March 23, 2006

The future of the RFID business

Beyond all the promise and hype, it ultimately comes down to pure common sense business. IDTechEx has recently researched in detail the so-far under-explored subject of RFID and profitability.

Finding #1: the RFID markets needs Mergers.

The major customers need a small number of suppliers with global experience and support, yet the number of suppliers is rocketing with almost none of them genuinely operating globally in RFID. We have found only one company with a sustained and profitable major acquisition program consolidating the RFID industry to the delight of its customers. It is Assa Abloy…

Finding # 2: Where are the profits?

… there are a larger number and percentage of profitable RFID companies at the end of the value chain, as in system supply, system integration and facilities management. These activities also see larger average order size.

Via MoreRFID

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