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World RFID Printing Solutions Market
Frost & Sullivan, Oct 2006
The research service analyzes the world RFID printing solutions market. Growth projections and revenue forecasts have been analyzed across geographical segments including Americas, EMEA and Asia-Pacific markets. The total market analysis includes key drivers, restraints, challenges, analysis of the competitive structure and value chain, pricing, technology and distribution trends. Company profiles of key market participants and a technical overview of the impact of printed RFID electronics have also been analyzed within the scope of the study.
The Frost & Sullivan research service entitled World RFID Printing Solutions Market provides an overview of revenues and growth rates for the total market and each geographic segment, supplier value proposition from adoption of RFID technology, along with market and technology trends, and an analysis of demand for each geographic segment. In this research, Frost & Sullivan's expert analysts thoroughly examine the following geographic markets: Americas (North America and Latin America), EMEA (Europe, Middle East and Africa) and Asia Pacific.
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
By Geographic Region
:
- Americas (North America & Latin America)
- Europe, Middle-East and Africa
- Asia Pacific
By Technology:
- Radio Frequency Identification (RFID)
Technologies
The following technologies are covered in this research:
- RFID Printers and Encoders: Printer/Encoder application solutions encompass different functions including sigulation/simulation and testing of each smart label (before and after encoding), diversion and communication of rejected tags, and coordination with other devices such as robotics extensions and plates.The primary functions of RFID printers include encoding specific numbering sequences, determining the viability of the tag and printing of human-readable content.
- Smart Labels: Smart labels include pressure-sensitive facestock that is printed with human-readable data, liner, and RFID inlays consisting of a microchip and antenna. The placement of the inlay in the label determines the choice of printer since inlay positioning requirements differ across printer manufacturers.
Market Overview
Global RFID Printers and Encoders Market Gaining Momentum
Continuous increase in the number of open-looped pilots and deployments requiring encoding capabilities is providing significant momentum for the growth of the global radio frequency identification (RFID) printers and encoders market. Mandate-driven markets initially triggered off a 'slap and ship' response and the immediacy of the mandate deadlines resulted in most suppliers applying a tag to the pallet/case, encoding the tag further along the supply chain. The low value-add from the 'slap and ship' approach ensued the evolution of barcode labels to include RFID chips encoded by barcode printers that supported the new RFID technology. Applications and vertical markets that have traditionally employed barcodes, and looking to adopt RFID, are expected to invest in RFID printers as the first step toward such a transition.
However, a crucial challenge is that the technology is considered disruptive since it entails re-engineering existent processes to ensure complete visibility. Process re-engineering efforts involve significant costs representing a key challenge to end users who are already faced with the relatively high costs of RFID hardware investments. Moreover, cost pressures of employing smart labels is likely to be a key restraint among end-user segments that have traditionally not employed any form of automatic identification and data capture (AIDC) technology, notes the analyst of this research service. Markets such as retail that have relied on technology innovations to gain a competitive advantage are expected to witness an easier transition toward RFID technology and smart labels.
Smart Labels Encourage RFID Adoption
With RFID being considered disruptive to existing systems and processes, smart labels are making the migration from legacy systems a lot easier. Smart labels have gained increased significance, since they provide the option of combining human-readable data with RFID capabilities. The printer, therefore, obviates the necessity for a complete replacement of existing barcode systems and overcomes challenges of additional logistics and investment costs. The growth of smart labels has increased the production of printers/encoders that support in-house label production and changing application needs. Vertical markets that are slow adopters of RFID technology represent key opportunities for smart label structures since the migration strategy is expected to be least disruptive.
Geographically, the North American region is expected to hold the largest percent of revenues in the short and medium terms. While this is largely due to the relatively mature market and high levels of interest in RFID technology among end users, the potential for tagging volumes is expected to shift toward manufacturing sources within the Asia-Pacific region in the long term. Printer/encoder applications are likely to witness an increased demand within Asian manufacturing hubs that expect an impact from the retail driven mandates in the North American and European markets. Overall, market participants expect demand to improve toward the last two quarters of 2006 and RFID product line losses of 2005 are likely to be minimized in 2006, says the analyst. The compound annual growth rate (CAGR) for the printers/encoders market is higher than average RFID industry projections primarily due to the nascence of the market and the significantly smaller overall market size in the present context.
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