ABI Research: Some parts of RFID market seeing 20% growth through 2014

A new study released Friday by ABI Research predicts that the global RFID market will grow in double digits until 2014, at which time the market will exceed $8.25 billion. Some of the hottest sectors will grow at close to 20 percent annually.

In ABI’s Semi-Annual RFID Market Data study, Mike Liard, RFID practice director for ABI, says that the market will reach $4.47 billion (without automobile immobilization) this year, which represents a 15 percent increase over 2009 predictions.

“Not all segments of the RFID market are created equal,” says Liard. “To 2014, the greatest growth will be found in RTLS (Real Time Location Systems), baggage handling, animal ID, and item-level tagging in fashion apparel and retail.”

Other key opportunities include electronic vehicle registration, continued penetration of RFID-enabled e-ID/e-government documents (including health cards), and continued expansion of library systems. Liard expects slow but continued progress in retail CPG supply chain management, and multiple flavors of asset management that leverage RFID technologies, including specialty passive UHF tags.

“Modernizing” applications for RFID will grow more rapidly than their “traditional” predecessors such as access control, automobile immobilization, electronic toll collection and others that account for slightly more than 61 percent of the market today. While those traditional apps are expected to grow six percent annually for the next four years, modernizing applications like animal ID, asset management, baggage handling, cargo tracking and security, POS-contactless payment, RTLS, supply chain management, and ticketing are forecast to grow roughly 19 percent.

This year’s $4.47 billion figure does not include automobile immobilization, nor do any of the study predictions. Automobile immobilization is the largest single RFID application and has a low growth rate which impacts overall market size, so it is often excluded when examining market trends.