Total RFID Revenue to Exceed $5.6 Billion in 2009
New report from ABI Research says the RFID market is "worthy of cautious optimism."
Total revenue earned from RFID (radio frequency identification) transponders, readers, software, and services will amount to more than $5.6 billion in 2009, according to RFID Annual Market Overview, a new market study from ABI Research. "The recession has had an undeniable effect on deployment plans," notes practice director Michael Liard, "but despite some project deferrals and terminations, there will be market growth, albeit fragmented."
In the near term, the RFID market is worthy of cautious optimism, especially in the passive UHF segment. "Although the RFID market faces economic challenges, ABI Research would not characterize it as being in a state of despair or turmoil," says Liard. "We do not anticipate near-term market contraction based on economic conditions; however, anticipated growth rates may not be as robust as in previous years."
The research firm believes that under current conditions RFID technology would be best positioned as a cost-saving solution, and encourages RFID vendors and their channel partners to play a more proactive role in communicating the value proposition and total cost of ownership of RFID both now and after the economic crisis abates.
The firm cautions, however, that the impact of wider economic forces is not easily judged this early on, and expects to be in a better position to determine how the economy is affecting RFID adoption and spending in the second half of 2009.
The full ABI Research report provides a more detailed overview of RFID technologies, applications, and vertical markets. It also includes forecasts for RFID transponders, readers, software, and integration services.