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China's RFID card market set for 2017 explosion

Posted: 15 Mar 2013 ?? ?Print Version ?Bookmark and Share

Keywords:Lux Research? RFID? China? UHF? Internet of Things?

According to Lux Research, China's RFID card market will nearly double in value and more than double in units in 2017. The projected explosion will be driven by the government's focus on the futuristic Internet of Things (IoT) and a surge in the private sector.

The RFID card/tag market volume will grow to 2.11 billion units, from 894 million in 2012, reflecting a compound annual growth rate (CAGR) of 19 per cent. In revenue terms, the market will grow to $807 million in 2017, from $454 million in 2012, at a CAGR of 12 per cent.

"So far, government applications account for 22 per cent of the volume and 34 per cent of the revenue, but that is about to change quickly," said Richard Jun Li, Lux Research Director and the lead author of the report titled, "Identifying Growth and Threat in China's Emerging RFID Ecosystem."

Richard Jun Li, Lux Research's director, stated that government applications account for 22 per cent of the volume and 34 per cent of the revenue, but that is about to change quickly. He added that the rise of market-driven applications have also created opportunities for multinationals to leverage China's RFID growth, with speed and identification of the best local partnerships becoming critical. Lux Research analysts studied the Chinese RFID market and government policy to evaluate growth prospects for the industry. Among their findings:

Consumer market is the strongest
Driven mainly by the adoption of RFID tags for anti-counterfeiting, consumer applications will grow the fastest in volume terms 每 at a CAGR of 38 per cent until 2017. Industrial applications will grow at a 25 per cent rate, while electronic toll collection will be a fast-growing subsector.

Local OEM players emerging
The rise of Chinese original equipment manufacturer (OEM) suppliers for RFID cards/tags is creating a new industry dynamic. Currently, the top 15 suppliers 每 led by China Card Group and Tatwah Smartech 每 account for 57 per cent of the Chinese market and are poised for further gains.

Focus is on fast-growing UHF market
Chinese companies do not have as strong a position in superior ultra-high frequency (UHF) chips 每 which will grow dramatically to become a USD236 million market in 2017. However, the clock is ticking for multinational suppliers, as the Chinese government is putting significant resources into developing homemade UHF chips.

Lux Research' paper entitled Identifying Growth and Threat in China's Emerging RFID Ecosystem can be accessed here.

- Julien Happich
??EE Times

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