RFID Applications

The prosperous RFID business is on track to grow from about $5 billion in 2007 today to over $25 billion in 2017. Without collusion, most analysts agree to figures in that region and several of them see huge volumes of extremely low cost tags forming a part of the growth - even hundreds of billions in ten years from now. This seems to sit awkwardly with some press reporting that RFID retail initiatives have stalled. As one of those analysts, let IDTechEx explain.

The adoption of RFID (Radio Frequency Identification) is increasing significantly, and the time is right to understand what has been done so lessons and paybacks can be learnt.

IDTechEx has recently travelled to major RFID events in Europe and North America. Here are our conclusions on industry progress so far until mid 2007.

Airports and airlines have been trialling RFID baggage tagging for at least fifteen years. There has been significant delay while they kept trialling incompatible solutions. However, that has now changed.

In the last few weeks alone, orders for well over US$100 million of contactless (ie RFID) smart cards and associated systems have been placed. The business is surging forward with the percentage of smart cards that are contactless rising to 16% of deliveries in 2007 after having been stuck at around 5% for the preceding twenty years. Learn more.

RFID is being adopted worldwide but with very great differences of emphasis as revealed by the IDTechEx Knowledgebase of over 2450 case studies in 92 countries. This is a tale of four, very different continents.

In 2007, approximately 650 billion articles will be sent through postal and courier systems around the world. After retail, the tagging of each postal item is the next largest potential market for RFID by volume of tags. There are numerous significant RFID roll-outs in this sector which are under publicized, and here Raghu Das from IDTechEx summarises the latest progress.

Where are the RFID success stories and in which market sectors? Here Teresa Henry highlights the leading adopter nations, the big spenders and surprise niches for RFID implementation.

Has the pallet/case market for RFID tags and other hardware become the nearest thing to a black hole in the RFID universe in 2006, thanks to reluctant mandated customers, technical problems and pricing for volumes that never came?

At IDTechEx, when we teach Radio Frequency Identification (RFID), we talk of it being a ubiquitous enabling technology like the wheel or paper. After all, RFID is now used from Bulgaria to Namibia, from Azerbaijan to Vietnam and Antarctica. There are well over 10,000 RFID projects out there and there are over 1000 suppliers that have now landed substantial orders for the specialist RFID hardware and services involved. Yet things have barely started.