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RFID systems in the postal and courier sector has been estimated to be worth some US$3 billion by 2016, including tags, according to a new report available from Research and Markets.
The report, entitled 'RFID For The Postal And Courier Service', published by IDTechEx, also projects that the sector's value could be much greater if current efforts to tag individual items gain widespread acceptance.
Size of market
In due course, more than 1 trillion postal items will be tagged yearly, making this the second largest application of RFID in the world after the retail supply chain.
Detailed ten year forecasts are given in the report, along with explanations of the technologies involved. There are 30 case studies of RFID in action in the postal and courier service in North America, Europe, the Middle East and East Asia, and the report covers the breakthroughs that are likely to provide future success for RFID within the sector.
Can't ignore change
The report warns that postal services ignoring this accelerating change will become uncompetitive, and that suppliers missing out on the opportunity will regret their lack of involvement later.
In the past, RFID within the sector has been used for little more than the evaluation of postal performance, using tags in a small percentage of letters, and the tracking of a small number of conveyances and vehicles. But from DHL taking bids for RFID labels on one billion packages to Saudi Post tagging postal boxes, the main innovations are beginning to happen already.
Full postal tracking
There is even a postal RFID system that completely automates the whole process of mail delivery from accepting the package to classification and dispatching, which has been successfully tested in Korea already. Korea Electronics and Telecommunications Research Institute ETRI demonstrated the new RFID system in front of representatives from the Ministry of Information and Technology and private sector representatives. When perfected, it will replace the existing barcode system.
The current postal package unified information system uses barcodes, necessitating human effort at every mail centre to input mail numbers into the system. This results in inaccuracies during transfer of duties, and it also delays mail despatches. The new RFID-based system aims to reduce costs, errors and human intervention, and provide a full electronic postal system with the potential to maximize mail processing capabilities while minimizing logistics costs.
When will the market mature?
It is difficult to estimate when pervasive RFID tagging of most of the courier and letter post will occur but RFID enabled parcels, conveyances, vehicles and trailers are now commonplace, with multiple paybacks often being enjoyed. RFID is enhancing security and safety and removing tedious operations.
Swedish Post has a parcel that detects and records tampering using RFID and other innovations abound, including RFID cards controlling driver access to postal vehicles and RFID enabled postal sorting equipment. Little wonder that companies as large as Microsoft have entered the fray. The global potential is illustrated by its decision to offer its first postal systems in Taiwan and elsewhere in East Asia.
Sources: IDTechEx; Research and Markets
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