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“Overall, demand for RFID smartcards will remain stable and not be significantly affected by the current recession,” cited Drew Nathanson, VDC’s Director of Research Operations. “Although growth rates associated with established applications (i.e., security/access control) are slowing, several emerging applications (i.e., contactless payment, ticketing) are quickly approaching their ‘tipping points.’ These emerging applications will also drive product development as more diverse and complex applications are introduced that will require increased functionality.” This increased demand will also drastically impact distribution models. As the market continues to mature and commoditize, it is expected that there will be a fundamental shift toward an indirect consumables based distribution model, meaning increased and more aggressive competition, higher price sensitivity, and enhanced consumer barging/purchasing power. www.vdcresearch.com