2.5 Other business units
Identification Systems
Nedap's Reader portfolio utilizes long-range identification for secure vehicle access, enabling safe, secure and convenient parameter entry and exit. As such, we strengthen Nedap's position in the security market and continue to execute our strategic plan to align our portfolio with future growth opportunities. As of 1 January 2025, the Reader portfolio was integrated into our Security business unit. In addition, we worked on setting and communicating a timeline for transitioning away from our MOOV city access activities.
Developments
Revenue in 2024 was lower than in 2023. We have a product and commercial strategy in place to drive the performance of our Reader portfolio. This strategy is centered around meeting the needs in the market and expanding our channel network, with increased focus on distribution and the optimal integration of our solutions with access control platforms.
As we further optimize our portfolio, we introduce successors to replace one or more existing products, working closely with our customers throughout the transition. In 2024, we introduced the uPASS Go and the Compact Button. We designed the Compact Button with sustainability in mind, for example by making it more modular, enabling end-users to easily replace the battery and extend the product's lifespan. The optimization of our portfolio is contributing to improved product availability.
In the United States, we established a new partnership to give channels and end-users, such as large companies and universities, the option to customize their UHF identifiers. The partnership enables us to meet the demand for branded products. In addition, it allows us to relocate our supply chain for American customers from Europe to the United States, which will enhance our operating margin by reducing transportation costs.
Outlook
We expect revenue growth in 2025, driven by additional optimizations of our product portfolio while leveraging the strengths of our channel network.
UV
Nedap is a global leader in UV lamp driver technology. We focus on two categories in the UV market: curing and disinfection. In 2024, Nedap Light Controls resumed under the UV portfolio name to reflect our leading position in this market. The energy efficiency of our technology contributes to the lowest possible carbon footprint and cost of ownership during the use phase. In addition, our technology extends the lifespan of UV lamps, resulting in less waste.
Developments
Globally, the UV disinfection category is seeing the most growth. This is driven by water scarcity and the increasing need for water recycling. Besides drinking and wastewater treatment, this trend is particularly visible in water-intensive industries such as horticulture and the microelectronics and semiconductor industries. Manufacturers of semiconductor chips, among other products, rely on ultra-pure water throughout the production process. The advantages of UV disinfection over alternative methods include the absence of chemicals and the elimination of residues. The importance of UV disinfection in meeting increasingly strict water quality standards suggests favorable growth prospects.
As more companies prioritize safe working environments, the demand for safe industrial curing solutions as alternatives to chemical curing agents is increasing. Nedap's UV lamp driver technology enables the safe and environmentally friendly curing of substances such as ink, coatings and resins at an industrial scale. In recent years, UV-LED systems have grown in popularity and have replaced UV lamp driver technology in some industries. However, the applications of UV-LED systems remain limited, indicating that UV lamp technology will continue to play a significant role in the curing market.
In the first half of the year, revenue increased compared to the same period in 2023 and exceeded expectations. This growth was driven by rising demand for our UV drivers and the fulfillment of backlog orders. The slowdown in economic growth, particularly in China, negatively affected demand for our solutions in the second half of the year. Overall, revenue for 2024 was lower than in 2023.
Outlook
We see further growth potential for our UV driver technology, not only related to disinfection applications but also related to a promising new application to extend the shelf life of fluids such as milk through treatment with UV light sources. We are well-positioned to capitalize on this paradigm shift, with the quality and sustainability of our technology, our high level of service and ability to quickly scale production as key differentiators.
Other developments
In 2024, Nedap continued to support existing customers of Flux, part of the Staffing Solutions business unit, following the 2023 decision to scale down the solution. Throughout the year, we assisted customers in transitioning to other providers, with final off-boarding set for completion in the first quarter of 2025. Meanwhile, the scaling down of the Pigs solution was nearing completion by the end of 2024.