Explosive RFID growth predicted

Over 1.3 billion radio frequency identification (RFID) tags were produced in 2005, but a report by the In-Stat market research group predicts that the figure will soar to 33 billion by 2010.

Linux Electrons says according to the report, the biggest RFID segment in coming years will be supply chain management, which will account for the largest number of tags from 2005 through 2010.

In-Stat says the spread and use of RFID in most sectors will be encouraged by the rapidly declining cost of RFID tags, which has already prompted pharmaceutical companies to investigating using the technology to reduce counterfeiting and black market sales.

The rapidly growing RFID tag market is set to achieve a total market value of $26.23 billion by 2016, reports Security Document World.

The forecast is based on a new study by research and consultancy firm IDTechEx that reveals that although the largest share of RFID shipments will be for high volume items, a disproportionately high percentage of revenue will be achieved through RFID deployments in e-passports.

IDTechEx says chips used in e-passports will generate revenue of $13 million in 2006, increasing to $120 million in 2010, when the total RFID tag market revenue is predicted to be around $12.35 billion, driven by legislation such as US laws for visa-waiver countries and China`s national ID card.

Hitachi has announced it has developed RFID-based technology applicable to nuclear power plant construction, reports JCN Network.

According to the report, Hitachi has developed an RFID tag system used in the processes of manufacturing and installing pipes, and an RFID-based cable connection navigation system.

RFID tags are attached to construction materials as they are delivered to ensure the traceability of the materials used. The navigation system uses RFID tags attached to both cable cores and end terminals to simplify cable connection work.

A US company has announced the creation of a program to enhance security in marine terminals at the ports of Los Angeles and Long Beach by improving the process of checking trucks and drivers using RFID, reports TMC Net.

According to the report, PierPASS will supply RFID tags for the TruckTag program to enable quick and secure check-in at port terminals. The tags, to be installed on about 10 000 trucks, are similar to those used by automated toll collection systems.

When a truck arrives at a terminal, an electronic reader at the gate will read the RFID tag automatically. Simultaneously, the truck driver will insert his driver`s license into a machine that will verify that the driver and truck have authorised business at the terminal.

Logistics companies are leading the way in piloting and deploying RFID in the European market, according to a new report from the International Data Corporation (IDC) market research firm.

The RFID Journal says the study found 23.2% of companies in the logistics sector are planning to pilot RFID, compared with 19.3% in manufacturing, 16.9% in process manufacturing and 14.2% in retail.

IDC says logistics companies see RFID as a way of improving internal processes and the technology has strong support from business leaders in this sector.