Growth expected in 2D bar code scanner market

Ability to store data more densely is fueling adoption of two-dimensional bar codes.

-- Modern Materials Handling, 11/15/2006

In a recently released report, research firm Frost & Sullivan said it expects sales of one-dimensional bar code scanners to slow over the next few years and the market for two-dimensional bar code scanners to grow at a rate of 14.5%.

2D bar codes are omni-directional, meaning that, unlike 1D bar codes, they can be scanned from any direction. But the real benefit propelling the use of 2D bar codes is their ability to store more data on a smaller label.

Despite such advantages, 2D bar codes account for a much smaller portion of the total bar code market.

“2D technology is considered relatively expensive in terms of the decoding and scanning capabilities,” says report author Priyanka Gouthaman. “The challenge of high costs is particularly acute among smaller value chain participants, such as logistic providers and material handling operators.”

2D bar code systems are less expensive than RFID systems, however, so Gouthaman sees 2D bar codes as a good companion technology for RFID.

“Most market participants have resorted to a combination of RFID and 2D codes to balance the cost considerations for all trading partners,” she says. “The use of 2D bar code applications is therefore expected to witness significant growth in market segments that are looking to adopt RFID, as a long-term vision.”