AMR Research Survey Finds 69% of Respondents Plan to Evaluate, Pilot, or Implement RFID in 2005

AMR Research Survey Finds 69% of Respondents Plan to Evaluate, Pilot, or Implement RFID in 2005

RFID Budgets Will Average over $500K This Year with Mainstream Adoption Beginning in 2008

BOSTON, July 20 /PRNewswire/ -- In the wake of retail and government mandates, AMR Research released a report today assessing the Radio Frequency Identification (RFID) market from 2005 - 2007. 69% of respondents surveyed are planning to evaluate, pilot, or implement RFID in 2005 with the average budget for RFID at more than $548K increasing to $771K by 2007. Among the key factors driving implementation of RFID, compliance remains the key issue for most respondents.

With the hype surrounding RFID technology in recent years, the report, based on a survey of 500 companies conducted with RFID Journal, identified several key issues facing the RFID market:

* The opportunity for market technology leadership in RFID is wide open,
with no one vendor establishing an early leadership position.
* The overwhelming majority of survey respondents cite significant
challenges finding the Return on Investment (ROI) to justify their RFID
spending. 28% cite it specifically as their biggest obstacle with
regard to RFID adoption.
* A lack of standards maturity continues to be a key factor, especially
for process manufacturers; only 29% believe the standards have reached
an appropriate level of maturity.

"RFID is still in its formative years," said Dennis Gaughan, research director, AMR Research. "The market will be hotly contested across all technology segments from tags and readers through middleware and enterprise applications."

State of RFID Technology Deployment

While only 8% of companies are in full deployment, 61% plan to evaluate, pilot, or implement RFID in 2005. The following chart outlines the state of deployment for survey respondents:

State of RFID Technology Deployment

Currently in pilot use 23%
Currently in full deployment 8%
Plan to implement for the first time in 2005 12%
Plan to evaluate in 2005 26%
Plan to evaluate in 2006 12%
Have no plans for RFID 18%

As RFID is clearly an early market, AMR Research recommends users develop a long term strategy for RFID in their organization as well as short term tactical requirements for meeting today's needs. Vendors of the technology should work to combine different technology segments effectively and at a good cost of ownership in order to vie for market leadership. Vendors that can help customers find and exploit positive business models will win.

In August, AMR Research will host a Webcast on RFID with research directors Dennis Gaughan and Marianne D'Aquila. For more information on the Webcast or report, please contact Julie Sadowski at jsadowski@amrresearch.com. More information on AMR Research is available by calling 617-542-6000 or visiting http://www.amrresearch.com/.

About AMR Research:

AMR Research provides world class research and actionable advice for executives tasked with delivering enhanced business process performance and cost savings with the aid of technology. Five thousand leaders in the Global 1000 put their trust in AMR Research's integrity, depth of industry expertise, and passion for customer service to support their most critical business initiatives, including supply chain transformation, new product introduction, customer profitability, compliance and governance, and IT benefit realization. More information is available at http://www.amrresearch.com/.

Press Contact:
Kevin Reilly
AMR Research
617-350-1754
kreilly@amrresearch.com

Source: AMR Research

CONTACT: Kevin Reilly of AMR Research, +1-617-350-1754,
kreilly@amrresearch.com

Web site: http://www.amrresearch.com/

-------
Profile: intent