Few Western European manufacturing, retail, wholesale, and logistics companies piloted or were planning to pilot radio frequency identification technology in 2005.
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Research by analyst firm IDC has also revealed that 5% of such businesses were implementing RFID or planning to implement it.
Thirty three per cent of the companies surveyed said doubt over return on investment was the main reason not to adopt RFID.
"RFID is still in its early stages," said Giuliana Folco, research director, IDC European vertical markets.
"However, more than 18% of companies in manufacturing, retail, wholesale and logistics are piloting or implementing RFID projects, and more are to come, not only in these sectors, but also in several other industries."
RFID-compliant applications and servers were the key areas that required investment in more than 50% of the companies interviewed by IDC. This was particularly true for manufacturing.
Warehousing, logistics management and distribution activities were the most affected by RFID implementations.