Europe to go large on little chips...
Investment in RFID technologies in sectors such as the automotive, aerospace and manufacturing industries is set to skyrocket.
Those sectors in Europe alone generated revenues of $23.7m in 2005, with analyst house Frost & Sullivan claiming this figure will reach $109.3m by 2012.
However, ROI is more difficult to quantify, with expectations of the benefits of RFID implementation often being unrealistic. The success of RFID implementation is dependent on the degree of integration into business processes, the Frost & Sullivan report claims.
RFID is also known for its high implementation costs and this has led to slow uptake of the technology.
RFID tag technology allows the tracking and managing of a company's products, for example, allowing easier stock-takes.
RFID also enables companies to tighten their brand security, whether by thwarting counterfeiting or safeguarding valuable products. Gillette trialled RFID technology on its razor blades in 2003.