Freedonia report: RFID to be 85% of smart labels demand in 2014

A new study from industrial market research firm The Freedonia Group states that RFID labels, which were around ten per cent of total smart label demand in 2004, will account for more than 85 per cent of the market in 2014, while the share of EAS labels will drop sharply.

The standardization of RFID systems allows products from many vendors to work together, easing the transition to RFID technology and thereby supporting label demand. As a result, standardization – along with improved manufacturing technologies – will continue to drive down the costs of RFID tags.

The report from the Cleveland, Ohio, USA-based company states: ‘As the nascent RFID market develops over the next several years, US demand for smart labels is projected to increase more than eleven per cent annually to 8 billion units in 2009. With the advent of item-level RFID tagging on higher priced items early in the next decade, demand will grow even more sharply to over 50 billion units in 2014. While the fastest increases are expected for RFID labels, interactive packaging labels (including thermochromatic and time-temperature indicator products) will also show strong growth. In contrast, the dominant EAS segment will remain almost stagnant, with demand increases of only 2.2 per cent per year.’