The RFID market is set for further robust growth despite many a challenge. While
turnover is likely to increase by an average of 19% p.a. in Germany between 2006 and 2016, the pace may reach as high as 25% p.a. worldwide. With the shift in
the market shares of individual RFID components and the exodus of production of
less sophisticated products from the high-wage countries, Asia is likely to
contribute an ever increasing share and become the continent with the strongest
turnover by 2016.
RFID links the physical good with the corresponding
information. In fact,
the RFID principle has been used in a broad spectrum of military and civilian applications
for decades. However, it was not until the introduction of the electronic
passport and the use of RFID tags on some consumer goods in the retail sector
that public interest in the technology surged.
Political and technological challenges will shape RFID's
commercial outlook.
In the technology area, the issues seem to focus primarily on energy consumption,
production costs, manufacturing speed and reading errors, while politically the
focus will be on frequency harmonisation, standardisation, and environmental
and data protection.
Not every RFID project driven by a technological vision will
necessarily become a commercial success. Before they start using RFID, companies must take a
critical look at the cost and income aspects.
RFID promotes innovativeness in the economy as a whole. RFID-based process automation not
only boosts the efficiency of innovative companies, it is also instrumental in
expanding the overall supply of goods and services.
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Source: www.dbresearch.com
About the Author:
The author
is working as Senior Economist at Deutsche Bank Research since 2000. His main
responsibilities are the economic analysis of structural changes caused by
innovative information and communications technologies. Before moving to
Deutsche Bank, Dr. Heng worked in a Research Group of Deutsche
Forschungsgemeinschaft (German Research Foundation). He was awarded a doctorate
by the University of Mannheim in 2000 for his thesis about the economic impacts
of road traffic in Germany. Dr. Heng is the author of several studies and
essays. Amongst others he is affiliated as referee to the International
Telecommunications Society (ITS), and as Young Leader to the Atlantic Bridge association.
