APAC Active Tags Market
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Transcript of APAC Active Tags Market
APAC Active Tags Market Status Today and Outlook
for
National RFID Centre
RFID Seminar Series
27th May 2010
presented by
Satish Lele
Vice-President, Electronics & Security Practice, APAC
2
Who Is Frost & Sullivan?
The Growth Consulting Company:
Over 1,700 Growth Consultants and
Industry Analysts across 32 global
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4
• Active Tags Overview
• Key Market Drivers & Restraints
• Industry Forecast for Region & Singapore
• Market & Technology Trends
• Outlook
5
Active Tags Overview
Basic
Track and TraceChokepoint
Location Tracking
Accurate Location
TrackingEnvironment
Elements Tracking
Environment
Elements and
Accurate Location
TrackingTraditional Active RFID Tag
Traditional Active Tags with on-built Sensor
Traditional Active Tag with On-built Sensor and RTLS Capability
ZONAL
Warehouse Level Room Level Shelf Level
WORK-STATION SENSORY PARAMETERS
Basic Tracking Precision Tracking
Active RTLS Tag
e.g.
• General asset management
• Container tracking
e.g.
• Personnel tracking
• Very high valued goods
e.g.
• Cold chain applications
• Chemicals
e.g.
• Dangerous goods
• Defense goods / weapons
66
Source: Frost & Sullivan
Key Applications and Benefits
7
• Active Tags Overview
• Key Market Drivers & Restraints
• Industry Forecast for Region & Singapore
• Market & Technology Trends
• Outlook
8
APAC Market Drivers
• Easier to justify over passive
technology
• Value tagging = faster ROI
• Improved efficiency
• Enhanced safety and securityEnabler for
Seamless
Visibility
Quick ROI
Realization
Strong
Interest from
Government
Sector
• Promotions
• Big adopters themselves
9
APAC Market Restraints
High Cost
of Entry
Limited
Usage of
Standards
Privacy
issues
Benefits of ROI may not be apparent for all users, especially
in low value, high volume items
Most still use propriety standards although ISO
standards available due to high cost to license
standards
Fear of personal information that can be retrieved by
anyone will restrain RFID’s growth
10
• Active Tags Overview
• Key Market Drivers & Restraints
• Industry Lifecycle, Forecast for Region & Singapore
• Market & Technology Trends
• Outlook
11
Market Potential and Stage of Development
Source: Frost & Sullivan
Biometrics- standard in converged
applications for banking and
government
Video surveillance gaining support from
governments in Asia Pacific; various security
protocols required for commercial complexes,
public areas, shopping malls, and so on
Technology
Trigger
Crest of Inflated
Expectations
Depression of
Expectations
Educated
Decision-
making
Product
Maturity
High Growth
14+ percent
Medium Growth
7-14 percent
Low Growth
<7 percentDeclining Market
Analog
Cameras
Mechanical
LocksAccess Control
Systems
Video Content
Analytics
Video
Surveillance
Biometrics
Integrated
Systems
Software
RFID
Contactless
smart cardsSaaS
NFC
Contactless Smart Cards providing
the advantage of having physical
and logical access control on the
same card
Video Analytics- still paying for initial
disappointment for overpromising and
under performing
SaaS -shift from traditional
security space to IT-centric
industry
NFC -Integration of banking, loyalty, and security applications on to NFC-enabled device likely to make it truly indispensable
Hype phase
ends – real
traction begins
12
MaturityDevelopment Growth
Active Tags
Decline
Time
Ac
tive
Ta
gs
Te
ch
no
log
y L
ife
cyc
le
Source: Frost & Sullivan,2009
• Active tags is in the early stages of growth
• Still has immense potential
Lifecycle Analysis for RFID Tags in Asia Pacific, 2009
Passive Tags
Semi Passive Tags
Chipless Tags/Printed RFID
13
APAC Active Tags Revenue
• Total revenue for 2009 was over $57 million with market growth rate of 54.0% compared to the
previous year.
• Total projected revenue for 2016 is over $753 million with a growth rate of 45.1% compared to the
previous year
• The active tags market in 2009 was the second largest market contributing to nearly 17% of the total
RFID tags revenue.
