Published on October 03, 2005

It is a small, emerging industry, but its aim is very high. With the growing use of RFID (radio freqency identification) worldwide, Thailand is not only set to encourage the growth of the RFID industry locally, but also aims to be at the forefront of the global market in the next five years.

The goal set by the National Electronics and Computer Technology Centre (Nectec), is to take at least 5 per cent of the worldwide RFID market in that time. If Thailand can reach the goal, revenue of at least Bt1 billion will be generated for the country by 2010.

According to a new report from International Data Research (IDC), with major companies planning to increase the deployment and integration of RFID systems in retail stores and warehouses in the years ahead, the market for related consulting, implementation, and management services is expected to reach US$2 billion (Bt82 billion) worldwide by 2008.

Apart from IDC, Switzerland-based Sereon Research has predicted that there will be a radio tag on one in 20 products by 2008, while the US-based Frost and Sullivan reported that the RFID market would reach $3.6 billion worldwide in 2006, and soar to $11.7 billion in 2011.

Deputy director of Nectec Itti Rittaporn said that although the aim is high, Thailand has the potential in some areas to reach the goal since the country now has companies that can design and develop RFID chips for both low and high frequencies. This includes a number of companies that can develop RFID readers as well as applications that help create a foundation for the industry to grow.

He said there must be more development of RFID in the country and at the same time, the number of private companies working together on RFID development should increase.

“For chip design, it might be enough to compete as there are not so many developers out there. What we really need is a huge number of RFID application developers in system integration to compete internationally,” he said.

Itti said that to take a place on the global stage, it is important that the country adapt what has been developed locally rather than importing the same applications or technologies from abroad.

Itti said that with the number of companies developing software in the country at the moment, there is potential for those companies to jump into the emerging business and adapt what they have already developed to support RFID.

To encourage more RFID development, the centre has asked for about Bt40 million from the National Science and Technology Development Agency specifically to support companies developing RFID-related projects in all areas. Its aim is to promote the growth of the RFID industry as a whole.

While Nectec is encouraging RFID development in Thailand, he said the National Science and Technology Policy Committee, headed by Prime Minister Taksin Shinawatra, would consider placing RFID development on the country’s national agenda, since that technology is important in driving competitiveness for industries as a whole.

Suchalee Pongprasert

The Nation

suchalee@nationgroup.com

Post your comment to this story here