RFID wears its “Bright Spots” well

Industry analyst ABI Research says RFID sales in 2009 have confirmed that three of the most promising hot-spots are the retail apparel segment, asset management, and active RFID (in a number of verticals).

“2009 has confirmed those assessments,” says RFID practice director Michael Liard. “All three of these RFID application and technology areas have shown strong growth, and today account for 9.3% of the total RFID market, with combined revenues of more than half a billion dollars. We expect the trend to continue in 2010 and beyond: apparel, asset management and active RFID should show a 12.7% combined compound annual growth rate through 2014,

outpacing the overall RFID market growth. This is considered strong growth given the level of maturity of many RFID-based asset management applications.”

Specifically, adoption of item-level RFID in the fashion apparel market is graduating from pilot testing to full-scale deployment. While installations at Marks and Spencer in the United Kingdom, American Apparel in the US, and Charles Vögele in Switzerland remain the largest contributors to market growth, scores of companies are now in various stages of implementation.

Asset tracking and management is showing particular applicability to work-in-process tracking, including spare parts and tools; Returnable Transport Items (RTIs); IT asset management; medical assets, rental item management (library books, media, laundry, etc.); and yard management.

“Multiple RFID frequencies and technologies support asset management, affording opportunities for multiple vendors,” notes Liard.