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RFID Systems Apps Growing with Rising Interest from Verticals
Sep 23, 2008

With a large number of benefits offered by RFID technology, industries from every spectrum are showing interest to adopt this technology, creating vast growth opportunities for it.

According to a study conducted by the Computing Technology Industry Association (CompTIA), interest in RFID (Radio Frequency Identification) technology, that includes electromagnetic use in the RF (Radio Frequency) part of the electromagnetic spectrum for identifying an object, is continuously rising, as reported by
NETWORKWORLD.

The study further revealed that IT companies point out that 46% of their clients that come from various industries, including government, healthcare, retail, services and finance, have put in place one or more RFID systems, higher from 34% last year. Among the RFID systems, asset tracking systems have become very popular; with 32% respondents have already implemented them, followed by personal identification (28%) and supply chain (25%). Next came retail marketing and closed loop manufacturing with 15% and 9% respectively.

The main reason for rising usage of RFID in various industries is the benefits offered by it, ranging from better management of manufacturing, distribution and inventory processes to cost reduction by decreasing product theft, obsolescence and spoilage. Further, RFID has a wide range of applications in many fields such as security and access control, toll collection, automobile applications, animal tracking and other consumer goods, particularly in retail industry where item-level tagging is already in use. These fields also represent future growth areas. RFID tagging is a new development capable of changing the way businesses plan, distribute, price and advertise their products.

Also, the large closed-loop markets that need high value RFID systems represent the most profitable segment for companies. Companies are trying to make themselves leader in hardware and integration in various vertical market segments. These segments include new markets such as Real Time Location Systems market where active RFID is used.

However, the RFID industry has to overcome many challenges, like tag production against cost, specification creep, performance level and frequency acceptance, that will play a key role in industry growth in coming years.

According to a Research Analyst at
RNCOS, “Considering the advantages offered by RFID technology, many industries, particularly logistics service providers, retailers and food manufacturers, have placed this technology on their agenda of discussion. Apart from this, tracking, document management and specimen management are creating space for the growth of RFID technology.”

Related Market Research Reports:
European RFID Industry Outlook (2007-2010)
Global WiMAX Market Analysis
Global RFID Market Analysis till 2010