RFID transponders approach the $1 billion mark

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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)

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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