News

NORWALK, CT -- The global auto-ID market, worth approx. $13.9 billion in 2005, is expected to grow at an AAGR (average annual growth rate) of 15.8% to reach $28.9 billion by 2010, according to a new report.

Research from The Business Communication Company shows that the high growth rate of the market can be attributed to a higher demand for strong security solutions in different market verticals, such as government installations, financial services and mobile telephony. The need to automate business processes to minimize costs is another reason for the growth in the automobiles, aviation, retail and transportation sectors.

Some primary technologies in the market include smart cards, optical cards, RFID, barcodes and biometrics. The smart cards market is developing rapidly to accommodate the demands of immigration control. In the near future, biometric identification is expected to be used as the primary tool of identification.

BCC suggests that since it is intimately connected to the semiconductor industry, developments in areas such as high-density memory will boost growth in the auto-ID industry. The decrease in chip size and increase in processing power have led to the development of more complex applications. Therefore, auto-ID players have to keep up with new technologies to stay competitive.

Some older auto-ID technologies, such as barcodes, are expected to lose their market share to new technologies, such as RFID (which boasts greater storage capacity and more efficient data-capturing ability). Biometric identification may be integrated with smart cards in the form of passports and visas. Biometrics will also be used as a standalone application to provide security solutions to government installations and other sensitive locations.