2D Imagers to Propel Barcode Scanner Industry to $1.5B

The total market for finished barcode scanners (dedicated handheld and fixed-position devices) reached an estimated $1.4 billion in 2010, with revenues of $1.5 billion projected for 2011, according to new data from ABI Research.

According to research director Michael Liard, “As in many other industries, 2008 was very difficult (handheld and stationary scanner revenues dipped by 20+ percent and about 30 percent respectively); 2009 presented a mixed picture, with the second half of the year showing signs of market recovery. The trend continued throughout 2010 with key leading vendors reporting very strong quarter-over-quarter growth rates, including robust growth for product categories that were hit hard with double-digit losses in 2009 such as laser scanners.”

ABI Research believes that the greatest near-term growth will be realized in the handheld 2D imager product category, currently led by vendors Datalogic, Honeywell Scanning & Mobility, and Motorola Solutions. Until recently imagers were prohibitively expensive which limited their uptake, but the price gap has narrowed enough to make them, in some applications, viable alternatives to traditional laser scanners. “Imagers,” says Liard, “are the future of the handheld barcode scanner market.”

Another consequence of falling imager cost is the increased use of 2D barcodes in industrial environments such as packaging, logistics, manufacturing, and others that require 2D decoding capabilities and rugged in-line/fixed position solutions.

While 1D barcodes and laser scanners will continue to be seen for some time in the retail sector, the future lies with 2D barcodes and imagers there too. Support for mobile barcode scanning applications among retailers is helping drive adoption of handheld 2D imagers. Mobile barcode scanning is also driving shipments to the hospitality and transit sectors.

Healthcare is another key growth vertical in this market, where 1D and 2D barcodes can be used everywhere from patients’ wristbands to pharmaceutical packaging to medical equipment.

ABI Research