Demand to grow 14+% per
year through 2009
US smart labels demand is
projected to expand more than 14 percent per annum
through 2009, approaching 11 billion units valued at
$460 million. Smart labels will penetrate both existing
and new labeling applications, based on their ability to
add value to labels' basic identification function along
various parameters. These range from enhancing security
and brand building to improving customer service and
merchandising efficiency across a broad range of
industries.
RFID market will almost
double each year through 2009
By far the best gains are
expected in the nascent RFID label segment, where the
market size will nearly double each year off a slender
2002 base. Introduced in the late 1990s, RFID smart
labels hold the potential to revolutionize supply chain
management and logistics operations across a range of
industries, and someday even to replace the ubiquitous
bar code on trillions of fast moving consumer goods.
In the near term, the best
opportunities will exist in the labeling of crates and
pallets, airline baggage, library books, mail and
packages, and military assets. In such applications, the
value of the tagged item and/or the potential savings to
be had through improved service and efficiency more than
compensate for the still high cost of most RFID systems.
Over the longer term, falling prices, economies of
scale, technological advances and the establishment of
uniform RFID communications standards (which will allow
open sourcing of system components and
inter-communicability between tags from different
vendors) will support the development of additional
market segments. How-ever, consumer privacy concerns
will remain a major hurdle, especially in the key retail
segment.
Electronic article
surveillance (EAS)
anti-shoplifting labels to retain near term dominance
Basic electronic article
surveillance (EAS) anti-shoplifting labels will continue
to dominate sales into the next decade, based on their
established record as a successful security modality and
widespread use in the retail sector. While advances will
slow in line with market maturity, label sales will
continue to benefit from falling unit costs, source
tagging initiatives and the opening of apparel, or "soft
goods," markets, based on the transition from EAS hard
tags to labels.
Opportunities will also be
favorable for interactive packaging labels. While usage
has primarily been limited to items like color changing
labels for promotions and limited runs, both
thermochromatics and other interactive label types are
beginning to find broader use. For example, growth
opportunities exist for time-temperature indicators and
pharmaceutical compliance labels.
Market leaders
Given that EAS labels
currently dominate the market, the US smart label market
leaders are the three major suppliers of EAS systems
Tyco (via Sensormatic Electronics), Checkpoint Systems
and 3M which jointly meet some 80 percent of demand in
unit terms. Over the longer term, as the RFID segment
develops, these firms (all of which have diversified
into RFID smart labels) will be joined by major players
in that segment, such as Texas Instruments and TAGSYS.
Study coverage
Details on these and other
findings are contained in a new R4B study, RFID & Other
Smart Labels, available for $5900. It provides historic
data to 2002 plus forecasts to 2009 and 2012 by
technology and application. It also presents market
share and profiles 30 US industry participants.
R4B's methods involve:
-
Establishing consistent
economic and market forecasts
-
Using input/output
ratios, flow charts and other economic methods to
quantify data
-
Employing in-house
analysts who meet stringent quality standards
-
Interviewing key
industry participants, experts and end-users
-
Researching a
proprietary database that includes trade publications,
government reports and corporate literature
This study can help you:
-
Determine your market &
sales potential
-
Learn more about
industry competitors
-
Assess new products &
technologies
-
Identify firms to merge
with or acquire
-
Complement your research
& planning
-
Gather data for
presentations
-
Confirm your own
internal data
-
Make better business
decisions
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