The report says the global RFID market is being restrained by lack of established industry standards; however, the market generated revenue totaling $1.7 billion in 2003, with projected revenues of $11.7 billion by 2010.
"A more structured standards framework is necessary to enable better innovations in technology and product development," says Frost & Sullivan Research Analyst Karthik Nagarajan.
"With the exception of electronic product codes (EPC), the industry is still fragmented in its choice of standards for emerging applications."
Frost and Sullivan says that there’s strong demand in established applications such as toll collection, security and access control, and automobile immobilization. Meanwhile, RFID-based solutions are also being promoted by the initiative shown by the Department of Defense, Wal-Mart Stores, and others in adopting the technology and making tagging mandatory for their numerous suppliers. In Australia, Coles is also looking at RFID.