RFID market to reach $5.35 billion this year

10 August 2010

‘Modernising’ applications for RFID will grow more rapidly than their traditional predecessors such as automobile immobilisation
‘Modernising’ applications for RFID will grow more rapidly than their traditional predecessors such as automobile immobilisation

Growth in the RFID sector is set for steady growth, according to ABI Research.

Despite the economic doldrums that required downward adjustments to ABI Research’s RFID forecasts for 2009 and 2010, the outlook is good for growth throughout the next five years, according to new market data released by the firm.

Practice Director Michael Liard reports: “We expect the overall RFID market to exceed $8.25 billion in 2014, or approximately $7.46 billion with automobile immobilisation excluded. That would represent a 14% compound annual growth rate (CAGR) over the next five years.”

Automobile immobilisation is the largest single RFID application and has a low growth rate that impacts overall market size, so it is often excluded when examining market trends.

This year alone, the RFID market appears set to reach a size of $4.47 billion (without automobile immobilisation), some 15% more than the adjusted 2009 figure.

“Not all segments of the RFID market are created equal,” adds Liard. “To 2014, the greatest growth will be found in RTLS (Real Time Location Systems), baggage handling, animal ID, and item-level tagging in fashion apparel and retail.”

Other key opportunities include Electronic Vehicle Registration, continued penetration of RFID-enabled e-ID/e-government documents (including health cards), and continued expansion of library systems.

‘Modernising’ applications for RFID will grow more rapidly than their traditional predecessors such as access control, automobile immobilisation, electronic toll collection and others that account for slightly more than 61% of the total market today, according to ABI. These applications are expected to grow 6% compounded annually from 2010 to 2014. In contrast, modernising applications – animal ID, asset management, baggage handling, cargo tracking and security, POS-contactless payment, RTLS, supply chain management, and ticketing – are forecast to grow by roughly 19% in the same time period.


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