| 2009 RFID Business Planning Service Track 1: | | | | to high adoption rates of RFID solutions as a |
| Product/Service Offerings Volume 4: RFID | | | | result of the continued reallocation of |
| Middleware and Edge, Supply-Side Analysis | | | | manufacturing to the region. |
| | | | | • Growth in EMEA will be derived from |
| | | | | continued deployment of RFID for supply chain |
| DETAILED OVERVIEW: | | | | applications, increased adoption of enterprisewide |
| RFID Middleware report: Track 1, Volume 4 of | | | | RFID solutions, and the need to evolve and add |
| the 2009 RFID Business Planning Service. This | | | | functionality to existing solutions. |
| market intelligence report provides quantitative | | | | • Application development will continue to |
| and qualitative analyses of the global demand for | | | | account for the majority of RFID middleware |
| radio frequency identification (RFID) Middleware. | | | | revenues over the next 5-10 years. |
| Data is presented in consumption dollars. RFID | | | | • Data management middleware is expected |
| Middleware revenue shipments and forecasts are | | | | to experience a boost in revenues in 2011/2012 |
| segmented by: Regional Market; Vertical Market; | | | | as supply chain applications begin to blossom and |
| and Product Type. ( ) | | | | companies increasingly begin to analyze and |
| | | | | leverage the information gathered for strategic |
| The global market for RFID Middleware | | | | and tactical purposes. |
| increased by more than 31% from 2007?2008, a | | | | • Device management will become critical as |
| trend that is expected to continue into 2009 | | | | the technology becomes more core to the |
| when the market is expected to grow by 55%. | | | | enterprise and value chain, the ‘kinks’ of |
| In 2008, the total global market for RFID | | | | the solutions are worked out, and solution |
| Middleware was valued at $69.4 million and is | | | | sustainability becomes more critical. |
| expected to grow at a compounded annual rate | | | | |
| (CAGR) of 60.5% through 2013. | | | | Executive Brief: Competitive Landscape |
| | | | | • Middleware is rapidly becoming the platform |
| Middleware Categories | | | | upon which the RFID solution is built and evolves. |
| • Data Monitoring & Management | | | | Moving forward, the ability to scale, improve |
| • Device Monitoring & Management | | | | functionality, and develop new applications will be |
| • Applications Development | | | | the leading end user requirements for this product |
| | | | | type. |
| Geographic Regions | | | | • Fragmentation within this market is |
| • Americas | | | | decreasing: |
| • EMEA (Europe/Middle East/Africa) | | | | - Highly complex solutions require increased |
| • Asia?Pacific | | | | skill,experience, and resources. |
| | | | | - Open platform architectures reducing need for |
| Executive Brief: Market Overview | | | | specialized solutions. |
| • The total RFID market grew approximately | | | | -Aggressive competition from a diversity of |
| 30% from 2007, despite the recession | | | | entrenched and financially backed powerhouses. |
| accelerating in Q4. Market growth will be in low | | | | • Consolidation will increase, especially as |
| double digits over the next few years, but it will | | | | company valuations decrease over the next 6-18 |
| gradually return to 30%+ growth rates within 5 | | | | months due to the combined impact of slower |
| years. | | | | market growth, thinner margins, and desiccate |
| • Middleware/edgeware remained the fastest | | | | capital markets – this could occupy many |
| growing product segment due to its enhanced role | | | | managers’ time and take away from core |
| and less emphasis placed on hardware because of | | | | market development requirements. |
| rapid commoditization. With most RFID hardware | | | | |
| performing at the same price/performance levels, | | | | Executive Brief: Strategic Issues & |
| it’s all about making the solution work while | | | | Expectations |
| maintaining the ability to scale and expand. | | | | • The total market for RFID middleware is |
| • Middleware appears to be recession proof, | | | | expected to grow in excess of 55% in 2009, and |
| with growth expected across all regions as | | | | will continue to gain momentum throughout 2013. |
| installations scale, expand, and increase | | | | • APAC will continue to represent a larger |
| functionality. The RFID middleware market is | | | | share of the total global market due to the shift |
| anticipated to grow in excess of 60% (CAGR) | | | | in manufacturing, development of supporting |
| through 2013. | | | | infrastructure (i.e. transportation to support |
| • The competitive landscape has become | | | | manufacturing), ongoing government support, and |
| less fragmented due to slower-than-expected | | | | a shift toward source tagging. |
| adoption of RFID, increased complexity, and | | | | • Application development will not only remain |
| open-platforms – all of which have hindered | | | | the primary middleware product type as RFID |
| the need for smaller, specialized, flexible vendors | | | | continues to penetrate current and new markets, |
| with limited or narrow experience and resources. | | | | but it will also be a platform on which suppliers will |
| | | | | be able to grow with their clients. |
| Executive Brief: Estimates and Forecasts | | | | • Middleware suppliers may turn to a |
| • Americas continue to account for the | | | | managed services model to supplement their |
| majority of middleware revenues, due to: | | | | current revenue streams by providing customers |
| -Increased level of complex installations/projects. | | | | a number of material benefits, including reduced |
| -Continued application development and solution | | | | capital and management overhead risk and |
| expansion. | | | | persistently up-to-date and higher performing |
| • APAC is expected to account for nearly | | | | solutions. |
| ¼ of the total middleware market by 2013 due | | | | |