"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."
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