This article was originally published by RFID Update.
October 18, 2005—Research firm Frost & Sullivan today released a report entitled World Retail RFID Markets — A Retailer Perspective that predicts that the retail-specific market for RFID will grow from $400 million in 2004 to almost $4.2 billion in 2011. Following are additional key assertions of the report:
- Projected demand for RFID systems integration services will go underserved at current supply levels. “The market needs hundreds of systems integration companies with RFID capabilities.”
- Nothing short of hundreds of thousands of RFID knowledge workers will be necessary to meet demand.
- North America constitutes 40% of the world’s retail RFID market.
- In the Europe, Middle East, and Africa region (EMEA), more than 70% of retailers with revenues of over $5 billion are involved in RFID deployments.
- These retailers don’t expect a return for 5-7 years.
- The RFID initiative of German retail giant METRO will alone spur European RFID market growth. Around 300 of its suppliers are expected to be compliant within two years.
- In the Asia-Pacific region, retail RFID is driven largely by Korea, Japan, and China.
- Continued government appetite for RFID will be a leading source of Asian demand.
- Health care is already a substantial RFID market in Asia-Pac; retail is expected to follow suit, albeit only gradually.
Frost & Sullivan’s relatively rosy outlook marks the second piece of good RFID retail news in as many days. Yesterday RFID Update reported on the announcement by Wal-Mart that it is seeing quantifiable benefits from its RFID initiative, including a 16% reduction in out-of-stocks and a 10% reduction in manual orders.
Read the Frost & Sullivan Press Release
