Industry 4.0: What you need to know about radio frequency identification


Frost & Sullivan has issued a new report analysing the global radio frequency identification (RFID) technology in the Manufacturing 4.0 market.

According to the study:

1. The growth of Industrial Internet of Things (IoT), automation, digitisation and cloud markets are driving increased adoption of RFID technology in Manufacturing 4.0.

The massive increase in IoT devices has led to the creation of large volumes of data needing to be managed and analysed. This has pushed RFID manufacturers to develop high-memory tags, software platforms with business intelligent layers and cloud solutions.

2. RFID companies innovate to harness the growth opportunities generated by Manufacturing 4.0.

3. Passive RFIDs has a competitive edge over active RFID but technological advancements are helping to close the gap.

Nandini Bhattacharya industry manager for measurement & instrumentation at Frost & Sullivan, said: “Due to the rising need for resource and cost efficiency, manufacturers are demanding complete visibility and adopting RFID solutions that aid the real-time location tracking and monitoring of their assets, business processes, and personnel.

“Passive RFID has experienced high-volume deployments in the past and will continue to grow, especially in the ultra-high frequency segment, while active RFID, although a smaller market, has potential in real-time location system (RTLS) applications.”

To take advantage of the market growth, Frost & Sullivan recommends RFID vendors to:

  1. Offer solutions that can be easily integrated into the existing manufacturing infrastructure and can enable IoT connectivity.
  2. Provide precise and accurate RTLS solutions at competitive prices.
  3. Develop devices with faster read rate, ability to read more tags in a single read, as well as highly sensitive antenna, compatible form factors, and increased mobility.
  4. Gauge customers’ requirements and re-structure their business models accordingly.

“As the total cost of ownership (TCO) of an active RFID system is prohibitive, small and medium enterprises opt for the more affordable passive RFID solutions, adds Bhattacharya.

“Active RFID manufacturers need to focus on the standardisation of active 433 MHz RFID to drive its growth. The rising ubiquity of ultra-wideband (UWB) and Bluetooth low energy (BLE) RTLS solutions will give the solution an added boost.”

For more information about the report, visit: