APAC Active Tags Market
      Status Today and Outlook

                        for

           National RFID Centre
     ...
Who Is Frost & Sullivan?

The Growth Consulting Company:         Developers of the Growth Excellence
                     ...
Cross Industry capabilities and competencies

              Partnering with clients to create innovative growth strategies...
•   Active Tags Overview


•   Key Market Drivers & Restraints


•   Industry Forecast for Region & Singapore


•   Market...
Active Tags Overview

e.g.                                                    e.g.                          e.g.          ...
Key Applications and Benefits




                                Source: Frost & Sullivan


                             ...
•   Active Tags Overview


•   Key Market Drivers & Restraints


•   Industry Forecast for Region & Singapore


•   Market...
APAC Market Drivers



                         • Improved efficiency                   Enabler for
                      ...
APAC Market Restraints


                                       Benefits of ROI may not be apparent for all users, especia...
•   Active Tags Overview


•   Key Market Drivers & Restraints


•   Industry Lifecycle, Forecast for Region & Singapore

...
Market Potential and Stage of Development
                                NFC -Integration of banking, loyalty, and
      ...
Lifecycle Analysis for RFID Tags in Asia Pacific, 2009
 Active Tags Technology Lifecycle




                             ...
APAC Active Tags Revenue


                         800                                               60
                 ...
Estimated RFID Revenue in 2008 - Singapore




                                                                           ...
•   Active Tags Overview


•   Key Market Drivers & Restraints


•   Industry Lifecycle, Forecast for Region & Singapore

...
Market Trends


                                                                                                          ...
Technology Trends
                    • Battery lifespan increasing
                    • Convergence of multi-tag type
  ...
•   Active Tags Overview


•   Key Market Drivers & Restraints


•   Industry Lifecycle, Forecast for Region & Singapore

...
Conclusion


   Active tag market shows great promise with market still untapped and region
   showing highest growth rate...
Thank You




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APAC Active Tags Market

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Frost & Sullivan analysis of the Asia Pacific Active Tags Market.

