RTLS Market Overview

Introduction

Tracking resources has been a long-standing and continuous issue for enterprises. With various wireless technologies to facilitate such tracking being introduced in the last decade, enterprises have the opportunity leverage on some form of control over the manageability of it resources. As radio frequency (RF) based tracking systems become more advanced, enterprises presently have more options to have an efficient and effective means of tracking their resources.

A real time location system (RTLS) refers to the use of RF signals for locating and tracking resources that are tagged in real time. These resources come in many different forms, from high valued assets, semi-finished goods, raw materials to tracking of people. There are several variations of these technologies, but they are all categorized as RTLS technologies due to their features of offering the capacity to track objects, assets, and people in real time using RF. RTLS systems can offer the tracking of solutions at an enterprise level, both indoors or outdoors depending on the type of the RTLS chosen.

Significance of RTLS Technology

RTLS technology provides enterprises the ability to track their various resources more efficiently and effectively. This delivers increased asset utilization, streamlined operations, and improved productivity, all resulting in tangible benefits and rapid return on investment (ROI).

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Types of RTLS Technologies

There are several types of RTLS based technologies in the market. Some of the RTLS based technologies are already being deployed across the world are discussed below. Majority of these technologies have been deployed in the United States and Europe but is beginning to make huge inroads in the Asia Pacific market since 2005. Figure 1-1 shows the technology overview for the Asia Pacific RTLS market in 2006.

It should be noted that after conducting a comprehensive study on the RTLS industry by communicating with many of the major RTLS vendors in the industry, Frost & Sullivan opines the granularity (sometimes referred to as resolution or accuracy) is subjective and depends very much on a couple of other external factors besides the type of RTLS solution chosen. Firstly, the level of granularity relies on the level of the supporting infrastructure available in the enterprise. The more access points or readers available, the higher the granularity will be. For instance, the Wi-Fi RTLS solution will be able to provide greater levels of granularity with more access points available in the enterprise. It may be a challenge to get optimum levels of granularity in readings if the enterprise does not have sufficient Wi-Fi access points installed. Many of the legacy or older Wi-Fi systems installed in enterprises were only designed to support data transfer (lesser access points due to lower bandwidth requirements) unlike newer generation systems which may be designed to support data, video and sound transfer (more access points to support higher bandwidth requirements) – thus lesser access points available in the enterprise will make it more difficult for the RTLS technology to calculate the coordinates accurately.

Another factor which needs to be taken into consideration to ensure granularity of RTLS is maintained is how often a site survey is done. This is due to the fact that in most areas, business processes may change or there could be some changes to the physical design of a mapped location. With respect to this, it is vital for end users to conduct site surveys regularly as suggested by their respective RTLS vendors to ensure a high granularity level is always maintained.

Figure 1-1
RTLS Markets: Technology Types (Asia Pacific), 2006

RTLS Applications

RTLS shows great potential in the healthcare, manufacturing, transportation and logistics, as well as some newly emerging verticals as it provides a myriad of benefits to the enterprise. Chart 1.1 describes concisely some applications and benefits gained through an RTLS deployment in 2006 for the Asia Pacific market.

Chart 1.1
RTLS Markets: Applications and Benefits (Asia Pacific), 2006

RTLS Dynamics

Industry Challenges

Chart 2.1 presents the impact of the top three industry challenges in the Asia Pacific RTLS market from 2007 to 2013.

Chart 2.1
RTLS Markets: Impact of Top Three Challenges (Asia Pacific), 2007-2013

The industry challenges for this market are discussed below.

Lack of End-user Awareness

Frost & Sullivan opines that although many vendors feel they are getting a relatively high amount of inquiries and interest regarding RTLS technologies from end users based in Asia Pacific, it is potentially just the tip of the iceberg when compared to the number of enterprises, both small and medium enterprises (SMEs) and large enterprises in the region. While many of these enterprises are aware of RFID to a certain extent, many continue to be unaware of the RTLS technology in particular and the possible benefits it can provide to their enterprise.

