RFID-M2M Combo Takes Root in Manufacturing Sector

Network operators and technology suppliers should take note of the great opportunities RFID-M2M offer together, says Heavy Reading Mobile Networks Insider

Oct 12, 2011, 12:00 ET from Heavy Reading

CAMBRIDGE, Mass., Oct. 12, 2011 /PRNewswire/ -- The arrival of machine-to-machine (M2M) communications is bringing renewed interest in radio frequency identification (RFID) technology in the manufacturing sector, a development that bears close watching by network operators and technology suppliers targeting that vertical market, according to the latest report from Heavy Reading Mobile Networks Insider (www.heavyreading.com/mobile-networks).

Manufacturers Show Increased Interest in RFID-M2M Systems examines how RFID and M2M technology in the manufacturing sector is being used today, as well as expected trends over the next 24 months. It details opportunities that solution providers have in the market, including areas with the most growth potential for the next 24 months. It includes a comparative analysis of solutions available in the market and examines the geographic landscape of the market for solution providers and challenges the industry presents.

For a list of companies included in this report, http://img.lightreading.com/uni/pdf/mni1011_companies.pdf

"Major corporations in a multitude of industries – ranging from aerospace to oil and gas to electronics – are currently using RFID to manage several machine-to-machine (M2M) applications, including inventory management, shipping and delivery, tracking parts, work in progress and employee data," notes Denise Culver, research analyst with Heavy Reading Mobile Networks Insider and author of the report.

M2M and RFID solution providers have a tremendous opportunity if they invest in the time, development and trials of newer, cheaper RFID tags, says Culver. "They must collaborate to improve upon the types of RFID systems manufacturers use today, as well as new applications that enable manufacturers to increase productivity and make business processes more efficient," she adds. "They should focus on ways to help manufacturers introduce new products and services, thereby justifying the cost of RFID implementation."

Key findings of Manufacturers Show Increased Interest in RFID-M2M Systems include:

  • Clothing, aerospace and aviation are showing the strongest uptake for RFID and M2M and will continue for the next 24 months.
  • The goal of M2M-RFID systems has evolved from tracking assets to collecting detailed information about products and transmitting them to an IT network.
  • The strongest driver for RFID and M2M in the manufacturing sector is in productivity and efficiency of both employees and systems.
  • Inventory management in manufacturing plants will be one of the strongest opportunities for RFID and M2M vendors and service providers.
  • The greatest challenge faced by RFID and M2M vendors is the high price of tags, especially as technology budgets continue to decrease.

Manufacturers Show Increased Interest in RFID-M2M Systems is available as part of an annual single-user subscription (six issues) to Heavy Reading Mobile Networks Insider, priced at $1,595. Individual reports are available for $900 (single-user license).

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Heavy Reading (www.heavyreading.com) is an independent research organization offering deep analysis of emerging telecom trends to network operators, technology suppliers, and investors. Its product portfolio includes in-depth reports that address critical next-generation technology and service issues, market trackers that focus on the telecom industry's most critical technology sectors, exclusive worldwide surveys of network operator decision-makers that identify future purchasing and deployment plans, and a rich array of custom and consulting services that give clients the market intelligence needed to compete successfully in the $4 trillion global telecom industry. As a telecom research arm of the Light Reading Communications Network, Heavy Reading contributes to the only integrated business information platform serving the global communications industry.

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SOURCE Heavy Reading