RFID Annual Market Overview

LF, HF, UHF, and Microwave RFID Applications, Verticals and Markets

This study provides a comprehensive, detailed overview of radio frequency identification (RFID) technologies, applications, and addressable vertical markets. It is intended to provide an actionable outline of the broad RFID market.

The RFID Annual Market Overview is designed to ensure that ABI Research clients have a deep understanding of market size, growth, key trends, competitive considerations, and overall market dynamics. Following a panoramic introduction, other sections cover the technology, the applications, the vertical markets, the high-level competitive landscape, and a summary of our annual RFID end-user research. Forecasts are also provided for RFID transponders, readers, software, and integration services. Forecast segmentation is granular and varies by product category, including unit shipments and revenues by region, application, and vertical market.

What Questions Does This Report Answer?

  • What are the core drivers of overall RFID market growth – today and tomorrow?
  • How will the RFID market evolve and what is important to this evolution?
  • How are RFID applications differentiated from one another and what are the major initiatives and drivers within each area?
  • What RFID technologies and applications apply to specific vertical markets and what are the key considerations within each area?
  • How is the RFID market expected to grow through 2014 by technology, application, and vertical market?
  • What kinds of companies constitute the RFID ecosystem, and how has market consolidation (mergers and acquisitions) and investment impacted the competitive landscape?
  • What are the key end-user RFID adoption drivers and which applications are being supported, evaluated, and installed?
  • Why are non-users not using RFID technology?

Who Needs This Report?

  • RFID equipment manufacturers (ICs, inlays, tags, antennas, modules, readers)
  • Software developers
  • Integration services providers
  • Vendors of technologies complementary to RFID components
  • RFID start-ups
  • Governments
  • End-users requiring a broad understanding of the RFID marketplace
  • Investors (investment banks, venture capital firms, fund managers)
  • Developers seeking opportunity assessment across RFID markets

Table of Contents


Section 1.
EXECUTIVE SUMMARY
1.1. Introduction
1.2. Market Snapshot
1.3. Market Size Overview
1.4. Economic FUD. (Fear, Uncertainty, and Doubt) Hits RFID
1.5. Snapshot of Key Takeaways from 2008

Section 2.
MARKET ISSUES
2.1. Introduction
2.2. Open-Loop Asks Closed-Loop Applications: “Today for you, tomorrow for me?”
2.3. The Top Eight Key Trends in 2008
2.3.1. Retail Continues its Interest in Item-Level RFID
2.3.2. E-Pedigree Goes from Potential Boom to Bust
2.3.3. Nothing Passive about the Active RFID Space
2.3.4. The Economy and RFID
2.3.5. Consolidation: Alleviating the “Value Chain Pain”
2.3.6. Mobility Meets RFID
2.3.6.1. Forklift Solutions
2.3.7. Passive UHF Application Invasion Solving Compliance Reliance
2.3.8. Contactless Continues to Catch on, while Contactless Security Presses on

Section 3.
COMPETITIVE LANDSCAPE
3.1. Introduction
3.2. Today’s RFID Value Chain
3.3. Industry Consolidation/Mergers & Acquisitions in 2008
3.4. More Consolidation Ahead?
3.4.1. Software Space Ripe for Consolidation
3.5. RFID Investment
3.6. The Modernization of Partner-Based End-to-End RFID Solutions
3.6.1. Introducing Holistic Partner Fusion: “RFID Partnerships 3.0”
3.6.1.1. Resetting the RFID Partner Ecosystem
3.6.1.2. Why Partner Fusion Matters
3.7. Swimming through the RFID Distribution Channel
3.8. Building RFID Best Practices: Collaborating on Messaging
3.8.1. Best Practice #1: Boast Customer Validation via Joint References
3.8.2. Best Practice #2: Target Solution Messaging via Co-Authored Communication
3.8.3. Best Practice #3: Embrace the Three W’s of Market Messaging
3.8.4. Best Practice #4: Communicate the Value Proposition

Section 4.
MARKET SEGMENTATION
4.1. ABI Research RFID Vertical Market Segmentation
4.2. ABI Research RFID Primary Application Market Segmentation
4.2.1. ABI Research RFID Sub-Application Market Segmentation
4.3. ABI Research RFID Research Compass

