Palo Alto, Calif, United States
The radio frequency identification (RFID) market is an emerging one but is expected to receive a major boost with the standardization of frequencies and reduction of tag prices. Mandates from retail giants such as Walmart and Tesco, technology innovations, and emerging applications are also likely to drive market growth in the long term.
"Governments are focusing on frequency allocation and harmonizing bands used for RFID to ensure greater interoperability, which will bring more credibility to the market and attract higher investment from participants," says Frost & Sullivan Research Analyst Parul Oswal. "Emerging applications will create opportunities for new participants looking to enter the RFID space."
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the analysis of Profiles of Local Companies in the RFID Value Chain in Selected APAC Countries, then send an e-mail to Donna Jeremiah, Corporate Communications, at djeremiah@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.
RFID technology is expected to make the most rapid strides in the Asian market, which is projected to grow at a compound annual growth rate (CAGR) of approximately 35.0 per cent for the next 5 years. Initial adoption of this technology is likely to be particularly strong in countries with high labor costs such as Singapore, Korea, and Japan.
Currently, security access control is the largest application in most Asian and Southeast Asian countries, but future growth could be limited due to increasing saturation. Electronic toll collection and fare payment is another major application, but is also expected to experience moderate growth due to the low labor costs in many Asian countries.
Supply chain is a small market at present, but has a bright future in Asia since manufacturing is a core industry in many Asian countries. Most supply chain RFID projects are still in the pilot stage, but the technology is eventually expected to be used for warehouse management, inventory tracking, shelf management, and container tracking.
"Overall, maximum growth is expected to come from traditional applications in the medium term, as there are still substantial opportunities for these applications in the developing countries," remarks Oswal. "New applications will drive growth in the long term."
However, the uncertain ROI of RFID has been a major restraining factor to the uptake of this technology. Even though prices of RFID tags have fallen, end users are still reluctant to invest in something that could be substituted by another technology such as barcode at a lower price, albeit also at the lower end.
RFID costs are likely to decline further only with increasing volumes, but paradoxically, this technology is more useful in large value, small volume products. It remains to be seen, therefore, whether lower costs will result in higher volumes or whether volumes will increase and result in lower costs.
Nevertheless, the immense potential of the Asian RFID market continues to attract many multinational companies, who along with local participants, offer a wide variety of products and provide different services.
For instance, some companies are involved in the design and manufacture of integrated circuits (ICs) that are used in the development of RFID hardware equipment. System integrators form another group of participants and they integrate the software and middleware in the equipment with the back-end systems. These companies also act as distributors and value-added resellers. In addition, several other companies provide training and consulting services.
Profiles of Local Companies in the RFID Value Chain in Selected APAC Countries, part of the Auto ID & Security Growth Partnership Services, profiles companies operating in the RFID space, covering both leading companies with offices in Asia Pacific as well as local participants demonstrating either innovative technologies or marketing strategies. Frost & Sullivan has tracked the RFID industry for sometime and continues to monitor key and niche participants in this market year on year. 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. For more information, visit www.frost.com.
Profiles of Local Companies in the RFID Value Chain in Selected APAC Countries
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Contact:
Donna Jeremiah
Corporate Communications - Southeast Asia
+603 6304 5832
djeremiah@frost.com
Sara Villarruel
Corporate Communications - North America
+1 210 247 8448
sara.villarruel@frost.com
Michael Banks
Corporate Communications - Europe
+44 (0)20 7915 7876
michael.banks@frost.com
Source: Frost & Sullivan (Business Wire India)