RFID Gets a 'C' on Its Latest Report Card

Feb. 10, 2005
The latest reports by ARC, In-Stat and ABI give RFID a “C” (as in Costly) for the present, but an “A” for market potential.
Three recently released reports give RFID a “C” (as in Cost) for the present, but an “A” for the technology’s potential. Visit the links provided below to learn more.“RFID Tags and Chips: Changing the World for Less Than a Cup of Coffee,” In-StatIn-Stat forecasts huge growth for RFID tags, saying they are “poised to become the most far-reaching wireless technology since the cell phone.” The firm’s analysts predict that worldwide revenues for RFID tags will mushroom from $300 million in 2004 to $2.8 billion in 2009. The biggest market segment, by far, will be tags for the supply chain. The report also discusses hurdles, such as privacy issues, to be overcome before growth fully takes off. For an abstract and table of contents, visit www.instat.com/r/nrep/2004/IN0402440WT.htm
“RFID Deployment Best Practices,” ARC Advisory GroupARC’s latest report says that ROI is there for retailers but not yet for manufacturers and distributors. The market research firm talked with 24 companies with EPC RFID initiatives, and found that immature technology and poor quality products from suppliers are both weighing on firms’ ability to get more out of RFID at the moment.The report does cover some of the intangibles that make RFID more attractive for the pharmaceutical industry, such as improved inventory management and easier and faster product recalls. To learn more, see www.arcweb.com/Research/ent/rfid-epc.asp
“The RFID Life Sciences Market,” ABI ResearchCounterfeiting may cost the drug industry $30 billion annually, which is why Pfizer, GlaxoSmithKline and Purdue Pharma are beginning to tag products at the item level, with more firms sure to follow.ABI’s report looks at the forces driving RFID implementation in the industry, one of those being drug pedigree mandates from Florida and other states. ABI also states that tag costs will begin to drop in the third quarter of this year as economies of scale appear.More information is available at www.abiresearch.com/reports/RPH.html.