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Item-Level Rfid Industry Directions: Technologies and Markets
PracTel Inc., Sep 2006


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The RFID industry is going through the next phase of development to become universally accepted as one of important ingredients of the economy. This transformation is connected with proliferation of RFID systems at the item-level production.

Such a level opens the door for use these systems almost everywhere, starting with military equipment and personnel as well as Homeland Security, and going to manufacturing such items as a pack of cigarettes or a railroad ticket. This process requires developing new technologies that allow the introduction of miniature and inexpensive RFID tags, with the price value below one cent.

The report takes a look at the available technologies and standards supporting them. Chipless tags seem to be the most promising direction to evolve to item-level RFID. There are several technologies that support such a tag, and we analyze them. Though, at the present time, chipless tags contribution into the total RFID market is not significant, we emphasize their benefits, such as:

- In many instances, technological process is simpler than for chip-based tags
- Ability to sustain working characteristics in the harsh environmental conditions where chip-based tags cannot work
- Obvious price advantages
- Ability to sustain working characteristics in the presence of interference.

Chipless tags technologies are rapidly improving, and responding to the market demand will be able to present a very attractive business case in a couple of years; we need to be prepared for the RFID market dominating by item-levels systems with chipless tags.

In the standard arena, new technologies trying to adjust to existing standardization as well as standard organizations trying to open doors for such advances. Success of item-level RFID is not feasible without globally accepted standards.

In the marketing part of this report, the authors analyzed various characteristics related to the item-level RFID market. We concluded that even in the present decade item-level RFID will show rapid growth, and they will dominate the market in the 2013-2015 time frame.

Research Methodology

Considerable research was done using the Internet. Information from various Web sites was studied and analyzed; evaluation of publicly available marketing and technical publications was also conducted. Telephone conversations and interviews were held with industry analysts, technical experts and executives. In addition to these interviews and primary research, secondary sources were used to develop a more complete mosaic of the market landscape, including industry and trade publications, conferences and seminars.

The overriding objective throughout the work has been to provide valid and relevant information. This has led to a continual review and update of the information content.

Target Audience

This report provides the item-level RFID technology and market analysis and assessments that are useful for service providers, retail operators, vendors, network operators and managers, investors and end users seeking to gain a deeper understanding of the RFID opportunities and barriers.

For systems vendors, integrators and others, the report provides an analysis and assessment of competing item-level RFID products currently available as well as an estimation of the overall opportunities in the coming years. The end users can gain a more thorough understanding of product’s market and capabilities as well as the economics of using RFID to improve operational efficiency.


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