The global RTLS for industrial applications market to grow at a CAGR of 31.14% during the period 2016-2020.
Global RTLS for Industrial Applications Market 2016-2020, has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the market landscape and its growth prospects over the coming years. The report also includes a discussion of the key vendors operating in this market. To calculate the market size, the report considers the revenue generated from both licensing of software as well as shipment of RTLS.
One trend impelling growth is the rising adoption of UWB RTLS technology. Ultra-wideband (UWB) RTLS technology provides high accuracy over short-to-medium distances and is inexpensive compared to other RTLS technologies. UWB RTLS technology is also considered to be useful for short-range, low-data-rate communications. The potential of UWB RTLS to provide accurate results in high-ranging applications is advantageous for end-users. This technology is also useful for applications that require high accuracy because it provides the precise location at a distance of less than 300 meters.
According to the report, one driver spurring growth in the market is the adoption of RTLS for ease of inventory management. Inventory management includes tracking products, items or assets of a company, managing storage of components that will be required during production as well as overseeing the quantity of finished products. Inventory is an important asset for a company that requires investment from manufacturing to the sale of products. Mismanagement of inventory can lead to significant financial problems, leading to inventory glut or inventory shortage.
Further, the report states that one challenge negatively impacting the growth of this market is the high implementation cost. Implementation of RTLS is expensive because of its high initial deployment cost, which will compel manufacturers to opt for low-cost technologies such as barcode system. The cost of RTLS includes expenses involved in planning and design, cabling, software licenses, and location hardware such as sign posts and readers. The deployment cost depends on site-specific parameters and the kind of equipment used. Implementation of RTLS in a large manufacturing company may cost $10-$30 million.