RFID In China—The Biggest RFID Market This Year
This year, for the first time, China has become the world’s largest market for RFID by value. A new report, “RFID in China 2007-2017,” is the summation of extensive new research by IDTechEx analysts including Chinese native Ning Xiao. Many companies in China were visited and interviewed to obtain this information, which is not available elsewhere. Here Ning Xiao summarises some of the findings (www.idtechex.com/china).
RFID Market Size in China
For the first time, China has become the world’s largest market for RFID by value. In 2007, the spend on RFID in East Asia will be $2.7 billion of $4.96 billion spent globally. The majority of this - $1.9 billion - is just in China. This is because of a peak in delivery of contactless national identification cards in China prior to the 2008 Olympics. About $1.65 billion is being spent on 300 million of these cards plus their associated systems being delivered in 2007 out of a project commitment of $6 billion, the largest of any RFID project in the world.
Add to this $0.25 billion in other RFID tags and their systems, most of this related to transport, cash replacement and secure access cards, and the resulting $1.9 billion is 38 percent by value of the $4.96 billion global market for RFID cards and systems in 2007.
However, as the deliveries of the national ID card saturate, China will sink below the US and probably Japan in value of its RFID market but that market will nonetheless be growing very fast. Within ten years it will more than compensate for the drop in delivery of national ID cards, buoyant sectors including animal tagging, transport, cash replacement cards, secure access, manufacturing, military and supply chain applications. Some of the RFID potential in China is shown in the table below.