Despite the depressed state of the economy, especially
in the crucial retail and automotive sectors, new data from ABI
Research has found that the
RFID market is not contracting but instead growing at a slow
but steady rate.
ABI believes positive signs are beginning to appear in the
market and forecasts in
Semi-Annual RFID Market Data that, the ailing
automotive market notwithstanding, the RFID market will
experience 11% growth between 2009 and 2010. Moreover, without what
ABI says is a deeply depressed automotive market, the growth rate
rises to almost 16%.
“Transponders, readers, software, and services are all showing
healthy growth,” commented ABI practice director Michael Liard.
“The most robust applications include contactless ticketing,
contactless payments (particularly in North America and Europe),
item-level tracking in fashion apparel and footwear, asset
management (not only corporate assets, but also returnable
transport items, tools/parts, and work-in-process), baggage
handling, real-time location systems (RTLS), and electronic
identification documents.”
Even though e-ID documents experienced some decline in
2008-2009, as a result of the winding down of China’s national ID
card programme says ABI, the researcher expects the sector to
rebound in 2010 due to increased numbers of passports being issued
by dozens of national governments. It identifies other high-profile
government e-ID initiatives such as border crossing cards,
RFID-enabled driver’s licenses, and electronic vehicle registration
(EVR) as further drivers for growth.
Again, despite the credit crunch, ABI expects retail RFID to
blossom thanks to a boom in contactless payment cards in the US,
followed soon afterwards by Europe. Asset tagging is predicted to
show strong uptake particularly in corporate finance and banking,
healthcare, and manufacturing environments, as well as in new areas
such as energy, utilities and gaming, ABI sees continuing expansion
in traditional rental asset management in areas such as library
books and media.
“Based on sales growth pipeline conversations, our end user
research, and RFID revenues reported to ABI, 2009 will likely not
be as bad as many thought,” adds Liard. “Key economic and industry
indicators point to stronger growth in 2010, especially the second
half.”