Home Internet of Things Aerospace Apparel Energy Defense Health Care Logistics Manufacturing Retail

Access This Premium Content

Options To Access This Article:

What Subscribers Are Saying

  • "Probably the best investment I've ever made."
    Steve Meizlish, President & CEO, MeizCorp Services, Inc.
  • "I have found that RFID Journal provides an objective viewpoint of RFID. It you are looking for a resource that provides insights as to the application and implications of deploying RFID, RFID Journal will meet your needs, It gives you a broad perspective of RFID, beyond the retail supply chain."
    Mike O'Shea, Director of Corporate AutoID/RFID Strategies & Technologies, Kimberly-Clark Corp.
  • "No other source provides the consistent value-added insight that Mark Robert and his staff do. In a world dominated by press release after press release, RFID Journal is developing as the one place to go to make the most sense out of the present and future of RFID in commerce."
    Bob Hurley, Project Leader for RFID, Bayer HealthCare's Consumer Care Division
  • "RFID Journal is the one go-to source for information on the latest in RFID technology."
    Bruce Keim, Director, Hewlett-Packard
  • "RFID Journal is the only source I need to keep up to the minute with the happenings in the RFID world."
    Blair Hawley, VP of Supply Chain, Remington Products Company

Will Acquisitions Lead to RFID Dominance?

The RFID industry is experiencing a wave of consolidation that seems to be aimed at companies' achieving "gorilla" status.
By Mark Roberti
Aug 01, 2012—It's commonly said that Saturday is "moving day" in professional golf tournaments, which typically start on Thursday and end on Sunday. There are varying interpretations of the term, but it is generally taken to mean Saturday is the day you need to move up the leaderboard and position yourself for potential victory the next day. It's the day a golfer might take extra risks to try to make up shots.

Several major acquisitions, which appear to be more strategic than past deals, indicate that radio frequency identification providers are seeing the current period in a similar way. With some major retailers, aerospace companies and hospital chains seeking to deploy RFID technology enterprisewide, solution providers seem to be positioning themselves to be the gorillas in the market ("gorilla" is the term coined by Geoffrey Moore, leading expert on the technology adoption life cycle, for a dominate technology provider, such as Apple in the MP3, smartphone and tablet markets).

It started in December, when Dutch RFID transponder company Smartrac N.V. acquired UPM RFID, a division of Finnish wood pulp, paper and timber provider UPM-Kymmene. Smartrac announced it planned to leverage UPM RFID's passive ultrahigh-frequency manufacturing capabilities to position itself as one of the world's largest providers of UHF RFID inlays. Smartrac previously had purchased two other transponder manufacturers: Neology and KSW Microtec. The three acquisitions represent Smartrac's interest in further penetrating the UHF RFID market by providing tags, as well as the inlays built into the transponders, and full RFID solutions.

Smartrac's purchases position the company to compete with Avery Dennison, one of the world's leading providers of RFID transponders. Avery has the largest market share in North America. Smartrac has penetration in Europe, and Invengo, another transponder manufacturer, has a strong position in Asia. It's likely these three companies will be battling for market supremacy in the coming years, and there probably will be more acquisitions as each company tries to strengthen its hand.

In June, Motorola Solutions announced it had reached an agreement with Psion to purchase the British handheld computer manufacturer for $200 million. The deal is expected to close during the fourth quarter of this year. The acquisition appears, in part, to have been driven by Motorola's desire to dominate the market for handheld and fixed RFID readers.
To continue reading this article, please log in or choose a purchase option.

Option 1: Become a Premium Member.

One-year subscription, unlimited access to Premium Content: $189

Gain access to all of our premium content and receive 10% off RFID Reports and RFID Events!

Option 2: Purchase access to this specific article.

This article contains 883 words and 3 pages. Purchase Price: $19.99

Upgrade now, and you'll get immediate access to:

  • Case Studies

    Our in-dept case-study articles show you, step by step, how early adopters assessed the business case for an application, piloted it and rolled out the technology.

    Free Sample: How Cognizant Cut Costs by Deploying RFID to Track IT Assets

  • Best Practices

    The best way to avoid pitfalls is to know what best practices early adopters have already established. Our best practices have helped hundreds of companies do just that.

  • How-To Articles

    Don’t waste time trying to figure out how to RFID-enable a forklift, or deciding whether to use fixed or mobile readers. Our how-to articles provide practical advice and reliable answers to many implementation questions.

  • Features

    These informative articles focus on adoption issues, standards and other important trends in the RFID industry.

    Free Sample: Europe Is Rolling Out RFID

  • Magazine Articles

    All RFID Journal Premium Subscribers receive our bimonthly RFID Journal print magazine at no extra cost, and also have access to the complete online archive of magazine articles from past years.

Become a member today!

RFID Journal LIVE! RFID in Health Care LIVE! LatAm LIVE! Brasil LIVE! Europe RFID Connect Virtual Events RFID Journal Awards Webinars Presentations
© Copyright 2002-2016 RFID Journal LLC.
Powered By: Haycco