RFID market to grow to $70 billion in next five years

Telecom Lead India: The size of RFID transponders,
readers, software, and services market will be $70.5 billion from 2012 to 2017.

The global RFID market is likely to grow 20 percent y-o-y
per annum. Government, retail, and transportation and logistics are the most
valuable sectors, accounting for 60 percent of accumulated revenue over the
next five years. The market was boosted by a growth of $900 million in 2011.

To date, the automotive sector has been a strong
proponent of RFID, largely for immobilization and keyless entry. However,
penetration is already high and it will be constrained by the slower rise in
automotive production volumes.

It will lose status as a leading RFID market due to
other established markets for RFID retaining excellent potential for further
adoption. Retail in particular is set to experience very strong growth; in
fact, it will become the single largest RFID sector in 2015,” said ABI Research
Group director John Devlin.

Improved operational capability is the overriding goals
behind this adoption in retail. RFID will cross over into customer-facing
services with NFC for product information and smart marketing.

Government sector will have strong uptake of
contactless/RFID in documents and credentials. However, the drive for increased
efficiency in applications such as asset tracking, fleet management, personnel
location, and security are increasing the sector’s acceptance and uptake of
RFID solutions.

Transportation and logistics are increasingly utilizing
RFID. Also, smarter public transit systems are utilizing contactless ticketing
as the basis for better managed and cost effective services.

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