Worldwide revenues from RFID tags will jump from $300 million in 2004 to $2.8 billion in 2009, according to a report by market analyst firm In-Stat. 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 cartons/supply chain," said 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 has also found that:
- The widespread adoption of the technology will take a few years to ramp up, as tags are still relatively expensive, ranging from a low of around 15 cents to a high of over $100.
- Privacy issues remain a concern for many applications of RFID, 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 the 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 uses of RFID, looks at the costs of making the tags, and examines issues, including privacy, that can potentially slow its momentum.
