RFID: Technology, Applications, and Global Markets

Report Highlights

• BCC estimates the total global market for RFID technologies at about $5.9 billion in 2009 and $6.4 billion in 2010. By 2015, BCC expects the market to grow to $11.3 billion, with a compound annual growth rate (CAGR) of 12.1% over the next 5 years.
  
• Tags, readers, and other hardware are worth $4.9 billion in 2010. Hardware expenditures are growing more slowly than software and integration services and are expected to represent a smaller share (75%) of the RFID market by 2015. This sector will still experience an 11.5% compound annual growth rate (CAGR) through the forecast period, reaching a value of nearly $8.5 billion. 
  
• Software and other integration services are worth nearly $1.5 billion in 2010. This sector is expected to reach $2.8 billion in 2015, a 14% compound annual growth rate (CAGR).

INTRODUCTION

BACKGROUND

This report is an update of a BCC report that was published in 2006.

STUDY GOALS AND OBJECTIVES

This report is intended to satisfy the need for an objective, quantitative analysis that addresses emerging RFID (radio frequency identification) technologies in the context of the overall RFID market. More specific objectives are to:

• Identify the principal new RFID technologies and applications, including those that are expected to be commercialized in the 2010 to 2015 timeframe
• Quantify and analyze sales of each new technology in 2009
• Identify and evaluate the impact of economic, business, demographic, technological, legal/regulatory, and other factors that will drive the future market for each of these new technologies
• Forecast future (2010 to 2015) sales of each technology, including new products and/or applications
• Analyze the importance of the new technologies to the RFID industry as a whole
• Analyze the economic, business, regulatory, environmental, health, and other macro issues raised by projected trends in the size and structure of the RFID market.

INTENDED AUDIENCE

The report has been written for the entire RFID interest community, including:

• Manufacturers, distributors, and vendors of RFID equipment
• RFID-oriented consultants and systems integrators
• Regulatory, health, environmental, and other government agencies concerned with RFID Researchers
• The financial and analyst community.

SCOPE OF REPORT

This report is an analytical business tool whose primary purpose is to describe and analyze the size and dynamics of the global market for RFID products and applications. Major sections of the report cover the following topics:

• Summary of findings and conclusions
• Overview of the RFID industry
• RFID technologies, applications, and end users
• Market size and segmentation, 2009
• Market drivers and constraints
• Detailed market projections by market segment, 2010–2015
• Regulatory, environmental, and health issues
• Intellectual property (patent analysis).

INFORMATION SOURCES AND METHODOLOGY

The findings and conclusions of this report are based on information gathered from all types of participants in the RFID market, including manufacturers, distributors, end users, consultants, and integrators. Interview data were combined with information gathered through an extensive review of secondary sources such as trade publications, trade associations, company literature, and online databases to produce the baseline market estimates contained in this report.

With 2009 as a baseline, market projections for each market segment were developed for 2010–2015. The projections are based on a combination of a consensus among the primary contacts combined with BCC’s understanding of the key market drivers and their impact from a historical and analytical perspective. The analytical methodologies used to generate the market estimates are described in detail, to enable the reader to evaluate their validity and substitute other assumptions and values, if desired.

All dollar projections presented in this report are in 2009 constant dollars.

ANALYST CREDENTIALS

Andrew McWilliams, the author of this report, is a partner in the Boston-based international technology and marketing consulting firm, 43rd Parallel LLC. He is also the author of numerous other BCC Research studies, including several that analyze various RFID products and applications, such as IFT038A Global Markets for Warehouse Management Systems and Related Services; SAS011B Global Mobile Positioning Markets: Commercial, Military, Homeland Defense;  IFT057A  Emerging RF Technologies; IFT066A Printed Electronics: The Global Market; IAS024B The Global Market for Advanced Airport Technologies; and HLC066A Medical Automation Technologies, Products, Markets.

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DISCLAIMER

The information developed in this report is intended to be as reliable as possible at the time of publication and of a professional nature.  This information does not constitute managerial, legal, or accounting advice; nor should it serve as a corporate policy guide, laboratory manual, or an endorsement of any product, as much of the information is speculative in nature.  The author assumes no responsibility for any loss or damage that might result from reliance on the reported information or its use.