Explosive RFID-tag growth projected in next 5 years

Over 1.3-billion radio frequency identification (RFID) tags were produced in 2005, and by 2010, that figure will soar to 33 billion, reports market research firm In-Stat. The company says that production will vary widely by industry segment for several years, however. For example, RFID has been used in automotive keys since 1991, with 150 million units now in use, greatly exce...

By Staff April 1, 2006

Over 1.3-billion radio frequency identification (RFID) tags were produced in 2005, and by 2010, that figure will soar to 33 billion, reports market research firm In-Stat. The company says that production will vary widely by industry segment for several years, however. For example, RFID has been used in automotive keys since 1991, with 150 million units now in use, greatly exceeding other segments until recently.

“By far the biggest RFID segment in coming years will be supply chain management,” says Allen Nogee, In-Stat analyst. “This segment will account for the largest number of tags/labels from 2005 through 2010. Wal-Mart, the world’s largest retailer, has spurred this projected growth by mandating that its top 100 (and, later its top 300) suppliers begin to use RFID.”

A recent report by In-Stat found the following:

Spread and use of RFID in most sectors will be determined largely by cost, and cost of RFID tags and labels are dropping quickly;

Pharmaceutical companies are investigating using RFID tags to reduce counterfeiting and black market sales; and

Privacy issues have been raised concerning many uses of RFID—currently courts and governments around the world are determining related legal issues.

The $2,995 report, “RFID Tags And Chips: Opportunities in the Second Generation,” contains estimates and five-year forecasts for the number of tags produced and revenue earned from tag sales, broken down by segments. Analysis of market drivers and challenges is included. In-Stat, like Control Engineering , is part of Reed Business Information.

For more information visit: www.in-stat.com