Industry Profiles

July 2006 – As RFID (radio frequency identification) technology steadily comes out of development and moves into adoption, companies are expanding to Japan to establish their stake in the market before mass implementation takes off.

The market for RFID-related products (i.e. reader/writer, contact-less IC card, RFID tag, and peripherals) in Japan for 2005 had an estimated value of $223.2 million. The market for RFID tags was estimated at $40.9 million in 2005 and is projected to grow to $244 million by 2010.

Japan provides a promising environment for developing and deploying RFID devices and solutions, aided by government initiatives to encourage adoption, the market-leading technology of its companies, and its location as a hub between some of the world's largest manufacturers and trading companies in China and Southeast Asia.

Government Initiatives
Seeing the potential that this technology could produce sweeping changes across several industries, the Japanese government has been pushing RFID development and adoption. 

Reducing tag price
• 2004 – Japan's Ministry of Economy, Trade and Industry (METI) began a two-year project to reduce the price of passive RFID tags, which were approximately US$0.20 to $0.30 each when purchased by the millions.  Tags called Hibiki tags are expected to be made available by the end of this year for about $0.05 per tag.

UHF band approval
• April 2005 – The government approved the use of RFID tags within the UHF (ultra-high frequency) band, which was previously reserved for mobile phones.

International Trade Field Trial
• June 2005 – Funded by the Ministry of Economy, Trade and Industry (METI) and managed by the Japan Federation of Freight Industries, this trial used active RFID solutions to certify and electronically seal containers at their point of origin, track land and ocean shipments of these containers as they stop at key check points, and electronically unseal containers at their destination.