LONDON, Sept. 26 /PRNewswire/ -- The ability of radio frequency identification (RFID) technology to make the tracking and managing of assets more efficient and make inventory more visible offers an ideal solution for companies seeking to improve their manufacturing performance. At the same time, as companies strive to tighten their brand security and protect their products from counterfeiting, RFID is emerging as the optimal solution to safeguard valuable products throughout the supply chain.

Frost & Sullivan (http://www.electronics.frost.com/) finds that the European RFID Markets for Automotive, Aerospace and Industrial Manufacturing generated revenues of $23.7 million in 2005 and estimates this will reach $109.3 million in 2012.

"The unique features of RFID technology enable the development of a constant stream of innovative applications for manufacturing sectors", says Frost & Sullivan Research Analyst Rengarajan Srinivasan. "The rising need to accurately track valuable assets and products is creating significant scope for the use of RFID across a range of industrial sectors."

The highly competitive nature of modern manufacturing is driving manufacturers to reduce costs and adapt business to increasingly demand-oriented systems. In this context, RFID can enhance product availability for customers and boost productivity across the entire production process. Moreover, its ability to enable just-in-time inventory control and asset management will allow companies to reduce order turn-around time and effectively manage fluctuating demand in automotive and consumer products markets.

However, the return on investment (ROI) from RFID deployments is difficult to quantify, as the full benefits of the technology depend on its degree of integration into wider business processes. Difficulty in identifying a clear stand-alone ROI, coupled with its high implementation cost, poses a significant challenge to prospective entrants into the RFID market. The excitement and euphoria surrounding RFID in recent years, fuelled by the early retail mandates and pilot schemes, have created unrealistic expectations of the technology among many industries.

"As the RFID market starts the transition from technology trial stage towards early adopter phase, a key challenge will be to clearly identify the range of expected benefits," cautions Mr. Srinivasan. "The uniqueness of each new RFID implementation due to varying company environments compounds this challenge, making meaningful comparisons of new systems with existing implementations unreliable. Over-optimistic or unclear objectives for implementing RFID are likely to have a negative impact on ROI and deter wider adoption."

The maximum ROI achievable from the adoption of RFID can only be realised if the designing of business processes allows operation within real-world environments and well-integrated IT infrastructures.

"Manufacturers need to establish a strong business case for implementing RFID systems and develop flexible frameworks for evaluating ROI," advises Mr. Srinivasan. "New entrants are likely to have a better understanding of the nature of ROI that is practically achievable from the experience of early adopters and increasing numbers of credible pilot schemes."

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the latest analysis of the European RFID Markets for Automotive, Aerospace and Industrial Manufacturing then send an e-mail to Chiara Carella -- Corporate Communications at chiara.carella@frost.com with the following information: your full name, company name, title, telephone number, e-mail address, city, state, and country. We will send you the information via email upon receipt of the above information.

European RFID Markets for Automotive, Aerospace and Industrial Manufacturing is part of the Automatic Identification & Security Subscription, which also includes research in the following markets: North American RFID market for Automotive, Aerospace and Industrial Manufacturing. All research included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com/.

European RFID Markets for Automotive, Aerospace and Industrial Manufacturing

B968 -11 Contact: Chiara Carella Corporate Communications -- Europe P: +44 (0) 20 7343 8314 F: +44 (0) 20 7730 3343 E: chiara.carella@frost.com Tori Foster Corporate Communications -- North America P: +1 210.477.8448 F: +1 210.348.1003 E: tori.foster@frost.com Donna Jeremiah Corporate Communications -- Asia Pacific P: +603 6304 5832 F: +603 6201 7402 E: djeremiah@frost.comhttp://www.frost.com/ Samantha Unnikrishnan Corporate Communications - India P: +91 (0) 44 42044667 F: +91 (0) 44 24314264 E: sunnikrishnan@frost.com Sharmin Jassal Corporate Communications -- Australia P: +61 2 8247 8900 E: sjassal@frost.comhttp://www.frost.com/

