Frost & Sullivan - Active RFID
Frost & Sullivan - Active RFID

Active RFID is steadily rising through the ranks, as the demand for real-time tracking of objects and personnel is getting louder. Supply chains in various industries are realizing the utility of long-range track and trace applications supported by traditional active RFID technology, real time locating and tracking supported by real-time locating systems (RTLS) and conditional monitoring supported by active RFID sensors.

New analysis from Frost & Sullivan, Analysis of the Active RFID and Sensor Networks Market, finds that the market earned revenues of $964.0 million in 2010 and estimates this to reach $8.39 billion in 2017 with widespread global implementation of RFID technology in business processes.

Despite the greater product awareness, many users still prefer passive RFID to active RFID due to its lower costs and electronic product code (EPCglobal) standards. Moreover, the lack of common industry standards makes the active RFID technology proprietary.

“Market industry participants, industry associations and governments across all nations need to work together to bring in a common standard in order to boost the adoption,” said Frost & Sullivan Senior Research Analyst Nandini Bhattacharya.

The combination of active RFID and sensors will be a winning mix, as the technology provides accurate information on the location as well as the condition of various objects and personnel tracked. End-users are increasingly migrating from traditional active RFID to more advanced technologies such as RTLS and active RFID sensors, as these are better equipped to not only track real-time location, but also the external conditions of the items being tracked.

Market participants are focusing on developing technologies that support a combination of technologies such as active RFID, passive RFID, sensors, RTLS, wireless fidelity (Wi-Fi), infra-red, ultra wide bandwidth (UWB), global positioning system (GPS), and general packet radio service (GPRS). Along with these developments, software and middleware companies should also focus on creating stronger and innovative platforms that support the convergence of various technologies.

Technological advancements must be backed up by a lowering of costs to cater to a wider range of end-users.

“Although the prices of various active RFID technologies have reduced in the last couple of years, companies with budgetary constraints still find them prohibitively priced,” said Bhattacharya. “Active RFID and sensors network companies should focus on providing cost-effective and highly advanced solutions that can be easily integrated within business processes.”

Cheaper and improved technology will enable quicker return on investment (ROI) and thereby, encourage higher uptake.

The technological advancements and availability of cost effective innovative solutions will also attract more participants in the market. When the market space gets crowded, smaller companies will either be acquired by bigger ones or expand their businesses to become holistic service providers.

Analysis of the Active RFID and Sensor Networks Market is part of the Automatic Identification & Security Growth Partnership Services program, which also includes research in the following markets: Strategic Analysis of the Global RFID Middleware Market, World Radio Frequency Identification (RFID) Health Care Market, RFID in Apparel Supply Chains, Analysis of RFID in the Data Center Market, and Analysis of the RFID Market in the Oil and Gas Industry. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

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