Global RFID market to reach $5.3bn in 2008

Global RFID market to reach $5.3bn in 2008

Excluding vehicle immobilisation, the market is expected to experience a 15% compound annual growth rate (CAGR) from 2008 through 2013, to reach approximately $8.2 billion in 2013, or $9.8 billion including vehicle immobilisation.

ABI research director Michael Liard says: "To a casual observer, the five-year CAGR for the RFID market as a whole may not seem impressive at face value. However, ABI Research notes that traditional applications with single-digit and low-double digit five-year compound annual growth rates continue to dominate current and near-term RFID market revenue share. In terms of overall market growth, if these ‘traditional' applications – access control, automatic vehicle identification, automobile immobilisation, and ID documents – are removed from the equation, the 2008-2013 CAGR for total RFID systems revenue exceeds 20%."

ABI believes it's still too early to tell what impact the state of the global economy will have on the RFID market. Investments are still being made in RFID companies, consolidation continues, and contracts are being awarded.

"We understand that the impact of economic events is often not immediate, however, and we expect to be in a better position to gauge how the economy is impacting RFID adoption and spending at the end of the year," says Laird, adding that it often takes three to six months for any economic impact to be felt, and when asked about a potential slowdown, many vendors and users indicated no real change in RFID projects as yet.


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