China's RFID segment will likely touch $335 million mark this year, growing over 50 percent in comparison of previous year and this trend is expected to continue for the next three years.
The increase in drive is a direct result of development in the technology, incessant government support for RFID's consistency, plummeting cost of RFID equipment and chips, plus escalating recognition by users, according to Beijing-based CCW Research - a government-linked consulting company. Moreover, Incremental demand is expected from 2008 Summer Olympics to be held in Beijing.
Presently, HF (high frequency) and LF (low frequency) lead China's RFID domain in frequency terms. The reason being the entrance barrier for LF/HF RFID technology are not high, and numerous industries are vigorous in RFID market as a result of its low application cost. Moreover, China's new generation ID card plans and smart traffic card plans have increased the relevance of HF and LF RFID in additional areas.
Relevance of UHF RFID (ultra high frequency RFID) has spurred due to the encouragement from MNCs (multinational companies) like Wal-Mart. Even if R&D for UHF chip is feeble, the Chinese government gives much importance to UHF standard expansion and chip R&D. Closed-loop UHF applications has given agreeable outcome with support from government.
Moreover, the countrywide launch of new-generation ID cards is a significant motive for the quick boost in Chinese RFID industry. New generation ID cards account for 38 percent of whole market in country.
It is estimated that government, manufacturing, and transportation will be imperative areas for RFID application in China in early stage and then goods' supply and logistics may be significant areas during middle phase, with retailing industry being prime market at RFID maturation.
According to the RNCOS research report "RFID: Outlook China", Chinese RFID industry will be making headway gradually in 2007. With the measured execution of RFID project by Wal-Mart, several Chinese enterprises will speed up RFID applications domestically. There is going to be enormous relevance of ultra-high frequency RFID in 2008, with clear standards and technologies. Furthermore, the gross demand for RFID tags will cross US$ 12 billion by 2010.
Related Market Research Reports:
Global RFID Market Analysis till 2010
European RFID Industry Outlook (2007-2010)
World GPS Market Forecast to 2012
