The global market for handheld scanners is being considerably impacted by the consumerization of IT and explosion in adoption of mobile internet-enabled consumer handhelds. This, coupled with continued pricing pressures and economic woes, is causing vendors to redefine their product and go-to-market strategies. During this QuickCast, VDC’s Richa Gupta discusses the impact these trends are having on the handheld scanner market and how technology vendors are looking to combat new & emerging challenges.

1. AutoID Practice
QuickCast
Getting a Handle on the Handheld Scanner Market
June 2012
By: Richa Gupta – Analyst
© 2012 VDC Research QuickCast
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2. Recording Available
A full audio recording is available for download at:
http://vdcresearch.com/market_research/autoid/freeresearch.aspx
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AutoID & Transaction Automation
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6. Today’s Speaker
Richa Gupta
Analyst
Richa is the Barcode Analyst at VDC Research, responsible for covering the global markets for
Barcode Scanning and Printing Solutions. Prior to VDC, she worked as an Associate Research
Manager in the Customer Satisfaction Management and Measurement (CSMM) division at IMRB
International, Mumbai. During the course of her MBA, she also took up a 4-month Internship at a
salon chain wherein she was instrumental in designing the Operational Audit format along with
being an integral part of the team that set up the software module for achieving operational
standardization.
Richa has a degree in Computer Engineering from the University of Pune, India and holds an
MBA in Retail Management from NMIMS, Mumbai, India.
For complimentary insights and marketing data:
http://blog.vdcresearch.com/autoid/
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7. Today’s Agenda
Handheld Scanner Market Overview
What is the Vertical Market Story?
Application Development Driving Growth
Fear, Uncertainty and Doubt (FUD) in
Handheld Scanning Market
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8. Handheld Scanner Market Overview
Highlighting key trends from the Handheld Scanner market in 2011-12
Improving price-performance characteristics creating and promoting a migration from handheld
laser scanning to imaging solutions (both 1D and 2D)
Consumerization of IT and the “mobile internet” redefining the application development landscape
for barcode scanning solutions
o Ongoing shift from compliance to business & operational improvement-related applications
o Growing investments in developing ISV partnerships to capitalize on existing market requirements
Expect enterprises to give increasing consideration to imaging solutions as technology refresh
cycles come up
New and emerging vendors taking a vertical-ized approach to product marketing and expansion
o Alliances with strategic partners are largely under-developed, particularly with the new entrants.
o Significant dollars and resources are being invested toward developing the same.
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9. What is the Vertical Market Story?
Strong growth expected from non-traditional verticals – Health Care, Government and Commercial Services
Handheld Scanner Demand VDC’s forecasts indicate market for general
Segmented by Vertical Market purpose handheld scanning solutions
2011= ~$900M
expected to out-perform that for industrial-
grade devices
$1,500
o Broader TAM for general purpose solutions
o Expansion opportunity into historically under-
penetrated verticals and installation environments
$1,000 o No moving parts to misalign or break
Fastest growing vertical markets according to
VDC’s forecasts, for each of the 3 scanning
solutions are:
$500
o Laser Scanners – Manufacturing, Transportation &
Logistics, Retail
o Linear Imagers – Transportation & Logistics, Retail In-
Store, (Light) Manufacturing
$0
o 2D Imagers – Health Care, Retail, Transportation &
2008 2009 2010 2011 2012 2013 2014 2015 2016
Logistics
Government Commercial Services
Health Care Services Industrial/Manufacturing
Retail In-Store Transportation/Logistics
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10. Application Development Driving Growth
Growing demand within customer-facing environments for multi-application support – in Health
Care, Retail and Hospitality
Enterprises looking to future-proof their 2D Imaging Applications – Health Care,
infrastructure investments with devices that: Retail, Hospitality
o Have a better price-performance ratio Health Care Retail & Hospitality
o Can adequately address & meet next-generation Insurance Card Scanning Mobile Marketing
application requirements
Medication Administration Age Verification
Increased use of consumer-grade mobile
devices is having a tremendous impact on
Positive Patient Identification Auto-forms Population
retailers’ technology investments – influencing
feature, functionality and application sets Medical Records Management Ticketing & Access Control
Aimed at elevating customer experience and
providing highly personalized & tailored
offerings
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11. FUD in the Handheld Scanning Market
Market of the future – consumer device threat, price competitiveness and economic pressures
Threat posed by Consumer-grade Devices
o ISSUE: Widespread use of all-in-one consumer handhelds could potentially negate the need for handheld scanners &
imagers at the checkout
o PRESCRIPTION: Continue expanding functionalities supported by handheld scanning devices to ensure continued
investments
Threat posed by Emergence of Low-cost Scanners
o ISSUE: Traditional market leaders to face increased pricing pressures from regionally-focused, local vendors, particularly in
Asia-Pacific
o PRESCRIPTION: Increasingly important for vendors to build a local presence in developing economies to stave off growing
competition
Threat posed by Economic Pressures
o ISSUE: Continued economic volatility could potentially impact investments in and adoption of barcode scanning solutions,
with end-users pushing off their refresh cycles
o PRESCRIPTION: Vendors need to keep a hand on the pulse of the market and tweak their portfolio & offerings, and pricing
strategies to suit existing requirements
© 2012 VDC Research QuickCast
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12. For more information please contact:
Mike Collette – VP, Sales & Enterprise Accounts
info@vdcresearch.com | 508.653.9000 x112
Richa Gupta – Analyst
For complimentary insights and marketing data:
http://blog.vdcresearch.com/autoid/
© 2012 VDC Research QuickCast
AutoID & Transaction Automation
vdcresearch.com