http://www.abiresearch.com)) predicts the overall RFID market to reach $5.35 billion" /> http://www.abiresearch.com)) predicts the overall RFID market to reach $5.35 billion" />

Overall RFID market to hit $5.35 billion this year

A new market data report released by ABI Research (http://www.abiresearch.com)) predicts the overall RFID market to reach $5.35 billion

By ·

A new market data report released by ABI Research (http://www.abiresearch.com)) predicts the overall RFID market to reach $5.35 billion this year, a glimmer of optimism after the economic slide required the firm to adjust its RFID forecasts downward for 2009 and 2010.

“The outlook is good for steady growth through the next five years,” said ABI Research's RFID practice director Michael Liard. “We expect the overall RFID market to exceed $8.25 billion in 2014, representing a 14% compound annual growth rate (CAGR) over the next five years.”

Not all segments of the RFID market are created equal, added Liard. “To 2014, the greatest growth will be found in real-time location systems (RTLS), baggage handling, animal ID, and item-level tagging in fashion apparel and retail.”

The report, Semi-Annual RFID Market Data
, contains extensive data on RFID revenues and unit shipments segmented by technology, application and vertical market.

All four RFID technologies: low-frequency (LF), high-frequency (HF), active and passive ultra-high-frequency (UHF), and microwave are included across numerous applications. Because the entire RFID space is so fragmented, said Liard, data is broken down into two application categories: traditional and modernizing.

“Traditional applications include uses such as access control, automobile immobilization and electronic toll collection that account for slightly more than 61% of the total market today,” he explained. “Those applications are expected to grow 6%, compounded annually from 2010 through 2014.”

“In contrast, modernizing applications such as asset management, cargo tracking and security, point-of-sale (POS) contactless payment, RTLS and supply chain management are forecast to grow roughly 19% in the same time period,” Liard said.

The growth, particularly in materials handling applications, can be attributed to an increased awareness of RFID's capacity to solve common business challenges such as asset management optimization and utilization, explained Liard. 

“There have also been a lot of developments in the technology, particularly in passive UHF tags due to the Wal-Mart compliance initiative of a few years ago,” he added. “That drove the creation of standards and technological advancements, making the tags more accessible, more affordable and better performing than they were a few years ago.”

In surveying users, he said, ABI found that the increased affordability and better understanding of the value that RFID technology can bring are leading many enterprise and industrial users to deploy pilot and trial programs, which Liard predicts will lead to both limited and widespread deployments.

“If there's a value tied to a trackable asset or the goods that are inside it, more users are telling us they see the value in making that investment,” he said.


Subscribe to Modern Materials Handling Magazine!

Subscribe today. It's FREE!
Find out what the world’s most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Article Topics

ABI Research · Automatic Data Capture · RFID · · All Topics
Latest Whitepaper
Download the full 2016 Modern Materials Handling Salary Survey
How does your earning power match up with your peers across the material handling industry? Materials Handling salary survey, Warehouse manager salary survey, Warehouse Salary Research
Download Today!
From the November 2016 Issue
In Whirlpool Corp.’s Clyde, Ohio, factory, mobile robots have automated the delivery of parts to the line. The result is a more consistent, efficient and safer operation.
Optimizing home delivery: It takes more than planning
9th Annual Salary Survey: Success and Satisfaction Continue to Reign
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
2016 Warehouse/DC Operations Webcast: Confronting omni-channel complexity
During this webcast we’ll examine the current activities, trends, and best practices in warehouse and DC operations management and how companies plan to address complex issues associate with omni-channel fulfillment.
Register Today!
EDITORS' PICKS
Systems Report: Whirpool puts mobile robots to work
In Whirlpool Corp.’s Clyde, Ohio, factory, mobile robots have automated the delivery of parts to...
Modern Materials Handling’s 2017 Casebook Collection
The 2017 Casebook features more than 35 case studies that put the spotlight on successful innovation...

Brownells: Designing for Efficiency and Growth
Brownells’ new Iowa distribution center has taken touches—and miles—out of the order...
Industry celebrates National Manufacturing Day
Fourth annual Manufacturing Day is a grassroots effort by U.S. manufacturers to improve the public...