RFID End User Survey Results: Nearly Half to Increase Budgets in 2010

Despite economy, companies continue to look for business process improvement and cost reductions as they deploy radio frequency identification solutions, annual ABI Research survey finds

Rfidendusersurveyresultsnearly 10326643
New York — December 14, 2009 — Half of end users currently using, deploying, evaluating or piloting radio frequency identification technology said in a recent survey that they expect their budgets for RFID technologies to increase in 2010, and all the organizations with ongoing RFID projects plan to increase their budgets for the technologies next year.

ABI Research conducts an annual survey of companies currently using, deploying or piloting/evaluating RFID. This year more than 115 organizations from around the world responded to ABI Research's to the end-user survey.

Nearly half (49 percent) of those respondents currently working on RFID projects report that they expect their RFID budgets to increase in 2010. "ABI Research considers this a welcome result in these difficult economic conditions," said practice director Michael Liard. "Moreover, 100 percent of those organizations with rollouts currently in progress intend to increase their RFID budgets next year."

The picture is fairly rosy in other parts of the market, too: nearly another one-third of respondents report that their 2009 RFID spending levels will remain unchanged in 2010, while only about 11 percent intend to cut their RFID budgets.

As in past years, the overwhelming majority of respondents rated "business process improvement" as the number one driver for their adoption of RFID. The second-most important driver was considered to be the need to reduce non-labor costs.

Return on investment timeframe is also a critical consideration for most companies considering RFID deployment, and comparing the ROI assumptions reported in 2009 with those from 2008, the survey found that considerably more companies — 48 percent as opposed to 37 percent in 2008 — expect their investment to be recouped within 12 months.

"Shorter ROI timeframe expectations are yet another sign of users' growing confidence in the RFID business case," noted Liard.

ABI Research's "Annual RFID End User Survey Top Line Results" report provides the high-level, top-line results from the firm's annual survey. The study provides analysis of respondents' RFID usage plans, primary adoption drivers, specific applications, supported operating frequencies, current and anticipated transponder and reader volumes, RFID expenditures and budget direction, vendor sources and selection criteria, and demographics. Non-user responses are also analyzed to gain perspective into reasons for not adopting RFID.