Honeycomb Connect

RFID Still in Early Stages in Western European Vertical Markets, but Adoption Increasing, Says IDC
January 13, 2006

Milan, Italy — According to a new IDC study, 12.4 percent of companies in the Western European manufacturing, retail/wholesale, and logistics sectors were piloting or planning to pilot radio frequency identification (RFID) in 2005, with 5.1 percent implementing it or planning to implement it.

"RFID is still in its early stages," said Giuliana Folco, research director, IDC European Vertical Markets. "However, over 17.5 percent of companies in manufacturing, retail/wholesale, and logistics are piloting/implementing RFID projects and more are to come, not only in these sectors, but also in several other industries."

The study shows that RFID-compliant applications and servers are the key IT areas that require investment in more than 50 percent of companies interviewed by IDC. This is particularly true for discrete and process manufacturing. Warehousing, logistics management, and distribution activities will be most impacted by RFID. However, a rethinking of the entire value chain is essential for the success of RFID projects.

The study also looked at inhibitors to RFID adoption in Western Europe. A third of the companies surveyed said ROI was the main reason not to adopt RFID.

The Status of RFID in Western European Verticals is based on the results of IDC's European Vertical Market Survey and focuses on RFID adoption in retail/wholesale, manufacturing, and transportation/logistics companies with more than 20 employees.

The study covers the percentage of companies piloting, implementing, or planning to implement RFID; job functions influencing the RFID process; IT areas of RFID projects requiring investment; key areas of focus in implementing RFID; key business processes affected by RFID; expected benefits of RFID; and reasons for not adopting RFID.

Results are given for total Western Europe and for the discrete manufacturing, process manufacturing, retail/wholesale, and transportation/logistics verticals.

To view the complete study visit www.idc.com.