The most recent research on the RFID market points to a 17 percent growth rate – from $7.9 billion to $9.2 billion – this year. This includes sales of tags, readers, software and services for active and passive products.

According to the report “RFID Forecasts, Players and Opportunities: 2014 – 2024,” this growth is attributed to diverse applications ranging from smart cards and public transportation tickets to tagging of retail apparel, passports and animals.

Some key report highlights include:

  • Passive UHF tags will see rapid growth, from a total of just over three billion to 3.9 billion.
  • Nearly 2.5 billion passive HF tags will be sold this year. Though this total is considerably lower, their average price is much higher, so the total dollar amount spent on HF tags will be 10 times more.
  • The highest volume sector for passive UHF systems is retail apparel, where RFID still penetrates only about seven percent of the total addressable market.
  • The value of RFID will nearly triple by 2020 and the total RFID market value will reach $30.2 billion by 2024.

RFID technology is predicted to play a major role in almost every industry including procurement and supply chain visibility.

How This Trend Evolved
From 2000 to 2010, RFID was overhyped and demand was not in sync with capacity. Once these issues were addressed, the industry entered a rapid growth cycle which continues today. Since the turn of the century, the push has been on to use passive RFID for supply chain improvement with a wide range of investment in new technologies toward this purpose.

Companies involved in supply chain management and related needs have about 800 RFID suppliers to choose from, but only eight have annual revenues that exceed $100 million. An additional handful generate sales between $20 million and $100 million. This is a sign that consolidation may accompany RFID growth.

To learn more about market intelligence and industry trends that affect your business and its future, contact the expert workforce team at Premium Staffing today.

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