the global rfid market - the trend today and what lies ahead

The Global RFID Market – The Trend Today

and What Lies Ahead

ANALYST BRIEFINGANALYST BRIEFING

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Analyst Bio

Susan SahayanResearch AnalystElectronics and SecurityAsia Pacific

Bachelor of Electrical & Electronics Engineering, Universiti Tenaga Nasional, Malaysia

Susan Sahayan is a Research Analyst with the Electronics and Security Practice, Asia Pacific at Frost & Sullivan. She is responsible for analyzing market trends and developments in the radio frequency identification (RFID) and security sector.

Prior to joining Frost & Sullivan, Susan was involved in the electronics industry, focusing on product engineering for flash memory and microprocessor devices. She contributed towards yield improvement, cost reduction and quality control efforts for the final testing stages for microprocessors and flash memory products.

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Focus Points

Introduction to RFID Benefits Introduction to RFID Benefits1

RFID Market Overview RFID Market Overview2

RFID Market Drivers and Restraints RFID Market Drivers and Restraints3

RFID Vertical Markets and Opportunity Analysis RFID Vertical Markets and Opportunity Analysis4

RFID Market and Technology Trends RFID Market and Technology Trends5

Way Forward Way Forward6

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Introduction to RFID Benefits

Barcode- Line of sight required- Short read range- One time write- Human labor needed- One read at a time

RFID - No line of sight required- Long read range- Rewritable- Automated- Multiple reads at a time

• RFID is an automatic identification method, storing and remotely retrieving data using devices called RFID tags.

• RFID was used since World War II to identify enemy airplanes.

• Basic components for an RFID system are made up of tags, readers and middleware/software.

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RFID Market : Overview

Source: Frost & Sullivan.Source: Frost & Sullivan.

The AmericasThe Americas

North America : • High awareness of RFID• High volume deployments in progress

North America : • High awareness of RFID• High volume deployments in progress

South America : • Emerging awareness in RFID• Future high growth potential

South America : • Emerging awareness in RFID• Future high growth potential

Europe, Middle-East and AfricaEurope, Middle-East and Africa

Africa : • Low penetration of RFID• Many greenfield opportunities

Africa : • Low penetration of RFID• Many greenfield opportunities

Middle-East : • Increasing awareness• High number of pilots

Middle-East : • Increasing awareness• High number of pilots

Europe:• High awareness• Active in deployments and pilots

Europe:• High awareness• Active in deployments and pilots

Asia Pacific Asia Pacific

•Fairly advanced in RFID deployments•Highest growth region

•Fairly advanced in RFID deployments•Highest growth region

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RFID Market : Overview

Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan

Geographic Penetration by Region (World), 2009 Revenue by Product Type (World), 2009

• The Americas currently accounts for the majority of the RFID revenues in the world. It has a more

mature market.

• The EMEA and APAC regions are catching up quickly, driven by technological advancements and the

need for operational improvement in business processes.

• In 2009, RFID tags continued to be the largest contributor to RFID market revenues, followed by the

middleware and software revenues and the RFID reader revenues.

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RFID Market : Key Drivers


Return on investments

The need to improve

operational efficiency

Advancements in UHF technology

Declining costs make RFID more

adoptable

Governments playing a key

role

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Inadequate infrastructure

High cost of implementation

Lack of skills from different parties (end-

users, system integrators)

Budgetary constraints due to the recession

Lack of standards


RFID Market : Key Restraints

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RFID Market : Vertical Markets (World)

Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan

RFID Market: Percent of Revenues by Vertical (World), 2009

RFID Market: Percent of Revenues by Vertical (World), 2016

• The transportation and industrial verticals were the largest verticals contributing to world RFID

revenues in 2009.

• The industrial vertical market is likely to continue to grow, and is expected to account for 25.53

percent of the RFID revenue in 2016, while the transportation vertical is likely to experience a slight

decrease in market share.

• Other applications will also increase through the forecast period and will account for 23.9 percent in

2016.

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RFID Market : Opportunity Analysis (World), 2009 G

row

th r

ate

Source: Frost & Sullivan

Low HighMarket Size

Ave

rag

e g

row

th H

igh

gro

wth

Transportation

Industrial

Others

Retail

Healthcare

Education

Note: Others vertical include livestock, aviation, government, laundry, postal and emerging applications

High growth rates

Medium growth rates

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TRADITIONAL APPLICATIONS

Source: Frost & SullivanSource: Frost & Sullivan

Text

EMERGING APPLICATIONS (SHORT TERM)

Healthcare

Manufacturing Pharmaceutical

Postal / Courier

Livestock Transportation

Supply chainmanagement

Security, assettracking, access control

FUTURE APPLICATIONS (LONG TERM)

Realization of the “Internet of Things”concept

RFID Market Trend Analysis

RFID Market: Market Trends Analysis (World), 2009

Laundry

Casino

Sports timing

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Short term

RFID Technology Trend Analysis

Medium to Long Term


Text

Improvement in battery life span

Convergence ofRFID with wireless RTLS,GPS,GPRStechnologies

Innovation of multi-type tag technology

Continued advancement in UHF technology

Advancement in semi-passive technology

Growth in printed RFID applications

The RFID market will be expected to continuously grow in future

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Way Forward ….

Aviation Sports timing

Transportation

Livestock Retail

Logistics

Industrial

Strategic recommendations for market players


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For Additional Information

Carrie LowCorporate CommunicationsAsia Pacific603 6204 [email protected]

Susan SahayanReseach AnalystElectronics & Security603 6204 [email protected]

Parul OswalIndustry AnalystElectronics & Security65 6890 [email protected]

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