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  • 1. Introduction to Active Tag TechnologyIntroduction 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 to leverage on some form of control over the manageability of its 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.The RFID tag typically used to keep track of resources are either passive or active based systems. There are also semi-passive based tags but this technology is still relatively nascent to passive or active tags, and still relatively limited use at an enterprise level. While passive tags are significantly cheaper, an active tag has some advantages which passive based systems do not offer. With its on board power source (typically a battery) unlike passive tags (does not have any on board power source and relies on the electromagnetic waves of the reader to charge up the tag to transmit a signal), read range for an active tag is significantly greater where it can be read from over a 100 meter distance where else passive tags has a maximum read range of several meters only. Moreover, active tags are capable of storing more data than passive tags enabling it to be used for more demanding applications that require more data to be stored on the tag. Maximum storage capacity for a passive tag is typically 128 bits while the active tag in general is capable of holding about 128 kilo bits of data. Another distinct benefit of active tags is the ability to be continuously monitored in real time as these type of tags transmit data through its internal beacon feature, while passive tags in reality is only capable of transmitting its data when it is charged up after in contact with the electromagnetic waves of a reader. Real time monitoring is especially beneficial for objects that require continuous tracking and is especially beneficial if these tags are mounted with sensors. Due to price constraints however, active tags are commonly used to keep track of high valued assets. Significance of Active Tag TechnologyWith the already mentioned benefits of active tag technology, it provides enterprises the ability to keep track of their various resources which may include assets, raw materials, semi-finished goods or even personnel in real time more effectively and efficiently. This delivers increased asset utilization, streamlined operations, and improved productivity, all resulting in tangible benefits and rapid return on investment (ROI).Types of Active Tag TechnologiesActive tag technology has evolved in the past few years and there are several variations found in the market today. Active tags can be broadly broken into three categories:Active Traditional TagsActive Real Time Location System TagsActive Sensor TagsWhile many of these variations may be more stable in North America and Europe, the real time location system (RTLS) and sensor based active tags are still relatively new in Asia Pacific and much of the deployments are still limited.Chart 2.1 presents the types of active RFID tags found in the market with its corresponding attributes in terms of tracking capabilities for the Asia Pacific market in 2006. Additionally, the level of granularity and sensing capabilities are also highlighted.Active Traditional TagsThese active ‘traditional’ tags are generally the most popular based active tags as it can be considered the first generation or conventional active tags found for commercial use. These tags provide typically tracking at a choke point level, and are presently the most common type of active tag used in Asia Pacific. Several variations of these active traditional tags operating at different frequencies are found in the market. The 433 MHz tags are the most popular while the 2.4 GHz tags are also quite commonly used. RFID active vendors (vendors refer to companies that manufacture and develop active tag technologies) have also been developing tags operating under different frequencies including the 860 – 960 MHz band or the 5.8 GHz band. These tags typically can be manufactured to operate at varied frequencies, but is driven typically by customer requirements. Due to the fact that the only standard ratified to date is the ISO 18000-7 standards for the 433 MHZ and patent rights is owned by Savi Technology, most companies besides those that have signed licensing programs with them use various propriety standards. Due to high cost in this licensing programs and much needed work by the vendors themselves for their products to fit the specifications of the standards, many market participants believe it is presently a barrier towards them adopting this standards. Additionally there are end users that find this standard prohibitive to the overall cost of the tag, thus are pushing for vendors to develop tags that operate in other frequencies such as the 2.4 GHz frequency.Typical read range for active traditional tags is approximately 80 to 250 meters but also depends on tag type selected, on the environment and physical conditions it used in. As these tags provide tracking at a choke point level, the granularity (or sometimes referred to as resolution, precision or accuracy) could be at a warehouse level or room level – a higher level of granularity can be achieved with more readers being placed in the environment. 433 MHz TagsWith respect to comparison to key advantages of tags operating under different frequencies, each type has its own benefits and decision to choose the tag will depend on the business case and end user requirements. The 433 MHz band tags in general has better power consumption compared to other tags, and is best used for metal tagging – whereby the frequency properties and characteristics enable it to penetrate metal objects better thus increasing the granularity when tagging objects that is close contact with metal objects. Additionally, the 433 MHz frequency band is a licensed band that requires permission from the local regulators of each country. This in turn makes the band less congested whereby making it less susceptible to interference. 