Two recent studies illustrate the tremendous potential growth analysts are predicting for the RFID industry in the next few years.
First, IDTechEx has offered a new look at the entire industry, and the consulting company predicts that global demand for RFID will reach $5.3 billion this year and climb to $27 billion in 2018. The U.S. and China continue to spend the most on RFID, and the apparel business is implementing the technology at a particularly rapid pace.
The majority of spending on RFID relates to passive-tag systems and high-frequency and ultra-high frequency technologies, according to the research. “Real-Time Locating Systems (RTLS) are currently the hottest form of active RFID,” according to IDTechEx.
Meanwhile, Reportbuyer.com is offering a new report, “RFID in Pharmaceutical Manufacturing,” which takes an in-depth look at one corner of the RFID market. The report finds that the market for RFID applications in pharmaceuticals is conservatively estimated to reach $600 million by 2012.
The report shows that the adoption of RFID is driven by two key factors: a drop in the cost of RFID hardware (about 80% since 2000) and the promise of major savings. With the implementation of RFID, large manufacturers can save $17-55 million annually, while large distributors can save about $10 million. In addition, as much as 40% of inventory can be managed more efficiently.