Sales of RFID middleware will boom during the next five years, from $24m last year to more than $190m, according to a new study by Venture Development Corp.
The sector, which is projected to enjoy a 50% compound annual growth rate through 2010, is growing but also changing as consolidation likely will continue, said the study. Larger players are seeking to address their total available markets, said Venture Development, a US-based research house.
Major deals last year included NCR’s purchase of IC Velocity and BEA Systems purchase of Connecterra.
Also, big players such as IBM and webMethods are expected to either push out their solutions to the ‘edge’ by acquiring, merging or partnering with smaller, pure-play middleware vendors such as OATSystems and GlobeRanger, said the study.
Although the larger players are not as ‘flexible’ and ‘mobile’ as their smaller counterparts, their desire to increase the total available market is expected to increase M&A and partnering activities, eventually leading to a smaller, less fragmented, and more standardized industry, said the researchers, in a statement.