Statistics from latest research findings of TechNavio show that RFID tags are expected to account for a bit more than 50% of the revenue in the global RFID market, which also includes readers and services.
According to the firm, the global RFID market this year is expected to be in the range of $9 billion to $11 billion, and this figure is expected to double by 2018.
Numerous factors are expected to drive this growth in the RFID market, including the possible lowering cost of RFID systems and tags, as well as various initiative by retail establishments to have RFID tagging as part of their logistical support.
Of the total market size, RFID tags are expected to contribute to a little more than half the value of the RFID market in 2014, and a significantly reduced amount by 2018.
The report covers the forecast period of 2014 to 2018, and analysis of that period indicates that the RFID tags market will grow at a compounded annual growth rate (CAGR) of 22.7% during the forecast period, with the software and services segment following closely and growing at a CAGR of 22.9%, followed by the readers segment, growing at a CAGR of 20.9%.
As of 2013, TechNavio indicates, the Americas was still the leading contributor to the global RFID market accounting for close to half the global revenue, followed by Europe, the Middle East and Africa (EMEA) and the Asia-Pacific region. The Americas (particularly the U.S.) was one of the early and highest adopters of RFID. In terms of growth, however, the Asia-Pacific region exhibits the highest potential throughout the next 10 years, during which period numerous projects will be implemented in this region by private and government enterprises.
The study also found that RFID started primarily as tool for tracking within a confined area, but that this has changed over the years, with the technology becoming an important tool for business-planning purposes, wherein data obtained from RFID tags is being used to determine what measures need to be taken within an organization. For example, the firm reports, employing RFID to track the quantity of containers being loaded onto a truck can help a company decide how many vehicles it requires, and to identify a trend, thereby enabling it to plan ahead.
“In the coming years,” says Arijit Rakshit, a TechNavio spokesman, “we expect RFID to be more visible in terms of the number of deployments, and in the number of applications for which they can be used. We also expect lower costs of active tags that will help in the above scenario to take place in the coming years.”