860 – 960 MHz TagsWith regards to the 860 – 960 MHz band active tags, end users stand to gain from using the ultra high frequency (UHF) which has been ratified by most countries already. Additionally, these tags also offer higher read speeds compared to the 433 MHz tags. 2.4 GHzAs for the 2.4 GHz band active traditional tags, one of the key advantages of deploying these tags is it operates in the free industrial, scientific and medical (ISM) band . End users planning to adopt this type of tags will not require applying for any special permits or licenses from the local regulators. Although the 2.4 GHz band is said to be congested as it is a free band, various innovations to the active tag technology has improved overall susceptibility to interference. Read range is also typically further than the 433 MHz tags besides offering much higher read speed compared to 433 MHz and 860 – 960 MHz tags. 5.8 GHz TagsThe 5.8 GHz tags are the most least used tags presently. This is due to many vendors still in the research and development (R&D) stage for tags operating under this frequency. Among the benefits the 5.8 GHz tags offer compared to the rest is its significant read speed and is suitable for high speed data capture applications such as automatic toll collection. Additionally, read range for these tags could possibly be over 1000 meters based on initial findings of some vendors. Active Real Time Location System TagsA 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.Wireless-Fidelity (Wi-Fi) RTLSThe wireless-fidelity (Wi-Fi) RTLS technology leverages on the availability of wireless local area networks (LAN) in the enterprise. The Wi-Fi tags come in active 2.4 GHz format and communicate with the Wi-Fi access points to provide a sense of location to the tracked object in real time. A location engine that is software driven manages the movement of these tags, providing the location of the tagged object in terms of X and Y coordinates. Wi-Fi RTLS read range are from 60 meters to 200 meters typically, depending on the environment. The granularity of this system is from 1 meter to 5 meters, depending on the number of access points used, and battery lifetimes are from four to five years, depending on the frequency of usage. Based on feedback from the majority of market participants, a typical Wi-Fi RTLS deployment requires additional access points on top of the pre-existing access points already deployed in the enterprise to ensure better accuracy in tracking the objects unless the Wi-Fi infrastructure already supports data, video and sound capabilities. However, there are market participants that believe its Wi-Fi RTLS products can work sufficiently if there is a wireless LAN network already installed in the enterprise. The Wi-Fi RTLS technology can work both indoors and outdoors but is also dependent on the type of solutions provided by vendors. Some vendors specialize in indoor solutions and deployments at an enterprise level, while there are vendors that provide this solution for outdoor environments as well. Ultra Wide Band (UWB) RTLSUltra wide band (UWB) technology involves transmitting and receiving of extremely short duration bursts of RF energy, typically ranging from a few hundred picoseconds to a few nanoseconds in duration. UWB RTLS tags are active based tags. Read ranges of an UWB system is approximately 200 meters, their granulairity are higher than 30 cm, battery lifetimes are approximately five to six years, and such a system has relatively smaller form factor in terms of tag size. UWB systems transmit data across a wide range of radio frequencies using active UWB tags with proprietary hardware (readers and sensors) and communication protocols, and a software platform to provide X and Y position data. The Z coordinate can be shown when a fourth reader is used to pinpoint the location of the tag. Setting up a system involves placement of readers or reference tags at certain locations, calibrating the system, and registering active UWB RTLS tags.UWB systems are approved for unlicensed use within the United States according to the Federal Communications Commission (FCC) permitting both indoor and outdoor use. The FCC band ranges from 3.1 GHz to 10.6 GHz frequency. European regulators under the European Commission (EC) are currently considering the authorization of UWB based RTLS systems from 3.4 GHz to 4.8 GHz and from 6.0 GHz to 8.5 GHz, overlapping all locations within the United States.Infrared (IR) RTLSIt is one of the earliest RTLS technologies to be launched in the market, and is mostly deployed in the medical and defense industry. IR based RTLS systems use active tags to communicate typically over the 303 MHz and 433 MHz band. An IR tag requires a line of site to an IR receiver to ensure tracking can be done. Its read range is usually from 30 meters to 45 meters with the IR receiver (sometimes referred as IR spotter). Since many IR RTLS tags at present incorporate RF technology, the read range leveraging on RF can be up to 250 meters. The granularity can be in the range of several inches to several feet. IR is susceptible to operating when there is no line of sight, thus IR RTLS tags are typically used in indoor environments. Battery lifetime for such systems can range from four to seven years, as claimed by some RTLS vendors depending on the application it supports.Active Sensor TagsActive sensor tags market in Asia Pacific is still relatively nascent and small. Active sensors tags refer to tags that have sensors specially mounted onto the tags to not only keep track of the object, but also to measure other environmental parameters or elements of the object it is keeping track off. Such environment conditions or elements include temperature, humidity and shock. Tags with sensors are also now capable of keeping track of other elements such as energy – electrical leakage, thermal and pressure. Moreover, sensors can also keep track of chemicals and gasses and water quality – among the various elements capable of being monitored through active sensor based tags. One prominent vendor involved with the development of sensor based tags in Asia Pacific is Telepathx. These tags architecture may be similar in many ways to the active traditional tags whereby the main difference will be the additional sensors onboard the tag. Likewise, certain vendors are beginning to offer active sensor tags with RTLS capabilities.Active Tag Technology Type ComparisonThe active tag technology has several variations, and overall technology aspects are likely to differ among the types.Figure 2-1 shows the technology types for the Asia Pacific active tags market in 2006.
  • SaaS=Software as a ServiceNFC= Near Field Communication
  • APAC Active Tags Market