List of keywords in this press release: radio frequency identification, RFID, Europe, asset tracking, asset management, just-in-time inventory control, automotive markets, consumer product markets, aerospace, industrial manufacturing

List of key industry participants: Aegate Ltd, Alien technology, FEIG Electronics GmbH, Hitachi Europe, Intermec Technologies, Koninklijke Philips Electronics NV, MARC Global, Siemens Business Services, Symbol Technologies, Tagsys Inc, UPM Raflatac, Zebra Technologies Corp, EM Microelectronic Marin SA, Vilant Systems, Identec Solutions AG, INSIDE Contactless, Intellident Ltd, Microlise, Omron Electronics LLC, Proxximity Systems Ltd, SAP AG, Savcor Group Ltd Oy, SmartCode Corp, Stockway Oy, TECTUS Transponder Technology GmbH, BT Auto-ID Services, Codeway Ltd, TagMaster AB, Datamars SA, ABX LOGISTICS, ADT, CFG S.A. Microelectronics, LogicaCMG, Assion Electronic GmbH, CROSS POINT, CopyTag Limited, Checkpoint Systems(UK) Ltd, deister electronic GmbH, ASK, Balogh, Baumer Ident GmbH, Avonwood Developments Ltd, IB Technology Ltd, Identec Ltd, Idesco Oy, MBBS S.A, United Access, R.Audemars SA, PCS Systemtechnik GmbH, CaptureTech Benelex B.V, Alpha ID, BB Systems Ltd, Containexx, Dalton ID Systems Ltd, Dutchband, EasyLogic RFID distribution b.v, High Precision Systems GmbH, Labelform B.V, NEDCODING, TECTUS Identification systems AG, Tanto Systems, Texas Instruments, Wilee Techniek BV, Bar Code Systems Ltd, Eco Label Ltd, Electronic Reading systems Ltd, Szabo Enterprises, Trovan IDUK ltd, Acrovision, Arnlea Systems Ltd, Bar Code Data Group, Episys, Intelligent Distributed Controls Ltd, ID Systems Ltd, IID Solutions, In2Connect Europe Ltd, Ingrid West Machinery, Matrix Marking Ltd, Packaging Solutions Provider, Pen Mobile Solutions Ltd, PRISYM ID Limited, RFID Components Ltd, Total Control Systems (UK) Ltd, UnIQue ID, Zygo Systems, Megaset Systemtechnik, ToP Tunniste Oy, Computer and Control Systems Ltd, Blackroc Technologies Ltd, AeroScout Europe, Wtek AS, Legic Identsystems Ltd, Christian Salvesen, Dachser GmbH & Co .KG, Maersk Logistics, TNT Logistics, Logista, Exel Plc, NYK logistics, D Logistics AG, Deutsche Post AG, Panalpina World Transport Ltd, BOC Group Plc;,Aerospace - Airbus, Westland Helicopters, SITA SC, Aeroid Ltd, Rolls Royce; BETA Technic APS, Bond Technologies, Business Effectiveness S.A, Concept Labelling Solutions,DataScan Systems Ltd, etilux systems, Litum Technologies LLC, SIMET srl, SC-Scan KFT, STId Electronic Identification, Acsis GmbH, Toyota UK, Schreiner LogiData

CONTACT: Europe - Chiara Carella, +44-20-7343-8314,
fax - +44-20-7730-3343, chiara.carella@frost.com, North America - Tori Foster,
+1-210-477-8448, fax - +1-210-348-1003, tori.foster@frost.com, Asia Pacific -
Donna Jeremiah, +603-6304-5832, fax - +603-6201-7402, djeremiah@frost.com,
India - Samantha Unnikrishnan, +91-44-42044667,
fax - +91-44-24314264, sunnikrishnan@frost.com, Australia - Sharmin Jassal,
+61-2-8247-8900, sjassal@frost.com, all off Frost & Sullivan

Web site: http://www.frost.com/