The amount includes the money spent on on RFID systems plus the tags in 2017. RFID use in the food sector will become more important than any other application of the technology the analyst firm forecasts.
RFID technology is helping to transform logistics by providing a means of tracking and tracing individual products throughout the supply chain. Regulations on traceability and mandates from such giant retailers as Wal-Mart and Metro are slowing forcing processors to make investments in the technology.
"In due course, the tagging of individual items will attract the most investment, benefiting all in the supply chain but tagging of conveyances, pallets, cases, vehicles and equipment will also be important," IDTechEx stated in a summary of the report.
The use of RFID on animals and in farming is similarly rising rapidly in the amount of money spent, to $2.6bn (€1.9bn) in 2007, from an expected $462m in 2007, the firm estimates.
"There are many reasons for the growth of both of these markets, because RFID is increasingly used to track, monitor condition, prevent errors and theft, and even locate from a distance," IDTechEx stated. "This increases sales, improves customer satisfaction and reduces costs."
An increasing amount of legislation is also driving the use of RFID for safety, notably with livestock and pets, and for the rapid response to disease outbreaks, the report stated.
The report uses about 100 case studies from across the world to outline how the technology is being used.
RFID uses a wireless system that helps enterprises track products, parts, expensive items and temperature-and time-sensitive goods. Transponders, or RFID tags, are attached to objects. The tag will identify itself when it detects a signal from a reader that emits a radio frequency transmission.
Each RFID tag carries information on it such as a serial number, model number, colour, place of assembly or other types of data. When these tags pass through a field generated by a compatiblereader, they transmit this information back to the reader, thereby identifying the object.
According to Venture Development Corporation the worldwide market for RFID systems was $2.3bn in 2006, with hardware accounting for nearly 59 per cent of sales.
EPCglobal standards set out the device and software interfaces for gathering supply chain data. It provides users with a single way to capture and share information with supply chain partners, even though they may be using different devices and software to read RFID tags.
The royalty-free standards are the foundations in the continuing construction of a global supply chain information network that combines RFID technology, existing communications network infrastructure and EPC, a number for uniquely identifying an item.
