Mandates from retail chains and the U.S. Department of Defense (DoD) requiring their suppliers to use RFID to track inventories, will also contribute to growth. Additionally, the introduction of smaller-sized and less expensive readers increases the options for end users, thereby raising competition levels among reader manufacturers.
New analysis from Frost & Sullivan (security.frost.com), Opportunities in the North American Passive RFID Readers Market, reveals that revenues in this market totaled $23.1 million in 2006, and expects this to reach $241.6 million in 2013.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the Opportunities in the North American Passive RFID Readers Market, then send an email to Sara Villarruel, Corporate Communications, at sara.villarruel[.]frost.com with your full name, company name, title, telephone number, fax number, and e-mail address. Upon receipt of the above information, an overview will be sent to you by email.
“The continuing mandates from Wal-Mart and other retail stores as well as the U.S Department of Defense to all their suppliers to tag their items is a major driver for the U.S. RFID readers market and the RFID industry in general,” notes Frost & Sullivan Industry Analyst Priyanka Gouthaman. “This has put a lot of pressure on the suppliers to adopt RFID readers across their systems and processes and hence will drive the sales of RFID readers over the next couple of years.”
Furthermore, the concerted efforts of RFID companies and industry organizations to establish standards for the technology will also likely commoditize RFID hardware. For instance, the recent Gen 2 standards for ultra high frequency (UHF) have made it possible for readers manufactured by a particular company to read tags produced by any company.
Since RFID utilizes radio-frequency fields, the read performance can vary widely due to the properties of electromagnetic fields. Therefore, read-accuracy remains a critical challenge to the growth of RFID readers and with more RFID systems likely to come into existence in the next few years, the data overloading of RFID systems will present another challenge.
“As the tag-read accuracy of many readers is still less than the ideal one-hundred percent, some tags may not be read in certain circumstances which might prove to be crucial,” says Gouthaman. ”Likewise, information overload might result in a lot of unnecessary data being stored in the RFID system which might affect the bandwidth and the overall functioning of the RFID system.”
As a relatively new technology, companies need to make sufficient investments into RFID research and development to determine innovative ways to improve the tag-read accuracy. With regard to data overload, a system which focuses on data exception rather than data collection provides a more sensible approach to a successful implementation of RFID in a system.
Opportunities in the North American Passive RFID Readers Market is part of the Automatic Identification and Security Growth Partnership Service, which also includes research services in the following markets: World RFID in retail and supply chain applications – a supplier perspective, World retail RFID markets – a retailer perspective, North American RFID markets for automotive, aerospace & industrial manufacturing, World RFID in healthcare and pharmaceutical applications, analysis of the migration from 1D to 2D barcode scanners in North America, and World RFID printing solutions market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available.
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective, and combines ongoing analysis of markets, technologies, econometrics, and demographics.