RFID Market Grows Fastest in Asia Pacific Region
For the past few years, the RFID (radio frequency identification) market has been growing steadily, but the rate of increase differs in regions across the world.
According to a research study done by Susan Sahayan from Frost & Sullivan, the majority of RFID revenues in the world currently come from the Americas although it is not the faster growing region for RFID. The RFID market in the Americas has matured over the years thus it tends to grow steadily rather than rapidly.
On the other hand, with the need for operational improvements, Europe, Africa and the Middle East are quickly catching up to the Americas in terms of revenue generated. The main cause for the increasing demand for RFID technology in these regions is growth in technology.
Although the Asia Pacific area absorbs the least RFID technology, it is the fastest growing region of all and thus adopts the most RFID systems.
Greater need for the technology in government and medical institutions to keep more organized records of stored tools, medications and data files are part of many reasons for RFID adoption. In turn, this requires an improvement of operational efficiency, which is another driving force for RFID technology adoption. As the costs of adoption decline, the rate of growth has also increased. Finally, advancement in UHF technology has made creating RFID systems more efficient and simpler. All these driving forces have brought RFID closer to the retail, government, and agricultural sectors across the world.
Although there are many driving forces for the RFID market, there is room for much needed improvements. Key restraints holding RFID technology from soaring in adoption are the lack of consistent standards for use, relatively high costs for transition, and an overall lack of awareness of RFID and its potential benefits. Although conferences, research studies and pilot projects are some of many steps that have been taken in order to raise awareness of RFID technology and its advantages, there remains a reservation toward adoption because of privacy concerns that may arise.
Although RFID technology can drive tracking and archiving of products and information to a whole new level, there are obvious concerns about the high level of information that adopters will have records and records of. This creates serious concerns related to general civil liberties of the public.
The Asia-Pacific region is forecasted to be the greatest user of RFID technology in the near future due to its emergence as the fastest growing market for RFID in the world. For this reason, it will likely contribute most to the growth, awareness, and acceptance of RFID technology.