European RFID markets for automotive, aerospace and industrial manufacturing generated revenues of $23.7 million in 2005 and are estimated to reach $109.3 million in 2012 according to analyst firm Frost & Sullivan, as reported on UsingRFID.com.
"The unique features of RFID technology enable the development of a constant stream of innovative applications for manufacturing sectors," said Frost & Sullivan research analyst Rengarajan Srinivasan. "The rising need to accurately track valuable assets and products is creating significant scope for the use of RFID across a range of industrial sectors."
As companies move from the pilot stage to a full-scale implementation of RFID, figuring out an ROI is always difficult. "The uniqueness of each new RFID implementation due to varying company environments compounds this challenge, making meaningful comparisons of new systems with existing implementations unreliable. Over-optimistic or unclear objectives for implementing RFID are likely to have a negative impact on ROI and deter wider adoption," warned Srinivasan
Srinivasan recommends that companies design business processes that take into consideration practical real-world conditions. The IT infrastructures must be well integrated as well.
"Manufacturers need to establish a strong business case for implementing RFID systems and develop flexible frameworks for evaluating ROI," concluded Srinivasan.
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