RFID Printer/Encoders

Track 1, Volume 3: The 2009 RFID Business Planning Service

An Executive Brief
AutoID & Transaction Automation Practice
Drew Nathanson, Director Research Operations
Tom Wimmer, Director AutoID & Transaction Automation

Executive Brief: Market Overview

Role of RFID printers changing as the technology penetrates further down the value chain

The total RFID market grew approximately 30% from 2007, despite the recession
accelerating in Q4. Market growth will be in low double digits over the next few years, but it
will gradually return to 30%+ growth rates within 5 years.

The perception of RFID printer/encoders as a non-core component of RFID applications is

expected to change as RFID continues to be adopted throughout value chains - toward the
point of manufacture.

EPC UHF devices will not only continue to account for the vast majority of revenues, but
they will also experience faster growth over the next 5 years as they are targeted at highvolume label-based markets with recurring consumables.

Markets with more advanced supply chain applications, such as CPG, Government,
Transportation, and Health Care will continue to account for the bulk of revenues for RFID
printers over the next 3-5 years.

As RFID becomes more commonplace and widespread, the channel for printer/encoders will
shift away from the SI/VAR. Not only do most end users indicate a preference for multisourcing these devices for cost, performance, and brand related purposes, but they also
expect to be able to install/integrate these devices without external help due to the increased
out of box experience.

1 2009 VDC Research Group, Inc.

AutoID & Transaction Automation Practice

Executive Brief: Estimates and Forecasts

Printer revenues to increase as RFID penetrates further down the value chain

Global RFID Printer Revenues by Region

2008 = $16.2 Million

Global RFID printer revenues decreased by more

than 8% from 2007-2008, a trend expected to
continue into 2009.

RFID Printer/Encoders are still perceived as a

non-core component of most label-based RFID
applications; however, this mentality is changing
as RFID continues to be adopted throughout
value chains.

Most RFID printers sold into todays market are

used for supply chain applications, which
accounts for the majority of global revenues
arising from the Americas (leading supply chain
region).

Emerging applications such as ticketing and

library, as well as a continued shift in
manufacturing, are expected to supplement
primary printer markets such as baggage handing
and supply chain in the EMEA and APAC regions.

Millions of
Dollars

$20
$15
$10
$5

AP
AC

EA
EM

AM

ER

IC

AS

$0

2008

2009

2010

2 2009 VDC Research Group, Inc.

AutoID & Transaction Automation Practice

2011

2012

2013

Executive Brief: Estimates and Forecasts

UHF revenues to increase with evolution of supply chain applications, HF growth slow, but constant

RFID Printer/Encoders are only available in the

HF and EPC UHF frequencies and primarily
support label-based applications, of which the
vast majority are slap & ship (non-automated).

EPC UHF devices continue to account for the

majority of RFID printer/encoder revenues due to:
Higher AFSP (~3x more costly than HF).
A high concentration of label-based applications utilizing

Global RFID Printer Revenues by

Frequency
2008 = $16.2 Million

$20

Millions of
Dollars

EPC UHF for both current and future RFID markets.

$15

$10

$5
$0

2011

HF

EP
C

HF

2009

2010

2008

3 2009 VDC Research Group, Inc.

AutoID & Transaction Automation Practice

2012

2013

Printers in support of HF applications (e.g. supply

chain, library) will experience slow, yet constant
growth through 2013, but will continue to lose
share in the global market due to:
Lower AFSP in conjunction with lower demand.
HF applications having high concentrations of nonrecurring consumable streams (i.e. library tags expected
to be in-field for extended periods of time).

Executive Brief: Competitive Landscape

Large account wins shake up the landscape, Asian firms struggling to penetrate international markets

Leading RFID Printers/Encoder Suppliers Covered

within 2009 Printer/Encoder Report

Several significant account wins in 2008 (e.g.

Wal-Mart, DoD) have caused a dramatic shift in
market share positions for suppliers of EPC UHF
printer/encoders.

