, and cloud platforms) seems to be cementing its role as a foundational technology in digital transformation efforts.

Some Report Insights:  Traceability Is the RFID Growth Engine

One of the most important findings in the report is the influence of traceability initiatives on RFID adoption.  The report found:

• 69% of enterprises investing in traceability plan to purchase RFID systems, compared to just 5% among companies not prioritizing traceability.
• These same organizations are also more likely to invest in sensors, WMS platforms, and RTLS, illustrating the broader ecosystem RFID supports.

Upcoming and expanding compliance programs are major accelerators as well, including:

• EU Digital Product Passport (DPP)
• GS1 Sunrise 2027
• FSMA 204 food traceability rules
• UDI/GUDID medical device requirements

The report stresses that many enterprises may not yet fully understand their obligations and that AIM members will be uniquely positioned to educate and lead in these areas.

Some Report Insights:  Where RFID Spending Will Happen

In the reports findings it was also observed that the top RFID-related product categories for end users include:

• Handheld RFID readers: Strong growth indicators, especially where mobility and in-process automation are needed.
• RFID smart label printers: Ranked highly by both end users and solution providers, signaling sustained investment in item-level encoding.
• RFID readers integrated into mobile computers: A favored option in environments where workforce flexibility is essential.
• Fixed RFID infrastructure: While more budget-sensitive, these systems remain critical in high-volume and high-accuracy environments.

Industry professionals; whose forecasting historically correlates well with real-world adoption, ranked RFID readers and smart label printers as the #1 and #2 categories for demand growth across the entire AIDC industry.

RFID’s Expanding Role in Enterprise Digitalization

The report notes that enterprises pursuing IoT, warehouse automation, robotics, cloud migration, and AI initiatives are far more likely to adopt or expand RFID in the same timeframe.

This signals a shift in RFID’s role:
From stand-alone technology → to a strategic data layer powering next-generation digital systems.

With nearly every emerging enterprise program relying on highly accurate, real-time data, RFID is increasingly viewed as an enabler—not an accessory.

The RFID insights highlighted here represent just a small portion of the findings in AIM’s 33-page report. The full publication includes additional details on:

• RFID adoption trends by industry
• Comparative analysis of AIDC technologies
• Key motivators and barriers for enterprise investments
• Compliance-driven opportunities
• Forecasts for adjacent technologies such as sensors, IoT, and machine vision

AIM members can receive a complimentary copy by emailing Bethany Deane to request a free download code.

Download the report:
https://www.aimglobal.org/2025-industry-direction-report/