Frost: Asia-Pacific RFID Market to Stabilize by 2010
July 31, 2007 // Published as a news service by IHS
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Radio frequency identification (RFID) supply chain deployments in Asia-Pacific have been relatively slow, according to Frost & Sullivan, especially when compared to Europe or the U.S.
As the cost of this technology gradually reduces, analysts said more end-users will find it feasible to embark on an RFID initiative.
This slow deployment is due to various factors, analysts said. Among them have been high deployment costs and the inability to realize the return on investment (ROI) through such initiatives.
As more proof of concept and pilot projects are being carried out, this technology's potential in the supply chain has found better awareness.
The growth of the RFID supply chain market is slowly gaining momentum, and end-users are beginning to realize the potential benefits RFID technology can bring to a supply chain in terms of efficiency.
Analysts said more large-scale deployments are evident in many parts of the Asia-Pacific and this trend is expected to continue forward.
"The revenue growth rate for the RFID supply chain market in Asia-Pacific observed in 2006 was 7.9%," said Richard Sebastian, Frost & Sullivan research analyst. "This is considered relatively low and this figure was achieved primarily by contribution from projects that were carried out driven by compliancy to mandates."
Sebastian said the overall market in Asia-Pacific will stabilize by 2010 and it will be possible to see a revenue growth rate from 25% to 30% annually in 2010 onward, where a compound annual growth rate (CAGR) of 21% is forecasted from 2006 to 2013. "This is the time of realization by end-users that RFID is indeed the key enabler of an efficiently run supply chain," he said.
Source: Frost & Sullivan.