All along, everyone believes that price is the biggest obstacle to the popularity of UHF RFID. But careful analysis, in addition to price factors, RFID technology is facing other problems. I think RFID adoption is facing four major challenges: label prices, industry over-dispersion and segmentation, software infrastructure replacement costs, and environmental dependence of technology.
Label price
Prices are usually not a problem. Although the price of the label is considered to be a hindrance to the popularity of BYOD, the price is actually only a problem in open-loop applications. An open-loop application is one in which the user purchases a tag and attaches it to the item, and then delivers the tagged item to another user. In this scenario, the tag buyer cannot obtain the extra value of the tag. For example, a pallet supplier attaches a label to a pallet before delivering it to an end customer.
The benefits of scanning the item also need to be considered when calculating the cost of the label. In open-loop applications, the benefits of RFID tags are limited, which also reduces the price/performance of tags. In contrast, closed-loop applications get very big benefits from tags. A closed loop example of a reusable box. The QR code is easily damaged and is not suitable for long-term use. RFID tags can be used for a few years. In this way, the use of RFID tags can result in a cost reduction of $100,000 per year.
If tag prices are the only factor in RFID adoption, RFID deployments in closed-loop applications should have become popular a few years ago. But it is clear that this is not the case. Therefore, there are undoubtedly many factors that hinder the popularity of RFID.
Excessive dispersion and segmentation of the industry
The lack of major suppliers in the market has led to an over-dispersion of the industry. There are too many RFID solutions on the market for users to choose, which makes it difficult for users to decide. Recent industry consolidation will help, but it is not enough.
Too subdivided in the industry means that users need to purchase equipment from multiple sources in order to form a complete solution. Often, users look for suppliers to buy tags and readers, but single tags and readers don't solve all the problems. A complete RFID solution requires design, readers, antennas, tags, brackets or cabinets, cabling, RFID middleware, application software, software integration services, installation services and training.
RFID projects require so many suppliers to participate, which makes project management difficult. The small size of the deployment means that infrastructure deployment is expensive. Excessive segmentation also increases project risk and deployment time. The lack of system integrators with RFID experience also shifts these risks to end customers. It's like buying a car part yourself and then assembling your own car. Although the industry has established standards to ensure compatibility, unless the RFID system integrator is strong, the problem remains unsolved.
Cost of infrastructure replacement
The RFID industry is part of the automatic identification industry. The technology was originally driven by semiconductor manufacturers selling tags. In order to sell labels, these companies began to produce designs and chips for use in infrastructure, readers or receivers.
Although these semiconductor companies have technology and chip-level designs, they lack system-level experience and current practices in the automated identification industry. As a result, there is a large technical gap between RFID readers and existing two-dimensional code infrastructure.
Software engineers with experience in application and database software try to eliminate this gap with RFID middleware. But these software are often very expensive, uncustomized and have poor real-time performance. The use of independent and prior art RFID solutions requires a repurchase of infrastructure and, in addition, there is little connection between RFID and QR codes.
In contrast, a seamless transition between the QR code technology and the image sensor. Compatibility with existing facilities and the similarity of connections are key differences. Although the transfer between the read target (two-dimensional code) and the infrastructure (reader) requires a completely different technique, the back-end techniques required for the two different two-dimensional codes are identical.
To solve this problem, the RFID industry needs to develop a solution that is compatible with existing QR code infrastructure.
Environmental dependence
In my opinion, the environmental dependence of technology is the most troublesome issue. In fact, there are almost no two identical RFID deployments. The 915 MHz RF transmission used by RFID technology can be disturbed by the building or use environment. This has a huge impact on both the label and the infrastructure. In the past 5-10 years, label suppliers have made great progress in the water and metal environment.
Today, users can send samples to label suppliers to help determine the right label and the ideal placement. However, on the infrastructure side, customers are clearly unable to send the usage environment to the vendor to determine the appropriate power settings, shielding requirements, antenna selection and angle.
This also means that RFID engineers need to go to the site for field visits. Ideally, users in the design phase will need to go to the engineer. Many projects fail because the site conditions are not applicable. In my opinion, this is also an important factor in the negative impact of RFID.
Compared to RFID, QR code deployment is simpler. The deployment process only needs to pay attention to the reading distance and angle. Many times, users can purchase QR code devices directly from dealers and install them. For RFID, this is obviously impossible. Of course, the RFID industry can do a lot to solve this problem. The industry needs better, more experienced integrators. Users also need to be aware of the importance of pre-design and installation support.
How to improve the penetration rate of RFID technology
The RFID industry is very disappointed with the popularity of RFID technology. They have been accelerating popularity by lowering the price of labels, which of course is a misunderstanding. Instead, the fundamental problems of the industry are concentrated on the infrastructure and the deployment itself.
Specifically, we need further industry integration, better one-stop system integrators, and RFID solutions that are compatible with QR code technology and let customers know that the installation and deployment methods have a huge impact on the solution.
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