The world market in radio frequency identification (RFID) technology for retail generated revenues of more than $400m (£2,265m) last year and are expected to increase to more than 10 times that figure by 2011, new research has revealed.
A report by analysts Frost & Sullivan predicts that the market for the up-and-coming technology, which generated $400.2m revenues in 2004, will expand at a compound annual growth rate of 39.8% to reach nearly $4.17bn by 2011.
The report says that transition to an RFID-enabled supply chain in retail “is expected to take time”. North America accounts for nearly 40% of the total retail RFID market. But more than 70% of retailers with revenues of more than $5bn in the Europe and Middle East area are either involved in or considering investment in RFID, Frost & Sullivan said.
The report added that demand for RFID products and services in the rest of the world region “is clearly led by a few countries, such as Korea, China and Japan”, where demand is expected to increase.