The market for RFID transponders, readers, software and services will create more than $70.5 billion from the beginning of this year through the end of 2017, according to research from ABI Research.
The market experienced growth of $900 million in 2011 and is expected to expand 20 percent year annually through 2017. The biggest drivers for RFID will be increased use in government, retail, and transportation and logistics services. These sectors will account for at least 60 percent of the total RFID-related revenue during the next five years.
ABI Research said RFID is actually losing ground in some areas, such as immobilization and keyless entry of consumer vehicles, but its growth is expected to far outpace any sector declines.
One area in which RFID will experience its greatest expansion is retail. The sector is expected to become the single largest RFID market in 2015.
While the report looks at some logistics and retail needs separately, the two have a significant amount of overlap because products are being tagged with RFID chips earlier in the supply chain. The same tags used to track items in stores and stockrooms are used to track the same goods in pallets and boxes on their way to those stores.
According to ABI Research, big factors for the increased RFID use are further enhancements to their capabilities and efficiency. The ability to tag multiple items and read each of those tags in small, confined spaces will be one of the biggest benefits to helping ensure stock arrives properly and is not lost or mis-ordered at the retail store level.
When looking at the increased RFID use by governments, ABI Research noted its use for asset tracking, fleet management, personnel location, and security.
ABI Research’s new study, “RFID Market by Application and Vertical Sector,” can be found here
. — Geoff Whiting