Awareness is relatively the key success factor in the RTLS industry since it is likely to drive the overall market and thereby increase the rate of adoption. Creating awareness especially regarding a new invented technology requires continuous effort by RTLS vendors. End users are likely to require more exposure with respect to the potential benefits RTLS can offer to them in their daily routines and processes. By creating such a comprehensive and holistic awareness, RTLS technology is likely to gain acceptance among consumers sooner rather than later.

Forums and conferences will be a good avenue for knowledge sharing activities with enterprises that are potential end users of this technology. When more end users understand the basic principles on what RTLS has to offer, it is likely to directly spur more interest within this region considering many people are still not aware on what RTLS is all about.
High Up-front Costs

The overall cost of the RTLS projects, which includes the cost of the hardware and software, has been decreasing gradually at a rate of 5 to 20 percent annually. However, Frost & Sullivan believes many enterprises still find it expensive to invest in this technology due to the initial up-front cost, which continues to be a barrier to entry for many. SMEs are the ones that are presently finding it highly expensive to deploy RTLS although some already know the significant benefits they can gain with this system. However, it is expected that more enterprises including SMEs will leverage on RTLS for keeping track of their resources in the next three to five years, after the cost of this technology declines by a minimum of 25 to 50 percent of the overall cost at present. This technology is expected to be more widely adopted as the price barrier is overcome gradually.

Preference for Traditionally Run Business Operations

There are also some enterprises which Frost & Sullivan opines prefer to proceed with their traditional methods of tracking and monitoring their various resources such as assets, raw materials, and semi-finished goods, which is more labor-intensive although they are aware of the potential of RTLS technology. Many regard the cost of implementing RTLS as not justifiable, since the labor cost is relatively low in many countries in Asia Pacific. RTLS vendors are required to attract end users by creating awareness in terms of ROI in the short and the long terms to provide a better overview of the benefits of RTLS.

Since labor cost is increasing and is quite expensive in some parts of this region such as Japan, South Korea, Singapore, and Australia, enterprises are now beginning to consider implementing RTLS as a means of gaining a competitive edge over their competitors. With countries such as China, Thailand, and Vietnam opening their markets toward industrialism, existing enterprises are required to consider methods of staying competitive to avoid losing business. Moreover, the high level of competition and the need to increase operational efficiency are likely to drive adoption of RTLS among the enterprises.

Market Drivers

Chart 2.2 represents the market drivers ranked in order of impact for the Asia Pacific RTLS market from 2007 to 2013.

Chart 2.2
RTLS Markets: Market Drivers Ranked in Order of Impact (Asia Pacific), 2007-2013

Advantage over Existing Technologies

The need for tracking and monitoring vital resources is crucial for enterprises striving to improve their operations. Existing technologies such as GPS cater to tracking solutions for outdoor use predominantly, but GPS needs to be in the line of sight with the satellite. Moreover, the accuracy that a GPS system can provide is still low especially to track resources very close to each other or indoors, and this provides an opportunity for RTLS to be adopted. In terms of implementation cost, the prices of majority of the existing systems are high, and this forces the manufacturers and the public to identify a new technology that can be implemented at lower cost. Moreover, other tracking solutions such as bar codes do not offer flexibility of real-time monitoring. Traditional RFID systems (passive) offer tracking of resources at near real-time basis when the resource comes into proximity of a reader, and additionally does not offer accurate tracking in terms of the coordinates of the resource (both traditional active and passive RFID). Frost & Sullivan believes current technological advancement in RTLS enables tracking of resources to be done in real time, with the ability to provide the coordinate of the tagged resource which is a great value proposition for end users.

Strong Interest from the Government Sector

The RTLS market in Asia Pacific is witnessing strong demand from government backed initiatives, whereby the governments are either directly funding or indirectly supporting the deployments. For instance, there is increasing deployments across correctional facilities such as prisons and detention centers across several countries in this region, namely Japan and South Korea. RTLS is being used to keep track of inmates and also as a security enhancement for staff working in these centers. Additionally, governments are indirectly backing RTLS initiatives in federal level projects in which they have stakes, such as oil and gas facilities. Many of these projects implemented by the government sectors are relatively large-scale deployments. Strong support by the government is beneficial to the RTLS industry on whole considering the market is still in the infancy stage, as this increases the awareness of the public.

