No Signs of Slowing Down

RFID and printed electronics—these two emerging technologies represent a tremendous amount of potential growth for package printers and label converters across the globe. Neither technology has hit the mainstream yet, so usage is not widespread. However, package and label printers should be watching each. Why? If, as Peter Harrop, chairman, IDTechEx predicts, we are only 10 years away from RFID being as ubiquitous as bar codes (only printed on labels), then label printers will have to integrate RFID tags into their workflows. And, once RFID is printed, watch out!

The global market

In “Vibrant RFID -Markets,” a publication issued by IDTechEx, Harrop states that the global RFID market “continues its rapid growth as record orders up to $0.5 billion each are serviced.” The U.S. and China are doing the most with RFID. This year demand is on target for $5.3 billion globally, the document states. The majority of the money spent on RFID relates to passive tag systems. However, RFID is prospering at all levels, according to Harrop.

“What PolyIC can say,” says Wolfgang Mildner, managing director, PolyIC (a producer of printed electronics), “is that growth is not developing as fast as it was expected. However, we observe there is increasing interest in RFID.” He adds that although the RFID market is not totally within PolyIC’s focus, “it struck us that the number of companies that are interested in RFID is continually increasing. But it takes time until companies decide to introduce a technology like RFID into their processes.”

Rhagu Das, CEO of IDTechEx, agrees. “In RFID, there is steady growth—not as fast as people had hoped, but the market is increasing by 20 percent or so per year in value,” he says. “In 2007, 1.7 billion tags were sold. In 2008, we think it is 2.16 billion. And, 2009 will be about 3 billion,” he adds.

Gerald Steinwasser, general manager, Muhlbauer, Inc., says that the RFID market is growing slowly but steadily, and printed electronics is still in the R&D stages and has only a few commercial applications. Wim Zoomer, account manager, Stork Prints, BV, adds, “The markets extend, but at a slow speed.”

As for the global market for printed electronics, Das says in his publication, “Large Niche Market for Printed Electronics,” that, “there is probably too much chasing of the obvious by printed electronics companies. For example, transistor printers dream of making RFID and display backplane drivers because these are obvious, quantifiable opportunities, yet most of the potential market may well lie elsewhere in a number of large niche opportunities.”

Mildner adds, “There is high interest into this topic. Customers can see now that printed electronics [is coming] from vision to reality. We [feel] the market for printed RFID will be stimulated through this. In terms of market growth, Mildner sees the printed electronics market as a long-term development. “At the moment, more and more printed electronics products [are coming] onto the market, which shows a steady increase in growth.” However, he says that as more suppliers come into the mix, other markets and other applications will grow. “As more and more companies start to enter the printed electronics market—such as chemical companies that supply materials, which help to improve performance and functionality—[they] will consequently stimulate the markets and applications,” he says.

Connected, but not tied

Printed electronics and RFID are related. When RFID is eventually printed on packaging, it will be the maturity of printed electronics, in part, that allows this to happen. However, the success of RFID is not necessarily tied to the success of printed electronics. “Printed electronics reaches into sectors such as displays, sensors, and solar cells,” says Das. “RFID is one [niche] use of printed electronics.”

Steinwasser asserts, “RFID is viewed today as an enabling tool, where the price of labels is a secondary issue. Printed electronics is looking for commercial applications outside of RFID.”

Mildner adds that printed electronics will be used in many applications in addition to RFID, including displays, sensors, or phtovoltaics. Printed RFID will be one area that opens up new application streams. He cites brand protection as one area where the value of the product can be raised because of printed RFID. But as far as how closely tied these two technologies are, he says, “RFID and printed electronics are not tied, but connected.”

On the other hand, Zoomer comments, “We do not consider any connection between those two. RFID can be designated as an independent ‘printed electronics application.’”

Still going

Both the RFID and printed electronics markets continue to grow. They are not as pervasive as other segments in the packaging or labeling markets, but they’re growing steadily. Printed electronics continues to find niche applications. According to Das, these include printed memory, displays, and photovoltaics. So, while neither market has grown as quickly as hoped, these technologies continue to grow and brand owners are finding new ways to employ them.

Zoomer also cites the ability to read RFID tags applied on metal containers and the combination of RFID and printed chips as recent advances.

As far as RFID pricing goes, Zoomer states, “though the chip price went down, the price of the tag is still too high to take off and/or to be used on single-packed products.” Das counters, “Everyone always wants things cheaper, but I feel at this price level, it is not holding the industry back from strong growth. ROI is the most important factor. We have seen tag prices come down substantially over the last three years.”

Eventually, the demand for RFID and printed electronics will make its way down to package and label printers. It’s coming—maybe in the next decade. Will you be ready? pP