Date: 23/11/2010

CAGR of 74% in passive UHF transponders expected from 2010 to 2014, predicts ABI

ABI Research sees continuing strong growth potential in RFID markets worldwide. It forecasts a total market size of about $4.6 billion by the end of 2010 for RFID systems (hardware, software, and services). The total reaches $5.5 billion when hardware-only shipments to support automobile immobilization are included.

ABI states by the end of 2011, global RFID system markets (excluding immobilization) are expected to amount to almost $5.3 billion, a year-over-year growth in excess of 16%. RFID systems software revenue will outpace that from services, transponders and readers. When automobile immobilization is included the total market size is approximately $6.2 billion, representing 13% growth next year.

"Item-level apparel tracking is probably the biggest area to watch in 2010-2011 and beyond," says Michael Liard of ABI "especially due to Wal-Mart's 'jeans and basics' tagging announcement." JCPenney, Marks & Spencer, and American Apparel among others remain key retailers to watch given their existing programs and deployment plans.

According to Liard, "ABI Research expects to see a CAGR of 74% in passive UHF transponders from 2010 to 2014 thanks to burgeoning demand within key applications such as retail apparel tagging and asset management."