Reduction in Overall Cost

Frost & Sullivan also believes RTLS is becoming more feasible for end users to adopt due to the reduction of cost. The price of tags, hardware, and software is gradually declining at a rate of 5 percent to 20 percent annually. Most end users have not adopted RTLS so far due to the high overall cost, especially the initial cost of deployment. However, as prices continue to decline over time; more companies are considering the implementation of RTLS to keep track of their resources at its respective enterprises. Although the overall cost is required to further decline in order to make the technology affordable to a more end users, it is expected that a larger pool of end users will be considering RTLS annually as the price of the components of this technology continues to decrease.

Market Restraints

Chart 2.3 represents the market restraints ranked in order of impact for the Asia Pacific RTLS market from 2007 to 2013.

Chart 2.3
RTLS Markets: Market Restraints in Order of Impact (Asia Pacific), 2007-2013

Conservative Financial Expenditure

Frost & Sullivan believes since RTLS technology is still relatively new in the Asia Pacific region, many decision makers are still skeptical to adopt this technology since they are not aware of the benefits of this technology. Coupled with the mind-set of many Asia Pacific companies that prefer to adopt the 'wait and watch' approach whereby companies prefer to let others try something new before they are convinced about the technology; under this circumstances RTLS technology. The acceptance of the technology is still low, and therefore, more pilot projects are required to gain the interest of the public, thereby making them invest in it. Many organizations are still unwilling to risk their capital to a new technology. This is expected to hinder the development of the RTLS technology in the region until decision makers become more aware of the potential benefits of RTLS.

Lack of Standards

RTLS technology is still in the nascent stage. Hence, there is a lack of standards governing the usage of this technology, which Frost & Sullivan believes is a major barrier for widespread adoption. Majority of the RTLS technologies in the market at present are to a certain extent propriety-based, thus impeding the growth due to potential operability issues. Existing standards for RTLS standards are still not well defined, leading to multiple standards adopted by various market participants. This is expected to create incompatibility among infrastructures, and is likely to result in high implementation cost on the consumer’s side. Higher implementation cost is likely to affect the adoption rate of RTLS among the consumers, which restrains the development of RTLS.

Although the ISO/IEC 24730 standards for 2.4 GHz active RTLS, which enable tags to converge on the Wi-Fi RTLS technology and thereby enables greater interoperability were ratified recently. However, many market participants are of the opinion that majority of the vendors will be able to adopt these standards only after two or three years. This is because the ISO 24730 standards were developed around the WhereNet RTLS architecture and platform, and are likely to require additional efforts for other vendors involved in the Wi-Fi RTLS sector to conform to this standard. A more collective effort by all vendors in setting up standards is expected to be crucial for the overall acceptance of RTLS in the global market. To ensure that RTLS technology is more standards driven, vendors are required to form a working group and collaborate their innovations on an agreed set of platform or architecture, following similar efforts by vendors in the UHF passive RFID market working together with EPCglobal to form the Gen 2 standards that are ISO ratified. By having a more solid standards platform, adoption is likely to increase, as it will be easier to convince end users to adopt RTLS.

Lack of Project Visibility in the Region

In the Asia Pacific region, there are not many projects that are made known to end users unlike in the United States or Europe. This is primarily due to two factors. One reason is that the number of projects being implemented is low. The other factor is that many of the projects that are being deployed in the region at present are still propriety based and the companies concerned prefer not to make their activities publicly known at the present moment.

Many of the successful projects currently being marketed by various vendors in their respective websites involve those in the United States and Europe. This is likely to discourage potential end users based in Asia Pacific to be hesitant in deploying this technology. This is because it limits the possibility for end users to witness and also understand the whole concept of RTLS especially in Asia Pacific. Many of these end users are likely to underestimate the capability of RTLS until they have witnessed it themselves. Additionally, some of the vendors are also not keen on publicizing the projects it has deployed with fears that its trade secrets may be revealed and they could lose their competitive edge. Having a low number of pilots project is likely to impede the awareness of RTLS technology in the market, thus reducing the potential opportunity of this technology to be deployed.

