The State of RFID

The global market for RFID systems reached an estimated $161 million in 2005. According to RFID research conducted by Venture Development Corporation (VDC), much of the activity within the consumer goods (CG) market has been compliance-driven, with users focused on meeting mandates (with varying degrees of deployment).

However, with live deployments occurring more and more in 2006, there is no question that milestones are being achieved. Many RFID suppliers are conducting test pilots, revamping educational programs, strengthening distribution networks and taking other steps to raise RFID awareness and adoption.

With proof of industry maturation, CG firms are now targeting specific business benefits beyond compliance. For example, companies are exploring item-level tagging for promotional display units and for items with theft, traceability or counterfeit concerns.

The pages that follow provide a detailed snapshot of the state of RFID adoption in the CG industry. More than 170 executives responded to this year's survey -- all of which hold a title of manager or higher.

The average annual revenue among all companies that participated in the survey equals $10.2 billion.

The majority (46.5 percent) of our respondents come from Tier 2 firms ($1 to 9.99 billion in revenue). Executives from Tier 1 firms ($10 billion or more in annual revenue) make up the second largest pool of respondents at 38.5 percent, with the remaining 15 percent coming from firms generating $100 million and below in revenue.

Of those respondents that are implementing, piloting or evaluating the use of RFID, 93.5 percent are doing so in the Americas, 13 percent in EMEA and 1.1 percent in Asia-Pacific.

For a more in-depth look into the results of this year's RFID survey, visit www.consumergoods.com.