Internet of Things (IoT) is merging the physical and online worlds and is increasingly paving way for a paradigm shift in the radio-frequency identification (RFID) market. The early adopters of this concept are expected to be from segments such as healthcare, manufacturing, automotive, utility, and retail. Customers across these applications have understood the operational benefits through RFID adoption which is expected to be a key factor driving adoption.

Connected devices are augmenting the capability of real-time data exchange about parameters such as product health, customer behaviours, and usage statistics, among others. This enables the shift from a product-based business model to an outcome-based model resulting in better value for customers. For example, an outcome-based model in a manufacturing plant helps identify the failure of a part (predictive maintenance) before it occurs, thereby preventing plant/process downtime.

Likewise, in the healthcare and pharmaceuticals vertical, applications such as patient monitoring and warehouse management use passive technology whilst applications that require constant feedback use active technology or real time location systems (RTLS). Recent times have seen greater emphasis on safety, service, and value for patients by caregivers while ensuring a reduction in charges and prices. The interoperability of RFIDs with allied standards and technologies such as Wi-Fi and sensors opens a myriad of applications. For example, key applications for RFID in transportation are automatic vehicle identification, electronic toll collection, congestion management, and parking management. The evident increase in research and development (R&D) efforts by RFID vendors has resulted in improved performance, reliability, and scalability. As industry participants focus more on developing robust, error-free, and efficient solutions, a greater inclination toward faster return on investment (ROI) through technology is expected. The aforementioned applications use both active and passive RFID technologies.

In addition, retailers are driven toward achieving enhanced customer experience, an efficient process flow, and increased sales through technology that is increasingly becoming an integral part of retail and paving the way for smart retailing. Technologies such as electronic article surveillance (EAS), radio-frequency identification (RFID), Bluetooth low energy (BLE), near-field communication (NFC), biometric modalities, and sensors enable various applications within retail.

Conclusion

Increasing awareness about technology and its benefits, coupled with market trends, continues to drive adoption levels of RFID in industries such as healthcare, transportation, and manufacturing. The convergence of RFID with allied technologies is expected to witness considerable traction, driving the adoption rates in these applications. Thus, the market for RFID in transportation is one that needs to be exploited by vendors in this space.

About Frost & Sullivan

For six decades, Frost & Sullivan has been world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success.

Frost & Sullivan

For six decades, Frost & Sullivan has been world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success.

Share This
X