Barcode and RFID – Market Update & 2010 Outlook

11,340 views
11,204 views

Published on

These slides are from a webcast originally presented by VDC Research on 1/20/2010. 2009 was a challenging year for barcode suppliers. And while the RFID segment did not experience negative growth, it did contract. Many deploying enterprises cut their budgets, planned projects were placed on hold, and pilot projects didn’t progress to full scale deployments. The good news is that VDC’s most recent data suggests that this is changing. Many suppliers are seeing their opportunity pipelines rebound and are anxiously awaiting a gradual return to growth in 2010. In this webcast, we discuss the opportunities and challenges facing barcode and RFID equipment providers in 2010.

Published in: Business, Technology
0 Comments
7 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
11,340
On SlideShare
0
From Embeds
0
Number of Embeds
910
Actions
Shares
0
Downloads
666
Comments
0
Likes
7
Embeds 0
No embeds

No notes for slide

Barcode and RFID – Market Update & 2010 Outlook

  1. 1. Barcode & RFID Market Update & 2010 Outlook Tom Wimmer Director, Auto ID & Transaction Automation Practice Drew Nathanson Director, Research Operations
  2. 2. Recording Available These slides are from a webcast presented on 01/20/10. A full audio recording is available for download at: http://www.vdcresearch.com/market_research/ autoid/freeresearch.aspx# t id/f h #
  3. 3. VDC Research Complimentary insights & marketing data on barcode and RFID markets is available at: www.vdcresearch.com 2 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice
  4. 4. Today’s Speakers • Tom Wimmer  Tom manages VDC’s AIDC and Transaction Automation Practice, which follows advancements in barcode, RFID and retail automation.  Prior to VDC, Tom spent 11 years managing the market research function at Zebra Technologies, a leading provider of barcode printing, card printing and RFID solutions. • Drew Nathanson  Drew Nathanson directs research operations for VDC, interacting daily with Practice Directors and analysts from each of VDC’s practices: Embedded Hardware, Embedded Software, Industrial Automation and Control, Mobile and Wireless, and AIDC and Transaction Automation. , ,  Prior to VDC, Drew worked for a number of companies helping to commercialize several emerging technologies 3 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice
  5. 5. Agenda for Today’s Presentation • 2009 year in review  What were the underlying causes of the market contraction?  Which segments of the AIDC market were most impacted?  What tactics did suppliers take to insulate themselves? • 2010: VDC’s expectations  What are the macro economic trends that will impact future investments in barcode and RFID technologies?  Which market segments will provide the strongest near-term growth opportunities? near term  Where will barcode and RFID technologies most likely converge, presenting opportunities for cross selling and increased collaboration among suppliers and their distribution partners? • VDC’s 2010 Market Intelligence Planning Services  Coverage focus shifting from products to the solutions they enable 4 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice
  6. 6. 2009 Year in Review • The global recession adversely impacted nearly all suppliers of AIDC technology. • RFID was more insulated than barcode, but both segments saw material contraction. • Time honored sales and support models are no longer resonating:  The global recession is forcing suppliers to innovate beyond the technologies they develop and support • Deploying customers are increasingly looking to their technology suppliers to put skin in the game by:  Quantifying and guaranteeing the benefits of deployment  Assuming project management accountability  Insulating against obsolescence  Developing financing models that reduce opportunity costs and free up capital to address competing IT initiatives 5 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice
  7. 7. 2009 Year in Review: Barcode Recession caused a significant contraction of core b R i d i ifi t t ti f barcode h d d hardware Yr/Yr Growth: Core Barcode Hardware 15.0% 10.0% 5.0% 0.0% 5 0% -5.0% 2008 2009 2010 2011 2012 2013 -10.0% -15.0% -20.0% -25.0% 2008 2009 2010 2011 2012 2013 Handheld Scanners Stationary Scanners Barcode Printers TOTAL 6 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice
  8. 8. 2009 Year in Review: RFID Growth slowed b t rapid return t hi t i l growth expected G th l d but id t to historical th t d Yr/Yr Growth: Core RFID Hardware 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% 2008 2009 2010 2011 2012 2013 -10.0% -10 0% 2008 2009 2010 2011 2012 2013 Transponders Readers Printer/Encoders Total 7 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice
