Global RFID Market to Top $2 Billion in 2005: Marketstrat
Global RFID services revenues are expected to touch $350 million in 2005, according to a new report titled, “RFID Products, Applications and Services Worldwide – A Market Strategy Report.”
Fremont, CA (PRWEB) May 24, 2005 -- RFID technology has been growing steadily
in the past 3-4 years and is expected to grow rapidly in the 2006-2009 period,
before stabilizing and settling on a steady growth path. The year 2004 was
marked by excitement related to mandates, entry of new players, re-positioning
of some companies as “RFID focused,” new product and service launches,
technology advances, standards evolution, partnerships & alliances, mergers
& acquisitions, and general market awareness.
Visit http://www.marketstrat.com/rfid_report.htm for details on the
RFID report.
The worldwide market for RFID was $1.49 billion in 2004.
RFID hardware components (Readers, Tags, and ICs) accounted for 72% of the
market, followed by Services (19%) and Software (9%).
- Worldwide Reader
revenues were $290 million and Tag revenues $645 million in 2004.
- Revenues
for RFID Hardware (Tags, Readers, ICs) are expected to grow at a CAGR of 28%.
Growth in the 2006-2009 period will be high, followed by market
stabilization.
- Professional Services are expected to reach $850 million by
the year 2010. This segment includes service revenues related to business
consulting, pilots, full life cycle implementation, hardware engineering,
systems integration, and data analysis.
- The Access Control applications
segment is expected to account for $191 million in revenues in North America in
2005.
- In Europe, the Consumer Packaged Goods (CPG) vertical is expected to
account for $126 million in RFID-related spending in 2005.
- The Asia-Pacific
market for RFID software was $12.9 million in 2003, and is expected to grow to
$339 million by the end of 2012. Asia-Pacific is behind North America and Europe
in implementing supply chain management and execution systems and related
software. As the demand for RFID increases, companies in Asia-Pacific
(particularly Japan, Korea, China, India, and Australia) are expected to look
toward implementing comprehensive SCM and SCE solutions with embedded RFID
functionality.
The primary beneficiaries of the expected explosion in
this market are producers of RFID tags, reader systems, related software,
shipping labels, label printers, inks, and antennas. Close behind are leading
companies providing software and services for the supply chain function and for
the warehouse and transportation industries. Opportunities also abound for
transportation and logistics providers – both to improve their own efficiency as
well as customer efficiencies. Since RFID does not require line of sight,
shipping companies can significantly reduce the time, space, and people needed
for inventory handling.
Marketstrat’s latest research finds that the
rapid growth rates predicted in 2004 (based on Wal-Mart compliance deadline of
January 2005) did not come true. As companies get deeper into RFID planning and
analyze potential business process changes, and with the introduction of Gen2
products, the nature and scope of projects will change, with a long-term
roadmap. This is a good thing for the RFID ecosystem as a whole, and helps avoid
future implosion from poorly planned and implemented solutions.
Despite
the rapid growth projected, there are restraints/challenges such as data
ownership and partner data integration; data security and privacy;
implementation costs; integrating data across multiple facilities; managing
large volumes of data; need for business process realignment and privacy issues.
Marketstrat’s two-volume report provides:
- Analysis of current and
emerging applications, verticals, technology, evolving standards, competitive
frameworks, success strategies, market drivers and restraints.
-
Estimates/forecasts for the years 2003-2012 by Product Category (separately for
Hardware, Software, and Services); by Application; and by Vertical, for each
geographic region.
- Estimates/forecasts for North America, Europe,
Asia-Pacific, and Rest of World.
- Estimates/forecasts for the following
applications: Access Control, Animal Tracking, Asset Management, Baggage
Control, Point-of-Sale, Supply Chain Management, Tire Tracking, Vehicle
Identification, Other.
- Estimates/forecasts for the following verticals:
Automotive, CPG, Defense, Healthcare/Pharmaceutical, Homeland Security, Retail,
Transportation, Other.
- Profiles of 525 RFID vendors worldwide. Vendors
profiled include makers of components (chips, tags, readers), printers,
software, systems integrators, and other service providers.
For
additional information on this newly released report (including full table of
contents), visit www.marketstrat.com.
About Marketstrat,
Inc.:
Marketstrat provides strategy support to companies in the Life
Sciences/Healthcare and High-Tech verticals, through published market reports
and related consulting services. Marketstrat’s reports have global market
coverage, with crisp and concise market analyses, presentation of key findings,
recommendations, 5-7 year estimates/forecasts, competitive strategies, purchase
considerations, emerging business models, and vendor
profiles.
Contact:
Sudheer Yerabati
510-996-7373
e-mail
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Marketstrat, Inc.
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Source : http://www.prweb.com/releases/2005/5/prweb242557.htm