New EECC Survey Offers Bright Outlook for RFID – RFID Journal
Oct 28, 2022 Despite global economic and energy challenges, the mood among those in the particular radio frequency identification industry is good. Companies providing RFID technology and solutions experienced 20 to 30 percent growth in the past year, and most expect to see more of the same going forward. That development has occurred despite a worldwide chip shortage that is expected in order to ease in 2024, according to a new European EPC Competence Center (EECC) report titled ” RFID Market Study , inch the first of its kind from the RFID innovation center
According to the EECC, the survey resulted from interviews with RFID companies’ chief-level leadership. The report was released along with the organization’s latest ” EECC UHF RFID Almanac inches and is available for sale on the EECC’s website. The market study, also available in digital format, is based on the particular impressions of approximately 30 industry leaders. The particular report provides a structured, transparent and objective way to review the RFID business, according to Conrad von Bonin, the EECC’s CEO. It does so in six chapters and a total associated with 42 pages covering long-term market plus price trends. The research also examines relevant issues, such as nick shortages, the particular U. S. and China conflicts, and the overall outlook.
In addition to its RFID market survey, EECC has also released its annual “UHF RFID Almanac. ” This year, the almanac provides details about 621 RFID transponders plus 45 readers, according in order to a variety of parameters and processes. The updated almanac also includes a set of guidelines specific to applications and industries, like healthcare or logistics, and it is the most recent in a report that EECC has released for the past 16 years. The industry testing center was founded by GS1 Germany , Deutsche Post , DHL and Metro Group to provide a standardized approach for the adoption of the Electronic Product Code (EPC) and the network EPC Information Services (EPCIS) software in 2004.
RFID Trends Advice from Industry Leaders
As the EECC’s CEO, von Bonin has been solicited with regard to advice about RFID styles throughout the years, and many recently for his views regarding chip shortages and other disrupting factors, as well while his expectations for the market in the coming years. “I have always been in the role of giving advice, ” he says, “but, associated with course, it was only the particular advice of me plus not all the people [in the industry]. inch So this year, the organization opted to reach out to management among the members of the EECC community. This chose to speak with 30 individuals, most of whom were C-level management at RFID companies, as well as representatives associated with industry associations fully responsible for decision making.
Participants had been asked thirty questions related to developments, technology development, challenges ahead and their professional outlook. Ninety percent of interviewees said they expect the particular RFID marketing to rise or increase heavily, while just 7 percent anticipate it in order to fall. The particular majority (66 percent) foresee a rise within the sales of RFID labels across all company sizes. Customer-specific RFID label sales are expected to rise, according to 86 % of respondents. However , the much smaller percentage anticipate the price declining within the brand market, which poses a challenge ahead for those seeking low-cost deployments.
The survey finds that RFID plays a major role in a more crowded IoT or automatic-identification market, whilst 7 percent of participants voted regarding other technologies. RFID will not replace barcodes, the record indicates, while technologies for example active auto-ID systems—for example, computer vision—are expected in order to grow as well. Overall, von Bonin reports, the results were highly optimistic. Despite crises in commercial markets, including Europe’s power challenges due to the Russian-Ukraine war, the U. S. and China financial standoff plus chip disadvantages, RFID sales are still rising.
Chip Shortage Forecast to End in 2024
Nearly all of those surveyed expect the chip shortage to be resolved by 2025, with the vast majority predicting nick quantities will rise to meet demand in 2024. Von Bonin notes that prices are usually unlikely to come down, since the need intended for more chips will continue to exceed supply. While RFID chip production is still dominated simply by two manufacturers, Impinj and NXP Semiconductors , other players inside Asia may have an impact in the coming years. But while numerous Chinese companies are developing RFID chips and inlays, performance still may require several more years in order to compete with the particular quality of chips plus tags through existing businesses.
Many participants agreed that will the Circumstance. S. -China conflict is having a negative impact on the chip and RFID sector, especially for converters and systems integrators, plus particularly among small and medium-sized companies. What’s more, the particular survey finds that big companies will dominate the RFID market, something both small plus large companies agree on. Further cooperation between companies and consolidations is expected by those surveyed. The survey is intended to benefit those already in the RFID industry, and also those expecting to use RFID or in order to invest in the particular market.
General, von Bonin says, “It’s an astonishing outlook, inches since many other technology sectors have more conservative expectations. Optimism for the technology crosses vertical markets, he adds, from your automotive industry to the textiles sector. “RFID is really seen because the most important auto-ID technology. ” While it will certainly not replace the barcode, he says, “It will be a complementation to the bar code. ”
Almanac Delivers More Accessible Details
A version of the particular EECC’s annual almanac was first launched in 2007 under the name “UHF Tag Performance Survey (UTPS)” (see EECC Study Finds Growth within UHF Tag Volume, Variety ) This has since grown to include an increasing number of tags and visitors, such since on-metal transponders as well as the performance testing associated with tags certified for specific applications. Sensitivity to interference as characterized by various reader signals was added in 2015, and the year later, sensor functionalities were analyzed for the first time, whilst memory was added to the particular test’s categories, along with untraceable commands.
In 2020, the EECC revised the survey’s ease of use to get readers. For the initial time, tags were categorized according in order to their application areas, while detailed explanations of measurements for practical use cases were additional. Last year, handheld and fixed RFID readers were furthermore measured plus categorized pertaining to the first time, in addition to transponders, and the influence on readers’ overall performance with transponders is now included as well. With this extension, the organization indicates, the study is now published under the particular title “EECC UHF RFID Almanac. inch
The almanac provides a technical review of the performance of tags and readers, plus it divides the tested products into the sectors in which they best perform. This season, users can leverage the particular document to look up the performance associated with technologies particular to their field and software. For instance, there are groups dedicated to use simply by the healthcare, industrial, laundry, retail and logistics sectors, enabling users to evaluate the overall performance and pricing of transponders and readers. “We hope that details like these graphs make it easier to consume, inches von Bonin states.
Images: European EPC Competence Center
- The particular EECC’s new survey, conducted via interviews of 30 leaders within the RFID industry, has found that technologies sales are increasing at a rate of 20 to 30 %.
- This positive outlook comes with some challenges, which include the nick shortage forecast to last until 2024, along with low expectation that label prices will drop any time soon.