(RFIDWorld.ca) According to ABI Research it is expected that $70.5 billion will be generated between 2012 and 2017 from sales of RFID readers, transponders, software and services. Sixty percent of the accumulated revenue over the next five years will be generated from government, retail, transportation and logistics. These four sectors have been identified by ABI as the most valuable sectors for RFID growth potential. The market is expected to grow 20 percent year over year per annum.
John Devlin, ABI Group Director, stated that up to date the automobile sector was promising for RFID growth especially for immobilization and keyless entry but due to slower rises in automotive production volumes, the sector will lose its leading role in the RFID market. Other established markets have retained excellent potential for advanced adoption but the automobile industry is already deeply penetrated with RFID technology so there is not as much room for growth. Retail is the single most prominent sector, which will grow exponentially by 2015 in the RFID market.
The ordering process will become more advanced, merchandize will be better shelved and it will be less likely to get lost. These improvements as a result of RFID technology are what will make retail the largest RFID sector in the years to come. Customer –facing services will also be driven by RFID with NFC for product information and smart marketing.
The government sector is in high demand of RFID technology because of its drive for increased efficiency in applications such as fleet management, asset tracking, personnel location and security.
Even transportation and logistics require the ability to accurately track and trace items and goods. Smarter public transit systems require contactless ticketing to improve efficiency and cost levels.