RFID technology to generate $4.99 billion in revenues in 2020: Frost & Sullivan
September 3, 2014
The radio frequency identification market is expected to generate revenues of $4.99 billion in 2020, up from $1.29 billion in 2013, according to the latest research from Frost & Sullivan.
The market-research player reckons demand for RFID will increase to fulfill a variety of business needs more efficiently.
The technology is increasingly being introduced to enhance supply chain visibility and give organizations more control over inventory, operations and logistics across “diverse manufacturing points”, according to Frost & Sullivan.
The technology has brought about an increase in productivity by facilitating real-time tracking of assets in different locations.
RFID has also allowed companies to reduce labor requirements and improve the accuracy of data, boosting adoption among manufacturers looking to realize a higher return on investments.
“Opportunities for RFID solution providers exist across all application segments within the manufacturing industry,” said Nandini Bhattacharya, a senior research analyst with Frost & Sullivan. “Growth prospects in the automotive and aerospace manufacturing sectors are especially promising owing to supportive industry regulations.”
Even so, with the economic situation still uncertain in many parts of the world, many small and medium-sized enterprises have shown a reluctance to invest in RFID solutions unless they see a direct correlation between implementation of those technologies and cost-saving benefits.
Cost has, therefore, become a discerning factor for consumers’ RFID purchasing decisions, while scalability of solutions and technology support will be important criteria influencing uptake in future.
“Partnerships and acquisitions are rampant and necessary for this market to continue to expand,” said Bhattacharya. “Without such collaborations, the breadth of knowledge and expertise needed for success is typically too wide even for the largest of companies.”