FMN | November 12th, 2018

Global RFID Market Reaches $11 Billion

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IDTechEx Research has released its latest RFID re- port titled RFID Forecasts, Players and Opportuni- ties 2018-2028 . Based over 18 years of experience assessing the RFID market, and with direct input from vendors across the supply chain, the report provides detailed historic sales going back to 2005 to forecasts through to 2028, segmented by application for each key fre- quency for passive RFID in addition to assessing the RFID reader and active RFID market size. In total, IDTechEx Research finds that the RFID in- dustry will be a business worth $11 Billion in 2018. Of that, passive RFID tags make up $5.01 Billion and RFID readers $2.85 Billion. Wide Variation The numbers of units sold and their average sales price vary across the range of choices. In 2018, IDTechEx expects that 11.5 billion RAIN RFID labels (RFID operating at ~900MHz) will be sold, versus 4.0 billion HF devices (RFID operating at 13.56MHz). In 2018, use of RAIN RFID on apparel will reach about 10 percent of the total addressable market (TAM) of tagging retail apparel – estimated to be 80 billion units per year. By 2023, IDTechEx forecast the number of tagged apparel items will grow to 21 bil- lion units. Particularly strong growth is expected for tag- ging airline baggage. This year the key body, IATA, announced that they are developing an RFID stan- dard for baggage tagging with the aim of airlines rolling out RFID in 2020. Delta Airlines is already an early mover.The market has a TAM of 3.6 billion tags a year. Global Projects RAIN RFID is deployed across many industries in small volumes for each project but globally these add up to increasingly significant volume – IDTechEx finds 2 billion RAIN RFID tags will be used for asset tracking in 2018 alone across many industries. HF RFID is established for payments, secure access and transit applications. The tag ASP is much higher than RAIN RFID due to the security required in those applications. In 2018, 2.15 Billion contactless cards will be sold, with growth coming from contactless payment cards in addition to contactless transit cards. The second largest market for HF tags by value will be those tags used in passports — a market of $442 million for the tags alone in 2018.

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