RFID Demand Set To Rise: Report

Drivers include lower-cost hardware, a new standard, and more user-friendly software, the report says.



Demand for RFID technology is expected to rise as prices drop and new products and services are offered, ABI Research said in a report issued Thursday.

"What we are starting to see is lower cost hardware, tested and proven performance requirements around a new standard, and software that enables non-technology focused end-users to make better decisions and find ways to drive revenue growth and cost refinement," Erik Michielsen, director of RFID and ubiquitous networks for ABI Research, said in a statement. "All together, these factors support widespread RFID deployments across a wide range of vertical markets, to a degree we have not seen before."

Analysts have said that the RFID industry would be viable when prices dropped to five cents. Now, ABI contends that may not be the case, when other factors work in the industry's favor.

"We may have a three-headed benevolent monster that will promote demand," Michielsen said.

Michielsen's statement came after Alien Technology and Avery Dennison announced that prices of RFID tags are dropping. Alien's on pitch labels are 12.9 cents, while Avery's inlays are 7.9 cents.

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