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Retail Technology, Retail technology News

Survey: Nearly half RFID users to increase budgets in 2010

Tuesday December 15 2009

Annual comprehensive survey of companies currently using, deploying, or piloting/evaluating radio frequency identification (RFID)   This year more than 115 qualified organisations from across the world responded to ABI Research’s annual RFID end-user survey.  

Annual comprehensive survey of companies currently using, deploying, or piloting/evaluating radio frequency identification (RFID)

 

This year more than 115 qualified organisations from across the world responded to ABI Research’s annual RFID end-user survey.

 

Nearly half (49%) of those respondents currently using, deploying, evaluating, or piloting RFID report that they expect their RFID budgets to increase in 2010. “ABI Research considers this a welcome result in these difficult economic conditions,” said practice director Michael Liard. “Moreover, 100% of those organisations with roll outs currently in progress intend to increase their RFID budgets next year.”

 

The picture is fairly rosy in other parts of the market too: nearly another one third of respondents report that their 2009 RFID spending levels will remain unchanged in 2010, while only about 11% intend to cut their RFID budgets.

 

Process improvement still on-trend

 

As in past years, the overwhelming majority of respondents rated “business process improvement” as the number one driver for their adoption of RFID. The second-most important driver was considered to be the need to reduce non-labour costs.

 

Return on investment (ROI) timeframe is also a critical consideration for most companies considering RFID deployment, and comparing the ROI assumptions reported in 2009 with those from 2008, the survey found that considerably more companies – 48% as opposed to 37% in 2008 – expect their investment to be recouped within 12 months. “Shorter ROI timeframe expectations are yet another sign of users’ growing confidence in the RFID business case,” noted Liard.

 

ABI Research’s “Annual RFID End User Survey Top Line Results” report provides the high-level, top-line results from the firm’s annual survey. Expanded to include more than 200 tables and charts, the study provides analysis of respondents’ RFID usage plans, primary adoption drivers, specific applications, supported operating frequencies, current and anticipated transponder and reader volumes, RFID expenditures and budget direction, vendor sources and selection criteria, and demographics. Non-user responses are also analyzed to gain perspective into reasons for not adopting RFID.