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In a recent report, Wi-Fi Real-Time Location Systems, ABI Research examines key competitive advantages and disadvantages of Wi-Fi RTLS (real-time location systems) products. The report traces in great detail the growth of individual product components such as tags, appliances, software, and professional services, and forecasts the revenue growth for each key product category.

Wi-Fi RTLS requires far denser deployments of supplementary access points to accurately triangulate and then locate assets and people. In light of this, it is no surprise that most equipment vendors fail to publicize the inadequate amount of access points presently employed. However, going forward, ABI Research believes there will be a dramatic increase in the number of access points deployed, thereby enhancing Wi-Fi RTLS and emphasizing its advantages over proprietary RTLS.

“Revenue generated by access point sales will rise from $14 million in 2006 to more than $191 million in 2012,” said ABI Research vice president and research director, Stan Schatt. “And the savings created from using Wi-Fi RTLS for fixed mobile convergence should cost-justify these purchases.”

By this time, Europe will overtake North America, producing higher Wi-Fi RTLS revenues.

Paralleling this increase in access point deployments, revenues earned by software service professionals will experience substantial growth as well – from just over $2 million in 2006 to more than $60 million in 2012. Demand for professional services will expand as software becomes more customized and specific needs must be met.

“ABI Research forecasts illustrate that the rapidly growing installed base of access points is essential when it comes to the expansion of Wi-Fi RTLS,” continued Schatt. “Moreover, the biggest advantage of Wi-Fi RTLS over proprietary RTLS is that the presence of access points eliminates the need for a separate cabling system and expensive RFID readers.”