  9. 9. What were the underlying causes of contraction? Global R Gl b l Recession I i Impacts Core AIDC S t C Segments H d t t Hardest • The global recession brought contraction in demand, production and employment, which in- turn created increased supply chain capacity and decreased supply chain velocity. • Reductions in capacity and velocity softened the automation imperative in core supply chain segments: manufacturing, T&L and retail. • Enterprises delayed deployment of planned large scale projects, placing increased emphasis on cost reduction by lengthening refresh cycles and supporting installed solutions. 8 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice
  10. 10. Which product segments of the AIDC market were most impacted by the recession? p y • Most Impacted: Barcode • Most Impacted: RFID  Laser scanners  Readers • Handheld  Printer/Encoders • Stationary  EPC UHF Hardware  Stationary barcode label printers • Least Impacted RFID • Least Impacted: Barcode  Middleware/Edgeware  Imagers  Installation/Integration Services  Scan engines  Mobile transaction printers  Consumables 9 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice
  11. 11. What tactics did suppliers take to insulate themselves from the recession? • To begin with, none did. Virtually every supplier of AIDC and RFID equipment suffered in 2009. With rare exception. • However, there are a number of survival strategies and tactics that enabled some to fare better than others. • Three of the most common included:  Care and feeding of the installed base  Bundling complementary solution components  Aggressive focus on channel management, retention and support management • One of the most successful and oft overlooked:  Deployment of new business models aimed at mitigating risk while maximizing value 10 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice
  12. 12. Key Questions for 2010 • What are the macro economic trends that will impact future investments in barcode and RFID technologies? • Which market segments will provide the strongest near-term growth opportunities? • Where will barcode and RFID technologies most likely converge, presenting opportunities for cross selling and increased collaboration among suppliers and their distribution partners? • What sales and deployment models present serious investment consideration in the coming 12-24 months? 11 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice
  13. 13. What are the macro economic trends that will impact future investments in barcode and RFID? p • Increased Global Demand and Manufacturing  Further development of standards and solutions capable of supporting global value chains and breaking down region adoption barriers  Requires deeper integration (Enterprise, Value Chains)  Facilitate global expansion into core and emerging markets • More Scrutiny and Management of Investments  Necessitates Reliable and Reproducible Business Models  Pushes back onto the supply community to mitigate risk meet current and future requirements risk, requirements, improve customer relationships, and innovate • Enhanced Security  Increased emphasis on secure value chains, pedigrees, and chain-of-custody  More development of gathering, securing, sharing, routing, and leveraging of business intelligence • Increased Mobility  Broader deployment, emphasis on convergence with a wider range of enterprise and mission critical systems – and consumers 12 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice
  14. 14. Which market segments will provide the strongest near- term growth opportunities? g pp Vertical M k t V ti l Markets Applications A li ti Health Care Patient Safety Commercial Services Asset and People Tracking Barcode Government Field Sales/Service Specialty Retail Self-Service & Customer Interaction Management Commercial Services Supply Chain Management Electronics Asset & People Tracking Government Ticketing RFID Health Care Contactless Payment Manufacturing Sensing/Monitoring Pharmaceuticals ID/Access Control/Security Retail 13 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice
  15. 15. Where are the centers of convergence for barcode and RFID? • Products  Readers and Scanners  Printers and Encoders  Tickets, tags, labels, other consumables  Open platform middleware/edgeware • Applications  Supply Chain Management and Track/Trace  Asset Management  Security and Anti-counterfeiting  Access Control and ID  Ticketing  MRO (Maintenance, Repair, Overhaul)  WIP and Sample Tracking  LBS (Location Based Services)  POS and Customer Loyalty 14 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice
  16. 16. What sales and deployment models should be evaluated/considered in the coming 12-24 months? g • Deploying enterprises are looking for suppliers willing to assume increased accountability for those solutions they sell and support. • This requirement is being addressed by forward thinking suppliers through:  Managed Service Offerings (hosted models) • Higher performance and lower liability • Opportunity cost reduction or elimination  Easily customizable ROI frameworks and sales tools  The Deployment of Project Management Offices to support key accounts and high growth segments 15 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice
