Performance Features Widen The Scope For RFID Technology In Singapore

Palo Alto, CA -- The growing RFID markets in Singapore are likely to record a compound annual growth rate of 14.7 percent from 2004 to 2009. While security/access control is currently the largest application market, manufacturing and logistics could emerge as the leading segment by 2009 with a market share of 31.8 percent.

RFID markets in Singapore are in a nascent stage when compared to those in North America, Europe, or North Asia, and along with Malaysia, continue to remain dominant among the foremost adopters in the Association Of Southeast Asian Nations (ASEAN).

New analysis from Frost & Sullivan, Singapore RFID Markets, reveals that revenues in these markets totaled $8.0 million in 2004 and can reach $15.8 million in 2009.

"With the technology's capability to offer enhanced performance features such as fast simultaneous processing and unattended reading, RFID is able to differentiate itself from barcodes," says Frost & Sullivan Research Analyst Parul Oswal.

Further, unlike barcodes, RFID tracking systems do not seek line of sight or such orientations from the tag's side. This is leading to numerous RFID trails and rollouts across the world, while on their part; Singapore institutions have commenced numerous pilot tests.

Trials by various logistics participants, manufacturers and retailers are likely to be successful and simultaneously increase adoption of superior technology and could reduce the cost of RFID technology, thus leading to a greater degree of implementation.

"Nevertheless, the high price of RFID is chiefly restraining its growth in Singapore," observes Oswal. "Companies will deploy RFID on a large scale only when the price decreases while for this decline in price to materialize, the volume of sale of RFID tools has to be high."

In this scenario, the increasing presence of system integrators as well as software and middleware participants could encourage a higher degree of RFID acceptance. To capitalize on this, enterprises in Singapore must be able to leverage their existing expertise and collaborate in R&D activities with established centers.

In addition, government support for driving the demand for RFID tools through building skill sets among the concerned personnel as well as endeavors to bring industry participants together could prove beneficial for realizing greater revenues.

This returns generation process suffers a mild disadvantage in the absence of big retailers such as Wal-Mart, where having RFID tags on goods is mandatory. In such a situation, the Singapore markets are not large enough to gain from economies of scale.

Ideally, industry participants, with due assistance from the government, should ensure that they make a smooth transition from pilots and trails to actual deployment to take advantage of these economies of scale.

The Singapore RFID Markets provides an overview and outlook for the aforementioned markets. Based on its applications, the study segments RFID equipment in Singapore into four primary categories: security/access control, transportation, manufacturing as well as logistics, and others. The study enables market participants to design strategies and position their services to benefit from the changing market conditions and obtain maximum return on investments.

SOURCE: Frost & Sullivan