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Siemens Introduces Handheld 13.56 MHz RFID Reader ••• Voyantic Launches All-In-One NFC and UHF RFID Test Device ••• Time Domain’s PulsON 330 RTLS Module Uses DecaWave’s DW1000 UWB chip ••• RFID Market in China to Reach $2.8 billion in 2020, IDTechEx Research Says ••• Hacking Competition Aims to Spur Development of RFID, Bluetooth and NFC Apps ••• PCTEL Tests Airport Networks for Compatibility With RFID-based Luggage Tracking Systems
By Beth Bacheldor

RFID Market in China to Reach $2.8 billion in 2020, IDTechEx Research Says

A study by IDTechEx Research finds that the total RFID market in China, covering chips, tags (including cards, fobs, labels and all other form factors), readers, software, services and system integration, will rise from was $1.7 billion in 2014 (with tags accounting for $430 million and readers, $549 million) to $2.8 billion in 2020 to $4.3 billion by 2025.

The new report, RFID in China 2015-2025, assesses the prospects of the RFID market in China. There are more than 150 RFID technology providers in China, according to IDTechEx, and the country is rapidly becoming a large exporter of the technology.

RFID is increasingly being deployed around the world, and IDTechEx expects that more than 8.5 billion tags will be sold globally in 2015 versus 7 billion in 2014. But China has lagged in adoption of UHF RFID compared to other territories such as the United States and Europe, the study says. The report notes that in 2015, 80 percent of the RFID systems deployed in China will be based on high-frequency (HF) RFID operating at 13.56 MHz. Until now the use of RFID in China has mainly been driven by government mandates and projects—from one billion contactless identity cards issued to complete rail car management systems—and these have typically been highly profitable for the involved suppliers, and some of which are state-owned.

But UHF RFID adoption in China is growing quickly. As a result, UHF chip design/manufacturing development has been listed as one of the priorities in China's Internet of Things (IoT) development, culminating in several government-funded programs to develop UHF RFID readers, for example, according to the research firm.

According to IDTechEx, China already accounts for 85 percent of the world's RFID manufacturing capacity, being a major exporter of tags. The country’s global market supply share in ultra-high frequency (UHF) RFID inlays has grown from less than 10 percent in 2012 to 30 percent in 2015, with the UHF tags mainly used for tracking apparel by clothing retailers around the world.

The IDTechEx study categorizes more than 150 Chinese RFID companies by position and specialized frequencies and provides detailed analyses on the RFID value chain in China across all the main frequency types as well as ten-year forecasts for the use of RFID in China by 13 application categories (in addition to the Chinese government programs). The research was based on face-to-face or telephone interviews, secondary research on online resources, company annual reports, IDTechEx's database and other resources.

Earlier this month, Impinj China, the Shanghai-based division of RFID technology provider Impinj, reported that during the past five years, it has seen rapidly rising demand for passive UHF RFID technology across Asia (see Chinese RFID Adoption Takes Many Forms). Leading that momentum are consumer goods manufacturers in China, with factories employing RFID technology for work-in-progress (WIP) and logistics-visibility applications, according to Impinj. China's banking and transportation sectors are also contributing to the region's demand for RFID technology, as is its retail industry, with anti-counterfeiting solutions.

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