RFID Tag Market to Approach $3 B in 2009
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. Worldwide revenues from RFID tags will jump from $300 M in 2004 to $2.8 B 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 the 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 also found that the wide spread 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, 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 forecast, is consumer products, even though this market is one of the most privacy-sensitive areas. The report, “RFID Tags and Chips: Changing the World for Less Than the Price of a Cup of Coffee,” 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, carton/supply chain security, 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.