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%.
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.
RFID chips have been in use for some time to label products for logistical purposes. Researchers have now equipped these RFID tags with sensors that allow the goods to be continuously monitored during transport.
The volume of goods transported worldwide is enormous. Every day, millions of tons of vehicle parts, flat screens, fresh fruit and all kinds of other products are carried around the world by sea, air or road – and the volume is growing. But the journey does not always run smoothly. Car components are sometimes rusty when they arrive at the factory, and refrigerated medicines may be spoiled by the time they reach the wholesaler. In many cases, it is impossible to find the culprit or the error in the transport chain, as the goods pass through too many hands on their way around the globe.