VDC Research: RFID, Barcode, Retail Automation & Self-Service Market Blog

Barcode and RFID Come Together in 2011

Yesterday, we presented a webcast discussing what's to come in the RFID and Barcode markets.

2010 turned out to be a banner year for both technologies. Barcode rebounded strongly from a very challenging 2009, exhibiting double-digit growth in 2010 in what is perceived to be a restocking year, although it is expected to return to historical growth rates (5-10%) rapidly. And although barcode is a mature and deeply penetrated technology, it still has significant potential as it continues to migrate from compliance applications to processes at the core of an enterprise, leveraging imaging and mobility to extend its value propositions along the way.

We confirmed what most of you expected—RFID grew at an unprecedented rate in 2010. Item-level tracking in retail, limited use ticketing in mass transit, contactless payment, asset tracking, AVI...the list of high growth applications is long. And it appears that this is only the beginning. 2011 looks like it will be another decent year, with continued scaling, solution expansion, deeper integration and further penetration throughout the value chain. In addition, we expect an increase in adoption among new accounts starting in 2012 as RFID's value proposition becomes more justifiable to a broader market.

As we discussed these two technologies, an underlying theme kept emerging: convergence.

Barcode is, without question, the dominant track and trace technology on the planet. RFID on the other hand, is an emerging solution that, when paired with barcode technologies, can provide the end user with significant incremental benefits. Together, these two technologies allow for enhanced supply chain visibility, enabling deploying enterprises to maximize the value derived from their legacy AIDC investments. We expect this convergence to continue, driven by the following factors:

• The need to capture more information about materials, their location, condition and use
• The desire to capture and convey this information faster
• The ability to aggregate this information with other data to create business intelligence, and ultimately device competitive advantage

To learn more about our thoughts and expectations on the RFID and barcode markets, as well as the convergence of AIDC solutions, we encourage you to listen to the webcast recording, scroll through the slides below and read our latest white paper, "Barcode & RFID Convergence: Enabling Greater Visibility Through Standards."

Barcode and RFID - Market Update & 2011 Outlook

View more presentations from VDC Research Group.

 

Barcode and RFID Convergence: Leveraging EPC & GS1 for Business Value

That’s the title of a newly created white paper we’ve just produced for GS1/EPCGlobal US.  This paper provides a detailed and easy-to-digest overview of the nuances associated with the convergence of these two technologies (as well as other AIDC solutions) on the EPC™ (Electronic Product Code) platform, offering examples from real-world installations and users, as well as hard data gathered by VDC as we researched the topic.   

The following is an excerpt:

“Barcode is the dominant track and trace technology on the planet. RFID is an emerging successor in some applications, a valuable complement in most. Barcode is used globally throughout most industries and is the de facto standard for most companies, regardless of tier or location. RFID is an emerging solution, capable of extending the value proposition of barcode by providing additional functionality and removing the limitations of line-of-sight scanning. Although these two technologies could be perceived as direct competitors for the same applications, end users continue to require both solutions – and this is not a short term condition.”

This is a free white paper that will be made available for download on the GS1 website (www.gs1.org) as well as the VDC website (www.vdcresearch.com).