Impinj (PI) investor relations material

Market opportunities and challenges

• RAIN RFID industry has grown at a 28% CAGR since 2010, reaching 52.8 billion units in 2024, mainly driven by retail apparel, with logistics, general merchandise, and food now emerging as new verticals.

• Automotive and pharmaceutical sectors have active use cases but are not yet scaling due to industry inertia and misaligned incentives.

• Apparel is about 40% penetrated by volume, with most brands committed but not fully deployed; expansion within existing customers and new program launches are expected to drive growth.

• General merchandise and logistics are seeing phased rollouts, with further expansion and new pilots anticipated in 2026.

• Food is in early ramp stages, with initial focus on areas where retailers control the supply chain; technical challenges in tagging high-moisture and metal-packaged items are being addressed through ecosystem innovation.

Competitive positioning and technology

• Platform advantage is built on integrated IC and reader functionality, enabling unique features like Gen2X tag quieting, which increases read speed and range.

• Gen2X, launched at the end of last year, is gaining traction, especially for overhead reading solutions, and is expected to drive share gains.

• Software is being developed to enable zero-touch provisioning and self-monitoring environments, further differentiating the integrated solution.

• Full solution stack (software, reader, endpoint) is unique compared to mix-and-match competitors.

Supply chain and operational management

• Multi-level supply chain is managed through monthly inventory reports, direct forecasts, and macro trend tracking; early identification and correction of inventory builds is a focus.

• Typical lead times are six to seven weeks, with 50% of orders turned in a quarter; significant changes in lead times signal broader market shifts, such as tariff impacts.