- April 02, 2006, pffc-online.com
IDTechEx has extensively researched the RFID industry provide the industry with trends for the years ahead. Below are their findings.
Cumulative sales of RFID tags for sixty years until the beginning of 2006 total 2.4 billion, with 600 million tags being sold in 2005 alone. In 2006, IDTechEx expects 1.3 billion tags to be sold. Of that about 500 million RFID smart labels will be used for pallet and case level tagging but the majority will be used for a range of diverse markets from baggage and passports to contactless payment cards and drugs, reports IDTechEx.
In the short term large “closed loop” markets requiring high value RFID reportedly will remain very profitable and companies will seek to position themselves as the leader in hardware and integration in different vertical market segments. Challenges with tag yield versus cost, frequency acceptance, specification creep and required performance levels are some of the key issues that reportedly are being resolved to grow the RFID market exponentially over coming years to be almost ten times the size in 2016 that it will be in 2006. In 2016, IDTechEx sees the value of the total market including systems and services to rocket to $26.23Bn from $2.71Bn in 2006 in value. The number of tags delivered in 2016 will be over 450 times the number delivered in 2006.
This includes many new markets that are being created, such as the market for Real Time Location Systems using active RFID. Indeed, the market for active RFID will itself be more than $6Bn in 2016, the company reports.
Growth in passive RFID will be driven by the tagging of high volume items - notably consumer goods, drugs and postal packages - at the request of retailers, military forces and postal authorities and for legal reasons. In these cases, the primary benefits sought will be broader and include cost, increased sales, improved safety, reduced crime and improved customer service. These findings are highlights from a new, detailed 190-page report from IDTechEx entitled RFID Forecasts, Players & Opportunities 2006-2016. For more inforation, visit IDTechEx at www.idtechex.com