RFID transponders approach the $1 billion mark

The global market for RFID transponders approached $1 billion in 2006 and is expected to grow at a compounded annual rate (CAGR) of 24% through 2008. Transponder revenue distribution was relatively uniform among the regional markets – EMEA (1) accounted for slightly more than 35% of total revenues and the remaining market was, for the most part, equally divided between the Americas and Asia-Pacific regions. However, this revenue distribution is not expected to continue. Over the next 3-5 years, transponder revenues within the Americas and Asia-Pacific are anticipated to outpace those within the EMEA region.



Global Shipments of RFID Transponders (Millions of Dollars)
Global Shipments of RFID Transponders (Millions of Dollars)
More than 1.2 billion RFID transponders were shipped in 2006, a figure expected to nearly double by 2008. Unit shipment distribution was drastically different than the revenue splits, with the Asia-Pacific region accounting approximately 40% of total transponder shipments. The reason behind the differences in the unit and revenue distribution lies in the types of transponders being used within each region. For example, the Asia-Pacific region primarily consumed lower-priced HF and LF (2) transponders, while the EMEA region used more expensive smartcards. As source tagging within the Asia-Pacific region becomes more pervasive, the use of lower-priced tags within the region is expected to explode. This trend has led VDC to predict that the Asia-Pacific region will account for nearly 50% of all transponder unit shipments by 2008.

(1) : EMEA : Europe, the Middle East and Africa
(2) : HF : High Frequency, LF : Low Frequency

For more information, visit the website of VDC (Venture Development Corporation): www.vdc-corp.com

Mercredi 12 Septembre 2007


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