Transition from legacy data capture systems

RFID printer/encoder applicators enabling the transition from legacy data capture systems

The radio frequency identification (RFID) printer and encoder market has gained significant momentum due to an increase in number of open-looped pilots and deployments requiring encoding capabilities.

Automated validation of encoded tags is also a critical function that is promoting the increased use of RFID printers and market opportunities are now beginning to extend beyond the North American region.

Printer/encoder applicators are likely to witness an increased demand in the long term within Asian manufacturing hubs that expect to be impacted by the retail-driven mandates in the American and European markets.

New analysis from Frost and Sullivan, World RFID Printing Solutions Market, reveals that revenues in this market totaled $10.7 million in 2005 and can reach $209.3 million in 2012.

By allowing the combination of human-readable data with RFID capabilities, smart labels are increasingly facilitating the smooth transition from barcode systems toward RFID technology.

The growth of smart labels has contributed to the increased production of printers and encoders that support in-house label production and changing application needs.

Vertical markets that have been slow adopters of RFID technology represent key opportunities for smart label options, since the migration strategy expects to be least disruptive.

"Besides this, the development of software-based upgrades and wireless printing solutions has also improved the functionality and flexibility of RFID printers, thereby promoting market growth," notes Frost and Sullivan Research Analyst Priyanka Gouthaman.

"Also contributing to the market growth is the ongoing standardisation in development and design at the product level, which is likely to drive the market forward across RFID frequency spectrums and legislative requirements".

However, the lack of RFID-based technical skills among end-user enterprises is impeding the success of initial tests and pilots.

Printing errors maybe avoided with the requisite training on optimal printer/encoder settings, inlay read positions, application and environment specific features.

Although larger end-user adopters have made significant investments in separate RFID divisions and technical teams, the lack of RFID skills within smaller enterprises is likely to challenge the vision for pervasive use of RFID.

"A significant challenge for the RFID industry continues to revolve on the lack of end-user awareness about the technology and its potential applications," says Gouthaman.

"Most end-user segments lack the understanding that RFID is an enabling technology within complete automated data capture systems and is employed across applications with different technologies, frequency spectrums, data format standards and protocols".

Given these challenges, there is an immediate need to increase end-user education to enable the wide-spread adoption of RFID technology.

Regulatory organisations such as CompTIA are addressing the need for such RFID skills through professional certification programs.

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