Abstract
Establishing Standards – the Primary Industry Need
The most prominent barrier that separates steady growth from an explosive one in the global radio frequency identification (RFID) market is the lack of standards. While the industry has benefited from the advent of electronic product codes (EPCs), it is still fragmented in its choice of standards for emerging applications. This might lead to a situation where organizations incur high costs to bring out multiple-standards compatibility for their products. In turn, product prices could go up, restraining uptake. A more structured standards framework is likely to enable quicker innovations in technology and products.
This Frost & Sullivan research studies the global market for RFID-based applications. It provides valuable analysis of market drivers and restraints, along with forecasts for potential growth areas. The study covers applications in supply chain management, transportation, and security, access control and asset management besides other applications.
Higher End-user Awareness Expands Application Segments
RFID has evolved into a popular technology that is witnessing great strides in market growth and end-user awareness is not a restraint for the market anymore. Traditional applications such as toll collection, security and access control, and automobile immobilization continue to drive revenues. Increasing end-user knowledge and decreasing prices are spurring further deployment in newer segments such as point-of-sale payment and retail tagging.
"The numerous pilot projects attempted in the last two years are expected to soon result in extensive deployment in large-scale applications such as retail and security," says the analyst of the research. "In addition, initiative shown by organizations such as the Department of Defense and Wal-Mart Stores in adopting the technology and making tagging mandatory for their numerous suppliers has already encouraged wide scale adoption."
Supply Chain Management Market Is All Set For High Growth
Deploying RFID-based supply chain management can dramatically increase operational efficiency and hence the profitability of organizations. It works primarily by bringing control and clarity to materials management processes. "Proper adoption of RFID at all supply chain levels can provide greater benefits including just-in-time inventory management, prevention of out-of-stock situation, and greater supply chain visibility that help get faster returns on investment (ROI)."
At a time when low ROI is a barrier to the growth of RFID technology among industries, supply chain management applications stand out as an exception. Hence, this market segment is expected to witness tremendous growth in the short and medium terms. | 
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