To ensure end-user awareness in the Asia Pacific region, vendors are required to specifically consider methods of marketing and informing the public, especially potential end users about the various projects being carried out in this region after obtaining permission from the respective end users of these projects. As this technology is still new and growing, end users will be more open to the idea of implementing this technology after they become aware that other enterprises of similar nature have either performed testing or done a full-scale implementation of this project.

Market Forecasts

Revenue Forecasts

The overall RTLS market in Asia Pacific was worth $36.8 million in 2006, and is expected to experience a CAGR of 54.3 percent from 2006 to 2013, and reach $75.2 million in 2008. Market revenue is expected to continue to grow and reach $765.1 million in 2013.

Chart 3.1 represents the revenue forecasts for the RTLS market in Asia Pacific from 2006 to 2013.

Chart 3.1
RTLS Markets: Revenue Forecasts (Asia Pacific), 2006-2013

With regard to the percent of revenues by product type, the Wi-Fi RTLS market is expected to contribute the largest portion of the RTLS market during the forecast study period as enterprises are expected to be able to leverage on the usage of Wi-Fi networks, which enables them to also use other applications simultaneously. The UWB and passive markets are expected to grow steadily as these types of RTLS offer distinct advantages. UWB RTLS is expected to be adopted in areas where high level of resolution is required, such as personnel tracking, whereas passive RTLS is expected to be widely used by enterprises that require short to medium range tracking. Passive RTLS is also expected to be adopted due its significantly lower overall cost compared to other RTLS types. The IR RTLS market is also expected to grow annually, but growth is not expected to be as significant as other RTLS technologies as this type of RTLS operates only best in indoor environments.

As for 2007, the Wi-Fi RTLS market contributed to 91.3 percent of the overall market share while the UWB RTLS market consisted of 3.8 percent. The passive RTLS market had a 2.6 percent market share while the IR RTLS had a 2.3 market share.

Adoption Level

Based on the real-time location system (RTLS) adoption in Asia Pacific, the adoption level can be broadly categorized as: early adopters, promising followers, and aspirants.

Early adopters can be categorized as countries that have already begun deploying RTLS, and this can also include pilot activities across the enterprise where else promising followers are countries that have witnessed a certain level of RTLS initiations or deployments, although much of it is still in the assessment and feasibility stage. Aspirants meanwhile can be considered as countries that have witnessed little initiations or no deployments of RTLS at present.
Chart 3.2 illustrates the adoption level for the Asia Pacific RTLS market in 2006.

Chart 3.2
RTLS Markets: Adoption Level (Asia Pacific), 2006

Market and Technology Perspective

Market Trends

The RTLS market in Asia Pacific has considerable potential for growth but is at present lagging behind in terms of deployments and projects, which are directly proportionate to the overall market size as compared to the United States and Europe. At present, based on feedback from market participants, the RTLS market in Asia Pacific constitutes only 10 percent to 15 percent of the global market, since majority of the deployments are being performed in the United States, followed by Europe.

One key finding is majority of the RTLS vendors do not have a presence in Asia Pacific. They are apparently focusing only on the U.S. market, as the demand in this market is significantly higher than in any other region in the world. However, many of these vendors anticipate to enter the Asia Pacific RTLS market by end of 2008 or early 2009. Majority of them expect the Asia Pacific market to be more mature by then, and the demand for this technology is likely to be higher, thus it will be the appropriate time to penetrate the market.

With regard to those vendors already having a presence in the Asia Pacific RTLS market, many claim they are receiving inquiries from end users based in the region on a regular basis, indicating that the awareness from end users is beginning to grow over time. Majority of them consider the health care vertical to show the highest level of interest toward RTLS, but demand from the manufacturing vertical is also equally high. Market participants also consider the Asia Pacific region to have significant scope for emerging applications such as for correctional facilities, especially prisons, mining and offshore oil rigs, primarily used for personnel tracking and asset management.

