There is a shift of industry focus for European RFID vendors, according to a new RFID market study which shows that, while one year ago most vendors were targeting open supply chain applications in the retail industry, many vendors are now broadening their focus to embrace opportunities in other market segments.

     According to LogicaCMG''s survey-based study, despite a converging set of standards for North America and Europe, the focus for RFID implementations is very different on the opposite sides of the Atlantic. North America continues to view the technology as key for the retail and defence sectors, a perception driven by companies such as Wal-Mart and the US Government. But Europe is starting to recognise the wider applications for the technology in areas such as logistics, aviation, healthcare and the pharmaceutical industry. 116.30.197.100 This article is copyright 2005 UsingRFID.com.

European uptake
     The study, by LogicaCMG''s RFID Center of Excellence, shows that the uptake of RFID in Europe has been boosted since the European regulations were changed in 2004 to allow tags in the Ultra-High Frequency (UHF) range to operate with similar performance as in North America.

     The new regulations, in combination with the new EPC Gen2 standard, have led to more than two-thirds of hardware vendors saying they now create RFID technology that works in both regions. A significant range of products has been developed this year and as a result through 2006 UHF technology will be implemented in an increasing number of business applications.

Early stages
     Paul Stam de Jonge, group director RFID solutions at LogicaCMG, said: "The current UHF RFID marketplace is still at a very early stage, but over the next 12 months we will see a growing number of large-scale implementations as the technology continues to mature. Currently, application specific solutions are not generally available, but over the next 12 to 24 months, as the experience of the current RFID pilots and implementations are translated into integrated solutions, we expect this situation to change. While there are still improvements to be made and prices need to drop, with the new European regulations and the creation of the Gen2 standard, the market has clearly found an environment that is ready for a wide range of business scenarios."

Vendor domination?
     The study also shows that there is no dominant hardware vendor for UHF technology and that this landscape is complex for end-users. Since the market is relatively immature, it consists of a great number of companies that focus on specific hardware components, none of these currently provide end-to-end solutions that combine the required hardware and software components. Hardware vendors agree that system integrators are the natural choice to take ownership of the integrated solution for the customer.

     LogicaCMG''s RFID centre of excellence conducted the study over a six-month period, combining a survey of RFID hardware vendors, analysis of current literature on the European market, and interviews with end-users, hardware vendors and industry bodies. The full survey is available from LogicaCMG''s web site - click here (free registration required).

 

 

 

 

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