Section 5.
MARKET SIZE AND FORECASTS
5.1. Market Size Overview
5.1.1. Regional Market Sizing, Share Contribution, and Growth
5.1.2. Vertical Market Sizing, Share Contribution, and Growth
5.1.3. Primary Application Market Sizing, Share Contribution, and Growth
5.2. RFID Systems by Frequency
5.3. Active versus Passive Analysis
5.4. RFID Software & Services
5.4.1. It Starts with a Platform
5.4.2. Living on the “Edge” with Middleware
5.4.3. Additional Software Considerations
5.4.4. Software and Service by the Numbers
5.5. Primary Verticals
5.5.1. Aerospace and Defense
5.5.1.1. US DoD RFID III Contract Selects Four Vendors
5.5.2. Automotive
5.5.3. Diverse Manufacturing
5.5.4. Transportation and Logistics
5.5.4.1. RFID Goes Postal
5.5.5. Government
5.5.6. Retail CPG
5.5.7. Healthcare and Life Sciences
5.5.7.1. Pharmaceuticals Tracking
5.5.7.2. Asset Tracking
5.5.8. Retail In-Store
5.5.8.1. Item-Level Tagging on the Retail Sales Floor
5.5.8.1.1. Out of Stocks
5.5.8.1.2. Shrinkage
5.5.8.1.3. Inventory
5.5.8.1.4. In-Store Replenishment
5.5.8.1.5. Customer Service
5.5.8.1.6. Interactive Retail
5.5.8.1.7. At the Point-of-Sale
5.5.8.1.8. Markdowns
5.5.8.1.9. Shelf Edge Solutions
5.5.9. Commercial Services
5.5.10. Others
5.6. Primary Applications
5.6.1. Access Control
5.6.2. Animal Tracking
5.6.3. Automobile Immobilization
5.6.4. Asset Management
5.6.4.1. WIP Tracking
5.6.4.1.1. Active RFID’s Role
5.6.4.2. Fleet Management
5.6.4.3. Yard Management
5.6.5. RTLS
5.6.5.1. Wi-Fi –Based RTLS
5.6.5.2. UWB-Based RTLS and Other Alternatives
5.6.6. AVI
5.6.6.1. Electronic Toll Collection
5.6.6.2. Electronic Vehicle Registration
5.6.7. Baggage Handling
5.6.8. Contactless Payments
5.6.9. e-ID/ID Documents Market
5.6.9.1. Border Crossing Cards and REAL ID Face Delays
5.6.10. Supply Chain Management
5.6.10.1. Retailer Compliance
5.6.10.2. Sam’s Club Letter to Suppliers Dated January 15, 2009
5.6.10.3. Food Traceability at METRO
5.6.10.4. US DoD Sticks with RFID
5.6.10.5. Item-Level Tracking Considerations
5.6.11. Cargo Tracking and Security
5.7. Regional Markets: US-Centric View of RFID No Longer Exists

Section 6.
END-USER ANALYSIS
6.1. Introduction
6.2. Usage Plans/RFID History
6.3. Primary Adoption Drivers
6.4. Perceived Value Propositions
6.5. End-User Application Definitions for Survey
6.6. Applications Supported
6.7. What Is Being Tagged?
6.8. Operating Frequencies
6.9. ROI Timeframe Expectations
6.10. Reasons for Non-Adoption

