RFID poised to become a $9.7 billion industry by 2013

Radio Frequency Identification (RFID) will grow to a $9.7 billion market by 2013, according to a new report by ABI Research.

Research Director Michael Liard explains that the RFID industry is growing strongly across a number of industries, in various forms, “including those applications that are unique to particular verticals, as well as those – such as asset tracking, security/access control, and supply chain management – that are common to a range of verticals.”

Many long-term RFID investments by large end-users account for the positive RFID market trends. For example, Sam’s Club / Wal-Mart and the Department of Defense have announced RFID compliance programs. The health care, energy and transportation industries are integrating RFID solutions for asset management, while many retailers are implementing item-level tagging applications.

Gelal, the largest sock manufacturer in Europe, is a recent example of the difference RFID solutions can make to the bottom line. The company has seen a 40 percent improvement in productivity after introducing an RFID-based tracking system in its Istanbul factory.

The 200,000 pairs of socks it produces per day for companies including Nike, Adidas and Reebok, used to require manual bar-code scanning in large cloth sacks between each of its 20 production stations, which was time consuming and sometimes delayed production due to bent or smudged bar-code labels. With the induction of Alien Technology’s EPC Gen 2 UHF tags attached to plastic totes, the company has reduced the personnel required for each shift from 20 down to 12 workers.

Examples like this demonstrate why rapid growth in the RFID industry is expected to continue at roughly at 15 percent annual rate for the period from 2008 to 2013.

ABI Research’s RFID Forecasts report offers “extensive data on RFID revenues and unit shipments, segmented by technology, application, and vertical market (aerospace & defense, automotive, commercial services, diverse manufacturing, government [non-military], health care/life sciences, retail consumer packaged goods [CPG], retail in store, transportation & logistics, and other),” as described on their Web site.

Could RFID help increase your company’s productivity?

Dynamic Computer is a great source for RFID information and can help you evaluate how RFID could enhance your operation. We provide comprehensive and customized RFID solutions from concept, through testing, to implementation!

Visit the Dynamic Computer Corporation Web site or call 248-473-2200. We offer an RFID Demo tour where you can experience the technology in action! You can visit us and request a tour of our facility at 23400 Industrial Park Court, Farmington Hills, MI 48335.