RFID Market Forecasts
So far, about 97.5 per cent of RFID involves tags containing a microchip. Some market data wrongly includes EAS in RFID, however other do not, so figures are confusing. Indeed, a few surveys include contactless smart cards because they are a form of RFID. This can greatly inflate the figures. It is rare for market figures to include chipless tags but only a few million are being sold in 2004.
Datamonitor forecast a $5-20 billion European market for intelligent tags and their equipment in year 2005, including the UK. Frost and Sullivan see a $10 billion global market for RFID and EAS systems in 2005.
Venture Development Corporation (VDC) saw the global market for chip-based RFID systems, including tags, as about $1.4 billion in 2002, the tags including smart labels, being about $0.7 billion.
The leaders in smart labels are each shipping 60 to 120 million chip tags a year, i.e., around a value of $100 million each for the tags alone. Indeed Philips, as the largest supplier of RFID chips (one per tag) says global consumption for smart labels is around 1.9 billion units in 2004. In systems plus tags, TransCore has $350 million sales and Savi Technology has $65 million. All the leading analysts see double digit growth of RFID markets by value over the next few years, 25 per cent yearly being a typical figure. None of the above forecasts for RFID includes RFID contactless smart cards and tickets.
Global research conducted by IDTechEx, predicts that by 2013 the RFID market will be worth $10 Billion, 50% of that being hardware (tags and readers) and the rest software, services and infrastrucutre. For more information IDTechEx reports contain detailed analyst figures.