Section 7.
ACRONYMS
SOURCES AND METHODOLOGY
NOTES



Tables
  • RFID Systems Revenue by Product Category, World Market Forecasts: 2008 to 2014
  • RFID Systems Revenue by Primary Application - Traditional vs. Modernizing Applications, World Market Forecasts: 2008 to 2014
  • Market Definitions & Segmentation, ABI Research Vertical Market Segmentation
  • Market Definitions & Segmentation, ABI Research Primary Applications within Vertical Markets
  • Market Definitions & Segmentation, ABI Research Primary Application Segmentation (Sub-Applications)
  • Market Definitions & Segmentation, ABI Research Regional Market Segmentation
  • RFID Systems Revenue by Product Category, World Market Forecasts: 2008 to 2014
  • RFID Systems Revenue by Regional Market, World Market Forecasts: 2008 to 2014
  • RFID Systems Revenue by Vertical Market, World Market Forecasts: 2008 to 2014
  • RFID Systems Revenue by Primary Application, World Market Forecasts: 2008 to 2014
  • Transponder IC Revenue by Operating Frequency, World Market Forecasts: 2008 to 2014
  • Transponder IC Shipments by Operating Frequency, World Market Forecasts: 2008 to 2014
  • Transponder Revenue by Operating Frequency, World Market Forecasts: 2008 to 2014
  • Transponder Shipments by Operating Frequency, World Market Forecasts: 2008 to 2014
  • Transponder Revenue by Vertical Market, World Market Forecasts: 2008 to 2014
  • Transponder Shipments by Vertical Market, World Market Forecasts: 2008 to 2014
  • Transponder Revenue by Primary Application, World Market Forecasts: 2008 to 2014
  • Transponder Shipments by Primary Application, World Market Forecasts: 2008 to 2014
  • Transponder Revenue by Region, World Market Forecasts: 2008 to 2014
  • Transponder Shipments by Region, World Market Forecasts: 2008 to 2014
  • Reader Revenue by Operating Frequency, World Market Forecasts: 2008 to 2014
  • Reader Shipments by Operating Frequency, World Market Forecasts: 2008 to 2014
  • Reader Revenue by Vertical Market, World Market Forecasts: 2008 to 2014
  • Reader Shipments by Vertical Market, World Market Forecasts: 2008 to 2014
  • Reader Revenue by Primary Application, World Market Forecasts: 2008 to 2014
  • Reader Shipments by Primary Application, World Market Forecasts: 2008 to 2014
  • Reader Revenue by Region, World Market Forecasts: 2008 to 2014
  • Reader Shipments by Region, World Market Forecasts: 2008 to 2014
  • Reader Revenue by Form Factor, World Market Forecasts: 2008 to 2014
  • Reader Shipments by Form Factor, World Market Forecasts: 2008 to 2014
  • RFID Software Revenue by Region, World Market Forecasts: 2008 to 2014
  • RFID Software Revenue by Vertical Market, World Market Forecasts: 2008 to 2014
  • RFID Software Revenue by Primary Application, World Market Forecasts: 2008 to 2014
  • RFID Services Revenue by Region, World Market Forecasts: 2008 to 2014
  • RFID Services Revenue by Vertical Market, World Market Forecasts: 2008 to 2014
  • RFID Services Revenue by Primary Application, World Market Forecasts: 2008 to 2014
  • Primary RFID System Adoption Drivers, Most Important Adoption Drivers among End-User Respondents by RFID History/Usage (Ranking List by Average Score)
  • High-Level Benefits/Value Propositions Impacting Decision to Adopt RFID (Level of Importance Average Ratings), End-User Respondent Average Ratings by RFID History/Usage, Excluding Non-Users and Non-Evaluators (1 = Not Important; 5 = Extremely Important)
  • High-Level Benefits/Value Propositions Impacting Decision to Adopt RFID (Level of Importance Rankings), Most Important High-Level Benefits/Value Propositions Impacting Decision to Adopt among End-User Respondents by RFID History/Usage (Ranking List by Average Score)"
  • RFID Applications Being Supported, Piloted, and/or Installed, Percent of Respondents by RFID Usage/History, Excluding Non-Users and Non-Evaluators

Charts
  • RFID Systems Revenue Contribution Percentage by Product Category - 2008 vs. 2014, Percent of Total Revenues, Excluding Automobile Immobilization
  • Year-over-Year RFID Revenue Growth by Product Category , Annual Revenue Growth Rate, Excluding Automobile Immobilization
  • RFID Systems Revenue Contribution Percentage by Region - 2008 vs. 2014, Percent of Total Revenues, Excluding Automobile Immobilization
  • Year-over-Year RFID Revenue Growth by Region, Annual Revenue Growth Rate, Excluding Automobile Immobilization
  • Retail In-Store, (non-military), non-CPG, Healthcare, Percent of Total Revenues, Excluding Automobile Immobilization
  • Retail In-Store, (non-military), non-CPG, Healthcare, Annual Revenue Growth Rate, Excluding Automobile Immobilization
  • RFID Systems Revenue Contribution Percentage by Primary Application - 2008 vs. 2014, Percent of Total Revenues, Excluding Automobile Immobilization
  • Year-over-Year RFID Revenue Growth by Primary Application , Annual Revenue Growth Rate, Excluding Automobile Immobilization
  • End-User Survey Respondents Segmented by RFID History/Usage, Percent of Respondents, Excluding Non-Users and Non-Evaluators
  • RFID Applications Being Supported, Piloted, and/or Installed, Percent of Respondents, Excluding Non-Users and Non-Evaluators
  • RFID Applications Being Supported, Piloted, and/or Installed, Percent of Respondents with an RFID System Installed
  • RFID Applications Being Supported, Piloted, and/or Installed, Percent of Respondents with an RFID System Installed AND New Pilot/Test for Additional Application(s)
  • RFID Applications Being Supported, Piloted, and/or Installed, Percent of Respondents Currently Piloting, Testing, or Evaluating RFID
  • RFID System Operating Frequency Being Used, Percent of Respondents by RFID Usage/History, Excluding Non-Users and Non-Evaluators
  • Target ROI Timeframe Requirement for RFID Systems, Percent of Respondents by RFID Usage/History, Excluding Non-Users and Non-Evaluators
  • Primary Reason for Not Adopting RFID, Percent of Non-User Respondents (Combined)

Figures
  • RFID Offering Value Chain
  • Multipoint Approach, RFID Market Research and Analysis