Date: 2nd Sept 2010

ABI: HF RFID and RTLS-enabled asset management system shipments to reach 150 million in 2014

ABI Research has estimated about 37 million high frequency RFID and RTLS-enabled asset tracking and asset management tags are to be shipped in 2010. ABI's latest study has suggested that these shipments may total almost 150 million in 2014. ABI also expects the high frequency RFID and RTLS-enabled asset management system revenues to reach $845 Million in 2014. The compound annual growth rate (CAGR) for 2010-2014 is estimated to be over 40%.

"The basic function of asset tracking is to answer the question, 'Where has my stuff been?'" says practice director Michael Liard. "Asset management, based on Real-Time Location (RTLS) technologies, refines that question to 'Where's my stuff right now?' Some new systems even add sensors, allowing the additional question, 'How are my assets?' Most industries need answers to these questions, but aerospace and defense, automotive manufacturing, commercial services, and non-CPG/industrial manufacturing are showing the fastest and strongest growth in the use of RFID systems."

A recent ABI Research survey of 80 RFID end-user organizations (excluding those with no interest in RFID, and those using it for item-level retail tracking or people tracking in healthcare) surprisingly revealed that 65% of respondents were piloting, deploying, or had already deployed an RFID-based asset tracking and/or management system. This was a higher percentage than those using RFID in its traditional areas of strength, access control and supply chain management.

"Most people assume the savings will be in 'soft money': the ability to reduce employees' time spent on this kind of work," notes Liard. "But deployments that have been carried through to completion are delivering surprising returns in 'hard' money: lower CAPEX and less inventory 'shrinkage'."