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| [September 27, 2005] |
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The RFID Market Size in China Will Have Grown to 5.059 Billion Yuan by the Year 2009, with a Compounded Annual Growth Rate of 33.2%
DUBLIN, Ireland --(Business Wire)-- Sept. 27, 2005 -- Research and Markets (http://www.researchandmarkets.com/reports/c24680) has announced the addition of Consumer Eletronics--Focus Report on Chinese RFID Market Development 2005 to their offering.
Findings
RFID Market in China
-- Although RFID has become a hotspot on the market over the last two years, RFID is not really a "New" technology. In the Chinese market, the applications of low frequency and high frequency RFID are relatively mature.
-- The size of the RFID market exceeded 1.2 billion Yuan in 2004, among which 933 million went to the tag market, 185 million to reader market and 85 million for the software and service market.
-- The study results of Analysys International shows that the 2004 RFID applications in China were mostly in closed applications and proprietary application fields. RFID software and services only accounted for 7.1% of the total market.
-- The RFID market size in China will have grown to 5.059 billion Yuan by the year 2009, with a compounded annual growth rate of 33.2%. This will result in 3.807 billion Yuan for RFID tag products, 684 million Yuan for readers, and 567 million for software and services.
Key Success Factors (KSF) for RFID Application in China
-- We view that government support and promotion are the prime factors for rapid development of the RFID market in China. However, other factors could also become important driving forces for facilitating its development, e.g. formation of standards, lowering of prices, further maturing of technology, and further reinforcement of privacy protection.
-- There were several programs that drove the market to its current state. The Chinese government initiated a program for generating a new ID card that implemented RFID technology. It was also slated for further development under the "863" program (A.K.A. National high Technology Research and Development Program of China).This program was designed to research and implement ultra-high frequency chip readers. Also, the State Development and Reform Commission founded a program for the RFID control of livestock production. Together, these were all important forces promoting the development of RFID applications.
-- The development of the Chinese RFID market has also been restricted by a couple of factors. The high price of the technology has lessened the warm welcome of the industries that could most benefit from its development. Also having inconsistent standards has created issues of interoperability between venders leaving the implementing industries locked into a single proprietary version of the technology. These problems will have to be overcome before RFID is considered a mature technology good for use by the masses.
Specific Application of RFID in China
-- Our study found that, in fact, the current RFID market is based on two technologies - low and high frequency. These have been under development in China since the 1990s and have recently become relatively mature in terms of technology and market. However, the application of UHF-based technologies desired for the fields of logistics and supply chain management is only just beginning.
-- Beijing, Shanghai and the Pearl River Delta have become the three central areas for development of RFID applications in China. They are constantly being improved and developed for the high-tech industries. The RFID technology is continually improving with the area, with the rate of improvement varying on other local conditions and cooperation.
-- To conclude, RFID applications in government, transportation, and parts of the manufacture industry are the priority development areas in the near future. In three to 5 years the logistics and manufacturing industries will become more important. CRM or Customer Relation Management will also become a vital sector for the development of RFID application during that time. However the large-scale deployment of RFID applications in retail products is unrealizable in the retail industry in the next five years. Those interested in seeing that a reality may have to wait 5 to 10 years.
For more information visit http://www.researchandmarkets.com/reports/c24680
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