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VDC study: RFID growth will start to shift to new accounts in 2011 and beyond

It’s no surprise that more than three-quarters of total global RFID revenues in 2009/2010 came from established accounts that have been evaluating or piloting RFID technology for at least 18 months. However, as RFID continues to expand, it looks like a shift in those consumption habits will start to occur late in 2011 and into 2012.

According to Drew Nathanson, Director of Research Operations at VDC Research, the shift in consumption to newer users of the technology will be a function of favorable pricing, increased packaging of solutions and availability of off-the-shelf solutions, more benchmark and performance metrics, enhanced standards, and improved business models.

That’s just one of the predictions made by VDC analysts for trends expected to shape the RFID and auto-ID industry in 2011. This has been a banner year for the AIDC market, with many RFID suppliers experiencing double-digit growth. Nathanson expects more of the same in 2011.

Here’s a look at the other VDC predictions. Be sure to comment below and let us know what you think!

Adoption of Item-Level Tracking in Retail Continues to Surge

VDC expects item-level tracking applications in retail to continue to expand rapidly in 2011, as the solution is adopted in new accounts, scaled and expanded in existing accounts and embraced globally. Growth will also be further driven as RFID continues to migrate toward the point of manufacture. Click here to read more about item level tagging at the retail level.

Asset Tracking Applications Go Beyond Location

Asset tracking solutions will continue to expand beyond just providing the location of an asset. They will increasingly be leveraged to provide more information about the asset—its environment, movements and users—as a means to support and enhance business processes, increase asset utilization, support compliance and minimize costs. Click here to read more about RFID and asset tracking.

Authentication and Anti-Counterfeiting Emerge as Leading Applications

Product authentication and anti-counterfeiting applications are anticipated to grow quickly and expand into a broad range of verticals over the next 3-5 years as companies look to create a more secure supply chain. These applications are expected to extend the functionality of existing systems beyond track and trace to protect brands, further improving ROI. Click here to read about RFID 24-7′s coverage of authentication and anti-counterfeiting.

Solution Convergence Will Provide Key Benefits

Although there may be overlap in functionality and capabilities, the convergence of RFID, barcode and other AIDC solutions will provide the end-user more actionable business intelligence with little disruption to existing solutions and processes. The combination of these technologies will be particularly beneficial for applications and environments, such as supply chain and inventory management.

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