2017 Market Outlook: Prospects look bright for the RFID industry

2017 Market Outlook

Prospects look promising for the RFID Industry

As we move forward into 2017, future prospects look bright for both the RFID industry at large and for Xerafy specifically. There are a number of positive trends that will impact traditional RFID markets, and that will encourage the adoption of rugged, on-metal RFID applications.

These trends include:

Recovery in oil and gas markets. Oil prices have been at historic lows due to OPEC’s strategy to keep production high in order to curb competition from domestic producers in the United States. Those low prices have cut into profits, and in turn reduced technology investment by oil companies. With OPEC’s decision to cut production this year, oil prices will return to $60-$80 per barrel and spur investment in RFID use.

The digital transformation of healthcare. Healthcare digital transformation will be driven by greater demand for traceability and transparency across the entire supply chain as stakeholders attempt to reduce costs, to improve security and safety, and to meet new regulatory requirements in the United States and in Europe. Medical device traceability requirements in the U.S., in particular, will lead more manufacturers to invest in RFID.

Growth of the Internet of Things. The IoT market will continue to expand with better security, faster computing power and Big Data. Growth in smart equipment and in smart cities will spur even more investment in intelligent sensors and RFID tags in order to enable this universe of connected assets. Forbes has even more thoughts on this.

Analytics will be in more demand. With all of the data generated by IoT systems, more and more companies will turn to Big Data solutions to help generate meaningful business information and optimize operations. (You can read more about the importance of analytics in our previous blogs.)

On-metal applications will be in the spotlight. RFID read-on-metal tag applications will become more mainstream across most industries in the coming year. This will be driven, in part, by continued investments in the key markets of healthcare and oil and gas production, but also in other applications – automotive and aerospace traceability, smart cities, connected assets/maintenance, etc.

We at Xerafy are looking forward to a productive, exciting year of RFID expansion.

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