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Frost & Sullivan: Lean Strategies and Decentralized Value Chains Fuel RFID Uptake in Manufacturing

-- Automotive and aerospace industries represent key growth areas

MOUNTAIN VIEW, Calif., Aug. 27, 2014 /PRNewswire/ -- The business model and structure of the manufacturing industry has grown well beyond the scope of a single enterprise and location, making radio frequency identification (RFID) solutions indispensable to its functioning. With increasing adoption of lean manufacturing strategies prompting most industry players to focus on and outsource niche operations within global supply chains, RFID solutions will help sustain high levels of performance.

Frost & Sullivan
Frost & Sullivan

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New analysis from Frost & Sullivan, Analysis of the Global RFID in Manufacturing Market, finds that the market earned revenues of $1.29 billion in 2013 and estimates this to nearly quadruple to $4.99 billion in 2020. The study covers passive, active and battery-assisted passive RFID. Over the forecast period, demand for active RFID will increase to fulfill business needs more efficiently.

For complimentary access to more information on this research, please visit: http://bit.ly/XPtW5v.

Use of RFID technologies enhances supply chain visibility and total control of inventory, operations and logistics across diverse manufacturing points. As RFID solutions facilitate real-time tracking of assets in different locations, it increases productivity enabling cost-effective allocation of resources. These benefits, along with reduced labor requirements, information accuracy, improved sales and customer service boost RFID adoption among manufacturing participants looking to realize higher return on investment.

"Opportunities for RFID solution providers exist across all application segments within the manufacturing industry," said Frost & Sullivan Measurement & Instrumentation Senior Research Analyst Nandini Bhattacharya. "Growth prospects in the automotive and aerospace manufacturing sectors are especially promising owing to supportive industry regulations."

However, as long as the economic situation remains uncertain, customers -- particularly small and medium enterprises -- will be reluctant to invest in RFID solutions unless they see a direct correlation between implementation of these technologies and cost-saving advantages. Cost is, therefore, a discerning factor for consumers' RFID purchasing decisions. Scalability of solutions and technology support will be important criteria influencing uptake.

"Partnerships and acquisitions are rampant and necessary for this market to continue to expand," noted Bhattacharya. "Without such collaborations, the breadth of knowledge and expertise needed for success is typically too wide even for the largest of companies."

Analysis of the Global RFID in Manufacturing Market is part of the Automatic Identification (http://www.autoid.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Analysis of the Global 2D-Barcode Scanners Market, Analysis of the Global RFID Tags Market, Analysis of the Global RFID and Bar Code Printers Market, and Emerging Opportunities in Global Biometrics Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Analysis of the Global RFID in Manufacturing Market
ND1A-11

Contact:
Ariel Brown
Corporate Communications – North America
P: +1.210.247.2481
E: ariel.brown@frost.com

http://www.frost.com

Twitter: @Frost_Sullivan
Facebook: Frost & Sullivan
Linkedin: Future of Measurement & Instrumentation

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Frost & Sullivan: PXI Lowers Cost and Time to Market, First Choice in Test & Measurement Industry

-- Market participants devise various strategies to lower the burden of integration on customers

MOUNTAIN VIEW, California, Aug. 19, 2014 /PRNewswire/ -- Original equipment manufacturers (OEM) across industries are adopting PCI extensions for instrumentation (PXI)-based instrumentation as its measurement speed, small footprint, low power consumption, and flexibility reduce the time to market and overall cost of tests. In particular, companies in the wireless communications space are turning to these solutions to satisfy new test requirements for radio frequency (RF) wireless technologies.

New analysis from Frost & Sullivan, PXI Market to Change the Face of the Test and Measurement Industry, finds that the market earned revenues of $563.3 million in 2013 and estimates this to reach $1.75 billion by 2020.

For complimentary access to more information on this study, please follow this link: http://bit.ly/1tfkKSt.

"Besides the uptake in RF wireless communications, the global PXI market will get a leg up from new programs in aerospace and defense and integration of wireless technologies in the industrial and consumer electronics industries," said Frost & Sullivan Test & Measurement Industry Director Jessy Cavazos. "Additionally, it is finding opportunities in the semiconductor automatic test equipment market."

However, test engineers' trust in traditional box instruments they have used effectively for decades is slowing down the transition to PXI test systems. In due course, the emergence of a new generation of test engineers that is more comfortable with computers will mitigate this challenge.

"Meanwhile, the more complex process of integrating PXI test systems, in comparison to rack-and-stack test systems, can be a challenge for customers," pointed out Cavazos. "To ease the process of integration, market participants across the globe are offering different levels of integration services and tools that enable customers to assemble PXI test systems quickly with minimal effort."

Additionally, participants are offering subsystems, hardware/software bundles, and box solutions that use PXI in their internal architecture to lessen the burden of integration on customers.

Via organic means and partnerships, PXI manufacturers deliver multiple options ranging from individual components to fully integrated test systems. Furthermore, they are looking to expand the total addressable market by rolling out new PXI instruments with enhanced capabilities and increasing customer awareness on the benefits of PXI-based instrumentation.

PXI Market to Change the Face of the Test and Measurement Industry is part of the Test & Measurement (http://www.testandmeasurement.frost.com) Growth Partnership Service program. Frost & Sullivan's related studies include: Global Radio Frequency Testing Market, Analysis of the Global Oscilloscopes Market, Quantifying the Global Opportunity for LXI, and Global Wireless Test Equipment Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us: Start the discussion

Join Us: Join our community

Subscribe: Newsletter on "the next big thing"

Register: Gain access to visionary innovation

PXI Market to Change the Face of the Test and Measurement Industry
ND2E-30

Contact:
Ariel Brown
Corporate Communications – North America
P: +1.210.247.2481
F: +1.210.348.1003
E: ariel.brown@frost.com

http://www.frost.com

Twitter: @Frost_Sullivan
Facebook: Frost & Sullivan
Linkedin: Future of Measurement & Instrumentation


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