The market value of global RFID (Radio Frequency Identification) technology was estimated to be around $10.7 billion in 2021. This number is predicted to reach $17.4 billion by 2026, growing at a CAGR of 10.2%.
The astronomical growth of RFID technology could be attributed to the adoption of IoT in various industries and sectors. From 8.74 billion IoT devices in 2020, it is forecast to triple to more than 25.4 billion devices by 2030.
IoT-based devices collect information and distribute it through a vast network of connected devices using RFID technology – essentially making RFID a core technology of IoT.
What is RFID Technology?
RFID – Radio Frequency Identification – uses electromagnetic signals to connect multiple electronic devices and develop a seamless communication between them.
RFID technology identifies devices or objects and gathers data about the object using the attached microchip tag. The RFID chip in the tag comes with an in-built antenna that passes real-time information about the object with the remote scanning device.
The Role of RFID in IoT Devices
RFID technology forms the basis for IoT solutions since any object can be connected, identified, and monitored using this technology. RFID technology connects objects into a network of intelligent devices and makes everyday objects communicate seamlessly with each other.
For example, smart devices, such as smartphones, television, and computers, are connected to a power source and an internet connection (mobile, Wi-Fi, or cables). With IoT assigning an IP address to these devices, it allows them to communicate with each other easily. However, you require RFID transmission technology to connect ordinary objects not connected to communication systems.
Benefits of RFID Technology
Being a versatile technology, RFID offers a range of benefits to businesses and industries and is at the heart of IoT.
Some of the benefits include:
- Asset tracking and management
- Enhanced automation of inventory management
- Enhanced data accuracy
- Improves efficiency and eliminates waste
- Traceability of assets
- Increase in revenue
- In-depth understanding of real-time product lifecycle
How does an RFID Reader work?
RFID automatically identifies and collects data from objects using low-power radio signals. The RFID tags, antenna, reader, and transceiver allow data to be collected and transmitted. The transceiver reads the low-power radio frequencies using an RFID tag.
Components in an RFID System
An RFID system has three main components – application, tags, and reader.
RFID Tags
Also called transponders, RFID tags are attached to objects that need to be identified. There are two forms of tags – active and passive.
Active tags, such as sensor tags in products, are either fully or partly battery-powered and can communicate with tag readers and other tags.
Passive tags, such as product barcodes, do not come with internal power but get the power from the reader.
Reader
Also called a transmitter, the RFID reader has a radio frequency interface and a control unit. The main purpose of the reader is to activate and communicate with tags and transmit data between the tags and the application.
Application System:
Also known as a processing system, the application system is responsible for initiating tags and readers. The application system could be a standard package or a mobile app.
RFID Frequencies and Types
The operating frequency band is often used to characterize RFIDs. RFID systems worldwide operate using any of the three frequencies – low, high, and ultra-high. Frequency matters since the radio waves act differently at different frequencies, and each frequency comes with its advantages and disadvantages.
Low Frequency
Low frequency, typically, comes in 30 – 300 kHz, providing a short range of 10cms. Although it is not sensitive to radio wave interference, it comes with a slow read speed.
High Frequency
High frequency usually ranges from 3 – 30 MHz and experiences mild to moderate sensitivity to radio wave interference. The high-frequency RFID is typically used for payment, data transfer, and ticketing.
Ultra-High Frequency:
The ultra-high frequency ranges from 300 Mhz – to 3 GHz and is most sensitive to radio wave interference.
These cover a longer range and are used for quick data transfer. There are two forms of ultra-high frequencies.
Active Type
Usually, an active RFID system comes with a power source and a transmitter. With the transmitter, active tags transmit signals stored on the microchips. The active RFID uses ultra-high frequency and transmits signals in a continuous range.Passive Type
In a passive RFID system, the antenna and reader transmit signals from the tag to the reader and back. Passive RFID can operate in all frequencies. They do not come with an internal power source. But, they have a tag and an antenna, making them easier and cheaper to manufacture.
