The hottest spot in China's RFID industry developm

2022-10-15
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Analysis of the development status of China's RFID industry in 2016

release date: Source: Internet editor: lychee Views: 2163 copyright and disclaimer

core tip: in 2010, China's RFID industry entered a growth period, with a rapid growth in market size, breaking the scale of 10 billion yuan for the first time, reaching 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

[China Packaging News] in 2010, China's RFID industry entered a growth period, and the market scale increased rapidly, breaking through 10 billion for the first time, reaching 12.15 billion yuan, an increase of 42.8% over 2009, ranking third in the world, second only to the United States and Britain

the development of radio frequency identification (RFID) industry benefits from the promotion of gold card project. The national gold card project, as one of the four starting projects of China's information construction, was launched in 1993 with the application of electronic money bank cards. As of 2010, a mature electronic payment system has been established, with a total of 2.4 billion bank cards issued and used in 108 countries. At the same time, the application of smart IC cards has been launched, which has promoted the development of e-government and e-commerce. So far, a total of 8billion smart IC cards have been issued

since the launch of the gold card project 18 years ago, from magnetic stripe cards to smart cards to RFID applications, China has embarked on an informatization development path with Chinese characteristics. With the vigorous development of gold card project construction and IC card application, RFID technology has launched pilot applications in the fields of China's second-generation resident ID card, urban public transport "all in one card", electronic license and commodity anti-counterfeiting, compulsory inspection of special equipment, safety management, electronic identification of animals and plants, and modern logistics management

since the national gold card project listed IOT RFID application pilot as the key work in 2004, the gold card project has launched a new RFID application pilot project every year. The RFID application project of IOT has been funded by the national development and Reform Commission. In April 2011, the Ministry of Finance and the Ministry of industry and information technology have issued special measures for IOT, which clearly stipulates that 500million yuan of special funds will be used every year to support the construction of IOT

as the core component of RFID technology, China can produce 6billion electronic tags every year by 2012, which can basically meet the future market application needs. As the key technology of IOT, RFID technology has been developed for nearly 10 years, and the production cost is also declining. Now the cost of each tag is about 0.4 yuan

the electronic label market, which is closely related to the low film recovery rate caused by the backwardness of printing line recycling technology and machines, has increased by 45% to 50% annually for three consecutive years in China. At present, the scale of China's electronic label industry ranks third in the world

distribution status of electronic label enterprises

the report on investment analysis and prospect prediction of China's electronic label (RFID) industry in issued by CIC consultants pointed out that after recent years of development, the domestic RFID industry has initially formed three industrial clusters, including South China represented by Shenzhen, East China represented by Shanghai, and North China represented by Beijing

overall distribution of RFID enterprises

domestic RFID enterprises are mainly concentrated in South China, East China and North China, of which reader and electronic label enterprises are most distributed in South China, while system integration enterprises are mainly in East China. From the perspective of urban distribution of RFID enterprises, enterprises are mainly distributed in Shenzhen, Shanghai, Beijing and other cities with relatively developed economy and technology. Among them, Shenzhen has the largest number of e-tag and reader enterprises, while Beijing enterprises take the lead in RFID system integration

half of the RFID tag enterprises are distributed in South China

there are 521 domestic RFID electronic tag enterprises, including 265 in South China, accounting for 51%, followed by 139 in East China, accounting for 27%, and then 71 in North China, accounting for 14%. The number of enterprises in the three regions accounts for 92% of the total number of enterprises in the country, and the distribution of industries shows a highly centralized trend

rfid electronic label enterprises also tend to gather in first tier cities such as Shenzhen, Shanghai and Beijing. The top 10 cities in the number of RFID tag enterprises on March 6 and 8 are Shenzhen, Shanghai, Guangzhou, Beijing, Dongguan, Hangzhou, Chengdu, Shenyang, Suzhou and Wuhan, of which Shenzhen ranks first in the country with 177 enterprises, and Guangdong province occupies three seats in the 10 cities with the largest number of electronic tag cities

reader enterprises in Shenzhen account for more than one third

the total number of domestic reader enterprises is 585. In the regional distribution of RFID reader enterprises, the number of enterprises in South China is the largest, accounting for 54% of the total number of enterprises in the country; The second is East China and North China, with East China accounting for 22% and North China accounting for 14%

from the perspective of urban distribution, the distribution is similar to that of RFID tag enterprises. Shenzhen has the largest number of RFID reader enterprises, accounting for 37%, followed by Guangzhou, Shanghai and Beijing

