ID Technologies

Report Highlights

• The global auto-ID market is estimated at $13.88 billion in 2005, and is expected to rise at an AAGR (average annual growth rate) of 15.8% through 2010 to reach approximately $28.87 billion.
• The high growth rate is attributed to a greater demand for strong security solutions in different market verticals, such as government installations, financial services and mobile telephony.
• The need to automate processes to minimize costs is another major reason for the growth of auto-ID technologies in manufacturing sectors such as automobiles, aviation, as well as in the retail and transportation sectors.
• Some older auto-ID technologies, such as barcodes, are expected to lose their market share to new technologies such as radio frequency identification (RFID).

INTRODUCTION

In this era of networking, safe logical access and authorized physical access (post 9/11) have become the essential keys to safety. Heightened security concerns have led to a demand for ID technologies. Users today demand authentication processes that require minimal human intervention.

Auto-ID technologies are an ideal fit in such a scenario. The smart cards market is developing at a rapid rate to accommodate growing demands for immigration control. In the near future, biometric identification is expected to be primary identification tool. Moreover, the auto-ID market also is expected to benefit immensely from the need to automate processes.

This BCC study analyzes the needs of different customers, the key drivers of the industry as well as factors that could hamper growth prospects of the industry. The report provides a detailed description of the major types of ID technologies and analyzes each product and its impact on future markets worldwide. It estimates current market size and presents forecasts over the next five years. The study covers the major vertical markets along with various applications and subproducts in each vertical. It also discusses all major technological issues as well as the regulatory environment and value chain.

SCOPE OF STUDY

The report contains:

• An overview and detailed descriptions of the most popular ID technology products available on the market, such as smart cards, RFID, biometrics, barcodes and optical cards
• Analysis of the industry's key drivers, inhibitors and potential growth areas
• Forecasts for worldwide auto-ID shipments by products, vertical markets and geography through 2010 in light of maturing markets and industry-wide efforts to have more open standards
• Analysis of current and upcoming applications in various industry verticals that are driving growth
• Discussion of all major technological issues, including the latest industry trends
• Analysis of the regulatory environment and value chain.

METHODOLOGY

BCC presents an analysis of the auto-identification technologies market by estimating the revenues generated in each of the constituent technologies in 2004. Based on a survey of industry experts and companies involved in different auto-ID technologies, we have analyzed and estimated the growth prospects of the industry. On the basis of this analysis, we have estimated revenue figures for the period 2005-2010.

Each of the auto-ID technologies in use has been analyzed separately to arrive at the estimates for the auto-ID industry as a whole. To present a complete picture, the industry has been evaluated based on types of equipment in use, and by the applications that use auto-ID technologies.

INFORMATION SOURCES

BCC conducted a survey of approximately 20 companies to obtain data for this study. Manufacturers of smart cards, RF tags, and chips, and some system integrators were also included. Interviews and discussions with industry experts helped us to develop a comprehensive understanding of the auto-ID market and to formulate our market estimates. Data from company financials, industry associations, and government sources was also compiled.