Global Radio Frequency Identification (RFID) Technology Market to Reach US$12.7 Billion by 2015, According to New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global report on Radio Frequency Identification Technology (RFID) market. World market for RFID technology is projected to reach US$12.7 billion by the year 2015. RFID technology which has numerous medium to long-term benefits stacked in its favor, has managed to stay afloat, and perform remarkably well even in the dismal economic scenario, riding on demand from organizations seeking to enhance their efficiency levels and simultaneously save costs.

Radio Frequency Identification (RFID) Technology: A Global Strategic Business Report

Over the years, incremental development of a wide range of reader and sensor technologies, such as active and passive RFIDs, mobile devices, environmental sensors, and RTS opened up new business application possibilities for RFID and sensors. The technology has already gained wide prominence in applications such as supply chain management, cargo tracking, asset management, document tracking, contactless payments, library systems, and even human implantation. The automatic data collection ability of RFID technology makes it a worthy addition to supply chain management, where it is used for automatically tracking and identifying product shipments within the entire supply chain. RFID technology is also making rapid strides in applications such as tagging of rare species of animals or fish for better identification of the species and curbing their illegal trade, DVD tagging for preventing counterfeit DVDs, and tagging meat products to trace the source. US will continue to remain the most lucrative market for RFID technology, with RFID project implementation rollouts in the nation continuing to increase at an encouraging pace.

Radio Frequency Identification Technology has joined the likes of cost cutting technologies like video conferencing and virtualization to emerge into one of the few industries to flourish in adversity. Unlike other industrial sectors where growth remained stunted, RFID technology worldwide witnessed slower yet continued gains. With businesses turning to RFID for new efficiencies and cost savings, growth in the market has managed to record hardy gains despite an undeniable slowdown in growth momentum. Unfazed adoption of RFID-based projects has been encouraging especially in traditional small-scale, closed loop applications like healthcare/transportation/asset tracking/identification of individual location, among others. The recession period witnessed increased RFID investments in simpler, low cost applications where real time visibility plays a crucial role in bringing about cost savings. Additionally, government backed RFID projects in defense, identity and passport security, among others, have withstood the onslaught of economic recession, as these projects run over longer periods of time and are therefore lesser sensitive to economic fluctuations.

On the other hand, larger scale, modern applications, which yet have to reach mainstream appeal, have been constrained by the recession since RFID in these areas continue to remain a discretionary expenditure, which is the first to be cut down during a recession. Despite reduction in RFID costs, the technology still remains expensive and a big-ticket item in several proposed application areas. Most of the projects thrown into the backburner revolve around use of RFID in supply chain management. For instance, Wal-Mart, one of the world’s leading adopter of RFID in the supply chain, cooled down its scheduled deployment plans for generation-2 EPC tags. With the then prevailing mood in most end-use application markets being one of fiscal responsibility and caution, reduction in corporate discretionary budgets resulted in grounded RFID-based projects. And the sentiment is faithfully mirrored in the market’s marked slowdown in growth. Few of the factors fingered for slower growth in the market during the recession period, which failed to meet pre-recession levels, include postponements, shelving and cancellation of new security projects in the security & access control application area, and delay in launch of new retail projects such as malls, chain retailers, and franchise outlets in the retail end-use sector. Reduced investment in supply chain technologies impacted RFID market, particularly for EPC UHF tags and other equipment.

Future growth in the market will be guided by the sheer magnitude of potential applications of RFID, such as, in baggage handling, contactless ticketing, asset management, contactless payments, electronic identification documents, product tracking in the retail industry, and in real time location identification systems, among others. As the RFID industry continues to position itself on the platform of a cost saving solution in the post recession period, the emerging new era of thrift is poised to bring in new opportunities and avenues for growth. The prolonged financial hardship of the last two years has chiseled the emergence of cost wary end-users keen on investing in technologies that help improve operational efficiency, reduce costs, and provide competitive differentiation. This readjustment of investment priorities and renewed focus on long-term cost savings, and benefits will bring out RFID technology as the greatest beneficiary, especially in the enterprise consumer segment. Interestingly, the two years of recessionary blues have choked off innovation in competing technologies to Active RFID tag, such as, Wi-Fi" technologies, Bluetooth and ZigBee (based on Ultra Wide Band (UWB) communications), thus clearing the path ahead for RFID products. In addition, other factors, such as, government mandates, falling prices and better return on investments, evolution of appropriate standards, will all foster healthy growth.

As stated by the new market research report, the US continues to remain the largest regional market. Asia-Pacific represents the fastest growing regional market, displaying a CAGR of about 21.6% over the analysis period. Growth in this market will be essentially driven by rapidly increasing RFID deployments in major countries such as Malaysia, Singapore, China, India, Taiwan, Australia, and South Korea, and tremendous support from regional governments in promoting the adoption of RFID technology across various application areas such as transportation and national IDs. By end-use, Security and Access Control is the largest application market. By product, RFID Tags continue to remain the largest segment. Growth in the RFID Tags market will be essentially driven by decreasing prices, and robust demand for Passive RFID Tags. Passive RFID Tags market is the largest and the fastest growing segment within the RFID Tags market, growing at a CAGR of about 18.9% over the analysis period.

Major players in the marketplace include Alanco Technologies Inc., Technology Systems International Inc. (TSI), HID Global Corporation, Brady Corporation, Checkpoint Systems Inc, Gemalto NV, Hitachi Ltd., Intermec Inc., Motorola Inc., NXP Semiconductors, Precision Dynamics Corporation, Savi Technology Inc., Sirit Inc., TagMaster AB (Formerly Gemplus Tag), TagSys RFID, Texas Instruments Inc., TransCore, Wavetrend Technologies Limited, and Zebra Technologies Corporation.

The research report titled “Radio Frequency Identification (RFID) Technology: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, issues, drivers, company profiles, mergers, acquisitions and other strategic industry activities. Market estimates and projections in US$ Million are presented for all major geographic markets including the United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia, The Netherlands, Sweden, Denmark, Switzerland, Ireland and Rest of Europe), Asia-Pacific (Malaysia, Singapore, Australia, and Rest of Asia-Pacific), Middle East & Africa and Latin America. Product segments analyzed include RFID Tags (Active & Passive), RFID Readers (Low Frequency & High Frequency), RFID Software and RFID Services. Key end-use segments analyzed include Security and Access Control, Transportation, Manufacturing & Logistics, and Animal Tracking, among Others.

For more details about this comprehensive market research report, please visit –
http://www.strategyr.com/Radio_Frequency_Identification_RFID_Technology_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.

Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/

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