Manufacturing Driving RFID In China

China's RFID market maintained a growth of 8.62% in the fourth quarter of 2005, according to a study by Beijing-based Analysys International, an information service provider. In its report, "China RFID Market Quarterly Tracker Q4 2005", Analysys found that growth was concentrated on the replacement of 2G ID card (48% of applications) and public transportation (7%).

The report notes that in the near future, China's RFID market will be mainly driven by the manufacturing sector. "There are huge stock and logistics systems in manufacturing processes. RFID applications can help firms to obtain accurate logistics information and achieve differentiated production, so as to reduce costs and increase efficiency," said Zhao Yazhou, an analyst from Analysys International.

There are however some restrictions on RFID in the manufacturing sector in China. "Lack of unified material measurement unit, lack of using of standard vessels, diversified material forms, and high RFID application cost, are major factors that inhibit the rapid development of RFID market in China," added Zhao.

Analysys International

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