$16.4 mln of RFID middleware sold in 2004

The global market for RFID middleware is expected to reach an estimated $16.4 mln in 2004, and an estimated $43 mln in 2005. This represents an annual growth rate of 162%. RFID middleware will account for roughly 3% of RFID systems revenues by 2007, or $135 mln. The global market for RFID systems reached $1.1 bln in 2003. VDC estimates the market will reach $1.5 bln by the end of 2004. This represents growth of 35% year-over-year. VDC expects the market for RFID systems to experience a compound annual growth rate (CAGR) of 43% through 2007.

Gartner says in 5 years RFID tag will cost a minimum of $0.20

Gartner analysts tried to put an end to a retail industry myth that radio frequency identification (RFID) tags will cost as little as five cents in the near future. The analysts said passive RFID tags cost from 40 cents to $10 and active tags usually run from $4 or $5 to hundreds of dollars. Gartner predicts that five years out, the most competitive RFID tags will cost about 20 cents, as reported by Tekrati.

79% of manufacturing, retail and transportation companies plan an RFID pilot

IT decision makers from a variety of industries including manufacturing, retail, transportation, and the government sector were surveyed by Wavelink Corporation in conjunction with Frontline Solutions Magazine and Frontline Solutions Conference and Expo. 79% of survey respondents plan to pilot or implement an RFID solution. Of this number, 22% have already implemented a pilot RFID program; while 42% will implement in the next 12 months. The remaining 21% plan to implement an RFID solution within 12 to 24 months. The top reasons cited for implementing RFID include improving the ability to track goods, meeting customer requirements, and receiving greater efficiencies in shipping and receiving. Concerns focused on high cost, an early, untested market, and lack of sophisticated software to integrate RFID with other business applications such as supply chain management and ERP systems.

IDC: RFID growth not as good as expected

Radio frequency identification (RFID) will also see slower growth than previously expected, IDC says. The firm says while there will be a lot of vendor investment in RFID technologies, that effort will be mismatched with customer spending. IDC says the technology could potentially in the long term revolutionize retail technology, but concerns over tag reliability, signal interference and a lack of standards will hinder big growth in 2004. For example, IDC says Wal-Mart, a leader in RFID adoption, plans to have only 4% of RFID readers in its distribution and retails centers by January 2005. Others in the retail market will follow that lead.