    1. 1. APAC Active Tags Market Status Today and Outlook for National RFID Centre RFID Seminar Series 27th May 2010 presented by Satish Lele Vice-President, Electronics & Security Practice, APAC
    2. 2. Who Is Frost & Sullivan? The Growth Consulting Company: Developers of the Growth Excellence Matrix – industry leading growth Over 1,700 Growth Consultants and positioning tool for corporate Industry Analysts across 32 global executives. locations. Developers of T.E.A.M. Methodology, proprietary process to ensure that Over 10,000 clients worldwide o clients receive a 360 perspective of including emerging companies, technology, markets and growth the global 1000 and the opportunities. investment community Three core services including: Growth Partnership Services, Growth Founded in 1961 Consulting and Career Best Practices 2
    3. 3. Cross Industry capabilities and competencies Partnering with clients to create innovative growth strategies MAJOR INDUSTRIES WE SERVE Aerospace & Automation & Transportation & Chemicals, Automotive Defense Electronics Logistics Materials & Food Environmental & Information, Com Energy & Power Business & Building Healthcare munications & Systems Financial Services Technologies Technology OUR EXPERTISE Growth Partnership Market Engineering Growth Consulting Growth Workshop Services Research Financial Analysis Customer Research Best Practices Research Technical Insights & Research Stratecast: Decision Support Executive Summits Corporate Training Telecommunications Database Strategic Forecasting 3
    4. 4. • Active Tags Overview • Key Market Drivers & Restraints • Industry Forecast for Region & Singapore • Market & Technology Trends • Outlook 4
    5. 5. Active Tags Overview e.g. e.g. e.g. e.g. • General asset management • Personnel tracking • Cold chain applications • Dangerous goods • Container tracking • Very high valued goods • Chemicals • Defense goods / weapons Basic Chokepoint Accurate Location Environment Environment Track and Trace Location Tracking Tracking Elements Tracking Elements and Accurate Location Traditional Active RFID Tag Tracking Active RTLS Tag Traditional Active Tags with on-built Sensor Traditional Active Tag with On-built Sensor and RTLS Capability ZONAL WORK-STATION SENSORY PARAMETERS Warehouse Level Room Level Shelf Level Basic Tracking Precision Tracking 5
    6. 6. Key Applications and Benefits Source: Frost & Sullivan 6 6
    7. 7. • Active Tags Overview • Key Market Drivers & Restraints • Industry Forecast for Region & Singapore • Market & Technology Trends • Outlook 7
    8. 8. APAC Market Drivers • Improved efficiency Enabler for • Enhanced safety and security Seamless Visibility Quick ROI Realization • Easier to justify over passive technology • Value tagging = faster ROI Strong Interest from Government Sector • Promotions • Big adopters themselves 8
    9. 9. APAC Market Restraints Benefits of ROI may not be apparent for all users, especially in low value, high volume items High Cost of Entry Most still use propriety standards although ISO Limited standards available due to high cost to license Usage of standards Standards Privacy Fear of personal information that can be retrieved by issues anyone will restrain RFID’s growth 9
    10. 10. • Active Tags Overview • Key Market Drivers & Restraints • Industry Lifecycle, Forecast for Region & Singapore • Market & Technology Trends • Outlook 10
    11. 11. Market Potential and Stage of Development NFC -Integration of banking, loyalty, and security applications on to NFC-enabled device likely to make it truly indispensable Contactless Smart Cards providing the advantage of having physical Video Analytics- still paying for initial and logical access control on the disappointment for overpromising and same card under performing NFC Video Content Mechanical Analytics Locks Access Control Systems Hype phase Analog Cameras SaaS ends – real Contactless traction begins smart cards Video Surveillance Video surveillance gaining support from Integrated governments in Asia Pacific; various security Systems protocols required for commercial complexes, Software RFID Biometrics public areas, shopping malls, and so on SaaS -shift from traditional security space to IT-centric Biometrics- standard in converged applications for banking and industry government Technology Crest of Inflated Depression of Educated Product Trigger Expectations Expectations Decision- Maturity making High Growth Medium Growth Low Growth Declining Market Source: Frost & Sullivan 14+ percent 7-14 percent <7 percent 11
