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

locations.

Over 10,000 clients worldwide

including emerging companies,

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investment community

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Building

Technologies

Energy & Power

Systems

Transportation &

Logistics

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



• Industry Forecast for Region & Singapore


• 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



• Industry Lifecycle, Forecast for Region & Singapore


• Outlook

11

Market Potential and Stage of Development


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

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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





• 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


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





• Outlook

19

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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

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Thank You