economical but cannot store large amounts of data. Optical character recognition can store a slightly larger amount of data as compared to barcodes but the technology is expensive and complicated. Both barcode and OCR require line of sight to function and are highly susceptible to environmental conditions. Neither of these solutions offer any significant level of security against tempering and forgery. Another limitation of the current solution is the lack of ability to dynamically and automatically update the stored data. RFID VERSUS OTHER TECHNOLOGIES Exhibit 37 Source: Piper Jaffray & Co. RFID combines the advantages of all the existing automatic identification technologies while eliminating the disadvantages. RFID enables simultaneous reading of multiple tags through non-line-of-sight mechanisms. RFID tags can store a large amount of data, which can be updated automatically and dynamically. RFID offers a higher level of security features for data protection. Attribute RFID Barcode OCR Smart Card Cost High Low High High Data Storage High Low Medium High Form Factor Small Small Medium Large Multiple Simultaneous Reads Yes No No No Dynamic Data Update Yes No No Yes Security and Authentication High Low Low High Access Mechanism NLOS LOS(optical) LOS(optical) NLOS << from timlee11 >> << 2004 (r) timlee11 >> timlee11
April 2004 Piper Jaffray Equity Research RFID—Read My Chips! | 41 U.S. RFID Hardware Market in $ Million 0 1,000 2,000 3,000 4,000 5,000 6,000 2004 2005 2006 2007 2008 2009 Printers Readers Tags Source: Piper Jaffray & Co. Market Size We forecast that the U.S. RFID hardware market, composed of tags, readers, and printers, will grow from $742 million in 2004 to nearly $5 billion in 2009 at a CAGR of 41%. We expect tags will form the major chunk of the market with sales rising from $544 million in 2004 to nearly $3.8 billion in 2009 at a CAGR of 42%. We estimate printers will grow from a mere $86 million in 2004 to $580 million in 2009 at a CAGR of 42%. We project readers will grow from $113 million in 2004 to $624 million in 2009 at a CAGR of 36%. PIPER JAFFRAY U.S. RFID HARDWARE MARKET FORECAST Exhibit 38 RFID: The Next Big Wave Of Technology Spending We believe that RFID will be one of the fastest-growing major technology markets for much of the rest of the decade. The market needs the technology. Big spenders are committed to buying RFID solutions. New companies and incumbent companies are rapidly innovating to meet the demand. Costs are falling. Supply is ramping. Quality is improving. And word is spreading. 2004 2005 2006 2007 2008 2009 Tags 544 1,055 1,904 2,499 3,102 3,779 Readers 113 164 265 444 555 624 Printers 86 140 209 340 444 580 Total 742 1,359 2,379 3,283 4,102 4,983 << from timlee11 >> << 2004 (r) timlee11 >> timlee11
April 2004 42 | RFID—Read My Chips! Piper Jaffray Equity Research Segmenting The RFID Vendor Field We divide the RFID vendor field into three broad categories including start-up companies, incumbents supply chain technology vendors, and divisions of larger companies that want to leverage existing technology portfolios or channel relationships to break into the new market. Each of the companies in our broad categories brings advantages and disadvantages to the table. When the dust settles, we expect to see a handful of successes emerge from each category and a lengthy list of failures from each category.
- Fall '19
- Test, RFID