The fact that the initial item-level tag prices is so much higher is not so surprising given that initial costs during experimentation phases are typically much higher than during full-scale deployment. What is surprising is that the average cost is so much more than its pallet/case counterparts.
The IDTechEx analysis said that much of that can be explained because of the need for much more robust and larger memory tags for tracking parts and equipment that some of those early testers?such as aviation leaders Rolls Royce and Lockheed Martin--required.
The analyst firm had already reported much-higher-than-expected marketshare figures for item-level RFID tagging, but they reported more details on Tuesday, including the firm's projection that item-level tags will account for $11 billion by 2016, out of a worldwide RFID market projected then to be worth $26 billion.
IDTechEx also identified where it see RFID sales going this year, broken down by segment.