RFID sales set to grow at 8.9% as the pilot phase ends
As RFID (radio-frequency identification) tracking moves from pilot installations in manufacturing sites, to becoming a fully commercial technology, the global market will grow from $208m last year, to around $320m by 2011.
A new study of the worldwide market for RFID in manufacturing applications predicts a CAGR of 8.9% over the coming five years – with a much faster growth in unit sales – as standardisation and technology convergence combine to drive prices down and to generate a strong growth in sales.
The study, by the ARC Advisory Group, suggests that the justification for adopting RFID technologies will move from the need to comply with regulatory or customer demands, to internal savings leading to a measurable ROI (return on investment). Examples include applications such as in-process error proofing, where RFID can remove human variability, and the ability to match the correct part or tool to an item being manufactured.
"Compared to the challenge of generating ROI from mandate-driven RFID implementations, numerous opportunities exist for internal RFID applications to generate ROI for manufacturers," says ARC vice-president Chantal Polsonetti, who was the report’s main author.
