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Supply chain seen driving growth of UHF RFID application market

Supply chain seen driving growth of UHF RFID application market

China' radio frequency identification (RFID) application market in 2006 was worth 2.42 billion renminbi (US$301.6 million), spanning key process areas like supply chain, personnel management, assets management, vehicle management, door/access control, anti-counterfeiting, and animal identification, with ultra-high-frequency (UHF) RFID application accounting for 10.4 percent of the overall RFID application market, according to IDC's recently updated report China Vertical RFID Solution 2007-2011 Forecast and Analysis.
Last year, more UHF RFID trial projects have been rolled out in supply chain, vehicle management and other areas. Mature solutions are shaping in practical applications such as airport luggage tracking. IDC predicts that by 2011, the UHF RFID market will reach 5.15 billion yuan (US$641.9 million), growing at a five-year CAGR of 82.8 percent, IDC said.
The supply chain will be the main application field of UHF RFID in China from 2007 to 2111.
According to the IDC study, great importance has been attached to the application of RFID technology in the supply chain and logistics industries under China's national program. RFID has demonstrated its value in the efficient management of modern logistics and supply chain, thus contributing to enterprises developing a competitive advantage, it noted.
IDC said it expects RFID application in the supply chain to account for 40.7 percent of the overall market in 2011, with a CAGR of 90.3 percent from 2006 to 2011.
RFID application in asset management, is estimated to constitute 26.7 percent of the total market, growing at a CAGR of 73.8 percent from 2006 to 2011.
"The establishment of national UHF RFID standards will provide the foundation for further UHF RFID technology development," said Freda Tong, a senior analyst for IDC's China Vertical Research. "The national standards will eliminate barriers to entry for the domestic market and pave for new UHF RFID applications to emerge. As a result, the domestic UHF RFID application market will develop rapidly with increased deployment by enterprises."


Updated : 2021-05-18 23:46 GMT+08:00