RFID to become $70.5bn market

The market for radio frequency identification (RFID) transponders, readers, software and services will generate $70.5 billion from 2012 to the end of 2017, Market Watch reports.

This is according to ABI Research, which found the market was boosted by a growth of $900 million in 2011 and is expected to grow 20% year-on-year per annum.

Government, retail, transportation and logistics have been identified as the most valuable sectors, accounting for 60% of accumulated revenue over the next five years, indicates the research firm.

Electronic passports, which use an embedded RFID tag for authentication and to fight forgery, are a major driver of RFID growth, Smart Planet states.

ABI Research claims 96 different countries, including the US, are now embedding RFID into passports. In addition, the transportation and logistics industries also consume a big chunk of the RFID pie, as tags are used to track valuable assets.

ABI Research group director John Devlin notes the automotive sector has been a strong RFID driver, largely for immobilisation and keyless entry, EE Times India says.

However, RFID penetration is already high and it will be constrained by the slower rise in automotive production volumes, according to the firm. As a result, the firm says the automotive industry will lose status as a leading RFID market due to other established markets for RFID retaining potential for further adoption.