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Software industry

China Emerges as Key Player in Global RFID Market

Strategic Insights

— 1 min read

The Chinese manufacturing sector is rapidly adopting electronic tagging systems to track merchandise for global retail giants, marking a significant shift in supply-chain management. Key IT suppliers, including Wal-Mart, Carrefour, and Tesco, are implementing radio frequency identification (RFID) systems to improve product flow and visibility. Companies such as Alien Technology, EPC Solutions International, webMethods, and Royal Philips Electronics are aggressively pushing for RFID-related hardware, software, and services in the mainland and other large manufacturing sites worldwide.

Key Takeaways:

  • The world market for RFID hardware, software, and services is expected to grow 23% annually to $3 billion in 2007.
  • China is critical to adopting global and open RFID standards, with retailers like Wal-Mart pushing for adoption.
  • The Electronic Product Code (EPC) system is being developed by EPCglobal, a non-profit group promoting RFID technology.
  • Gartner estimates that 70% of Wal-Mart's goods are made in China.
  • The demand for RFID solutions is becoming critical for Chinese manufacturers supplying global retailers.
  • A proposed new EPC system, EPC UHF Generation 2, adds the capability to update information on each tag automatically, allowing for more accurate data for supply-chain management.
  • Open standards are essential for businesses to benefit from RFID, according to the Computing Technology Industry Association.

Statistics:

  • World market for RFID hardware, software, and services growth rate: 23% annually.
  • World market for RFID hardware, software, and services estimated value: $3 billion in 2007.
  • Estimated percentage of Wal-Mart's goods made in China: 70%.
  • Number of RFID-related hardware, software, and services companies aggressively pushing for adoption: numerous.

Sources:

  • Wireless Data Research Group, estimates from California-based consulting firm.
  • Gillette, quotes from Richard Cantwell.
  • Standardisation Administration of China, support for RFID standards development.
  • EPCglobal, joint venture formed by EAN International and Uniform Code Council.
  • Gartner, research firm.
  • Alien Technology, CEO Stav Prodromou.
  • Computing Technology Industry Association, advocacy for open standards in RFID.

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