Chat with our sales team
Whole Network Most Recent TOP10 Market Size RFID Basics Tags and Readers

 

RFID 2006 Year in Review - Volumes Lower Than Anticipated

Filed in archive Market Size by Anita Campbell on January 03, 2007

RFID_Year_In_Review.jpg
Analyst firm RW Baird has issued its December 2006 Supply Chain Technology - RFID Monthly, containing its take on the RFID market in 2006.

In one sense, RW Baird's reaction was similar to the other analyses I've covered here so far. They note that the numbers for retail mandates/supply chain initiatives were disappointing (everyone seems to agree on this point), but they also suggest RFID is getting good uptake in other applications such as within the transportation, aviation, fashion and library industries.

According to RW Baird, while the RFID volumes were weak, the market is doing better than the lackluster numbers would suggest. They note:
Year in Review -- Market Progress Better Than Weak Volumes Suggest. While overall tag volumes will come in well below expectations for 2006, we view RFID as having good success in several key areas, most notably with Gen2. Industry commentary suggests Gen2 capability is better than expected and equipment is readily available. The quality, form factors and application functionality have improved throughout the year. In addition, the market now has access to multiple sources of tag silicon. We also have seen a significant amount of pilot programs that have meaningfully improved the knowledge base.

Good Momentum Beyond Retail Supply Chain Applications. We are hearing of positive momentum and ROIs in a number of applications, including display tagging, airline bag tagging and chemicals. Such notable ROIs should help to increase application testing in these areas. In addition, we expect strength seen during 2006 will continue in 2007 in the aviation, library, transportation and fashion markets. We also expect Europe will gain more traction in 2007 given improving technical solutions.

Pharma Tagging Receives a Setback. A federal judge issued an injunction that effectively continued the stay on the FDA's e-pedigree mandate as formed by the Prescription Drug Marketing Act (PDMA). While the injunction only maintains the status quo, we believe that it may slow the adoption of RFID by some pharmaceutical companies. We expect that the FDA will likely rewrite the legislation to better reflect the capabilities of RFID and to address adoption inequities that prompted the injunction. Recall that mandate was originally drafted in 1987 and had been stayed until the FDA elected this summer to make e-pedigrees mandatory as of January 1, 2007. While the mandate did not require RFID, the FDA did list RFID as the most desirable solution to meeting the mandate.
Read the entire RW Baird RFID report here (PDF).

Read the previous two RFID 2006 Year in Review posts containing other takes on 2006, also, to see similarities and differences:

RFID 2006 Year in Review - Some Lost Their Shirts

RFID 2006 Year in Review - Retail Mandates Disappoint


Advertisement


Permalink: RFID 2006 Year in Review - Volumes Lower Than Anticipated
Tags: RFID  supply+chain  mandate  rfid  year  year+review  than+anticipated 

Trackback: http://www.creative-weblogging.com/cgi-bin/mt-tb.pl/47800



Advertisement


Advertisement
Apple iTunes


CW ToolbarInstall
RSSrss   | See all blog subscribe options
Googlegoogle   |   What is RSS?
Yahoo!yahoo
AddthisAddThis Feed Button
BloglinesBloglines
Newsletter
Advertisement - Book yours here.
Magazines.com, Inc.

Use our search feature to look for other interesting posts

Just this blog Whole network
Delta Air Lines
 
  • Would you like to see your text link here? Let us know!
Advertisement
Book yours here.



  • Other blogs in the same channel in the Creative Weblogging Network

Advertisement -
Book yours here..
Blue Nile, Inc.






Advertisement - Book yours here..
Apple iTunes
 
Tagcloud: Case Studies Companies Contactless Payment Systems contest EPC Standards Healthcare Implementation Interviews Libraries Market Size Near Field Communication Patents Privacy and Security Report Retail RFID Basics RFID Employment Software Applications Special Events Sponsored Posts Sports Stocks Supply Chain Tags and Readers Ubiquitous Computing Wireless