IDTechEx, the leading independent research and consulting firm specializing in RFID technology is reporting that RFID Industry has followed the Gartner Hype Cycle. While the growth has reduced, it will still forecasts 23% growth in 2009 over 2008 and by 25% growth in 2010 over 2009.
These applications will eventually prevail, but probably not fast enough to create a profitable business for tag makers in the short term. For example, IDTechEx has recently surveyed RFID chip makers, and we find that in 2008 approximately 1 billion UHF chips will be made. The largest single order is by Marks & Spencer for 150 million tags for apparel, but the number two behind that is much less. Indeed, it is still rare to hear of orders of more than 1 million UHF tags - in other words, the applications of UHF RFID are many and small, reaching a wide range of different markets. Almost all are closed loop applications.