Big growth expected for real-time location systems

Industry analysts predict sales of RTLS and related RFID applications will grow more than 40% per year through 2010.

-- Modern Materials Handling, 11/30/2006

Real-time location systems (RTLS) that use RFID tags to track valuable assets are growing in popularity. Sales of RTLS and related RFID applications are expected to grow more than 40% annually through 2010, according to research recently published by Venture Development Corp. (VDC).

The government, health care and transportation sectors will continue to be the main markets for RTLS, according to VDC analysts. Several factors are creating strong demand for the technology:

• Reduction in cost and size of tags and systems
• Availability of open standards
• New product developments
• Stronger demand for tracking and monitoring driven by the need for increased security, cost savings and customer satisfaction

Another RFID application expected to experience big growth, analysts say, is sensing and monitoring. Sensors are increasingly being used in conjunction with RFID solutions to provide insight into the conditions to which products are subjected in the supply chain.