Beijing has the largest number of system integration enterprises

there are 467 domestic system integration manufacturers. Unlike RFID readers and electronic tags, 163 enterprises account for the most in East China, followed by South China and North China, accounting for 31% and 24% respectively. The total number of enterprises in the three places accounted for 89%, and the industry showed a highly concentrated trend

we should insist on continuous innovation. Although the number of enterprises in North China is less than that in East and North China, from the perspective of urban distribution, the number of RFID system integration enterprises in Beijing is the largest, accounting for 19%; Followed by Shanghai, Shenzhen, Guangzhou, Nanjing, Chengdu and other places

industrial supporting and policy support for the development of RFID industry

RFID enterprises in Shenzhen, Shanghai, Beijing and other places are relatively concentrated, which has its internal factors. In the early development process of RFID, it needs a lot of capital investment and the training of technical personnel. Similar to Shenzhen, Guangzhou, Shanghai and other economically and technologically developed regions, it can provide a good industrial environment and atmosphere for the development of RFID enterprises

the report on investment analysis and prospect prediction of China's RFID industry in issued by CIC consultants points out that from the perspective of the distribution structure of the industrial chain, Shenzhen has the largest number of readers and RFID enterprises. As the most important production base of electronic information products in China, Shenzhen has an extremely developed midstream and downstream market of electronic information industry, which provides a good development environment for the development of RFID electronic tag and reader writer manufacturing enterprises

at the same time, many RFID enterprises in Shenzhen, represented by Yuanwang Valley, have been integrating upstream and downstream enterprises in the industrial chain through mergers and acquisitions among enterprises in recent years, enhancing the synergy between enterprises, improving the industrial chain structure, and further promoting the development of RFID industry in Shenzhen

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in terms of system integration, the RFID industry is more dominated by government projects. This makes Beijing and its surrounding areas become the areas where RFID is applied earlier. It can be said that it controls the Beijing market and the northern market to a large extent. Therefore, compared with Shenzhen, Beijing's advantage in the RFID industry chain lies in system integration. Compared with RFID tags and readers, the system integration has greater differences, higher technical requirements, and can bring higher added value

from the perspective of policy, the country takes IOT technology as the driving force to promote the development of a new generation of information technology, and RFID is the key link in the development of IOT industry. In order to seize the commanding height of scientific and technological innovation, Shenzhen, Shanghai, Beijing and other places have issued a number of RFID industry support policies earlier

in April, 2010, Shanghai issued the "Shanghai action plan for promoting the development of IOT industry", which clearly supports the key core technologies of RFID industry; Shenzhen put forward the Shenzhen IOT action plan in October 2010, in which it pointed out that it would focus on promoting the research and development of RFID core technology and key equipment; Beijing put forward the action plan for the construction of Zhongguancun National Independent Innovation Demonstration Zone in June 2010, which focuses on the construction of the "capital city emergency management IOT demonstration project"

Although RFID developed late in China, the RFID industry has developed rapidly in these places through the strong promotion of local governments

at the same time, driven by a number of demonstration application projects such as all-in-one cards, second-generation ID cards and Expo electronic tickets, RFID applications are increasingly recognized in China, which will further drive the demand for RFID in the market where it can be directly sent to local municipal waste collection points or community retail stores, and have cheaper labor costs compared with economically developed regions, such as Anhui Province and Sichuan Province, In the future, there will be more new enterprises that will manufacture their products in economically underdeveloped areas such as central China and southwest China

characteristics of the development of the electronic tag Market

the report on investment analysis and prospect prediction of China's electronic tag (RFID) industry in pointed out that by 2025, the market value of RFID applications in China will reach US $4.3 billion. If you include labels and readers exported to other countries, that number will almost double. In 2015, there were more than 150 companies in China's RFID industry, and their RFID tag manufacturing capacity has reached 85% of the total global capacity

several characteristics and trends of China's RFID Market:

(I) high profit government led projects will be transferred to market led projects

the development of RFID in China has been strongly supported by the government. In fact, China's RFID market can be divided into two different types: government led and market led. For example, aerospace information (600271), Shanghai Zhongka, Beijing Zhongdian Huada and other companies focus on government projects and are deeply influenced by government support; While Yuanwang Valley, Yangzhou Yongdao, Zhongrui Sichuang and other companies are mainly market-oriented and are less affected by the government. Government led companies are mainly government projects, and their profits are more considerable; Market leading companies are facing more market competition, especially in label packaging. But this situation is also slowly changing. High profit government led projects will shift to market led projects

(II) China's RFID market is changing the global label production pattern

RFID is more and more widely used worldwide (the global purchase of RFID labels was 7billion in 2014). Label suppliers are carrying out cost compression, especially passive UHF labels, which means that in some cases, the production base will be transferred to China. There are also some late entrants who have gained relatively high market share within a few years through strong investment (including acquisition), such as Yongdao, Shengli, etc

due to the increasing number of inlay factories in China, the demand for equipment in the Chinese market is very strong. The annual productivity of RFID tags in China has reached 6billion in 2014, accounting for more than 85% of the global RFID tag production capacity

(III) HF applications have matured, and UHF applications are growing rapidly.

influenced by the second-generation ID card scheme of the Chinese government, hfrfid has developed earlier in China, with mature technology and market, and has formed a complete value chain. Hfrfid technology is used in a large number of applications, such as traffic cards, second-generation citizen identity cards and e-passports

although UHF technology is widely used internationally, its development in China is very backward, especially the design and manufacture of chips. Therefore, the design/manufacturing development of UHF chips has been listed as the focus of the development of China IOT

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