IDC Reports on RFID

RFID is still in early stages in Western European vertical markets, but adoption is increasing, says IDC

January 16, 2006

2 Min Read

MILAN, Italy -- According to a new IDC study, 12.4% of companies in the Western European manufacturing, retail/wholesale, and logistics sectors were piloting or planning to pilot radio frequency identification (RFID) in 2005, with 5.1% implementing it or planning to implement it.

"RFID is still in its early stages," said Giuliana Folco, research director, IDC European Vertical Markets. "However, over 17.5% of companies in manufacturing, retail/wholesale, and logistics are piloting/implementing RFID projects and more are to come, not only in these sectors, but also in several other industries."

The study shows that RFID-compliant applications and servers are the key IT areas that require investment in more than 50% of companies interviewed by IDC. This is particularly true for discrete and process manufacturing. Warehousing, logistics management, and distribution activities will be most impacted by RFID. However, a rethinking of the entire value chain is essential for the success of RFID projects.

The study also looked at inhibitors to RFID adoption in Western Europe. A third of the companies surveyed said ROI was the main reason not to adopt RFID.

The Status of RFID in Western European Verticals (Doc #MM09M, December 2005) is based on the results of IDC's European Vertical Market Survey and focuses on RFID adoption in retail/wholesale, manufacturing, and transportation/logistics companies with more than 20 employees.

The study covers the percentage of companies piloting, implementing, or planning to implement RFID; job functions influencing the RFID process; IT areas of RFID projects requiring investment; key areas of focus in implementing RFID; key business processes affected by RFID; expected benefits of RFID; and reasons for not adopting RFID.

Results are given for total Western Europe and for the discrete manufacturing, process manufacturing, retail/wholesale, and transportation/logistics verticals.


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