Retail deployment pushes RFID 2011 revenue growth over 16%
November 22, 2010 - MMH Editorial
According to ABI Research, the industry is seeing continued strong growth potential in RFID markets worldwide. The research firm is forecasting a total market size of about $4.6 billion by the end of 2010 for RFID systems (hardware, software and services). The total reaches $5.5 billion when hardware-only shipments to support automobile immobilization are included.
In addition, by the end of 2011, global RFID system markets (excluding immobilization) are expected to amount to almost $5.3 billion, a year-over-year growth in excess of 16%. RFID systems software revenue will outpace that from services, transponders and readers. When automobile immobilization is included the total market size is approximately $6.2 billion, representing 13% growth next year.
Massive retail deployments: “Item-level apparel tracking is probably the biggest area to watch in 2010-2011 and beyond,” Liard notes, “especially due to Wal-Mart’s ‘jeans and basics’ tagging announcement.” JCPenney, Marks & Spencer, and American Apparel among others remain key retailers to watch given their existing programs and deployment plans.
Asset tracking and management: Asset tracking and management applications continue to gain momentum in verticals including healthcare, manufacturing (particularly the aerospace and defense sector), transportation and logistics.
An explosion in passive UHF transponders: According to Liard, “ABI Research expects to see a CAGR of 74% in passive UHF transponders from 2010 to 2014 thanks to burgeoning demand within key applications such as retail apparel tagging and asset management.”
Regional performers shine: the “Rest of World” region, which includes the Middle East, Latin America, South Africa and others, currently comprises only 7% of the overall RFID market but it is expected to adopt RFID solutions faster than any of the more industrialized regions. This is due to increased focus on using RFID in the Middle East in the oil and gas space and for construction; in Latin America for animal ID, food safety, and retail; and in South Africa for RTI, among others.
Details of these and many other aspects of the RFID market may be found in ABI Research’s “RFID Market Data” which provides extensive data on RFID revenues and unit shipments, segmented by technology, application, vertical markets, and much more.
Seven years after the Wal-Mart RFID mandate, RFID is alive and growing in the supply chain.
The future of RFID for pallet tracking and other unanswered questions
Pallet expert Marshall White answers your questions about pallets
Retailers and manufacturers announce joint effort to advance use of item-level RFID
Members of Item Level RFID Initiative releases plans to guide adoption of RFID technology in retail.
RFID: Delivering on the promise of real-time visibility
After years of talk, end users are putting RFID into action. How about 200% growth in budgeted spending for 2010.