ABI: RFID Markets to Grow 21% Annually Through 2012
January 11, 2008 // Published as a news service by IHS
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Worldwide radio frequency identification (RFID) markets are expected to reach $8.4 billion in 2012, according to ABI Research, up from $3.8 billion in 2007.
The 2007 figure represents a 24% growth over 2006; by 2012, research indicates a compound annual growth rate (CAGR) of 21%.
"Given the recent amount of activity and anticipation surrounding RFID technology, one might be tempted to believe the RFID market has been experiencing explosive growth," said ABI Research director Michael Liard.
"But while uptake of full-scale RFID systems remains slower than many in the industry had hoped, steady growth continues. There is an overall sense of cautious optimism in the market."
While few large RFID implementations have been announced, extensive pilot programs and closed-loop deployments are demonstrating the value propositions and cost justification for RFID.
Analysts said asset tracking in health care, work-in-progress (WIP) tracking in manufacturing and returnable transport items such as pallets and containers provide a significant return on investment (ROI) and the opportunity to amortize the cost of transponders over several years.
"Asset tracking and RTLS [real time locating systems] applications continue to gain traction across vertical markets," said Liard. "From pilots to small implementations to full deployments, activity has been brisk for passive and active solutions."
Liard said the fashion apparel and footwear item-tagging market is also undergoing heavy pilot and trial activity, especially within Europe. "Government ID documents are another strong volume segment, particularly for e-passports and national ID cards (in China)."
Source: ABI Research.