According to the report by Infiniti Research on Global RFID Semiconductor Market in the Apparel Industry 2012-2016, a major driving force in the RFID Apparel market is the mandates made by major retail giants that require their suppliers to use radio-frequency identification (RFID) technology, mainly consisting of RFID devices. Many of the major retail giants such as Wal-Mart have instructed their suppliers to use RFID tags on every pallet that they supply.
Analysts forecast the Global RFID Semiconductor market in the Apparel industry to grow at a compound annual growth rate of approximately 20% over the period between 2012 and 2016. Mandates made by retail giants that require suppliers to use RFID is one of the key factors contributing to this market growth. The Global RFID Semiconductor market in the Apparel industry has therefore been witnessing increasing research and development (R&D) spending. However, the high initial investment required to deploy RFID devices could pose a challenge to the growth of this market.
Commenting on the report, an analyst from Infiniti Research Limted said “In recent years, the vendors in the Global RFID Semiconductor market in the Apparel industry are increasing their R&D spending on RFID semiconductors. Leading vendors such as NXP Semiconductors, Impinj, Alien Technology, and EM Microelectronics have increased their investment in the R&D of RFID semiconductors. Moreover, they are partnering with software and hardware suppliers and value-added re-sellers for making significant investments in R&D. Further, the focus on R&D is helping vendors to introduce RFIDs that are inexpensive and more effective. Thus, high accuracy, lower price, and better integration ability is leading to the faster adoption of RFID solutions among major end-users in the market.”
Further, the report states that one of the major challenges in this market is the requirement for high initial investment for the deployment of RFIDs. The high cost is a major barrier that prevents the adoption of RFIDs by small and medium sized apparel retailers globally.
Some key questions answered in this report: What will the market size be in 2016 and what will be the growth rate? What are key market trends? What is driving this market? What are the challenges to market growth? Who are the key vendors in this market space? What are the market opportunities and threats faced by key vendors? What are the strengths and weaknesses of each of these key vendors? For more information visit research and markets.