Real-World Applications of RFID
There is a wide range of real-world IoT applications of RFID. Some of the applications are:
1. Inventory Tracking
RFID plays an important role in inventory tracking and management. RFID tags help businesses and supply chain management systems identify and track items through to the point of sale.
Moreover, with the help of a well-built RFID inventory system, information about the items can be shared between various business units. Additionally, a handheld RFID scanner makes it possible to read the inventory within a few minutes.
2. Supply Chain Visibility
RFID increases supply chain visibility, efficiency, quality, and distribution. With the help of RFID tags and readers, real-time data about the item can be quickly gathered, and insights derived from the status.
3. Eliminate the Risk of Theft
With RFID, businesses can keep track of inventory, assets, and items stored and distributed. When the movement of the assets or inventory is tracked properly – within and outside the property – the risk of theft, recalls, and incorrect delivery can be reduced greatly.
4. Real-time Updates and Insights
An RFID system provides businesses with real-time access to their assets, movement, and present condition. With RFID, looking for tools, analyzing asset/equipment usage or idleness, and counting stockpiles can be effectively reduced.
With real-time visibility of assets increasing, there is a reduced chance of errors and loss. Business owners can plan their manufacturing process, delivery, and inventory system more effectively with such information.
5. Labor Management
In addition to RFID in supply chain management, it also helps streamline and automate labor in the processes. As a result, this technology increases labor value and provides considerable financial savings.
For example, workers in a manufacturing unit can accurately know where the needed tools are and when they might be available. As a result, it eliminates unnecessary work, aids better planning, and better productivity.
6. Materials Management
Materials form a huge part of any industry, particularly the heavy construction or engineering industry. In such industries, finding the right assets and materials is a challenge. However, RFID tags can provide solutions to such issues.
7. IT Asset Tracking
Assets are a critical part of any business, a manufacturing unit, or an IT establishment. IT assets could include laptops, servers, desktops, and other physical assets.
Most of these assets are costly and critical to the business's work. Therefore, asset tags come in handy to businesses as they help keep count of IT inventory and ensure they don't fall into the wrong hands.
8. Product Authentication
Product authentication can be carried out easily by reading product RFID tags. It helps eliminate counterfeiting of products in real-time without comparing it with an online database.
Challenges and Limitations of RFID Technology
Regardless of the immense benefits of RFID tracking technology, it comes with a few challenges and limitations.
- Collision Issues
Reader and tag collision is common in RFID technology, as this reader collision causes radio interference. In addition, when tag collision happens, signals coming from multiple tags confuse the reader.
The solution could lie in placing anti-collision protocols in place that could help the reader identify multiple tags simultaneously without the issue of radio frequency interference.
- Cost of RFID
The cost of RFID technology is quite steep, and the companies implementing this technology have to bear the costs of readers, tags, software, and hardware and maintenance.
In addition to the equipment and implementation being costly, the tags are also expensive – be it passive or active. Although the rates of tags have reduced considerably over time, they are still expensive, which deters many companies from choosing RFID tech.
- Complex Technology
Although RFID solutions have been around a long time, it still is a complex technology to understand. The science behind radio frequencies, readers, and tags can get overwhelming for businesses. However, understanding these complexities is important for successfully implementing the technology.
Selecting the right frequency is critical to the performance of the RFID tags and readers. Each frequency comes with its own set of challenges and can be used for certain functionalities. Moreover, with the complexity of the technology comes the difficulty in training employees to use said technology.
- Security Concerns
Security is always a concern for businesses as it can affect the organization and the individual. Unprotected tags, unauthorized readers, spoofing, and denial of service are some of the major security concerns of businesses.
RFID technology offers innumerable benefits to organizations and individuals. However, it has its share of challenges and limitations. Although this technology is constantly updated, major concerns, such as privacy and security, need to be thoroughly overcome before more companies explore solutions.
Businesses are scrambling to get reliable IoT app development experts to build a product that caters to their specific needs and priorities. RFID has proven to be highly useful in increasing productivity, reducing errors, and improving efficiency. It is time to leverage this technology, and reap its many benefits.
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