IDTechEx has extensively researched the RFID industry to bring you new forecasts for the years ahead. 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 expect 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.
In the short term large "closed loop" markets requiring high value RFID 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 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 see the value of the total market including systems and services to rocket to $26.23Bn from $2.77Bn 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.
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.
2006 RFID trends
Ten Year Forecasts from IDTechEx Research
These findings are highlights from a detailed 200 page report from IDTechEx RFID Forecasts, Players & Opportunities 2006-2016, giving you the complete picture with detailed forecasts at a price unmatched by others. This is constantly updated
Market analysis by a huge number of parameters
Using new, unique information researched globally by IDTechEx technical experts, we analyse the RFID market in many different ways, with over 120 tables and figures. They include detailed ten year projections for EPC vs non-EPC, high value niche markets, active vs passive, readers, markets by frequency, markets by geographical region, label vs non label, chip vs chipless, markets by application, tag format and tag location. Cumulative sales of RFID is analyzed as are the major players and unmet opportunities. It covers the emergence of new products, legal and demand pressures and impediments for the years to come. It uniquely covers big niche opportunities and the booming active RFID market. To learn more click here.
These topics will also be aired at forthcoming IDTechEx events.
Learn more at the next leading event on the topic: Printed Electronics Europe 2020 on 13 - 14 May 2020 at Estrel Convention Center, Berlin, Germany hosted by IDTechEx.