Contactless Payment & Ticketing Applications Expected To Boost Growth In RFID Smartcard Market
VDC Research Group's 2009 RFID Business Planning Service Report Examines Global Demand for RFID Smartcards
Despite the current economic climate; the future remains bright for the RFID Smartcards market. According to recently published research by VDC Research Group, RFID smartcards revenues approached $700M in 2008 and are predicted to grow more than 26% (CAGR) through 2013. ISO 14443 will continue to account for the vast majority of current and future global smartcard revenues and unit shipments because it not only supports the ‘blockbuster' applications, but it is also able to support emerging applications with increased complexity.
"Overall, demand for RFID smartcards will remain stable and not be significantly affected by the current recession," cited Drew Nathanson, VDC's Director of Research Operations. "Although growth rates associated with established applications (i.e., security/access control) are slowing, several emerging applications (i.e., contactless payment, ticketing) are quickly approaching their ‘tipping points.' These emerging applications will also drive product development as more diverse and complex applications are introduced that will require increased functionality."
This increased demand will also drastically impact distribution models. As the market continues to mature and commoditize, it is expected that there will be a fundamental shift toward an indirect consumablesbased distribution model, meaning increased and more aggressive competition, higher price sensitivity, and enhanced consumer barging/purchasing power.
About VDC Research Group
Research Group (VDC) is a technology market research and strategy consulting firm that advises clients in a number of technology markets including: Automatic Identification and Data Collection, Embedded Hardware and Systems, Embedded Software and Tools, Industrial Automation and Control, Mobile and Wireless, and Power Conversion and Control. Using rigorous primary research and analysis techniques, the firm helps its clients identify, plan for, and capitalize on current and emerging market opportunities. We strive to deliver exceptional value to our clients by leveraging the considerable technical, operational, educational and professional experience of our research and consulting staff. During our nearly four decades of ongoing operation, we have had the pleasure of serving most of the world's leading technology companies, many highprofile start-ups, and numerous blue-chip early and later stage investors. Our products and services consist of research reports, annual research programs, and custom research and consulting services. Founded in 1971, the firm is located in the Boston area. For more information, visit www.vdcresearch.com.
SOURCE: VDC Research Group