Note: All figures are rounded; the base year is 2009. Source: Frost & Sullivan
0
10
20
30
40
50
60
0
100
200
300
400
500
600
700
800
2006 2009 2012 2016G
row
th R
ate
(%)
Re
ve
nu
es
($
Millio
n)
YearTotal RevenuesTotal Growth Rate
83.1%
16.6%0.3%
Passive
Active
Semi-Passive
Revenue
CAGR: 44.6%
(2009-2016)
14
2010 Singapore market
estimates
Market size: US$ 0.7million
Estimated RFID Revenue in 2008 - Singapore
Government vision to make RFID a strategic technology by promoting and funding set to ensure stronger
uptake by potential end users
Adoption in high valued and mission critical areas seen as most promising as it justifies higher cost of
active tags
Security, Asset Management & Access Control seen as highest area of potential.
Other promising areas include for Supply Chain Management, Healthcare and Transportation verticals.
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Re
ve
nu
e (
$ M
illio
n)
Re
ve
nu
e G
row
th R
ate
(%
)
Revenue
CAGR: 23.5%
(2009-2016)
15
• Active Tags Overview
• Key Market Drivers & Restraints
• Industry Lifecycle, Forecast for Region & Singapore
• Market & Technology Trends
• Outlook
16
16
Penetration level:
- Traditional = 433 MHz > 2.4 GHz > 860 – 960 MHz > 5.8 GHz
- RTLS = Wi-Fi > UWB > IR
- Choice depending on need rather than features
- Market showing strong interest in sensor tags
Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan
Active Tags Market Size
Acti
ve T
ag
s M
ark
et
Gro
wth
SingaporeSingaporeChinaChina
South
Korea
South
KoreaJapanJapan
AustraliaAustralia
Early Adopters
ThailandThailand
MalaysiaMalaysia
TaiwanTaiwan
IndiaIndia
New
Zealand
New
Zealand
Hong
Kong
Hong
Kong
Promising
Followers
VietnamVietnamThe
Philippines
The
Philippines
IndonesiaIndonesia
Aspirants
Mergers & acquisitions
- InnerWireless and Pango merger
- Zebra Technologies acquiring WhereNet
- Lockheed Martin acquiring Savi Technology
- Repositioning and knowledge transfer activities
Source: Frost & Sullivan
Market Trends
Total Revenue of Top 5 Countries in 2009:
- China, South Korea, Japan, Australia & Singapore= approx $
39.5 million
1717
• Battery lifespan increasing
• Convergence of multi-tag type
- development of RTLS/sensor tags by
traditional vendors
- multi band/multi protocol active
passive tags
• Reactive tags
• Solar Tags
Tags
• Ratification of the 433 MHz band
by certain countries
• 2.4 GHz operates in free ISM band
860 – 960 MHz tags leveraging on UHF
allocations
- 2.4 GHz Wi-Fi Tags communicates
with IEEE 802.1 protocols
• UWB frequency allocated in U.S. and
Europe but most y limited usage
in APAC
Frequency
• ISO 18000-7 and ISO 18185
for active traditional tags –
Savi Technology
• ISO/IEC 24730 standards for Wi-Fi
RTLS – WhereNet
- First step towards compatibility and
interoperability
- Still lack of real globally accepted
standards
- Industry needs open standards
for greater acceptability
• Emergence of ISO 18186 to solve this
issues?
Standards
Technology Trends
18
• Active Tags Overview
• Key Market Drivers & Restraints
• Industry Lifecycle, Forecast for Region & Singapore
• Market & Technology Trends
• Outlook
19
19
Active tag market shows great promise with market still untapped and region
showing highest growth rate potential
Manufacturing, transportation and logistics, aviation, and personnel tracking
hold great promise.
Uncertainty in ROI, skills gap in system integration, lack of buy-in to standards
and privacy issues need to be addressed to ensure seamless deployment is achieved
Drop in prices, emergence and embracing of standards, support from governments
and improving awareness will drive future growth
Continuous innovation required for a profitable and sustainable technology for all
Conclusion
20
Thank You