The Use and Business Value of RFID in Aviation

Airport aviation baggage tag is another more concentrated "consumable" market, the field has the Civil Aviation Administration in the promotion, so, RFID tags in the field in recent years, the speed of landing, especially the annual throughput of more than ten million large airports, most of the RFID baggage tags have been used.


In the field of aviation, in addition to baggage, aircraft maintenance tools, aircraft life jackets and other emergency items have begun to popularise RFID tags, although the volume is not as large as baggage, but the performance of the product customization requirements, the value is also relatively high.


Because the main shipments are concentrated in the aviation baggage, we can estimate the capacity of the market from the whole of China's airport passengers. 

1 In a normal year, total passenger throughput at China's domestic airports is growing steadily at around 100 million passengers per year, and aircraft are becoming an increasingly common means of travel.

Aircraft are becoming an increasingly common means of travel.

In the last three years, passenger throughput at airports has fallen considerably due to the impact of the epidemic, particularly in 2022, but data for the first few months of 2023 shows that passenger throughput has recovered to a level close to that of 2023.

However, data for the first few months of 2023 shows that passenger throughput has recovered to near pre-Epidemic levels.

2 Throughput is counted in terms of person trips, i.e. a person entering or leaving an airport is counted twice, so if we calculate on the basis of a normal year, when there are about 1.4 billion person trips per year, that's about 700 million people travelling by air, and of those people who need to have baggage checked in and out.

Which need to have baggage check-in before using RFID tags, it is expected that 50% of the proportion of the need to check-in baggage, so the entire domestic airport baggage tag annual consumption of about 300-400 million, of course.

So, it is calculated that the annual consumption of luggage tags in domestic airports is about 300-400 million, of course, this number will grow with the development of the entire aviation industry, large domestic airports for RFID luggage tags have a high penetration rate, while the penetration rate of small airports is low.

At present, the penetration rate of RFID luggage tags in large domestic airports is already very high, while that in small airports is low.

Globally, according to the airport traffic before the epidemic, the market potential is about 2-3 billion tags per year.

3 The value to be gained from adopting UHF RFID tags for airport baggage can be seen in the following areas:

Value 1: Reduced Baggage Error Payouts

According to a report by Aviation Telecom International, back in 2007, there were approximately 18 baggage errors per 1,000 passengers; in 2017, the number of baggage errors per 1,000 passengers was approximately 1,000 per 1,000 passengers.

In 2017, the number of baggage errors per 1,000 passengers has been reduced to six, but even so, the number of baggage errors globally is still 23 million - a huge number.

This is a huge number and has led to the proliferation of RFID tags in airline baggage.

Value 2: Enhance the experience of baggage check-in passengers

The traditional baggage check-in, passengers are not clear about their own luggage to which position, and the use of RFID tags, passengers can be their own checked baggage to achieve visual traceability, real-time understanding of the baggage to which position.

They will know in real time where their baggage is.

Value 3: Derive more business value

For example, checked baggage is delivered by airport staff to the hotel or residence of the traveller, so that the traveller does not have to spend time waiting.

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