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

MODEX 2014: A Data Capture Analyst’s Perspective

Sponsored by the Material Handling Institute (MHI), MODEX is one of the largest expositions showcasing products and services targeted at the manufacturing and logistics verticals. This was VDC’s first time attending the show and it most certainly did not disappoint. Along with being extremely well attended, this event boasts a healthy exhibitor mix of hardware vendors, solution providers and integrators. As the AutoID & Data Capture analyst here at VDC, I had the opportunity to speak with some of the leading names in each of these communities, and learn their perspective on product innovation and market evolution. Here are some of my key observations:

Move over Laser. Camera-based solutions are here to stay.

One of the themes that stood out across the board is the growing popularity of camera-based solutions in logistics environments, and the growing use of these systems in conjunction with and as a replacement for laser solutions. Datalogic, SICK and VITRONIC had their latest and greatest imaging technology on display – both line scan cameras as well as area imagers – with the vendors showcasing their solutions’ ability to facilitate image capture and analysis in support of applications that will help logistics providers cut down on supply chain inefficiencies. These imagers will gain increased consideration as the need grows to decode a larger amount of data and capture information beyond what is printed on the barcode label. Aside from product identification (via barcode label scanning), these also have the potential to be leveraged for automating processes such as sortation, order fulfillment, claims management, damaged goods documentation, and merchandise returns. Traceability is now a basic necessity; enhanced operational visibility, including verifying the state of the product in real-time, will be critical success determinant. Establishing partnerships with the independent software vendor community will be crucial to addressing key customer requirements in this space.

Big Data in logistics – the need to enable cross-platform communication

Well-oiled supply chains are integral to delivering products cost effectively from source to consumption. Logistics providers are inundated with data coming in from a variety of different sources. There is a need to streamline the flow of products and information across channel, network and organizational boundaries. This is where integrators come in. My conversations with logistics automation solution providers like Vanderlande Industries and KNAPP indicate the importance of building leaner supply chains that ensure on-time delivery with minimal waste by trimming fixed and variable costs. Today’s demand-driven value chains stipulate technology investments that provide not just near real-time information, but also insight into unmet consumer demands. Leading integrators, servicing some of the largest logistics providers, are actively seeking ways to consolidate the data collection process, regardless of device type, and convert it into actionable business intelligence.

To enable dynamic, cross-functional supply chain collaboration, it will be essential for data capture technology vendors to ensure that their products integrate and communicate seamlessly with a wide range of solutions. I expect to discuss these themes and more in VDC’s upcoming research on the global markets for barcode technologies and machine vision solutions. Stay tuned!

VDC Putting the Machine Vision Market into Perspective

VDC’s AutoID & Data Capture Practice has, over the course of the past two decades, established itself as the leading authority for our coverage of the global markets of barcode printers and scanners. On the scanning side, we have seen the market grow from being dominated by a handful of vendors selling laser-based technology to its present state where camera-based solutions rule the roost. Technology advancements, coupled with fast declining price points, are directly responsible for the explosive growth that imaging solutions have experienced over the past few years. Lines between purpose-built fixed-position camera-based scanners and complex, imager-based systems used in manufacturing environments are blurring like never before. These developments have all contributed to VDC’s growing consideration of a new technology landscape – a palatable target for extending our research capabilities and industry expertise – the Machine Vision market. We fully expect growing convergence between industrial scanning and machine vision solutions to drive vendors’ product and market development strategies going forward. In 2014, VDC will provide its premiere thought leadership, rigorous research practices, and analytical prowess to provide a foundation upon which vendors, distributors, and end-users alike can glean a thorough conception of the machine vision market space.

The composition of the machine vision market is, however, quite unique. Several hundred companies boast revenues of more than one million USD and a considerable portion of these companies fall within a narrow revenue range at the top. This competitive ecosystem along with a breadth of market demands and emerging verticals pose several questions that are top-of-mind for machine vision vendors: what drives the machine vision market’s severe fragmentation? What are the different customer classes and market clusters that vendors serve? Which verticals, if any, should vendors be targeting with their product offerings? How can vendors and their solution partners differentiate in this heavily fragmented environment? Our research will seek to provide thorough answers to these pressing questions. Additionally, we will explore machine vision services, product applications, vendor strategies, and key verticals to create a holistic snapshot of the market space.

If applications within the industrial/manufacturing vertical are driving machine vision system adoption, deployment and sales today, VDC believes emerging verticals hold the key to future growth. Vision technology is already making a splash in these new application environments. New distribution channels and partnerships will form as vendors seek to establish domain expertise outside traditional industrial sectors. Our non-industrial, emerging vertical analysis will include Transportation & Logistics, Security & Surveillance, Life Sciences, and Traffic Monitoring & Control to provide vendors’ executive leadership teams with the knowledge base upon which to establish a firm strategic direction in an otherwise fluid space.

To learn more about our research offerings in the machine vision market, please feel free to view our research outline here.

(With significant contributions from Edmo Gamelin, Research Assistant)