Global demand for RFID tags exceeded $1.9 billion in 2010, a value that is expected to more than triple within the next five years. Unit volumes are anticipated to increase more than 10-fold during the same forecast period, growing from 4.3 billion tags in 2010 to more than 47 billion by 2015.

According to VDC Research, the trends behind this market growth include, but are not limited to:

• Scaling of existing projects in a diversity of markets and applications
• Decreased pilot-to-deployment time and an increased level of commitment
• A deeper understanding of the technology’s value propositions and limitations
• More attractive price/performance levels and simplified investment justification
• Deep integration and continued convergence with legacy systems
• A continued push for adoption throughout value chains

Although approximately 50 percent of all global transponder revenues are derived from two verticals — transportation and government (primary applications are supply chain, asset tracking, security/access control and ID) — the rapid evolution and scaling within the retail sector is expected to dramatically alter the vertical landscape.

Retail accounted for less than 10 percent of all tag revenues in 2010; however, by 2015, the retail sector is expected to represent nearly 30 percent of total global revenues. Click here to read RFID 24-’s previous coverage on RFID and retail.

Click here to read the full VDC executive summary.