Cost and Complexity as Barriers to RTLS Adoption in SMEs: A Survey and Analysis

Real-time location systems (RTLSs) are central to Industry 4.0 and emerging Industry 5.0, providing the spatiotemporal data required for asset tracking, workflow optimization, safety, and integration with WMS, MES, and digital twins. While large enterprises increasingly deploy RTLSs, adoption among small and medium-sized enterprises (SMEs) remains limited. This paper examines whether cost and installation complexity are primary barriers to SME adoption. We position RTLSs within the broader Industry 4.0 and Logistics 4.0 landscape and summarize their operational value. We then synthesize evidence from the literature on technical, financial, and organizational constraints, with emphasis on infrastructure requirements, calibration effort, integration with legacy systems, and human factors. To complement this analysis, we report results from an online survey of sixteen manufacturing and technology professionals in Canada and the United States. Respondents report strong perceived value for real-time tracking but identify upfront cost, installation effort, integration difficulty, and reliance on multiple anchor nodes as dominant obstacles. Most indicate acceptable upfront investments below $10,000 and express a clear preference for low-infrastructure deployments with minimized anchor counts. Building on these findings, we outline design directions for SME-focused RTLSs, including wireless and modular architectures, cloud-managed and self-calibrating systems, standardized integration interfaces, and anchor-minimizing or anchor-free localization methods. Overall, the results show that limited SME adoption stems less from insufficient perceived value than from misalignment between current RTLS deployment models and SME resource constraints.