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The real-time location system (RTLS) uses inexpensive tags and cellular reader system to track an asset, a person, or any object on a real-time basis. This system employs radio frequency identification (RFID) technology for communication, whereas some systems use optical or acoustic technology, either in a combination or separately. RFID tags are widely used in the manufacturing industry for tracking assets and managing the workforce, thus helping the industry to expand its efficiency and effectiveness in multiple operations. With the growing adoption of RFID tags and stiff competition among players, the price of RFID tags is declining rapidly. This recent decline in the price of RFID tags is expected to bolster this market’s growth prospects over the coming years. In 2014, the cost of RFID tags was 30% to 40% lesser compared to 2012. The average cost of an active RFID tag ranges between USD 15 and USD 20, and the buyer gets considerable discounts depending upon the volume. The decline in the prices of RFID tags is attracting an increasing number of small- and medium-sized manufacturing industries to implement RTLS solutions. The market research analysts at Technavio have predicted that the global RTLS market for industrial applications will grow exponentially and will post a staggering CAGR of more than 31% during the forecast period.
The increasing establishment and rising popularity of smart factories is an emerging trend propelling the growth prospects for this market during the forecast period. Smart factories help industries to track complex manufacturing processes efficiently. It gathers the location data with the help of RTLS, which includes tags and sensors, to pinpoint the exact location and identity of assets. This data helps in interpreting and understanding the current state of the factory. Smart factories are also associated with several advantages, including a decrease in cycle time, cost reduction by identifying the best manufacturing practices, reduction in manual error, improved quality, and product customization through error proofing. With some of the major automobile and aerospace industries setting up smart factories, the RTLS market for industrial applications is expected to have a positive outlook over the next four years.
The global RTLS market for industrial applications is highly competitive owing to the presence of several well-established vendors. Initially, the market had fewer service providers, but with the rapid use of RTLS in multiple applications, a large number of companies are entering the market. Moreover, analytics providers are making their way into the market because of the increasing use of analytics in manufacturing industries to ensure a faster decision-making process.
The leading vendors in the market are -
The systems segment dominated the market and accounted for more than 63% of the total market share. This segment is a combination of hardware and software and constitutes a reader, which is used to track RFID tags and software that help monitor objects on a real-time basis.
In terms of geography, the Americas led the market and is expected to account for more than 55% of the market share by 2020. The Americas is the largest contributor to the RTLS market due to the presence of multiple manufacturers in the automotive (such as Ford and Tesla), consumer electronics (such as Apple), and aerospace and defense industries. Moreover, factors such as the rising production of automobiles in the US due to declining oil prices and the growing popularity of smart factories will propel this market’s growth prospects in the future.
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PART 01: Executive summary
PART 02: Scope of the report
PART 03: Market research methodology
PART 04: Introduction
PART 05: Location-based services ecosystem
PART 06: Market landscape
PART 07: Market segmentation by technology
PART 08: Geographical segmentation
PART 09: Market drivers
PART 10: Impact of drivers
PART 11: Market challenges
PART 12: Impact of drivers and challenges
PART 13: Market trends
PART 14: Vendor landscape
PART 15: Appendix
PART 16: Explore Technavio
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