Global RFID market to reach $7.88 billion in 2013

Research cites supply chain visibility as a key contributor to growth.

By ·

According to a RFID sector survey by IDTechEx Research, the RFID market will increase from $6.98 billion in 2012 to $7.88 billion, and will reach $23.4 billion in 2020. This includes tags, readers and software/services for RFID cards, labels, fobs and all other form factors for both passive and active RFID.

The market for RFID has grown steadily despite the economic downturn due to the diverse nature of its applications from tagging retail apparel to transport ticketing to animals. Since 2000 there has been a strong push to use passive RFID to improve supply chain visibility, with a wide range of investment in new RFID technologies, new standards and much publicity. Inevitably as with most new technologies, aspects were over hyped and demand not in sync with capacity, but as we entered 2010 the industry emerged from the hype cycle and over the following years until now, has entered a period of rapid growth and profitability for some. There are different rates of growth for different applications and many challenges, but in total, IDTechEx finds that 5.9 billion tags will be sold in 2013 versus 4.8 billion in 2012. This was reflected earlier this year in studies by VDC Research.

The last five years has seen consolidation throughout the value chain in passive UHF RFID with some companies emerging in true phoenix-from-ashes style. This is mainly driven by one application—retail apparel—which will globally demand 2.25 billion RFID labels in 2013. Some suppliers are now profitable and see rapid growth ahead. After apparel tagging, passive UHF is deployed in many different application areas for asset tracking and other applications. These are small volumes in their own right but add up to hundreds of millions of tags per year given the strong payback they give users. IDTechEx Research expects 3.1 billion passive UHF RFID tags to be sold in 2013.

IDTechEx guides strategic business decisions through its Research and Events services. It provides independent research, business intelligence and advice to companies across the value chain based on core research activities and methodologies.

About the Author

Jeff Berman, Group News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

All Topics
Latest Whitepaper
Case Study: New Transportation Procurement Approach Lowers Costs, Improves Service
Shaw Industries Group, the world's largest carpet manufacturer, needed a TMS to improve transportation planning.
Download Today!
From the October 2016 Issue
Over the past decade we’ve seen a major trend in regards to safety regulations for freight transport within the United States as well as for import and export shippers—that trend is the “international­ization” of rules and regulations.
European Logistics Update: Post-Brexit U.K. moving ahead, but in which direction?
Badcock Home Furniture &more: Out with paper, in with Cloud TMS
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
How API Technology Connects the Transportation Economy
Dynamic decision making is made possible through accurate, actionable data. When combined with progress in data science and the Internet of Things, technology companies that add value to direct-to-carrier APIs and combine them with high-power data analytics will create new concepts for the information economy.
Register Today!
Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...

2016 Quest for Quality: Winners Take the Spotlight
Which carriers, third-party logistics providers and U.S. ports have crossed the service-excellence...
Regional ports concentrate on growth and connectivity
With the Panama Canal expansion complete, ocean cargo gateways in the Caribbean are investing to...