Subscribe to our free, weekly email newsletter!


RFID market to reach $9.2 billion in 2014 and more than triple in next decade

Research suggests RFID has penetrated only 7% of the addressable apparel market.
By Modern Materials Handling Staff
March 31, 2014

IDTechEx, a market research and consulting firm, has released research suggesting the RFID market – including tags, readers, software and services, for passive and active RFID – will grow from $7.88 billion in 2013 to $9.2 billion in 2014.

That figure is up nearly 32% from $6.98 billion in 2012. Most growth is due to active RFID and real-time locating systems (RTLS) systems, the report indicated, followed by interrogators and then tags in terms of total money spent.

“We are entering a period of very strong growth in RFID overall,” said Raghu Das, CEO of IDTechEx, in a recent interview. “By the beginning of 2014, 26 billion RFID tags had been sold and of that six billion alone were sold in 2013.”

In supply chain and logistics, Das said RFID is used for tracking assets such as roll cages, unit load devices (ULD), totes and tools. Because RFID is for relatively short ranges, from between sub-meter to a few meters, it is complimentary to GPS (global positioning system) technology for both asset and product tracking. For instance, Das continued, a container might be fitted with GPS and an RFID reader and as an RFID-tagged case is put on the container the two might be associated in software.

When paired with RFID technology, sensors and data loggers can monitor conditions like temperature and impacts. Das said these are widely used in the food traceability industry, mainly to meet insurance requirements. “These are often more expensive because they have a power source,” he said, “but the cost is falling. Additionally, those in charge of quality control are piloting solutions for brand differentiation, not just meeting insurance requirements.”

Passive ultra-high frequency (UHF) tags have seen rapid growth, the report continued, from a total of just more than three billion tags in 2013 to 3.9 billion tags in 2014. IDTechEx finds that 2.48 billion passive HF tags will be sold in 2014, although at an average price of almost 10 times that of passive UHF tags. The highest volume sector for passive UHF systems is retail apparel, which the report suggests still has some way to go with RFID penetrating only about 7% of the total addressable market for apparel in 2014.

After extensive interviews with suppliers, IDTechEx finds that there are now emerging or established leaders in most positions of the value chain across the different technologies – yet still very few companies have sales of more than $100 million.

IDTechEx expects the RFID market will reach $30.2 billion in 2024. This research was conducted for the report RFID Forecasts, Players and Opportunities 2014-2024 which provides data and analysis in all the main applications. With more than 90 tables, the report provides granular insight into the sector.

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!

Recent Entries

This complimentary white paper addresses areas of potential benefit to a grocery distributor considering an investment in automated case picking technology.

In 2015, a new era in shipment pricing will go into effect when major carriers implement dimensional ("dim") weight pricing for all ground packages regardless of their size. This complimentary white paper, "Dimensional Weight: Don't Let it Weigh You Down", can help you optimize your packaging operation to minimize the financial impacts of dimensional weight pricing.

Replacing older, less-efficient lift trucks at the right time can reduce your maintenance costs, improve your productivity and, most importantly, save money and maximize your return on investment. So how do you determine the right time to make a new, significant purchase? Download this complimentary white paper for guidance on how to determine the ideal time to replace lift trucks and how planned replacement can benefit your operation.

The prolonged operating hours of automated distribution operations leave limited time for maintenance. For tightly-scheduled fulfillment operations, unplanned downtime not only cuts into slim profit margins, it jeopardizes future business and customer loyalty. Download this complimentary white paper to learn five mission-critical benefits of implementing a resident maintenance program.

Debut of Pharma EXPO plays crucial role in increase.

About the Author

Josh Bond, Associate Editor
Josh Bond is an associate editor to Modern. Josh was formerly Modern’s lift truck columnist and contributing editor, has a degree in Journalism from Keene State College and has studied business management at Franklin Pierce. Contact Josh Bond


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA