Monday, March 27, 2006

Global RFID Market Set for Steady Growth

With its huge potential RFIID technology is fast picking up in various sectors. Its multiple applications in manufacturing are yielding recognizable business benefits.

But the technology needs to address some challenges. The challenge is not only in evolving RFID based solutions but also up gradation of existing enterprise solutions to make use of the data coming in additionally. Moreover costing should be rationalized.

The growth in the market over the last few years has come from traditional, established closed-loop applications like security/ access control, automobile immobilization, animal tracking, and toll collection. The emerging application segments like supply chain management are in their last stage of testing which having completed will drive growth of new market opportunities.

The global market for RFID software, hardware and services has increased three times the market value in 2004 making it $6.14 billion by 2010. In 2006 itself more manufacturing companies will expand their initial attempts of RFID technology with a massive growth reaching US $3 billion, largely in United States and Europe.

However, the real challenge lies in the availability of low cost specialized sensors and frequency tags to reach a competitive position. The RFID market is largely contributed by the activities of retail chains like Wal-mart, Tesco and Target, in the next three years the greater RFID expenditure will be incurred by pharmaceutical, consumer packaged goods, and automotive industries.

RFID Industry Analysis 2006 Publ 20060327

RFID? Wikipedia Red Viking