Revenue growth for RFID systems has been bolstered by the appearance of RFID technology in identification documents like the U.S. passport, as well as in access control systems, retail tagging and other applications.
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Research firm ABI Research paints a rosy picture for the radio frequency identification (RFID) systems market in 2011. The firm today announced that revenue for RFID systems is expected to exceed $6 billion next year, primarily driven by access control, automobile immobilization, electronic toll collection and identification documents (e-ID). ABI indicated also that the market will be boosted also by modernization efforts to use RFID for animal identification, asset management, baggage handling, cargo tracking and security, contactless payment and ticketing, real-time location systems (RTLS) and supply chain management.
The researchers said this predicted growth is a turn-around from 2008 and 2009, when the RFID industry saw "reported reductions to marketing expenditures, staff, and on-hand inventory levels.". But in late 2009, ABI Research's RFID practice director Michael Liard said he saw "forward momentum for both RFID solution providers and the user community," and "that trend continues in 2010."
Liard's research, which was released as the ABI Research RFID Annual Market Overview predicts RFID systems business compounded annual growth rates ranging from 21.7 to 28.8 percent for the primary RFID systems areas.
The RFID market earned a vote of confidence this year with Wal-Mart committing to the tagging of apparel for item-level tracking.