August 16, 2006
VDC: Increasing Market For RFID Transponders
VDC, Venture Development Corporation, announced that the global for market for RFID transponders, in 2005, reached nearly US$750 M. Expected CAGR (Compound Annual Growth Rate) through 2010 is estimated at about 26%. Revenue shipments will likely exceed US$2.3 B within five years time.
A statistic of note is the expected increase in difference between indirect and direct channels of distribution for RFID transponders. Indirect channels will grow at increased rate over direct channels. This is due to the increasing number of RFID solutions providers, particularly for the retail and pharmaceutical supply chains.
What might also drive an increase, at least temporarily, is that the US FDA has mandated that the pharmaceutical industry provide an RFID pedigreeing solution for select drugs by the beginning of Dec 2006, and that the industry is judged by some to be scrambling to meet that goal. The FDA's original plan to have all drugs RFID tagged by early 2007 has been postponed.
More information about the transponder market is available for purchase at the VDC website.
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