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A recent AMR Research report assessing
the Radio Frequency Identification (RFID) market from 2005 — 2007 says that RFID
implementation will gain momentum in 2005. 69% of respondents surveyed are
planning to evaluate, pilot, or implement RFID in 2005 with the average budget
for RFID at more than $548,000 increasing to $771,000 by 2007. Among the key
factors driving implementation of RFID, compliance remains the key issue for
most respondents.
With the hype surrounding RFID
technology in recent years, the report, based on a survey of 500 companies
conducted with RFID Journal, identified several key issues facing the RFID
market:
·
The opportunity for market technology
leadership in RFID is wide open, with no one vendor establishing an early
leadership position.
·
The overwhelming majority of survey respondents
cite significant challenges finding the Return on Investment (ROI) to justify
their RFID spending. 28% cite it specifically as their biggest obstacle with
regard to RFID adoption.
·
A lack of standards maturity continues to be a
key factor, especially for process manufacturers; only 29% believe the
standards have reached an appropriate level of maturity.
“RFID is still in its formative years,”
said Dennis Gaughan, research director, AMR Research. “The market will be hotly
contested across all technology segments from tags and readers through
middleware and enterprise applications.”
While only 8% of companies are in full
deployment, 61% plan to evaluate, pilot, or implement RFID in 2005.
a long-term strategy for RFID in their organization as well as short-term
tactical requirements for meeting today's needs, the AMR report says. Vendors
of the technology should work to combine different technology segments effectively
and at a good cost of ownership in order to vie for market leadership. Vendors
that can help customers find and exploit positive business models will win.
Source:AMR Research