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RFID & Other Smart Labels

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RFID & Other Smart Labels NEW US Industry Study R with forecasts to 2007 & 2012 Freedonia RFID & Other Study # 1725 November 2003 Smart Labels $3900 Demand to grow changing labels for promo- 14+% per year Retail & Smart Label Sales by Application tions and limited runs, both Distribution (10.7 billion units, 2002) thermochromatics and through 2007 79% other interactive label types US smart labels demand is are beginning to find projected to expand more broader use. For example, than 14 percent per annum growth opportunities exist through 2007, approaching for time-temperature 11 billion units valued at indicators and pharmaceu- $460 million. Smart labels tical compliance labels. will penetrate both existing and new labeling applica- Government/ Market leaders Institutional tions, based on their ability 14% Given that EAS labels to add value to labels’ basic Services & currently dominate the identification function along Other 7% Photo courtesy of Texas Instruments Inc. Instruments Photo courtesy of Texas market, the US smart label various parameters. These market leaders are the range from enhancing the labeling of crates and three major suppliers of security and brand building EAS anti-shoplifting pallets, airline baggage, EAS systems — Tyco (via to improving customer library books, mail and labels to retain near Sensormatic Electronics), service and merchandising packages, and military term dominance Checkpoint Systems and efficiency across a broad assets. In such applica- 3M — which jointly meet range of industries. Basic electronic article tions, the value of the some 80 percent of de- surveillance (EAS) anti- mand in unit terms. Over tagged item and/or the shoplifting labels will RFID market will potential savings to be had the longer term, as the continue to dominate sales RFID segment develops, almost double each through improved service into the next decade, and efficiency more than these firms (all of which year through 2007 based on their established have diversified into RFID compensate for the still record as a successful By far the best gains are smart labels) will be joined high cost of most RFID security modality and expected in the nascent by major players in that systems. Over the longer widespread use in the retail RFID label segment, where segment, such as Texas term, falling prices, econo- sector. While advances will the market size will nearly Instruments and TAGSYS. mies of scale, technologi- slow in line with market double each year off a cal advances and the maturity, label sales will slender 2002 base. Intro- establishment of uniform continue to benefit from Study coverage duced in the late 1990s, RFID communications falling unit costs, source Details on these and other RFID smart labels hold the standards (which will allow tagging initiatives and the findings are contained in a potential to revolutionize open sourcing of system opening of apparel, or “soft new Freedonia study, RFID supply chain management components and inter- goods,” markets, based on & Other Smart Labels, and logistics operations communicability between the transition from EAS available for $3900. It pro- across a range of indus- tags from different ven- hard tags to labels. vides historic data to 2002 tries, and someday even to dors) will support the plus forecasts to 2007 and replace the ubiquitous bar development of additional Opportunities will also be 2012 by technology and code on trillions of fast market segments. How- favorable for interactive application. It also presents moving consumer goods. ever, consumer privacy packaging labels. While market share and profiles concerns will remain a usage has primarily been In the near term, the best 29 US industry participants. major hurdle, especially in limited to items like color opportunities will exist in the key retail segment. Table of contents & sample pages inside; other studies, order information on back Table of Contents/List of Tables & Charts each table includes forecasts through 2007 & 2012 Introduction Low ........................................................ 53 Defense ................................................ 107 High ....................................................... 54 Table - Defense Smart Label Sales .. 109 EXECUTIVE SUMMARY ...................... 1 Ultrahigh ................................................ 56 Health Care .......................................... 109 Summary Table .................................... 3 Microwave ............................................. 58 Table - Health Care Power Supply ............................................ 59 Smart Label Sales ........................ 110 MARKET ENVIRONMENT ................... 4 Table - RFID Smart Label Miscellaneous ...................................... 111 Sales by Power Supply .................. 60 Table - Miscellaneous Government & General ............................................................ 4 Chart - RFID Label Sales Institutional Smart Label Sales .... 112 Macroeconomic Outlook ................................. 5 by Power Source, 2002-2012 ........ 60 Services & Other ......................................... 113 Table - Macroeconomic Environment . 6 Passive ................................................... 61 Table - Service & Other Smart Label Demographic Trends ....................................... 7 Active..................................................... 61 Sales by Application .................... 114 Table - Demographic Trends ............... 8 Semi-Active ........................................... 64 Office & Factory ...................................... 114 Consumer Income & Spending ....................... 8 Intelligence ................................................ 64 Table - Office & Factory Table - Consumer Income Table - RFID Smart Label Smart Label Sales ........................ 115 & Spending Trends ........................ 10 Sales by Intelligence ...................... 65 Aviation ................................................... 116 Manufacturing Outlook ................................. 10 Chart - RFID Label Sales Table - Aviation Smart Label Sales . 116 Table - Manufacturers’ Shipments .... 11 by Intelligence, 2002-2012 ............ 65 Advantages .......................................... 117 Durable Goods ........................................... 12 Programmable ........................................ 66 Applications ......................................... 118 Table - Durable Goods Shipments .... 12 Read-Only .............................................. 67 Package Shipping .................................... 119 Nondurable Goods ..................................... 13 Other Smart Labels ........................................ 70 Table - Package Shipping Table - Nondurable Goods Shipments14 Table - Other Smart Label Smart Label Sales ........................ 121 Retail Sales .................................................... 14 Sales by Type................................. 71 Miscellaneous .......................................... 121 Table - Retail Sales ............................ 17 Electronic Article Surveillance .................. 71 Table - Miscellaneous Business Establishments ................................ 17 Source Tagging ...................................... 73 Smart Label Sales ........................ 123 Table - Business Establishments ....... 18 Products ................................................. 74 Labeling Trends ............................................. 18 Applications ........................................... 76 INDUSTRY STRUCTURE..................124 Table - Label Sales ............................ 21 Interactive Packaging ................................ 78 General ........................................................ 124 Automatic Identification Trends .................... 21 Thermochromatic Labels ....................... 78 Bar Coding Trends .................................... 21 Industry Composition .................................. 125 Time-Temperature Indicators ................ 80 Market Share ............................................... 127 Table - World Bar Code Other Interactive Labels ........................ 81 Equipment Sales ............................ 22 Chart - US Smart Label Market Share, 2002 ..................... 128 Competitive Profile ................................... 23 APPLICATIONS ................................... 84 Packaging Trends .......................................... 24 Tyco International ................................... 129 Table - Packaging Shipments ............ 27 General .......................................................... 84 Checkpoint Systems ................................ 129 Electronic Security Trends ............................ 27 Table - Smart Label Sales 3M ........................................................... 130 Table - Electronic Security Sales ...... 29 by Application ............................... 85 Cooperative Agreements ............................. 130 Historical Trends ........................................... 29 Chart - Smart Label Sales Table - Selected Cooperative Table - 1992-2002 Smart Label Sales 30 by Application, 2002 & 2012 ........ 86 Agreements .................................. 132 Chart - Smart Label Historical Trends, Retail & Distribution ..................................... 87 Mergers & Acquisitions .............................. 140 1992-2002...................................... 31 Table - Retail/Distribution Smart Label Table - Selected Acquisitions Pricing Trends ..............................................
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