Most leading RFID printer/encoder suppliers have

significant market presence in the bar code
printer industry and have successfully leveraged
their customer bases, channels, and expertise to
gain share in RFID markets.

Asian firms have been able to leverage their

dominating domestic presence to capture share
in the APAC region, but continue to struggle with
international markets and projects,
even with a regional presence/facility.

(In Alphabetical Order)

Datamax

SATO

Intermec

Toshiba TEC

Printronix

4 2009 VDC Research Group, Inc.

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Zebra

Executive Brief: Strategic Issues & Expectations

Growth to remain limited while core applications evolve and mature

Growth for RFID printer/encoders and applicators will remain slow over the next 3-5 years as
more end-user focus is placed on expanding existing installations in scale, scope, and
functionality.

Introduction of multi-frequency or field-changeable frequency RFID printers will not gain

significant traction due to the very limited use of printers to support multi-frequency
solutions (e.g. HF and EPC UHF) and the overall perception of overkill for most
applications.

Applicator sales will continue to lag until line-based applications pickup. Most installations
requiring an RFID printer are characterized as low volume, label-based slap and ship
applications; however, as the technology moves toward the point of manufacture,
production line applications will blossom and applicators will become more critical.

Most near-term growth for RFID printers will arise from supply chain applications, but
opportunity for the longer term market will be supplemented by emerging applications such
as baggage handing and ticketing.

RFID Printer distribution is expected to evolve similarly to the channels used by bar code
printer manufacturers as the RFID market matures eventually shifting away from the valueadd channels (SIs/VARs) and moving toward a direct sales or distributor model.

5 2009 VDC Research Group, Inc.

AutoID & Transaction Automation Practice

About the Study

VDC is pleased to release its RFID Printers/Encoders report, part of the 2009 RFID Global
Planning Service. This market intelligence program evaluates the current and emerging
opportunities for RFID printers/encoders across the globe.

The report contains estimates for 2008 shipments of printers/encoders and forecasts
shipments through 2013. Estimates and forecasts of shipments are segmented by:
Regions
Frequencies

Americas (North America, South America)

EMEA (Europe, Middle East & Africa)
Asia-Pacific

Vertical Markets

Automotive
Commercial Services
CPG
Electronics
Government
Health Care
Pharmaceutical
Retail
Transportation

6 2009 VDC Research Group, Inc.

AutoID & Transaction Automation Practice

HF
EPC UHF

Form Factors

Desktop
Applicator

Distribution Channels

Direct-to-End User
Direct-to-OEM
Dealer/Distributor
Value-Added Reseller/Systems Integrator

About VDC Research Group

VDC Research Group (VDC) is a technology market research and strategy consulting firm that advises clients in a
number of technology markets including: Automatic Identification and Data Collection, Embedded Hardware and
Systems, Embedded Software and Tools, Industrial Automation and Control, Mobile and Wireless, and Power
Conversion and Control. Using rigorous primary research and analysis techniques, the firm helps its clients identify,
plan for, and capitalize on current and emerging market opportunities. We strive to deliver exceptional value to our
clients by leveraging the considerable technical, operational, educational and professional experience of our research
and consulting staff. During our nearly four decades of ongoing operation, we have had the pleasure of serving most of
the worlds leading technology companies, many high-profile start-ups, and numerous blue-chip early and later stage
investors. Our products and services consist of research reports, annual research programs, and custom research and
consulting services. Founded in 1971, the firm is located in the Boston area.
For further information about VDCs 2009 RFID Printers/Encoders report, contact:
Andrew Nathanson, Director of Research Operations, 508.653.9000 ext. 148, andrewn@vdcresearch.com
Tom Wimmer, Director, 630.279.7959, twimmer@vdcresearch.com
For pricing/purchasing information, contact:
Charlie Cicalis, Account Executive, 508.653.9000 ext. 139, ccicalis@vdcresearch.com

7 2009 VDC Research Group, Inc.

AutoID & Transaction Automation Practice