RFID Market Expected to Surpass $1.4B
Increased interest in item-level radio-frequency identification (RFID) tagging in the apparel industry is expected to drive massive demand for RFID in coming years.
The current RFID market earned $420.6 million in revenue in 2010, and with wide-spread implementation of RFID technology into the global apparel industry, it is estimated to increase to $1.478 billion in 2017, according to Frost & Sullivan, a global research and consulting firm that provides research on electronic devices.
Item-level tagging uses RFID technology to tag and track individual products, as opposed to cases and pallets. The process helps better control inventory and reduce transportation costs, theft and loss of sales over out-of-stock items by following individual products all the way through the supply chain to retailers. Along with tracking location, details such as size and color are stored in the tag, which aids in restocking inventory.
Tags and readers have become more affordable, and an increased push from retailers—including Wal-Mart, JCPenney and Macy’s—for item-level tagging is driving the growth, according to the 2011 report.—D.C.
