Forecast: Global RFID Market in the Apparel Industry to Grow 19.8% Annually During 2012-2016
It is forecasted that the global RFID semiconductor market in the apparel industry will grow at a CAGR of 19.8% over the period of 2012-2016.
An analyst said, in recent years, the vendors in the global RFID semiconductor market in the apparel industry are increasing their R&D spending on RFID semiconductor. Leading vendors such as NXP Semiconductor, Impinj, Alien Technology, and EM Microelectronics have increased their investment in the R&D of RFID semiconductors. In addition, they are partnering with software and hardware suppliers and value-added resellers for making significant investments in R&D. What’s more, the focus on R&D is helping vendors to introduce RFID devices that are inexpensive and more effective. Thus, higher accuracy, lower price, and better integration ability is leading to the faster adoption of RFID solutions among major end-users in the market.
One of the key factors contributing to this marketing growth is mandates made by major retail giants that require suppliers to use RFID devices. Most of retail giants such as Wal-Mart have instructed their suppliers to use RFID tags on every pallet that they supply.
However, the high initial investment required to deploy RFID devices could pose a challenge to the growth of this market. The high cost is a major barrier that prevents the adoption of RFIDs by small and medium sized apparel retailers globally.