Hard to quantify return on investment and high implementation costs are hobbling the uptake of RFID, according to market analysts Frost & Sullivan.
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The hype and early successes of radio frequency identification (RFID) pilots in the retail sector have created “unrealistic expectations” of the technology in many industries.
“The uniqueness of each new RFID implementation due to varying company environments compounds this challenge, making meaningful comparisons of new systems with existing implementations unreliable,” says Frost & Sullivan research analyst Rengarajan Srinivasan.
The analyst estimates that the revenue for RFID technology in the automotive, aerospace and industrial manufacturing space will soar to $109m by 2012 – almost five times its market value in 2005.
To fully realise the benefits of RFID, companies must fully integrate the technology into its business processes. As well as helping manufacturers improve the way they can track and manage inventory, RFID will help them protect against counterfeiting.