Radio frequency identification (RFID) technology is set to grow by 31 per cent in 2008, totalling $3.5 billion (£1.77 billion) by 2012, say experts.
Gartner has predicted the industry will reach $1.2 billion this year, a 30.9 per cent increase on 2007 where figures stood at $917.3 million.
Chad Eschinger, research director at Gartner, said: "The market for RFID technologies has begun to transition from being compliance-oriented to being revenue-generating and innovative."
RFID technology is beginning to see its second application with companies using it to increase competitiveness.
Globalisation is driving the market too as companies look to speed up the time between manufacturing and marketing of their products.
Mr Eschinger added: "Today’s buyer is more discriminating than in the past and cautious of over-hyped technologies. They will be looking for greater functionality and return on investment."
The technology is being used across sectors, with the biggest use being seen in discrete manufacturing, with a 21 per cent market share.
Other industries using RFID are governments, both national and international, transportation and retail.
Ford is one major brand which has adopted the technology, using it in pickup trucks and vans so a users tools can be checked in and out and tracked, reports Computer World.
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