SCOTTSDALE, Ariz., January 12, 2005 -
RFID tags are poised to become the most far-reaching wireless technology since the cell phone, according to high-tech market research firm, In-Stat (http://www.in-stat.com). Worldwide revenues from RFID tags will jump from $300 million in 2004 to $2.8 billion in 2009. During this period, the technology will appear in many industries with significant impact on the efficiency of business processes.
“By far the biggest RFID segment in coming years will be cartons/supply chain,” says In-Stat analyst Allen Nogee. “This segment alone is forecasted to account for the largest number of tags/labels from 2005 through 2009.” Wal-Mart, which has mandated that top suppliers use the technology, will drive this market segment.
In-Stat has also found that:
The widespread adoption of the technology will take a couple of years to really ramp up, as tags are still relatively expensive, ranging from a low of around $0.15 to a high of over $100.
Privacy issues remain a concern for many applications of RFID, and currently courts and governments around the world are in the process of determining related legal issues.
The second-largest market for RFID, at least in the latter years of the forecast, is consumer products, even though this market is one of the most privacy-sensitive areas.
Recent In-Stat research, RFID Tags And Chips: Changing The World For Less Than The Price Of A Cup Of Coffee (#IN0402440WT), investigates the many uses of RFID, looks at the costs of making the tags, and examines many issues, including privacy, that can potentially slow its momentum. The report contains estimates and a five-year forecast for the number of tags, revenue from tags, and semiconductor revenue from tags, broken-down into the following segments: livestock, domestic pets, humans, cartons/supply chain uses, pharmaceuticals, large freight containers, package tracking, consumer products, security/banking/purchasing/access control, and other. In addition, there are estimates and forecasts for tag/label ASP for each of these segments.
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In-Stat’s market intelligence combines technical, market and end-user research and database models to analyze the Mobile Internet and Digital Entertainment ecosystems. Our insights are derived from a deep understanding of technology impacts, nearly 30 years of history in research and consulting, and direct relationships with leading players in each of our core markets. In-Stat provides its research through reports, annual subscriptions, consulting and advisory services to inform critical decisions. Technology vendors, equipment manufacturers, service providers and media companies worldwide rely on In-Stat to support critical business, product and technology decisions.
