RFID - radio frequency identification - recently received a big boost in its overall usage case. In June 2024 the RAIN Alliance, a RFID tech advocacy group, reported that 44.8 billion RFID chips were shipped globally in 2023, representing 32% year-over-year growth in the market.
While this is impressive, it doesn’t even come close to where QR codes find themselves currently. QR code generation is up 47% between 2023 and 2024. So much so that there are eight new QR codes being generated every minute.
To put the context as starkly as possible, the RFID market is projected to be worth approximately $18-22 billion USD by 2030. The QR market by comparison is closer to $51 billion in the same time span.
The truth is, RFID simply has not gripped the market in the same way as barcodes or QR code systems. RFID still remains a possible option with several high value use cases, but it has yet to see the kind of revolutionary mass adoption of other technologies.
To understand why that is, we need to first grasp the major problems making RFID adoption an uphill climb.
One – Upfront costs
In comparison to things like QR codes and other such systems, the upfront costs associated with a robust RFID system are much higher to achieve largely similar results to the alternatives. Implementing RFID systems requires purchasing RFID tags, readers, antennas, and software infrastructure. That’s before you even begin to think seriously about integrating these systems more widely with other elements of your operation. Many businesses understandably baulk at this choice when the alternatives seem cheaper and work to the same standard of speed and accuracy
Two – Untested field
Despite the fact that the underlying technology behind RFID has been around for several decades at this point, there are still lots of teething problems that a system this mature should have done away with long ago. Problems like tag collision (where multiple tags respond simultaneously to a reader), limited read range, and interference from metal or liquids in the environment can impact the reliability and effectiveness of RFID systems. When combine with the above mentioned issues of cost, it’s no wonder that RFID has been slower in uptake than something like a QR code operation system.
Three – Integration complexities
When compared to QR codes, DM panels, or the classic barcode, RFID has found it very difficult to properly integrate with available WMS and ERP software options. The sheer volume of real time information offered by these systems present a great deal of difficulty, and will generally necessitate tailor-made software solutions to handle the workload. While these definitely do exist, many companies may find the prospect of yet another additional cost associated with these systems something that’s just beyond the pale.
Four – Privacy problem
RFID technology raises concerns about privacy and data security, particularly regarding the tracking and monitoring of goods and assets. In automated warehouses, where RFID tags are attached to individual items or pallets, there is potential for unauthorized access to sensitive data or the misuse of tracking information. Additionally, the wireless nature of RFID communication makes it susceptible to eavesdropping and unauthorized scanning, posing security risks to sensitive inventory information. Addressing these privacy and security concerns is essential for gaining the trust and acceptance of both warehouse operators and consumers.
Five – Absent standards
The lack of universal standards and interoperability among RFID systems is another factor hindering their widespread adoption in automated warehouses. Different RFID vendors may use proprietary protocols, frequencies, or data formats, making it challenging to deploy RFID solutions across multiple locations or collaborate with supply chain partners seamlessly. The absence of standardized protocols and interoperable systems increases complexity and costs for warehouse operators, who may prefer solutions that offer greater compatibility and flexibility, such as barcode technology.
Until and unless RFID can overcome these hurdles, usage of them will remain available, but only widely applied in specific and situational
Fortunately, those are the circumstances where the Invar Group shines.
The Invar Group is an expert at finding the exact kinds of situations where specific technologies are best suited and can make real impact to your operations.
With that in mind, here’s five ways RFID chips have the potential to really improve specific operations in ways you might not have thought of.
One – Equipment tracking
RFID chips can be used for more than just tracking inventory. They are also valuable for keeping track of equipment, tools, and other peripheral technologies that could be dangerous if they were moved to the wrong place at the wrong time. Imagine a box-cutter that got lumped into a shipment of children’s toys, or a HHT (hand held terminal) that got mixed into a tote full of personal electronics. If you load up all your tools with RFID chips and strategically place scanners throughout your warehouse, safety and security of equipment becomes much easier.
Two – Security
One big advantage of RFID chips over QR and DM codes is that the equipment to use them is not as on hand. A smartphone can snap a picture of a QR square, but an RFID scanner is not as easy to come by. This equipment is something you’ll be buying in specially for your facility operators, not something that just can easily enter off the market like with QR scanning smartphones. Consequently, your systems can be much more secure than alternatives may allow.
Three – Beyond line of sight
RFID chips do not need line of sight to be scanned. Which allows for more to be scanned at once, which means more orders can get processed simultaneously. If you are working in an ecommerce environment where the demands of high speed B2C sales puts your throughput speeds in the crosshairs, RFID can make simultaneous order processing a much closer reality.
Four – Continuous scanning
With the right arrangements, RFID chips can remain tracked and monitored the entire time they are in and moving through a warehouse/distribution hub/manufacturing facility etc. It all depends on the range of the scan and the strength of the transmitters. This can allow for fully real time data flows at all stages, rather than just the scanner node moments offered by QR codes and DM panels.
Five – Upper level accuracy
It is much harder for a radio receiver to misread an RFID signal verses a machine vision system to mis-sight the shapes of a QR code. QR codes can be stained, wrinkled, or otherwise obstructed in some form or other. This is not true of an RFID signal. It will either have been received, or not. The computer will not error in what it detects. This adds a new level of confidence into the equation when it comes to keeping track of your stock.
It's this kind of specific systems based understandings that our customers come to the Invar Group for. We know no system is perfect, but it’s also true that every technology has it’s uses. Distinguishing and examining the broader situations gives us the edge in implementing the best in intralogistics technology.
If you should find yourself in need of some kind of RFID option, or if it turns out that other alternatives may suit you better, Invar’s experts will be there. Our teams are ready and able to deliver something that sees and circumvents possible problems, all the while eyeing out the powerful potential on hand.
