Industry News
Frost & Sullivan report on European automotive RFID market
27th September 2006
A Frost & Sullivan study finds that the European RFID markets for automotive, aerospace and industrial manufacturing generated revenues of $23.7 million in 2005 and estimates this will reach $109.3 million in 2012.
"The unique features of RFID technology enable the development of a constant stream of innovative applications for manufacturing sectors", said Frost & Sullivan Research Analyst Rengarajan Srinivasan. "The rising need to accurately track valuable assets and products is creating significant scope for the use of RFID across a range of industrial sectors."
The return on investment (ROI) from RFID deployments is difficult to quantify, as the full benefits of the technology depend on its degree of integration into wider business processes. Difficulty in identifying a clear stand-alone ROI, coupled with its high implementation cost, poses a significant challenge to prospective entrants into the market. The euphoria fuelled by the early retail applications and pilot schemes have created unrealistic expectations of the technology among many industries.
"As the RFID market starts the transition from technology trial stage towards early adopter phase, a key challenge will be to clearly identify the range of expected benefits," warned Mr. Srinivasan.
(www.electronics.frost.com)
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