From a vendor perspective, there have been some major events taking place that are likely to shape the future for a more sustainable RTLS industry. Several mergers and acquisitions (M&As) have taken place since 2006 in the RTLS market. Among the notable ones is the merger of InnerWireless' location infrastructure and Pango Networks' location service software platform in March 2007. This merger will result in the InnerWireless brand name being used for marketing purposes. With this merger taking place, the combined specialization of both companies is expected to enable end users to have a complete end-to-end tracking solution for enterprises, from the infrastructure to the asset tracking solutions. Another M&A that took place recently in early 2007 was the acquisition of WhereNet by Zebra Technologies. Although it is expected that WhereNet will function as a separate entity for the near future, Zebra is looking at methods to strengthen WhereNet’s position in the RTLS market by sharing its marketing and sales resources.

Besides M&As, many of the RTLS vendors have begun having strategic partnerships in recent times with major global corporations, especially those already having a strong presence in the RFID industry, in order to adopt means to leverage the RTLS technology with the existing RFID clients and customers. The companies that these RTLS vendors have tied up with include Alien Technology, Cisco, HP, IBM, Intermec, Motorola, Siemens, and Sybase. Other RTLS vendors are also expected to take similar steps in the next two years to ensure they remain competitive and are able to challenge other companies for a stake in this volatile environment.

The RTLS market in terms of revenues is still low in Asia Pacific. However, it is expected to continuously grow in future, and with more standards and regulations being established, decline in prices, and improvements with respect to overall RTLS technology, it is anticipated that the RTLS industry will begin booming from the 2009 or 2010 period where revenue growth rates can is expected to be from 45 percent to 55 percent annually.

Technology Trends

The RTLS industry is growing rapidly, bringing about various technology innovations along the way. Some of the technology trends observed in the Asia Pacific RTLS market are discussed below.

Tags

The RTLS tags in general are now getting cheaper over time. The prices are declining by an average of 10 to 20 percent annually, making it more feasible for more companies to implement an RTLS project. Furthermore, the establishment of the ratified standards, namely the ISO/IEC 24730, for certain types of RTLS tags, in particular the 2.4 GHz Wi-Fi active tags is expected to be the first step toward a more globally accepted set of standards providing a platform for better compatibility and interoperability. End users are likely to soon have the opportunity to purchase products best suited to their needs, without the need to worry about compatibility issues - similar to the Gen 2 standards observed in the UHF passive RFID tags whereby products are vendor neutral. At present, only WhereNet as an RTLS vendor adheres to the ISO/IEC 24730 set of standards, since this set of standards were initially built around WhereNet’s product architecture. Some RTLS vendors are in the midst of securing a licensing contract with WhereNet to use the ISO/IEC 24730 standards but majority of the RTLS vendors presently prefer to use their own propriety standards due to the high cost involved with regards to licensing fee. However, it is expected that more vendors will begin complying with these standards within the next two to four years, realizing the goal towards a globally interoperable RTLS system. G2 Microsystems is a chip manufacturer for active 2.4 GHz systems that currently can provide ISO/IEC 24730 compliant chipsets. Another area in RTLS tags that is being improved is the overall life span of batteries.

Most RTLS vendors have realized that one of the primary areas of focus to increase acceptability by end users is increased life span of batteries, since many end users consider it not feasible to have a technology that requires regular battery changes, as this can affect the overall efficiency of the system. RTLS vendors have managed to improve the average life span of batteries in an RTLS tag to three to five years depending on usage, and are further trying to improve the life span. Some vendors claim their batteries can last up to seven years depending on usage. Additionally, the 'exciter' component is at present being added to the tags to preserve the battery life of the tags. For instance, when a particular tag exits the warehouse and end users are not likely to require it to be switched on again, the exciter can automatically trigger the tag to switch off after passing a choke point (exit point) or dock doors.

Emerging RTLS systems are beginning to see passive tag technology operating under the UHF band in the traditionally active RTLS market. Passive RTLS tags offer significant benefits to end users in terms of significantly lower cost. They also provide reasonably accurate tracking solutions and are able to match the read resolution of certain types of active RTLS tags. However, they are not able to match read ranges of active RTLS tags, which are presently from 10 to 15 meters. Passive based tags are suitable for short to medium distance applications such as yard management or in the manufacturing vertical.

