Report: ELECTRONIC PRODUCT CODE UHF RFID SOLUTIONS, 2009 - MARKET INTELLIGENCE ANALYSIS [Deluxe Package]

This executive brief presents some top-level findings from:
- The EPC UHF Report
For the senior executives working in this market, the full report addresses:
- The important trends, drivers, and inhibitors affecting the commercial market for EPC UHF solutions;
- Which vertical markets and geographic regions have the most potential to generate future revenue growth;
- The dynamics within the competitive landscape; and
- How EPC UHF vendors can more effectively position their solutions given current and expected market conditions

Commoditization shifts focus to software and services, applications moving horizontally

The total RFID market grew approximately 24% from 2007, despite the recession accelerating in Q4.
Increased hardware commoditization continues to not only foster adoption, but also shifts focus to software and services - this market is increasingly becoming about the solution performing to specifications in the target environments and its ability to scale in scope, size and functionality.
Core markets continue to evolve; however, EPC is increasingly becoming focused on a growing diversity of applications and their capacity to move horizontally across regions and verticals.
Supply chain management is expected to undergo significant growth in 2011/2012 (and forward) as companies continue to become more confident in the solution, understand its capabilities and limitations, establish and improve business models, break down adoption barriers, and seamlessly integrate into legacy solutions.

Supply chain applications continue to drive EPC UHF revenues across all regions

The Americas continues to account for the majority of EPC UHF solution revenues and although the regions share is expected to diminish as EMEA and APAC ' catch up' .
Although the EMEA region has been relatively slow to adopt EPC solutions, successful pilots and small-scale deployments surrounding the apparel, luxury good and brand markets, as well as in-store retail applications continue to drive adoption and provide momentum.
Due to regional barriers (i.e.: regulatory, power) and a lack of focus on supply chain applications, adoption in the APAC region has historically lagged the rest of the world.

Multiple product offerings by a single supplier improve share position, but partnerships still critical

This market remains highly fragmented, with many solution providers focusing on a single product type and/or market and leveraging partnerships for product distribution.
Several transponder, IC and Inlay firms are expected to increase share not only because of an anticipated volume demand, but because of their ability to leverage extensive and best-inclass networks of solution partners.
Most reader manufacturers leverage another firm' s module and act more as an OEM. In addition, demand continues for embedding reading capabilities into other devices (i.e.: cell phones, Bar code scanners, Kiosks), thus positioning reader module firms for continued success as the market evolves.

Market potential nearing as supply chain becomes a reality and emerging apps create new opps

Supply chain applications will begin to blossom in 2011/2012, causing a cascade of adoption throughout intertwined value chains.
Component manufacturers - ICs, Inlays, Reader modules - will to become more critical to the evolution and success of the market, particularly for innovation and the cultivation of emerging applications.
EPC UHF will continue to be evaluated and used in applications outside of supply chain
- Read On Metal solutions to create additional opportunities in applications that would have previously not considered EPC a viable option.
- Use of EPC in supply chain is expected to provide additional momentum for other applications within the enterprise and value chain - desire for a more ubiquitous solution.
- Innovation continues to enhance performance, improving the price/performance trade off and creating new opportunities in both green- and brown-field applications.

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