IDTechEx, a market research and events firm, has found that the passive RFID tag market is now seeing tremendous growth. The report comes more than five years after the industry had expected.

Retailer adoption of UHF RFID for shelf-level stock replenishment has accounted for most of the growth. The latest example comes from Zara, a fashion retailer that has announced its intention to roll out RFID to approximately 2,000 stores by 2016.

In 2014, IDTechEx states that the total RFID market is worth $8.89 billion, up from $7.77 billion in 2013 and $6.96 billion in 2012. Those figures also include tags, readers and software/services for RFID cards, labels, fobs and all other form factors.

By 2024, the firm estimates that number will rise to $27.31 billion.

In the new report RFID Forecasts, Players & Opportunities 2014-2024, the company believes that 25 billion RFID tags will be used on retail apparel and shoes in 2020 and a similar number on other “high value, high complexity mix” items.

Many other segments are experiencing growth, as well, thanks to standardized, reliable technology where applications outside of retail are leveraging the considerable investment put in by RFID suppliers to address retailer needs. 

Average tag prices in HF RFID are typically higher than UHF tags, often due to the need for greater security and therefore IC complexity. Payment applications are one example. While NFC has been a failure so far due to lack of resolve between payment, telecoms and phone companies, Apple may set it on the right path, causing NFC to see traction over the coming years.

IDTechEx has found some striking territorial differences, as summarized in the chart below. UHF adoption is strongest in the US and Europe, and relatively weak in Asia in terms of number of tags, although tag production is increasingly moving there. In contrast, HF adoption has been strong in all territories, but particularly in Asia.