Innovations have also brought about additional features in the RTLS tag. RTLS technology is not only providing tracking and location information for tagged resources but also providing additional information, which in turn provides more value for end users. For instance, certain types of Wi-Fi tags nowadays come with an LCD screen. The purpose of this screen is to provide additional information to end users, depending on the applications in which it is used. In the health care vertical for instance, these new generation tags can offer real-time information in text format to nurses or doctors, thereby functioning as a pager. Additionally, if used in the mining vertical, personnel using this tag can be informed on safety precautions through the LCD screen when they arrive at a hazardous site. In the manufacturing vertical, workers can be informed on asset status of tagged goods by looking at the tag's LCD screen, thus potentially preventing end-user goods from being mixed up during the manufacturing process.

Software

The software segment of the RTLS technology is also seeing increasing innovations in recent times, with efforts being taken to provide the end users a more complete solution. As observed in the tags section, RTLS technology not only provides end users with an efficient tracking solution but also comes with additional features and functionalities providing a more holistic solution to end users.

Many of the new generation RTLS software come with Web-enabled capabilities. This aids end users to keep track of their resources in real time remotely, by either using their mobile phones or personal digital assistants (PDAs). By being able to keep track of various resources remotely, end users can be more pro-active in managing their various resources as personnel with mobile phones or PDA are not likely to require to obtain directives from the main control center before making a decision. Furthermore, it improves the overall usability of this technology for the benefit of end users.

Moreover, new generation software used to keep track of end users' resources are capable of reporting functions, by using special data mining techniques to generate reports based on the environment of the RTLS. For instance, in a warehouse, RTLS can generate reports when queried to show end users the areas not fully utilized daily, or the time it takes for a forklift to find a particular tagged asset. The information provided through the reports generated is likely to be useful for end users to firstly understand the real scenario of their enterprise, and then look at methods to improve their daily operational efficiency.

Frequency Allocation

With regard to frequency allocations, the Wi-Fi RTLS tags are active tags that mostly operate in the 2.4 GHz Microwave band, and communicate in the same protocol as the IEEE 802.11 wireless LAN protocol; thus, no specific license is required in most cases. With regard to UWB RTLS, the tags operate based on specific frequency allocations based on the country or region. In the United States, the FCC permits the usage of 3.1 GHz to 10.6 GHz, and in Europe, the EC has given approval since May 2007 for the frequency range from 3.4 GHz to 4.8 GHz and 6.0 GHz to 8.5 GHz for all its 27 participating European member countries. In Asia Pacific, there is no known specific range for UWB allocations but end users can request for special permit license from the respective regulators in each country. With regard to passive RTLS solutions, they operate under the UHF 860 MHz to 960 MHz band, and specific frequency allocations have been made in most countries in Asia Pacific except for Indonesia and the Philippines (according to EPCglobal's report dated 20 January 2008).

Standards and Regulations

At present, there is a lack of overall standards governing the RTLS technology, both from a global and Asia Pacific perspective. However, there have been some advancements in standards, but considerable efforts are required to be taken to ensure that the various issues regarding standards can be overcome. For the 2.4 GHz active Wi-Fi RTLS, the standards ratification for the ISO/IEC 24730 is the first step toward more globally accepted standards. The standards are expected to enhance product compatibility and interoperability, giving end users the opportunity to select the products best suited to their needs without having to be concerned if those products will work together. However, it is expected to take two to five years for most Wi-Fi RTLS vendors to comply with these standards, as many feel they were based on the WhereNet architecture.

The UWB RTLS solutions are at present propriety based, and therefore, architectures differ. The standards differ among the vendors involved in this technology. However, some market participants opine that some form of standardization is likely to be adopted within the next two to three years, but this is expected to depend on the collaboration of the vendors involved as well as approval from ISO.

With regard to passive RTLS solutions, the tags adhere to the ISO 18000-6C standards, thus providing compatibility and interoperability of the tags. The IR RTLS solutions are also propriety based and presently, there is no single set of standards governing this technology.