  17. 17. VDC’s 2010 Market Intelligence Planning Services • Feedback from clients regarding 2009 services:  More information on the solutions and associated operational requirements  More granularity, specificity, and insight  Receipt of business intelligence earlier and more promptly • How VDC is addressing these requests  Increased coverage of solutions supported by core products and technologies covered  More context and commentary on market trends, applications, end user requirements & preferences, use environments, supplier strategies … provided in a higher value add and less complex format environments  Improved data collection process, databases, models, and tools to enable deeper, more granular analyses and support of custom requirements  More focused scope of work with an accelerated research schedule as a means ensure delivery of most product in 1H 2010 p 16 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice
  18. 18. 2010 Schedule and Core Deliverables: Barcode RESEARCH SCHEDULE AND DELIVERABLES Volume 1: Handheld Scanners, Offering Segment Analysis May 2010 Volume 2: Stationary Scanners, Offering Segment Analysis May 2010 Volume 3: Barcode Printers, Offering Segment Analysis June 2010 Volume 4: Barcode Printer Consumables, Offering Segment Analysis , g g y June 2010 Volume 5: Customer Requirements Analysis (across all product types) July 2010 Vendor Profiles Delivered as part of the Offering Segment Analysis Distribution Analysis Delivered as part of the Offering Segment Analysis Study Publication Date Actual Market Size/Supplier Share Forecast Market Size Service Year 2010 2009 2010-2014 Monthly status reports Begin March 2010 Interim findings: 1 month prior to publication of each Offering Segment Analysis volume 17 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice
  19. 19. 2010 Research Campaign Plan: Barcode Methodology Target Communities Approximate Sample Size Handheld Barcode Scanner Suppliers 15 Stationary Barcode Scanner Suppliers 10 Phone Interviews Ph I t i Barcode P i t S B d Printer Suppliers li 20 Barcode Printer Consumables Suppliers 20 Distributors, resellers, VAR /SI Di t ib t ll VARs/SIs 25 Web-based Interviews End users, distributors, resellers, VARs/SIs Target N > 500 18 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice
  20. 20. 2010 Schedule and Core Deliverables: RFID RESEARCH SCHEDULE AND DELIVERABLES Volume 1: RFID Transponders, Transponder ICs, and Inlays, Supply-Side Analysis May 2010 Volume 2: RFID Readers, Supply-Side Analysis May 2010 Volume 3: RFID Printers/Encoders, Supply-Side Analysis June 2010 Volume 4: RFID Middleware/Edgeware, Supply-Side Analysis June 2010 Volume 5: RFID Professional Services Supply Side Analysis Services, Supply-Side July 2010 Volume 6: Contactless Smartcards and RFID Ticketing Systems, Supply-Side Analysis July 2010 Volume 7: RFID Vertical Markets, Data Book August 2010 Volume 8: RFID Applications, Data Book August 2010 Volume 9: RFID Market Drivers and Customer Requirements, End-User Analysis September 2010 Vendor Profiles Delivered as part of the Supply-Side Analysis Study Publication Date Actual Market Size/Supplier Share Forecast Market Size Service Year 2010 2009 2010-2014 Monthly status reports Begin March 2010 Interim findings by volume 1 month prior to publication of each supply-side volume 19 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice
  21. 21. 2010 Research Campaign Plan: RFID Methodology Target Communities Approximate Sample Size RFID Hardware and Systems Suppliers 50 RFID Transponder and Reader IC Suppliers 10 Phone Interviews RFID Middleware Suppliers 15 RFID Professional Service Providers 15 Contactless Smartcard System Suppliers 10 Web-based Interviews Enterprise end users and evaluators Target sample N~500 20 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice
  22. 22. Founding Sponsor Benefits and Schedule • Service Schedule:  Founding Sponsor enrollment: through January 31, 2010  Deliverables begin with Q1 Bulletin, with major reports: April through September 2010  Planning discussions with early subscribers: through February 2010  Monthly status reports: begin March 2010  Interim findings by volume one month prior to publication of each final report volume • Founding sponsors receive the following benefits:  Opportunity to provide input on the study architecture, scope, direction  Monthly updates and real-time qualitative findings of interest at each major milestone throughout the execution phase of the study  Discounts from standard post-publication prices  Executive presentation that walks your team through the research sponsored 21 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice
  23. 23. Q&A Session Thank You for Attending this VDC Webinar For more information about VDC Research coverage of the global markets for Barcode and RFID Technologies please contact: Tom Wimmer Director, Auto ID and Transaction Automation Technologies Practice twimmer@vdcresearch.com | 630-279-7959 Drew Nathanson Director, Research Operations andrewn@vdcresearch.com | 508-653-9000 ext. 148 Peter Doran Account Executive pdoran@vdcresearch.com | 508-653-9000 ext.139 22 –  2010 VDC Research Group, Inc. AutoID & Transaction Automation Practice

×