    12. 12. Lifecycle Analysis for RFID Tags in Asia Pacific, 2009 Active Tags Technology Lifecycle Passive Tags • Active tags is in the early stages of growth Active Tags • Still has immense potential Semi Passive Tags Chipless Tags/Printed RFID Time Development Growth Maturity Decline Source: Frost & Sullivan,2009 12
    13. 13. APAC Active Tags Revenue 800 60 700 0.3% 50 16.6% Revenues ($ Million) 600 Growth Rate (%) 40 500 400 Revenue 30 Passive CAGR: 44.6% Active 300 (2009-2016) 20 Semi-Passive 200 10 100 83.1% 0 0 2006 2009 2012 2016 Total Revenues Year Total Growth Rate Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan • Total revenue for 2009 was over $57 million with market growth rate of 54.0% compared to the previous year. • Total projected revenue for 2016 is over $753 million with a growth rate of 45.1% compared to the previous year • The active tags market in 2009 was the second largest market contributing to nearly 17% of the total RFID tags revenue. 13
    14. 14. Estimated RFID Revenue in 2008 - Singapore Revenue Growth Rate (%) 3.0 30.0% 2.5 25.0% Revenue Revenue ($ Million) 2.0 CAGR: 23.5% 20.0% 1.5 (2009-2016) 15.0% 1.0 10.0% 0.5 5.0% 0.0 0.0% 2010 Singapore market estimates Market size: US$ 0.7million  Government vision to make RFID a strategic technology by promoting and funding set to ensure stronger uptake by potential end users  Adoption in high valued and mission critical areas seen as most promising as it justifies higher cost of active tags  Security, Asset Management & Access Control seen as highest area of potential.  Other promising areas include for Supply Chain Management, Healthcare and Transportation verticals. 14
    15. 15. • Active Tags Overview • Key Market Drivers & Restraints • Industry Lifecycle, Forecast for Region & Singapore • Market & Technology Trends • Outlook 15
    16. 16. Market Trends Total Revenue of Top 5 Countries in 2009: - China, South Korea, Japan, Australia & Singapore= approx $ 39.5 million Penetration level: - Traditional = 433 MHz > 2.4 GHz > 860 – 960 MHz > 5.8 GHz Active Tags Market Growth - RTLS = Wi-Fi > UWB > IR - Choice depending on need rather than features South Japan Korea - Market showing strong interest in sensor tags China Mergers & acquisitions Singapore Australia - InnerWireless and Pango merger Promising - Zebra Technologies acquiring WhereNet Followers Early Adopters - Lockheed Martin acquiring Savi Technology Hong - Repositioning and knowledge transfer activities Taiwan Kong New Malaysia Zealand India Thailand Indonesia Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan Vietnam The Philippines Aspirants Active Tags Market Size Source: Frost & Sullivan 16
    17. 17. Technology Trends • Battery lifespan increasing • Convergence of multi-tag type - development of RTLS/sensor tags by traditional vendors Tags - multi band/multi protocol active passive tags • Reactive tags • Solar Tags • ISO 18000-7 and ISO 18185 for active traditional tags – Savi Technology • ISO/IEC 24730 standards for Wi-Fi RTLS – WhereNet - First step towards compatibility and Standards interoperability - Still lack of real globally accepted standards - Industry needs open standards for greater acceptability • Emergence of ISO 18186 to solve this issues? • Ratification of the 433 MHz band by certain countries • 2.4 GHz operates in free ISM band 860 – 960 MHz tags leveraging on UHF allocations Frequency - 2.4 GHz Wi-Fi Tags communicates with IEEE 802.1 protocols • UWB frequency allocated in U.S. and Europe but most y limited usage in APAC 17 17
    18. 18. • Active Tags Overview • Key Market Drivers & Restraints • Industry Lifecycle, Forecast for Region & Singapore • Market & Technology Trends • Outlook 18
    19. 19. Conclusion Active tag market shows great promise with market still untapped and region showing highest growth rate potential Manufacturing, transportation and logistics, aviation, and personnel tracking hold great promise. Drop in prices, emergence and embracing of standards, support from governments and improving awareness will drive future growth Uncertainty in ROI, skills gap in system integration, lack of buy-in to standards and privacy issues need to be addressed to ensure seamless deployment is achieved Continuous innovation required for a profitable and sustainable technology for all 19
    20. 20. Thank You 20

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