Growth Drivers in the 2D Imaging Market


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During this QuickCast, VDC’s Tom Wimmer discusses the current and future state of the 2D imaging solutions market.

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  • VDC Research Group (VDC) provides exceptionally detailed direct-contact primary market research and consulting services to many of the world's largest technology suppliers, innovative start-ups and leading investors.
  • The firm is organized around six practices, each with its own focused area of coverage, but all committed to the firm’s core philosophy.
  • This philosophy is applied in our syndicated research and in the wide variety of other services we provide to meet our clients specific tactical and strategic decision support needs. All of our services are built on a foundation of highly skilled professionals applying robust methodologies to VDC’s large and continuously refreshed datasets.
  • Each year, VDC reaches out to barcode technology suppliers, their channel partners, and end-users deploying the technology to understand how demand for barcode solutions is changing. We’ve spoken with the leading manufacturers of barcode hardware about 2010, and how they see their markets evolving in 2011 and beyond. These conversations are on-going. They enable us to segment and size those niche technology markets we cover very narrowly. More importantly, they shed some light on the probable evolution of these markets. We’re already in the process of complementing this research we’ve conducted with the supplier community with their channel partners and end-users and we think we’ve learned enough to update our annual forecasts. Today, we’ll be sharing some of these forecasts with you, and we’ll be highlighting some key factors suppliers have shared with us—factors that we think are responsible for the swift recovery we saw in 2010 and are continuing to witness in the first half of 2011.Specifically, we’ll be providing an overview of the Global Barcode Hardware market. Here, we will be reviewing some common trends that suppliers in each of the hardware markets we cover attribute to the recovery we’ve witnessed to date, along with some broader trends that we think bode well for the less immediate future.And while global trends are really important, anyone who is familiar with VDC knows that we think some of the best insights can be had when you provide a little more context, and it’s segmentation that that often provides this context, enabling us to compare and contrast segment-specific requirements with one another and the market at large. So, we’ll be providing some of this perspective along three lines:We’ll be talking about some of the differences we’re seeing when we speak with suppliers operating in different geographic regions. We’ll also be sharing some perspective we’ve gained talking to some of the larger global barcode hardware manufacturers who have the capability to compare and contrast market conditions and use requirements across established and merging country markets.Next, we’ll be delving at least one tier down into our product segmentation. We won’t be getting into all the gory detail that we provide in our estimates and forecasts, but we will be talking about some trends specific to printing and scanning that we think have real implications for barcode hardware suppliers and channel intermediaries alike.Last, we will spend a little bit of time on vertical markets and applications. For many of us, this is where the rubber meets the road, because ultimately our clients are really concerned with the end-user, the problems they are trying to solve with AutoID, and those advancements in technology that are enabling them to solve those problems faster and more cost effectively. So, that’s our agenda, and although this quickcast is pre-recorded, we’re always available via e-mail or telephone to talk about what we are working on, answer questions and trade ideas. Let’s get started.
  • Growth Drivers in the 2D Imaging Market