 

Notable RTLS Deployments

Healthcare

Patient and Staff Visibility Tracking Solution

KangNam St. Mary's Hospital that is run by the Catholic Medical University of Korea decided to adopt an RTLS system in 2006 to have better manageability of all its patients' records, considering this was becoming increasingly difficult and time-consuming with increasing number of patients seeking various medical examinations on a daily basis. It required a system to provide accurate medical examination services in an interactive and efficient manner. The hospital required the system to allow patients to follow its own progress while providing its staff the capabilities of viewing the patient’s records automatically in real time. KangNam St. Mary's Hospital decided to leverage on RTLS and sought AeroScout's Visibility System for a Wi-Fi RTLS solution. The system integration was provided by ChoongWae Information Technology.

Each patient was given an AeroScout T2 tag that can leverage on the hospital's Wi-Fi infrastructure to provide real-time information on a patient's location. The staff was also given similar tags. By enabling RTLS, the hospital has been able to reduce the average time for a medical checkup from 3 hours to 2.5 hours, and each examination has reduced by 15 to 20 percent compared to its previous system. In addition, among the other benefits obtained through the implementation of RTLS in this health care facility were reduced paperwork and improved information relaying to family and friends of patients who can be alerted in real time on the patient's status. The system also provided an enhanced security for patients as the nurses can be informed immediately when a particular patient leaves certain areas besides enabling nurses to know if the patient has gone to the wrong room or is being treated by the wrong doctor.

Defense

Army Personnel Tracking Solution

The U.S. Army training center, the Military Operations in Urban Terrain (MOUT) at Fort Benning, Georgia, deployed UWB based RTLS technology in November 2006 provided by Ubisense for its indoor army tracking solution. RTLS is used to monitor the movement of the training soldiers that leads to after-action assessment. The sensors provided by Ubisense, named ‘Ubisensors’, are placed throughout the building to capture the RF signals from these tags.

This UWB solution can provide the exact location of an army personnel and it is within 1 foot in resolution or accuracy. Additional infrared transmitters are also placed above the doorways to provide the administrators with the information of the exact floor, hallway, and room where army personnel are located. Ubisense has also released its own software that is capable of combining all the signals it receives from the tags and displaying them on the 3D interface.

Transportation and Logistics

Warehouse Tracking Solution
Broekman Automotive Division is located in Port Rotterdam and specializes in the car handling services. The storage capacity of the site increased by 40 percent which is approximately 35,000 cars in 2006, with the annual throughput at 300,000 cars.

Through Mieloo & Alexander Business Integrators, Broekman Automotive has deployed RFID enabled RTLS by implementing WhereNet’s RTLS technology to track, locate, and monitor vehicles on-site. By implementing RTLS technology, Broekman Automotive is able to:

• Improve its overall productivity
• Reduce its lead-times
• Reduce claim on working capital
• Reduce damage control and rework
• Improve overall operations
• Reduce operation cost
• Provide better customer services that gives it a competitive advantage

Oil and Gas

Oil and Gas Personnel Tracking Solution

The oil and gas industries of Malaysia, India and Australia have plans to implement RTLS solutions to keep track of their personnel. The implementation has commenced with a pilot phase in certain offshore oil rigs since early 2008, and if end users are satisfied, it is expected to be expanded to other oil rig facilities as well. The primary aim of these RTLS projects is to have better visibility of personnel, thus enhancing the security level of the employees.

As oil rigs are quite hazardous places to work in, end users want to know the precise location of all the employees to ensure swift evacuation is possible in case of an emergency. The solution is expected to be a combination of Wi-Fi and UWB tracking solutions.

Conclusion

Future of RTLS in Asia Pacific

The future of RTLS in Asia Pacific certainly looks promising. As compared to two or three years ago, Asia Pacific is witnessing more projects being deployed across different verticals. This is due to the significant demands from end users for better manageability of their resources, assets and personnel. They have begun to realize that RTLS is the technology that they can leverage for overall better visibility due to its ability to provide a real-time tracking solution with high granularity, thereby improving current inefficiencies affecting the enterprise due to lack of visibility. As evidence of successful implementations and the benefits it provides to enterprises are highlighted, more end users are expected to begin adopting RTLS to gain the value proposition achievable through real-time tracking of resources.

