Post a CommentRFID Deployments to Reach $2B by 2008
Online staff -- Electronic News, 12/6/2004
With major companies planning to increase the deployment and integration of radio frequency identification (RFID) systems in retail stores and warehouses in the years ahead, the market for RFID-related consulting, implementation and managed services is expected to grow by 47 percent this year alone, to reach $2 billion by 2008, according to the latest research from IDC.
The Framingham, Mass.-based market research firm also said that because RFID encompasses a wide range of applications – from helping to protect the U.S. drug distribution network from counterfeiters to ensuring child safety – no other auto-identification concept gained as much attention this year as RFID.
Further, RFID is regarded as a disruptive technology holding significant opportunity for services organizations to help transform the supply chain for manufacturers, third-party logistics firms, retail establishments and consumers.
Most services vendors have mainly focused on helping suppliers comply with retailer mandates in the past 12 months, but IDC believes the emerging leaders will be those companies able to support a wider range of customer business process challenges beyond the mandates.
“The pursuit of true enterprise mobility continues to be driven by early technology adopters seeking competitive advantage in a particular vertical industry. In the case of supply chain participants, the deployment of RFID and related wireless sensing solutions is helping to create that long-term competitive advantage,” said Richard Dean, program director for mobile enterprise and RFID services at IDC, in a statement.
“Supporting this objective, leading services organizations are helping design, build and manage the RFID infrastructure that can deliver this long-term value,” he added.
IDC’s report also indicated that RFID and wireless auto-sensing solutions have evolved into a legitimate consulting, implementation and managed services opportunity for many of the world’s most well respected services organizations. Further, about 66 percent of enterprise organizations considering an RFID solution this year reported they would prefer to use external resources when implementing such projects.
Finally, services companies are increasing levels of investment in personnel, marketing and partnerships for RFID in anticipation of increasing demand for services through 2008, IDC reported.
