Analyst ABI Research has slashed its 2007 forecast for
revenues in the radio frequency identification (RFID) software and
services market to $3.1bn (£1.64bn), in a downward adjustment of
15%.
The analyst firm said its sharply lowered revenue estimates were
based on increasing consolidation in the RFID market rather than
any decline in the industry.
ABI’s RFID practice director, Michael Liard, said four
interrelated factors, particularly in the asset management and
supply chain management RFID market segments had led to the revised
forecasts.
"They are market consolidation, collaborative solutions, the
growing availability of off-the-shelf commercial RFID software
packages and the improving level of skills in RFID project
planning.”
The analyst firm expects further consolidation across and within
companies as RFID products and services evolve, while collaboration
is set to grow as RFID technology becomes increasingly
standardised, with "ecosystems of partners" contributing to shared
solutions and bringing costs down.
The analyst firm also predicts and increase in cheaper
off-the-shelf packages to fit lower RFID integration budgets.
The revised ABI market forecast follows predictions in March by
the Economist Intelligence Unit that RFID will extend its impact
into a wide range of industries beyond its obvious home in the
supply chain.
The EIU said RFID technology would in the long term be
integrated into enterprise resource planning and other management
tools.
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