background image
location, the security application also shows if these shipments have been contaminated,
or if the container has been breached and if someone is inside, thereby deterring theft
and the illegal movement of people.
Current scope and future development of the technology
According to Michael Liard, RFID/AIDC Analyst at Venture Development Corp
the expected annual growth in the RFID sector is 24%, although this estimation does
not distinguish between different types of applications. Current distribution of the costs
for hardware, software and services shows that greater share of overall expenditure on
RFID technology implementation is spent on transponders (nearly 51%). In the long-
term, one of the natural expectations is that the price of the tags will drop, which ought
also to influence this share. Readers make up about 23% of the expenditure, the software
share is 5%, and services account for 21%. RFID technologies are implemented most
actively in the US (used in 47% of shipments), followed by Europe (34%).The cultural
heritage sector is not one of the faster growing economic sectors.These include retail,
commercial services, and health care.The fastest growing application segments are
reported to be point of sale, rental item tracking, baggage handling, real-time location
systems and supply chain management.
Expected future improvements should influence such parameters as read range, read rate
(the number of tags per second), cost (especially that of the tags themselves), and memory
Current applications of RFID tags Tabular Overview
Smart Labels
and Smart Tags
Application area
Typical application
RFID type(s)
and processing
Tracking of items throughout the manufacturing
Passive Tags
Tracking of items throughout the assembly process
Passive Tags
Optimisation of space use, inventory management,
automated picking and sorting, anti-theft
Passive Tags
Automated identifi cation of assets, inventory
Passive Tags
1. Automated luggage-handling system
2. Access control to secured areas
3. Aircraft components can be tagged to ensure
accurate maintenance schedules
Smart Labels
Active Tags
Passive Tags
Goods can be tagged and identifi ed from loading to
delivery, precise shipping, and container tracking
Passive Tags
Manufacturing line control, distribution control
Passive Tags
Management of FMCG items, pallets, cartons, totes,
returnable containers, gas cylinder tracking
Passive &
Active Tags
1. Electronic article surveillance (EAS)
2. Car immobilisers
3. Real time location systems
Smart Labels
Active Tags
Active Tags