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Guangdong main hub for RFID readers

Makers offer readers that support different bands and configurations.

Guangdong province, the most important electronic design and manufacturing center in China, also takes the lead in the country’s RFID reader market. The area hosts more than 400 makers of the line. They churned out over $400 worth of products in 2012, representing about half of the nation’s output value for the same year.

Companies benefit from Guangdong’s comprehensive industrial chain. The infrastructure in Shenzhen, Guangzhou and Dongguan, in particular, covers information service and software development, photoelectric and communication technologies, computer and IC design, electronic manufacturing and assembly. In addition to this, businesses can tap into the province’s network of upstream and downstream suppliers. They likewise take advantage of the area’s R&D facilities and personnel, and established systems for sales and logistics.

The abundant source of chip solutions and other key components, electronic manufacturing services, and even packaging and delivery options has enabled RFID reader enterprises to nurture their business. The rich network of upstream providers has allowed many companies to manage costs better while exploring various technologies. Meanwhile, the presence of hundreds of businesses involved in access control, e-payment and -ID, warehousing and logistics management, Internet of Things and other relevant industries fuels innovation and expands market opportunities.

Policy backing from the local government creates further impetus for Guangdong’s RFID industry. As early as 2006, the provincial government has created the Guangdong Provincial RFID Public Technology Support Center or GDRC to promote the segment. The government’s annual investment in the initiative from 2008 to 2013 is $31.7 million. Guangzhou’s municipal government, meanwhile, has infused $47.6 million in the undertaking. The city’s Smart Guangzhou project is expected to spur further growth in the RFID market as it aims to boost adoption in public utilities, transportation and social security services.

There are at present several RFID-oriented industrial parks in the province aimed at creating a stimulating atmosphere for the implementation of RFID technologies. These include the Guangzhou Science City, National Supercomputing Center in Shenzhen, Guangdong Panyu RFID Industrial Park, Guangzhou Tianhe Software Park and Dongguan SSL National Hi-tech Industrial Development Zone.

RFID reader suppliers in Guangdong are riding on China’s strong RFID market, which has maintained growth in recent years. Sales in 2012 hit $3.57 billion, a jump of more than 20 percent YoY and higher than the global average of 17 percent. In general, RFID readers account for about 25 percent of overall RFID sales.

The widening adoption of the Internet of Things and cloud computing is expected to spur the RFID industry further, which will in turn boost the readers segment. The China central government has released a series of policies to promote these sectors.

Rising labor costs and tightening price competition are the major growth obstacles. Guangdong is among the top five provinces in China with the highest salary levels. Spending on manpower has risen about 20 percent since 2011.

Meanwhile, export quotes have started on a downward trend due to the growing number of products available. Makers are therefore compelled to innovate to bolster competitiveness and sales.

Click here to read the complete article on Global Sources.

Note: This article "Guangdong main hub for RFID readers" was originally published by Global Sources, a leading business-to-business media company and a primary facilitator of trade with China manufacturers and India suppliers, providing essential sourcing information to volume buyers through e-magazines and trade shows.

All price quotes in this report are in US dollars unless otherwise specified. FOB prices were provided by the companies interviewed only as reference prices at the time of interview and may have changed.

Disclaimer: All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or logos are not intended for sale. We, our affiliates, and our affiliates' respective directors, officers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof) which infringe on any intellectual property or other rights of a third party.

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