RFID Lowdown: Market research says upgrading to Gen2 Standards will be expensive

January 12, 2006

Market research says upgrading to Gen2 Standards will be expensive

A recent market research conducted by Regan Jacob and Sydney foresees wide scale acceptance of RFID in 2006 but says it will be a costly affair for those wanting to upgrade their RFID system. The report predicts a licence revenue of $751 million in 2006 as compared to the $504 that was generated in 2005. This comes to a 30% rise.

The introduction of Gen2 standard in December 2005 will have many RFID deployments wanting to upgrade to the new standard. Gen 2 tag frequency standards offer better interoperability and bandwidth technologies. However, those who are still in the testing stage will benefit greatly from implementing systems that are amenable to Gen 2 standards. The reports expects about 15 to 25% of RFID deployment to be handled by large IT firms. Service providers and consultancies are expected to pick up 10% of the RFID projects. vunet.com reports:

A new RFID standard, Gen2, was introduced in December, which sets interoperability and bandwidth technologies. 'We expect to see stories in 2006 about the horrific costs of conversion from Gen1 to Gen2 tag frequency standards or users who made bad deployment decisions in 2004 and 2005,' say the report's authors.

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January 12, 2006 | Permalink