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Analysis of the Development Status of China's RFID Industry

- May 18, 2018 -

Analysis of the Development Status of China's RFID Industry

Introduction: In 2010, China's RFID industry entered a growth period and its market scale grew rapidly. It exceeded the scale of billions for the first time and reached 12.15 billion yuan, an increase of 42.8% over 2009, ranking third in the world, second only to the United States and the United Kingdom. .

Electronic label industry development trend

In 2010, China's RFID industry entered a growth period and its market scale grew rapidly. It exceeded the scale of 10 billion for the first time and reached 12.15 billion yuan, an increase of 42.8% over 2009, ranking third in the world, second only to the United States and the United Kingdom.

The development of the radio frequency identification technology (RFID) industry benefits from the promotion of the Gold Card project. The National Gold Card Project, as one of the four starting projects for China's informatization construction, was initiated in 1993 with the application of electronic money bank card applications. As of 2010, a mature electronic payment system has been established, with a total of 2.4 billion bankcards issued and used in 108 countries. At the same time, the smart IC card application was launched to promote the development of e-government and e-commerce. To date, 8 billion smart IC cards have been issued.

Since the Gold Card project was launched 18 years ago, from magnetic stripe cards to smart cards to RFID applications, China has embarked on an information-based development path with Chinese characteristics. With the rapid development of the Gold Card project construction and IC card applications, RFID technology has been used in second-generation resident ID cards in China, urban public transport “cards”, electronic licenses and product anti-counterfeiting, special equipment, strong inspection, safety management, and dynamics. Field trials were initiated in areas such as plant electronic identification and modern logistics management.

Since the National Gold Card project in 2004 marked the Internet of Things RFID pilot project as a key work, the Gold Card project has launched new RFID application pilot projects every year. The Internet of Things's RFID application project was funded by the National Development and Reform Commission. In April 2011, the Ministry of Finance and the Ministry of Industry and Information Technology had issued special measures for Internet of Things, which clearly stipulated that a special fund of RMB 500 million be used each year to support the construction of the Internet of Things.

As the core component of radio frequency identification technology, electronic tags can produce 6 billion per year as of 2012, which can basically meet the needs of future market applications. As a key technology of the Internet of Things, radio frequency identification technology has been developed for nearly 10 years. The cost of production is also declining. Now, the cost per label is about 0.4 yuan.

The e-tag market, which is closely related to the printing industry, has grown at a rate of 45% to 50% every year for three consecutive years in the country. At present, China's electronic label industry ranks third in the world.

Electronic label enterprise distribution status

The “2016-2020 China RFID Industry Investment Investment Analysis and Prospect Forecast Report” released by China Investment Advisors pointed out that after the development in recent years, the domestic RFID industry has initially formed a representative of South China, represented by Shenzhen, and Shanghai. The three major industrial clusters in East China and North China represented by Beijing.

The overall distribution of RFID companies

Domestic RFID companies are mainly concentrated in South China, East China, and North China. Among them, readers and electronic label companies have the largest number of distributions in South China, while system integration companies mainly focus on East China. From the perspective of the distribution of RFID companies in cities, companies are mainly located in cities such as Shenzhen, Shanghai and Beijing, where the economy and technology are more developed. Among them, the number of electronic tags and readers is the largest in Shenzhen, and the integration of RFID systems is led by Beijing companies.

Half of RFID label companies are located in South China

There are 521 RFID electronic label companies in China, including 265 in South China, accounting for 51%, followed by 139 in East China, accounting for 27%, followed by 71 in North China, accounting for 14%. The number of enterprises in the three regions accounted for 92% of the total number of enterprises in the country, and the distribution of industries showed a highly concentrated situation.

RFID electronic label companies are also tending to gather in first-tier cities such as Shenzhen, Shanghai and Beijing. The cities with the top 10 RFID tag companies are Shenzhen, Shanghai, Guangzhou, Beijing, Dongguan, Hangzhou, Chengdu, Shenyang, Suzhou and Wuhan. Among them, 177 enterprises in Shenzhen occupy the first place in the country, and Guangdong is in the electronic label city. Among the 10 cities with the largest number of distributions, there are three seats.

Shenzhen reader companies account for more than one-third

The total number of domestic reader companies is 585. In the regional distribution of RFID reader enterprises, the number of enterprises in South China is the largest, and the number of enterprises accounts for 54% of the total number of enterprises in the country; followed by East China and North China, the proportion in East China accounted for 22%, and that in North China accounted for 14%.

From the urban distribution point of view, similar to the distribution of RFID tag companies, the number of Shenzhen RFID reader companies is the largest, accounting for 37%, followed by Guangzhou, Shanghai, and Beijing.

Beijing has the largest number of system integration companies

There are 467 domestic system integration vendors. Unlike RFID readers and electronic tags, East China has 163 companies accounting for the largest share, followed by South China and North China with 31% and 24% respectively. The total number of enterprises in the three places accounted for 89%, and the industry showed a highly concentrated situation.

Although the number of enterprises in North China is not as good as that in East China and North China, from the perspective of city distribution, RFID system integration companies account for the largest number in Beijing, accounting for 19%; followed by Shanghai, Shenzhen, Guangzhou, Nanjing, and Chengdu.