However, RTLS in Asia Pacific is still in the nascent stage. Due to lack of standardization and regulations, end users have lack of choice to mix solutions between different vendors. The various RTLS vendors are yet to agree on the various issues in the industry such as compatibility of hardware and software among solutions of one another, and differing architectures limit acceptance by end users. RTLS vendors are required to consider methods of working and developing a similar platform or architecture for their products to operate on, in order to ensure this technology remains sustainable in the long term. These vendors are required to consider other similar technologies that had similar obstacles when initially developed; for instance, the passive UHF RFID technology. Initial differing architectures meant this technology did not support interoperability among products of different vendors, thus discouraging many potential end users from adopting this technology as they were apprehensive the implemented system will eventually be tied to a single vendor. However, ever since the Gen 2 standards were established, which ensures total interoperability of systems; it has become more feasible for end users to adopt this technology, especially for the purpose of supply chain management. Additionally the demand for passive UHF RFID has been increasing since then.

Standardization of the RTLS architecture is likely to require collaboration among RTLS vendors, but the goal will be for a 'win-win' situation for both vendors and end users. When a technology becomes more pervasive in the enterprise, there is a higher possibility for its increased adoption by various groups, thus ensuring it becomes sustainable in the long term, benefiting all vendors. This is likely to take five to ten years, or possibly longer, for a more interoperable RTLS technology to be developed, considering that the various architectures present in the market at present are diverse but efforts to improve on compatibility and interoperability need to start now. It is encouraging to note that most of the RTLS vendors are at present have formed partnerships with large corporations, many of which are specialized in RFID technologies and are likely to aid RTLS vendors to achieve some form of standardization across their architectures. This is expected to be the first step toward an open system for the future.

From an enterprise perspective, end users are expected to first understand the capabilities of RTLS and what it has to offer before committing themselves to this technology. They are required to identify the business case of their operations, verify whether the current inefficiencies faced in their enterprise can be solved using RTLS, and only then consider an RTLS deployment. They can also seek opinions from several different types of RTLS vendors to obtain the best possible solution for their enterprise.

The RTLS market in Asia Pacific is expected to continuously grow over the forecast period, but RTLS vendors are required to consider methods of improving the overall aspect of this technology, from price of hardware and software to reliability of the solution itself to ensure the market continues growing substantially in future.

 

Market Participants

The list below displays the market participants which participated for this particular study.

Company Name	AeroScout Incorporated
Web Site	www.aeroscout.com
Year Established	2000
Headquarters	Redwood City, California

Company Name	Ekahau Incorporated
Web Site	www.ekahau.com
Year Established	2000
Headquarters	Saratoga, California

Company Name	Honeywell Automation and Control Solutions Group
Web Site	www.honeywell.com/acs
Year Established	1974
Headquarters	Phoenix, Arizona

Company Name	Motorola Incorporated
Web Site	www.motorola.com
Year Established	1928
Headquarters	Schaumburg, Illinois

Company Name	Omnitrol Networks Incorporated
Web Site	www.omnitrol.com
Year Established	2004
Headquarters	Mountain View, California

Company Name	Parco Merged Media Corporation
Web Site	www.parcomergedmedia.com
Year Established	2001
Headquarters	Portland, Maine

Company Name	PINC Solution Incorporated
Web Site	www.pincsolutions.com
Year Established	2004
Headquarters	Berkeley, California

Company Name	Radianse Incorporated
Web Site	www.radianse.com
Year Established	2005
Headquarters	Andover, Massachusetts

Company Name	RF Code Incorporated
Web Site	www.rfcode.com
Year Established	1997
Headquarters	Austin, Texas

Company Name	The Logistics Institute – Asia Pacific
Web Site	www.tliap.nus.edu.sg
Year Established	2001
Headquarters	Singapore

“An Environment Scan: Asia Pacific Real Time Location System (RTLS) Markets” is extracted from the full research service titled “Asia Pacific Real Time Location System (RTLS) Markets”. This study is available through the Automatic Identification and Security Subscription & Growth Partnership Service, which includes research services in the following markets: RFID, Security, and Biometrics. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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