Payback Is Not Sweet for RFID, ABI Research Says

February 10, 2009 Alex Woodie

Only 37 percent of organizations deploying radio frequency identification (RFID) expect to get a return on their investment within a year, according to a new report unveiled by ABI Research yesterday, giving more ammunition to critics who say RFID is not worth the investment.

ABI Research asked individuals from 185 organizations last summer about their RFID plans and expectations, and published the results in its Annual RFID End User Survey. The company, which makes money selling its research, provided a summary of its findings in a press release.

According to ABI, nearly 37 percent of the respondents said they did not expect a positive ROI within 12 months, compared to 25 percent who expected one within 12 to 18 months, and 13 percent who expected one between 18 and 24 months. Less than 7 percent said it would take more than two years to recoup their investments in RFID technology, while 18 percent had no clue.

Michael Liard, a practice director for ABI, indicates a lack of generally recognized best practice information could be part of the problem. “[S]omebody who’s getting great results with RFID is often understandably wary of letting competitors know how much more competitive it is making them,” he says in a press release. “But if we want this market to move forward in a recession, we need to start talking about these things as proactively as we can.”

ABI Research is a market research firm based in New York, London, and Singapore that conducts studies and publishes forecasts of interest to manufacturers in the automotive, consumer electronics, wireless, and broadband industries.