RFID Application Market

RFID Application Market

Many public and private sector organizations are already using or planning to use, RFID technology. Because the technology basically turns an inert object into one capable of communicating, the potential for use is enormous. Possible uses include:

• SCM (monitoring and controlling the flow of goods from raw materials through to finished product, from manufacturer to consumer).
• Product Integrity (ensuring that products e.g., pharmaceuticals are authentic and have not been altered in any way).
• Warranty Services (marking durable goods with a tag incorporating a product registration code to facilitate warranty services).
• ID, Travel, and Ticketing (providing a means to verify the identity of the traveler and to ensure that the documents are genuine)
• Baggage Tracking (monitoring and controlling the movement of baggage from check-in to loading on an airplane).
• Patient Care and Management (providing a means to rapidly and accurately verify information concerning patient allergies, prescription history, etc. to prevent surgical errors). (Source: “RFID Technology”, Office of Privacy Commissioner of Canada) ©

The global RFID industry is being driven by factors such as automation (reduction in the need for human intervention), increased competitiveness, and lower RFID infrastructure costs. Moreover, corporate funding and governmental support are fuelling the adoption of this technology globally. However, security concerns are still hovering over this industry. IT administrators worldwide face the surmountable challenge of preventing the RFID systems from security breaches and virus attacks. Analysts believe that RFID technology has yet not reached the level of maturity required to protect enterprises’ confidential details. We believe that companies planning to implement the RFID technology should carefully assess the associated security risks and potential threats that might arise as a result of its implementation.
The RFID industry in 2007 showed a revived interest in applications and technologies that are already established. In 2007, RFID technology received a lot more mainstream media coverage than in the previous years. Real-time location system (RTLS) technology received stronger adoption and enthusiasm within the industry. RTLS technology was adopted by hospitals and industrial asset tracking applications. Moreover, 2007 also saw the launch of Microsoft’s first major IT infrastructure product with native RFID support. BizTalk Server 2006 R2 launched last year, slated to be shipped in 2007, was Microsoft’s first product to ship with RFID support. Another key highlight of 2007 is the US State Department’s rollout of “e-passports” containing RFID chips. However, security issues have somewhat withheld its uptake among US consumers.
RFID is being touted as a very useful resource for small-and medium-sized businesses (SMBs). Government mandates and the wide range of benefits that RFID technology brings to enterprises have spurred wider RFID adoption among SMBs in both the public and private sectors. SMBs that need to track agricultural products and livestock are increasingly rolling out RFID systems. Smaller businesses that operate as a part of a larger organization’s supply chain, such as auto parts and pharmaceuticals product manufacturers, are adding to the first wave of RFID adoption. However, high implementation costs and concerns over the realization of actual benefits are hindering RFID adoption among SMBs. We believe that the development of open standards for RFID, as well as their integration with larger system platforms, will further pave the way for RFID adoption among SMBs.
As RFID is not just a plug and play technology, each RFID deployment is unique, and there are different variables that can contribute either to its success or failure. RFID systems are very complex to install and integrate because the information has to be collected from various locations and be transferred and processed accordingly. It has been observed that IT professionals generally do not posses the requisite skills needed for the implementation of RFID solutions. We therefore believe that enterprises should carefully select the broad base of expertise required for successful implementation.