IDTechEx Ltd. news
Cubic pointed out to IDTechEx that Mifare for Mobile from NXP gives speed same as transportation card ticketing In the many interviews and research carried out for the new IDTechEx report "Near Field Communication (NFC) 2014-2024", considerable disagreement was commonplace. IDTechEx first issued a major report on this subject five years ago when there were concerns about deployment which is much less an issue today given the huge deployment of NFC-enabled mobile phones and tablets in the last year. However, other concerns are still said to be holding up the market such as the slower speed of transaction when entering a mass transit system using NFC vs a transport contactless card. Yet leading expert David deKozan, Vice President, Cubic Transportation Systems, Inc. robustly contests the arguments in some of the media that the old problems of slow speed and difficulty of coping with a physically closed system are side-lining mobile phone ticketing in mass transit systems such as subways. "Absolutely not, a significant percentage of transportation ticketing will be by (NFC) mobile phones in future" he declared to IDTechEx, pointing out that Mifare for Mobile from NXP gives a speed the same as transportation card ticketing. As for the entry-and-exit transaction with knowledge of location and therefore distance travelled on railways and subways, said to be a problem for financial cards set up for one shot transactions, he noted that their Chicago system has one of several possible work rounds by having the back office assemble the "taps" (transactions/ events) ahead of the bank card interrogation which can then be one shot. However, he thought that some emulations of financial cards on mobile phones require the phone to be switched on, the card selected and the PIN entered and "This is not the greatest use case" for transportation. There is also a conflict of objectives with EMV financial cards. The contactless PIN in mobile wallets also has issues in his opinion. Dominic Hirsch, Managing Director of RBR (formerly Retail Banking Research) gave a somewhat different view again. RBR is a strategic research and consulting firm with three decades of experience in retail banking, banking automation and payment systems. "By contrast, there is a frenzy of activity with non-payment uses of NFC and the huge enthusiasm of most in the value chain will result in widespread use, given that device owners increasingly welcome a lot of this" In an extended interview concerning the financial and transport ticketing aspects of NFC, Dominic Hirsch pointed out that the banking community tends to refer to the contactless phenomenon which has included contactless cards for a very long time and now adds the more recent NFC. He notes how it took a very long time for contactless cards to be accepted but now they are widely used for small payments e.g. the stored value (prepayment) MasterCard PayPass and transit ticketing e.g. The London Oyster card. Where it is best suited, NFC will catch on, he says, but on a timescale about five years behind, "In five years, NFC will be where contactless smart cards are today." He said, pointing out that his observations refer to his field of expertise, financial payments including transport ticketing. In the interview with IDTechEx, he pointed out that contactless cards have been primarily aimed at small payments but, even here, they are not adopted by people like news stand vendors and vending machines in the main because merchant fees would wipe out their profit. Contactless payments therefore stick at only certain small payments, including a rapidly increasing number of retail stores but even here the majority in the world still do not have contactless terminals. He said this has implications for how fast NFC can roll out. It is relatively unattractive to use a payment medium only some of the time though that is a problem all other payment media also face. Still, NFC-enabled payment can represent proliferation of partial solutions. Primary author of the new report, "Near Field Communication (NFC) 2014-2024", Dr Peter Harrop says, "There are now fixes for all the major impediments to use in payments and ticketing of NFC-enabled mobile phones and tablets but considerable user indifference and ignorance remains and alternatives are well embedded in the market and in some respects superior. NFC electronic devices will definitely be used for an appreciable number of payments and for much transportation ticketing over the next decade but will not be dominant in that time-frame, if ever. By contrast, there is a frenzy of activity with non-payment uses of NFC and the huge enthusiasm of most in the value chain will result in widespread use, given that device owners increasingly welcome a lot of this. The nature and destination of the non-financial NFC earning streams from non-financial NFC functionality is less clear however. Robust debate continues."
