RFID Growth Rates Adjusted Upward

With RFID (radio frequency identification) mandates growing by leaps and bounds, consulting firm Venture Development Corp. has adjusted upward its growth rates for this technology. Natick, Mass.-based VDC in 2002 estimated a 21% compound annual growth rate for RFID software and systems between 2003 and 2005. Given recent mandates by such organizations as Wal-Mart and the U.S. Department of Defense, the growth rate is now expected to exceed 37%, says VDC. The size of the market in 2005 is forecast at $2.13 billion, up from an original prediction of $1.65 billion. Broken out by product category, VDC's adjusted 2005 forecast for market size is as follows: transponders, $853 million; readers, $683 million; and software, $594 million. The consulting firm has a white paper on RFID at www.vdc-corp.com/autoid/white/04/walfactor2.pdf.