RFID to Stay Hot in 2006
Online staff -- Electronic News, 1/18/2006
RFID, one of the hot technologies of 2005, shows every sign of maintaining that status in 2006, according to ABI Research.
While the market is becoming increasingly global, according to the firm, much of that will continue to reside here in the United States. Recent months have seen a number of RFID tag and reader vendors based outside the U.S. working to establish footholds and strengthen their presences in North America. Hailing mostly from Japan, South Korea and Europe, they include companies such as Sato, KSW Microtec, Rafsec, Siemens, Omron and Samsung, and they are refining their channel strategies for the region, the firm reports.
That, notes ABI Research's director of RFID and ubiquitous networks Erik Michielsen, increases the competition, which, he believes will encourage the market. "Increased competition, and the infusion of international perspectives, will have a beneficial effect on the markets."
ABI Research reports that EPCglobal in 2006 is trying to play a role in determining reader/network interface standards. In doing so, it is taking on the traditional players in that role, giants such as Microsoft, Oracle, SAP, BEA Systems, Sun Microsystems and IBM. "There is debate in the market whether by moving into the enterprise in this way, the organization is overextending itself," Michielsen said, "or whether this is something that will benefit the industry in general. ABI Research has an open mind on that issue."
Finally, 2006 is the year for label converters to jockey for position, the firm said, noting that there are dozens if not hundreds of companies that assemble labels and prepare them for mounting. However, the firm believes there are large market opportunities and niche opportunities in areas like high-volume consumer goods, temperature-sensitive grocery supply chain and Security-sensitive item-level pharmaceutical tracking. How well these companies position themselves will have a great impact on their success, ABI concluded.