    1. 1. AutoID & Transaction Automation Practice Tom Wimmer– Director QUICKCAST Growth Drivers in the 2D Imaging Market JULY 2011 © 2011 VDC Research QuickCast AutoID & Transaction
    2. 2. Recording Available A full audio recording is available for download at: © 2011 VDC Research QuickCast AutoID & Transaction
    3. 3. About Us Market Intelligence for Technology Vendors & Investors  Direct-Contact Primary Market Research  Deeply Segmented Data  Expert Insights  Validated Results Custom Consulting Services for Your Most Critical Business Decisions  Research-Based Consulting  Transparent Tools & Methodology o Highly Customized Survey Guides & Output Templates o Sophisticated Market Estimate & Forecast Models o Detailed, Flexible Stakeholder Maps & Profiles o Industry Development Scenarios o Market Opportunity Fit Screening, Rating & Ranking © 2011 VDC Research Webcast AutoID & Transaction
    4. 4. Our Core Coverage Areas AutoID & Transaction Automation Embedded Hardware & Systems Mobile & Wireless Industrial Automation & Control Embedded Software & Tools Emerging Technologies © 2011 VDC Research QuickCast AutoID & Transaction
    5. 5. Ways to Work With UsOur report is one of many ways VDC the many ways VDC can help you In addition to published research, VDC offers services designed to meetThis syndicated research is the basis forcan help you grow your business. grow your business. We offer a wide variety of a wide variety of servicesspecific tactical and strategic decision support decision of our needs. are our on a foundation of a foundation professionals applying robustdesigned to meet specific tactical and strategicneeds. Allsupport servicesAll ofbuilt services are built on highly skilled of highly skilled professionalsmethodologies methodologies to VDC’s large refreshed datasets.applying robustto VDC’s large and continuouslyand continuously refreshed datasets. © 2011 VDC Research QuickCast AutoID & Transaction Automation
    6. 6. Today’s Speaker Tom Wimmer Practice Director Tom has more than 15 years experience directing market research studies and helping his clients to develop market-driven business plans that deliver measurable improvements in sales and create shareholder value. His project-related experience is diverse, including countless market and technology assessments, product and channel development initiatives, competitive analyses, branding studies and due diligence support for M&A activity. Tom has strong operational experience that guides his thinking when he’s scoping engagements and analyzing data on behalf of his clients. Tom has strong expertise related to a number of foundational and advanced AIDC technologies including: barcode printing and scanning, RFID, mobile printing, kiosks, smartcards, and the supporting infrastructures required to derive value from these technologies. Prior to working for VDC, Tom directed the market research function for Zebra technologies, a global supplier of barcode printers, card printers and RFID solutions. During his eleven year tenure, the company grew revenues from $192M to $868M by expanding its product portfolio, channels of distribution and geographic footprint. Tom is a graduate of The University of Illinois at Chicago (BA, Psychology), Benedictine University (MS, Management & Organizational Behavior) and recently completed the Kellogg Management Institute at the Kellogg School of Management at Northwestern University.For complimentary insights and marketing data: © 2011 VDC Research QuickCast AutoID & Transaction Automation
    7. 7. Today’s Agenda Overview of the 2D Imaging Market Why enterprises are investing in 2D Supply-side Growth Drivers The way forward © 2011 VDC Research QuickCast AutoID & Transaction
    8. 8. Forecasted Demand for 2D ImagersFalling prices, improved performance and emerging applications to drive adoption of 2D Global Barcode Scanning Revenues by 2D imaging not only capturing share but Product Type continuing to create new opportunities (2007 = $1.46 Billion)  Replacement of legacy laser and linear imagers 2D Imager  Emergence of new imaging applications Laser Scanner  Convergence with other AIDC solutions Linear Imager 2D expected to assume a greater share in POS Industrial users to continue to Global Barcode Scanning Revenues by complement their laser scanners with 2D Product Type imagers to derive more value from their (2015 = $2.04 Billion) AIDC investments 2D Scan engines are increasingly 2D Imager Laser embedded in a wide variety of consumer Scanner and enterprise computing & vending devices Linear Imager © 2011 VDC Research QuickCast AutoID & Transaction Automation
    9. 9. Demand-Side Factors Driving Growth2D increasingly seen as a ‘platform technology’ Rapidly declining average factory selling prices Field upgradable data capture products “Future proofing” to address anticipated application requirements o Increased utilization of 2D symbologies o Mobile barcodes o The need to associated images with data The continued convergence of imaging with other ADC technologies e.g., vision systems and RFID Robustness of 2D solution provides a platform upon which new applications can be layered © 2011 VDC Research Webcast AutoID & Transaction Automation
    10. 10. Supply-Side Factors Driving Growth2D imagers offer higher margin opportunities and enhance ISV recruitment Availability of low-cost, high performance processors and falling memory prices have cut Laser’s cost advantage Software more critical with 2D - commands much higher portion of product development costs Suppliers are interested in recouping these software investments by accessing new revenue streams: o Developing their ISV channel o Selling higher margin software and services, while o Driving incremental demand for complementary hardware © 2011 VDC Research Webcast AutoID & Transaction Automation
    11. 11. The Way ForwardContinued success in 2D means looking beyond the hardware Suppliers migrating customers at the POS need to balance a number of competing priorities including: o Developing a clear path for migration to 2D imaging via broadened product portfolios, licensing agreements and SDK’s for leading OEM’s and system integrators o Increased emphasis on integration of data capture systems with complementary POS systems, e.g., weigh scales, electronic article surveillance, RFID, etc. o Expansion of product portfolio to address high growth barcode scanning and image capture requirements beyond the point of sale, e.g., mini-kiosks, price checkers, etc. Suppliers interested in supporting industrial customers as they complement their data capture systems with imaging must also balance competing priorities including: o Offering remote device management and integration support tools for lead users and system integrators o Courting system integrators and value added resellers with the required expertise to support users with unique application requirements o On-going co-development of software and services related to factory automation, e.g., machine vision, QA/QC inspection, environmental monitoring, etc. © 2011 VDC Research Webcast AutoID & Transaction Automation
    12. 12. Thank You for Attending this VDC QuickCastFor more information please contact: Tom Wimmer – Director | 630.279.7959 Sherrie Nankin – Account Director | 508.653.9000 x119 Christopher Rezendes – Executive Vice President | 508.653.9000 x120For complimentary insights and marketing data: © 2011 VDC Research Webcast AutoID & Transaction Automation