Global RFID spending to explode

 

Global revenues for radio frequency identification (RFID) products will grow by almost a third this year to reach US$1.2 illiobn..

Analyst firm Gartner said that the upward trend is set to continue, and that worldwide revenues will top US$3.5 billion within the next four years.

"The market for RFID technologies has begun to transition from compliance-oriented to revenue-generating and innovative," said Gartner analyst Chad Eschinger in a statement.

"Early adopters faced tight profit margins and pressed technology providers for lower hardware costs. Fortunately for the market, this trend has waned and innovation rather than cost is becoming a key driver for adoption."

As companies move from pilot projects to a new "exploration phase", important drivers include the need to comply with new regulations and a growing thirst for in-store inventory management projects, according to Gartner.

However, the analyst warned that customers remain cautious. "While the interest for RFID technologies is high, today's buyer is more discriminating and is cautious of over-hyped technologies," said Eschinger.

"They will be looking for greater functionality and return on investment."

Copyright ©v3.co.uk


Global RFID spending to explode
 
 
 
Top Stories
Content, cost & constant innovation: How Foxtel plans to take on Netflix
Nell Payne inhabits the “brave new world of blue strings and networking”. Just don't ask her to put a TV screen on your microwave.
 
Sending in the drones
Margins are getting tighter in the industrial services industry, so Transfield Services' Stephen Phillips looks offshore - and to the skies - for the solutions he needs to keep pace.
 
Westpac fires starting pistol on core banking upgrade
St George readies itself for move to Celeriti.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest Comments
Polls
Should Optus make a bid for iiNet?

   |   View results
Yes
  43%
 
No
  57%
TOTAL VOTES: 527

Vote