Global RFID market to reach $7.88 billion in 2013

Research cites supply chain visibility as a key contributor to growth.
By Modern Materials Handling Staff
November 05, 2013 - MMH Editorial

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.

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!

Recent Entries

Seasonally-adjusted (SA) for-hire truck tonnage in October at 135.7 (2000=100) was up 1.9 percent compared to September’s 133.1, and the ATA’s not seasonally-adjusted (NSA) index, which represents the change in tonnage actually hauled by fleets before any seasonal adjustment was 139.8 in October, which was 0.9 percent ahead of September.

The average price per gallon of diesel gasoline fell 3.7 cents to $2.445 per gallon, according to data issued today by the Department of Energy’s Energy Information Administration (EIA). This marks the lowest weekly price for diesel since June 1, 2009, when it was at $2.352 per gallon.

In its report, entitled “Grey is the new Black,” JLL takes a close look at supply chain-related trends that can influence retailers’ approaches to Black Friday.

This year, it's all about the digital supply network. In this virtual conference, we will define the challenges currently facing supply chain organizations and offer solutions designed to transform linear operations into dynamic, automated networks that offer seamless communication, visibility, and the ability to respond and optimize processes at any given time.

In his opening comments assessing the economy at last week’s RailTrends conference hosted by Progressive Railroading magazine and independent railroad analyst Tony Hatch, FTR Senior analyst Larry Gross said the economy continues to slog ahead at a relatively tepid pace, coupled with some volatility in terms of overall GDP growth. And amid that slogging, Gross said there is currently an economic hand-off occurring between the industrial sector and the consumer sector.

About the Author

Josh Bond, Senior Editor
Josh Bond is Senior Editor for Modern, and was formerly Modern’s lift truck columnist and associate editor. He has a degree in Journalism from Keene State College and has studied business management at Franklin Pierce University.


Post a comment
Commenting is not available in this channel entry.