Chinese RFID market set to double on anti-counterfeiting

The Chinese market for RFID cards is predicted to nearly double by 2017 as anti-counterfeiting and other applications take off.

Growth in the consumer sector will be strongest, a Lux Research report predicts, and within this anti-counterfeiting applications play a major role. Consumer uses are expected to grow at 38 per cent CAGR (compound annual growth rate) to 2017, pushing the total market up to $807m.

The rise of consumer uses will shift the makeup of RFID in China. "Government applications account for 22 per cent of the volume and 34 per cent of the revenue, but that is about to change quickly," said Richard Jun Li, Lux Research director and the lead author of the report.

Chinese demand for RFID cards and government investment is stimulating the growth of local manufacturers. Original equipment manufacturer (OEM) suppliers are taking market share, and the industry is consolidating. The top-15 suppliers account for 57 per cent of sales and rising.

Local companies are also well positioned to build a strong position in the fast-growing market for ultra-high frequency (UHF) chips. The niche is expected to grow to $236m by 2017 and Lux sees Chinese manufacturers, currently weak in UHF, benefiting from government investment.