Starting from a base of more than $3.8 billion in revenue in 2007, worldwide RFID markets are expected to reach $8.4 billion in 2012, according to a new study from ABI Research. The 2007 figure represents a 24% growth over 2006, and the curve to 2012 indicates a compound annual growth rate 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,” says 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. For example, asset tracking in health care; WIP tracking in manufacturing; and returnable transport items such as pallets and containers provide a significant return-on-investment and the opportunity to amortize the cost of transponders over several years.
The new ABI Research study is an overview of vertical and application markets for RFID systems. It is intended to provide an extremely detailed and comprehensive snapshot of the RFID industry landscape in all its variety, including application and vertical market considerations, end-user survey results, and key market trends. It also includes an informative “what’s hot and what’s not” section, designed to highlight top trends, applications, and more substantive developments.
What is hot? “Asset tracking and RTLS applications continue to gain traction across vertical markets,” says Liard. “From pilots to small implementations to full deployments, activity has been brisk for passive and active solutions. The fashion apparel and footwear item-tagging market is also undergoing heavy pilot and trial activity, especially within Europe via programs at Marks and Spencer and Metro. Government ID documents are another strong volume segment, particularly for e-passports and national ID cards (China).”
The RFID Annual Market Overview is designed to ensure that ABI Research clients have a strong fundamental understanding of what defines RFID, from technology development to business case. Following a panoramic introduction, other sections cover the technology, the applications, the vertical markets, the high-level competitive landscape, and a summary of our annual RFID end-user research. It is a component of the firm’s RFID Research Service.
ABI Research is a leading market research firm focused on the impact of emerging technologies on global consumer and business markets. Utilizing a unique blend of market intelligence, primary research, and expert assessment from its worldwide team of industry analysts, ABI Research assists hundreds of clients each year with their strategic growth initiatives. For information, call +1.516.624.2500.