The global RFID industry is predicted to reach $5.3 Billion by the end of 2008, but the global economic slowdown may affect its adoption and spending by other industries.
ABI Research, the market research firm, said the global RFID (Radio Frequency Identification) market is expected to surge to $5.3 Billion by the end of 2008, and will continue growing at a rapid pace in the next five years, as reported by RFIDNews.
The RFID market (except automobile immobilization) will grow at a CAGR of 15% during 2008-2013 to $8.2 Billion in terms of value. The value of RFID market, including the automobile immobilization segment, will reach $9.8 Billion by 2013.
The RFID-related business activities will see strong annual growth rate over the medium term despite slowing global economy, primarily due to increasing demand for RFID applications in supply chain management, contactless payment-drive shipments, ticketing and ID documents. The growth in annual revenue of the industry will improve in the next five years (2012) over the mid-term due to high volume applications and high growth.
Moreover, the RFID technology is increasingly being used in the field of supply chain management. From the point of view of industrial use of RFID application, governments, transportation and various segments of manufacturing industry are excessively investing in this technology. Manufacturing industry’s end-to-end supply chain and logistics will also provide growth opportunities to RFID sector in coming years.
In addition, industry experts reveal that it is too early to say anything on the impact of global economic slowdown on the RFID market. The clear picture of RFID technology adoption and spending amidst economic slowdown will come by the end of the current year.
According to a Research Analyst at RNCOS, “With rising applications of the technology in some of the leading industries, the global RFID industry is likely to see strong growth in coming years, as the investments in RFID companies are made and industry is moving towards consolidation. However, the impact of current global economic crisis will not be immediate, though it is believed that the industry will not be affected much.”
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