DENVER--RFID, LTD. (OTC: RFDL) releases updated industry metrics for the Radio Frequency Identification (RFID) market. RFID is an automatic identification method, relying on storing and remotely retrieving data using devices called RFID tags or transponders.
An RFID tag (transponder) is an object that can be stuck on or incorporated into a product, animal, or person for the purpose of identification using radiowaves. The RFID tag can automatically be read from several meters away and does not have to be in the line of sight of the reader.
RFID, LTD. has optimized application of such tags for use in supply chain management for Wal-Mart and the Department of Defense, as well as bodily application for protection of emergency personnel (SurvivalTag), application for the verification of authentic merchandise (AuthentiChip) and application to airline luggage and cargo (BagChip).
Regardless of application, RFID technology tends to increase the speed and accuracy with which items can be tracked and managed thereby improving logistical effectiveness while reducing logistical cost.
RFID Facts and Figures:
In 2007, the total RFID market size is $4.96 billion.
(IDTechEx, RFID Trends and Forecasts)
By 2017, the total RFID market size is estimated to grow to $26.88 billion.
(IDTechEx, RFID Trends and Forecasts)
The United States still has the largest number of RFID projects followed by the United Kingdom where the RFID market size is 1/3 the size of the U.S. market.
(IDTechEx, RFID Trends and Forecasts)
In 2017, the most important sectors by "value of tags" will roughly represent $2 billion each and will be:
- Smart Cards - Consumer goods (item level) - Pallet/Case
The second most important sectors will represent approximately $1 billion each and will be:
- Military Use - Animal Tracking
-- Historically, approximately 1/3 of retail turnover is tied up in inventory and becomes wasted capital. (Lehman Brothers, Equity Research, 9/2006)
In the cosmetics, household & personal care industry, at any given time, 1 in 12 items is out of stock. This results to 2.6% of annual sales. (Lehman Brothers, Equity Research, 9/2006)
The World Customs Organization estimates that counterfeiting accounts for 5%-7% of global merchandise trade.
-- $39 billion of 11% of global pharmaceutical commerce was counterfeit in 2005. (Center for Medicines in the Public Interest (CMPI) report released 9/2005)-- Wi-Fi RFID tag shipments will grow at over 100% annually through 2010. (In-Stat 6/2007)-- IDC predicts that by 2010, the total market revenue for RFID applications in China will reach RMB 29.837 billion with a forecast compound annual growth rate (CAGR) for 2005-2010 of 82.4%. (IDC, 12/2006)
Nicholas Chavez, President of RFID, LTD., states, “We are more confident than ever before at this stage of the RFID compliance-mandate cycle. Thousands of firms need to be implemented soon in order to comply with the DoD and Wal-Mart directives. Additionally, our HUBZone status further differentiates RFID, LTD. from other RFID solution firms in the eyes of the Federal Government.”
RFID, LTD. was approved for the SBA HUBZone Empowerment Contracting Program in 2005 which could position them especially well for Federal waste tracking programs.
As of October 1, 2000, all Federal agencies are subject to the requirements of the HUBZone Program. The statute sets the goal for HUBZone contracts to be 3% of a Federal department's overall spend. The 3% goal sets the United States Department of Defense (DoD) HUBZone spend target at approximately $4.6 billion per annum.
About RFID, LTD.
RFID, LTD. (OTC: RFDL) is a world leader in formulating, testing and deploying vendor neutral UHF radio frequency identification (RFID) solutions for small to medium-sized businesses.