IDTechEx Research expects 3.1 billion passive UHF RFID tags to be sold this year According to a new RFID sector survey by IDTechEx Research, the RFID market will increase from $6.98 billion in 2012 to $7.88 billion this year, and will reach $23.4 billion in 2020. This includes tags, readers and software/services for RFID cards, labels, fobs and all other form factors – for both passive and active RFID. The market for RFID has grown steadily despite the economic meltdown due to the diverse nature of its applications from tagging retail apparel to transport ticketing to animals. Historically and today, Governments have driven most RFID orders as they improve efficiency (transit systems), safety (passport tagging) and protect industries (animal tagging). Since 2000 there has been a strong push to use passive RFID to improve supply chain visibility, with a wide range of investment in new RFID technologies, new standards and much publicity. Inevitably as with most new technologies, aspects were over hyped and demand not in sync with capacity, but as we entered 2010 the industry emerged from the hype cycle and over the following years until now, has entered a period of rapid growth and profitability for some. There are different rates of growth for different applications and many challenges – and opportunities still exist. In total, IDTechEx find that 5.9 billion tags will be sold in 2013 versus 4.8 billion in 2012. Passive UHF experiences rapid growth and suppliers move to profitability The last five years has seen consolidation throughout the value chain in passive UHF RFID with some companies emerging in true phoenix-from-ashes style. This is mainly driven by one application – retail apparel – which will globally demand 2.25 billion RFID labels in 2013. Some suppliers are now profitable and see rapid growth ahead. As in most emerging technology, there will be blips along the way – such as the current UHF RFID litigation, but we do not believe this is a show stopper – no-one makes money then. After apparel tagging, passive UHF is deployed in many different application areas for asset tracking and other applications. These are small volumes in their own right but add up to hundreds of millions of tags per year given the strong payback they give users. IDTechEx Research expects 3.1 billion passive UHF RFID tags to be sold in 2013. Watch the money However, despite passive UHF selling more tags than passive HF for the first time in 2012, IDTechEx Research finds that the money spent on passive UHF tags will be $247 million, versus $2.15 billion on HF and $713 million on LF RFID. The higher value of HF and LF is due to a variety of RFID tags in high value applications including animal tagging, contactless smart cards and passports. Indeed, the size of the market of HF tags will continue to be larger than the UHF tag market over the next decade, by money but not volume. Those in HF and LF tend to be relatively large, profitable enterprises, some of whom are moving into the high growth but as yet lower value passive UHF market. The market for RFID has grown steadily despite the economic meltdown Opportunity for dominant companies In a business approaching $8 billion this year, one could expect a one billion dollar leader but we could not find a player clocking half that figure. Of the 800 or so suppliers, IDTechEx only count eight with revenues more than $100 million, and less than twenty with sales between $20 million to $100 million. Most, but not all, in the top 8 provide a complete solution, which is still where most of the big money goes, with the others being dominant in their part of the supply value chain for a particular technology type. Market analysis by a huge number of parameters Using new, unique information researched globally by IDTechEx technical experts, the new report RFID Forecasts, Players & Opportunities 2014-2024 analyses the RFID market in many different ways. Full analysis by each market is given in great detail including in-depth historic data by application type from 2005 year by year to 2020 and with a 2024 outlook. Forecasts are given by tag numbers, asp and value for more than 20 applications for passive and active RFID. RFID reader forecasts are provided along with market size by application area and trends by territory. In addition to the report clients receive a spreadsheet in Excel format giving access to the key data contained in tables throughout the report.
HID Global appoints an industry veteran to run the company's Identification Solutions (IDS) RFID animal tagging business HID Global, trusted leader in solutions for the delivery of secure identity, announced it has appointed industry veteran Jean-Miguel Robadey to run the company's Identification Solutions (IDS) RFID animal tagging business. As global director, Robadey will be responsible for extending HID's two-decade-long leadership in RFID tagging into the rapidly growing market for solutions that improve the traceability of individual animals through the supply chain."We are very excited to have someone of Jean-Miguel's calibre and reputation running this very important element of our IDS business," said Marie Glotz, vice president of animal ID, Industry and Logistics with HID Global. "Jean-Miguel has managed several successful organisations serving the pet and livestock markets, and he has extensive experience across the full range of product development, manufacturing and sales. We are making major investments in this business, and Jean-Miguel's appointment is another key step in reinforcing and expanding our position as one of the world's top RFID solution providers for a variety of markets including the fast-growing animal tagging segment."According to market research firm IDTechEX, the RFID business has grown despite the global financial meltdown and is a business of well over $5 billion. The firm said in its October 2010 report entitled "RFID for Animals, Food and Farming 2011-2021" that the RFID market will triple in the next ten years, not least because a great variety of needs and government regulation is driving adoption in animals, food and farming - a sector that the firm expects to grow nine-fold.HID currently develops and manufactures a wide range of transponders specifically designed for livestock and pet identification, as well as tracking applications for research and exotic animals. The company's portfolio includes standard and customisable ISO-compliant products such as glass tags and electronic units that make it possible to automatically record the origin and history of individual animals. The company also plans to offer complete solutions for a variety of animal tagging applications, and is one of the few companies that can give development partners access to a global product supply and highly responsive service so they can deliver just-in-time customer solutions for such challenging seasonal requirements as herd animal breeding and management."....Jean-Miguel's appointment is another key step in reinforcing and expanding our position as one of the world's top RFID solution providers...." Robadey brings nearly 20 years of experience to HID's RFID animal tagging organisation, including extensive knowledge of the animal tagging segment. He was most recently product line director at Smartrac Technology in Singapore, where he was responsible for the company's BIO line and drove all activities related to the company's animal ID offering. Prior to joining Smartrac, Robadey was head of the Food & Animal Business Segment at Sokymat SA in Granges, Switzerland, where he successfully executed the company's 30 percent annual growth strategy between 2005 and 2007. He also held a number of product development, manufacturing and management positions with increasing levels of responsibility at the company during his 16-year tenure there."I am extremely excited about the opportunities to accelerate HID's already rapid growth in this segment, where the task of tracking and managing animals has become ever-more critical and challenging," Robadey said. "HID Global is a world leader in the development of radio frequency secure contactless technology used to manage and safeguard critical assets like these. The company is ideally positioned to offer animal identification products that meet a wide variety of global standards and critical customer requirements, all backed by the Genuine HID value proposition which stresses the highest levels of global product quality and delivery performance."HID Global has extensive experience in secure, contactless technology including transponders and reader module solutions. The company offers the industry's broadest portfolio of field-proven RFID tags across diverse industrial vertical markets, and has delivered more than one billion RFID tags worldwide. All HID Global RFID tags incorporate read-write capability in device memory so that the tags' stored data can be actively updated or read, ultimately improving business performance through tracking or quality control.