RFID Market to See Some Serious Growth over the Next Five Years
According to ABI Research (News - Alert), the Radio-frequency identification (RFID) market is expected to generate at least $70 billion by the end of 2017. Last year alone the market pulled in $900 million, and that number is expected to increase by 20 percent year over year. Government, logistics, transportation and retail are among the most supportive of the RFID market and are projected to account for 60 percent of all revenue between now and 2017.
RFID technology has been around for upward of 50 years, but hasn't really seen any major growth until recent times due to its lack of standards and order. The auto industry has implemented this technology for quite some time – for things like keyless entry and other similar services, which accounted for a decent chunk of revenue. But with the slowing down of automobile production in recent times, and a few other game changers, the primary source of income for the RFID market will be retail itself.
“To date, the automotive sector has been a strong proponent of RFID, largely for immobilization and keyless entry. However, penetration is already high and it will be constrained by the slower rise in automotive production volumes. As a result, it will lose status as a leading RFID market due to other established markets for RFID retaining excellent potential for further adoption. Retail in particular is set to experience very strong growth; in fact, it will become the single largest RFID sector in 2015,” explained John Delvin, group director at ABI Research.
RFID technology could revolutionize the way we buy groceries, or anything else for that matter, considering its superiority over the conventional bar code method of checkout. Rather than the cashier actually picking up each item and scanning it themselves, the customer would be able to sit the bag of groceries in the checkout area and have every item scanned simultaneously – drastically speeding the entire process up, while eliminating the possibility of human error, for the most part.
This technology can essentially be implemented in any task involving information, like keeping track of items as they're transported, or even verifying important government documents. The RFID market is growing quicker than expected – as recent as 2010 it was projected to cross $250 million by 2016 – and now that projection has stretched all the way to $70 billion. It's going to be interesting to see how various industries are going to implement this technology to affect everyday tasks, such as shopping, checking UPS and FedEx shipments or even paying at a toll-plaza while taking a trip.
Edited by Jennifer Russell