May 16,2007_China's radio frequency ID market will hit $335 million in 2007, increasing more than 50 percent from last year. Similar increases are expected during the next three years.
The up-tick in momentum comes from the maturity of the technology, continuous government support for RFID standardization, dropping prices of RFID chips and equipment, as well as increasing acceptance by end users, according to Beijing-based CCW Research, a government-linked consulting company. Incremental demand is also expected from the 2008 Summer Olympics in Beijing.

In 2006, tags accounted for 66.3 percent of the RFID market; RFID readers accounted for 19.5 percent; and software and services 14.2 per cent. Software and services is expected to increase its share of the market in the coming years, said Weifeng Sun, an analyst from CCW Research.

The major application for RFID is in resident ID cards in China. Market researcher In-Stat estimates that more than one billion ID cards to be issued before the end of 2008 and believes more than 2.9 billion tags will be shipped by 2009.

Low and high frequency chips account for almost 80 percent of RFID chips in China. However, high frequency products are proving more popular, eating into market share for low frequency products. China is also focusing research on ultra high frequency and microwave applications.

China intends to hammer out a RFID spec that can be implemented in 2007, according to industry sources. Early indications are that the spec will be voluntary, adhere closely to international standards and possibly be cheaper to use than the EPCglobal system.

source: www.eetimes.com