This IDC study introduces domestic radio frequency identification (RFID) application trends and future development directions on the basis of detailed description of RFID multi-industry application solutions in 2005. In addition, the study provides a five-year forecast of the RFID application solution market and introduction of the major of Chinese RFID solution providers in 2006. An analysis of ultrahigh frequency (UHF) RFID application spending by product and industry as well as future development trends are also included.

"China's RFID market is moving away from a "wait-and-see" attitude to a more actionable one. There are better governmental projects and both RFID and barcodes are being used, but there is a lack of major projects and a shortage of experienced RFID and IT technicians. However, traditional IT integrators and solution suppliers are beginning to explore the RFID market. In 2006, the UHF market continued to carry out fruitful pilot projects such as supply chain and vehicle management, while mature solutions took shape in practical applications such as airport luggage tracking. In 2006, the overall RFID multi-industry application market totaled US$301.6 million, of which the UHF RFID application market accounted for only 10.4% of RFID applications. IDC predicts that by 2011, the UHF RFID will reach US$641.9 million, with a 2006–2011 compound annual growth rate of 82.8%," says Freda Tong, senior market analyst, Vertical Research, IDC China.