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A comprehensive review of the RFID market in 2008

Author: Lu Shaoke

2008 domestic RFID industry seems to have accelerated the trend, to the Olympic Games as an opportunity, China RFID enterprises have made great progress in technology and application etc.. China RFID market growth also has received worldwide attention, the international manufacturers generally optimistic about the Chinese market. (some manufacturers is more direct action, strengthen cooperation and China manufacturers. Although the situation is good, but has been restricting the development of RFID has not been perfect solved some factors. In order to fully examine the past year, dynamic dispatch net from positive and negative six aspects to do a review, summed up the 08 years of RFID market.

New power of Beijing Olympic Games brings to RFID

Olympic Games are the engine of the development of new technology, the Beijing Olympic Games is no exception. In order to assist the Olympic Games, the RFID industry using two magic weapons grade application -- anti fake ticket and food safety traceability. After testing more than 10 days, the two application has been the praise of the world, both to protect the Olympic security, but also makes the China accumulated a lot of valuable experience in the field of RFID.

Beijing Olympic Games is the first comprehensive use of RFID technology to carry on the anti fake ticket of Olympic games. The Olympic tickets are loaded China self-developed, the smallest of domestic RFID chip. The chip contains related information to purchase the ticket, ticket machines on a brush, you can activate the backstage database, thus out of the audience's personal information. Both for the convenience of the audience votes, can effectively prevent the ticket forgery.

Food safety traceability is RFID in another major application of the Olympic games. The technology focus on the prevention of 4 kinds of food emergencies: food borne diseases, abuse of prohibited substances in food of animal origin, high toxicity and residue of illegal use of pesticides and food additives, and the biological, chemical, radioactive and other that malicious food pollution event. The Olympic Games do whole food RFID tags, monitor the whole process plant, transportation, classification, acceptance and storage process, improve the stop the 4 kinds of food emergencies. More than ten days, the athletes and staff of China in food grades praise heard, fully affirmed our tracking application of RFID food success. (see dynamic news network topics: RFID in the Olympic two application)

A stable expansion application in industry

In the application of the industry, not only the traditional transportation and logistics industry is still booming, the field of tracking, in the medical equipment of food safety traceability, asset management has made expansion on the application. The application in China still retain their own characteristics, in 2008 the government led projects will remain a hot plate, according to statistics, at present, the main application is as follows: the warehouse / transportation / logistics industry; access control / attendance; asset management.

Dynamic news network that the above application distribution situation in 2008 will continue, including logistics and transport areas may further expand. Because of China's manufacturing industry vigorous development, the third party logistics and transportation as the supporting industries have emerged, according to unofficial statistics, China has about over thousands of logistics and transportation company, the current M & A activities in this field have occurred, some large third party logistics enterprises will appear in succession, in order to achieve higher operating efficiency and they will cooperate with all over the world transportation business partners, to make partner networks to achieve cooperation effect, using the RFID system will be a feasible way. IDC data show that in 2008 the scale of the third party logistics enterprise application of RFID can reach 55340000 yuan, to 2009 this scale will be 100 million.

Technology integration and application to extend deeply

For RFID, currently in the typical demand driven technology stage, so the industry are looking for new applications. Previously, the application on the RFID are talking a lot, mostly concentrated in the logistics, medicine and food safety, goods tracking, and ticketing related identification etc.. While in some developed countries, human rights based on the consideration of all the obstacles in the identification of the relevant personnel, such as California in the United States have passed laws that limit the use of biological chip RFID and tracking of personnel, including prison inmates, reportedly also some states subsequent under study. (the new California bill reads the RFID tag information illegal and unauthorized) but it seems to help in the development of new means of identification and new application of effort. Recently, Samsung RFID will read the single chip implanted in the mobile phone, the reader is actually a reading card, the size is 6.5 * 6.5mm card, the chip card the working frequency is 900MHz, which is integrated with a RF front end, a microprocessor with a baseband modem, there is a memory chip. Thus, to achieve a truly "application mode everywhere". "Our goal is at any time and anywhere since mobile way to access the identification information", Samsung Electronics LSI manager ChiheeChung said, "there is no doubt that the recognition technology of mobile single chip RFID we become the most important computing technology evolution step on the road everywhere". If you did not think, probably just think it will for the application of RFID industry bring a lot of convenience, but it ignores the application meaning more deeply, that is, it can make any consumers in the purchase of goods before, to read the identification information through their mobile phones, to determine the authenticity of consumer goods, thus giving a pair of "light". On the other hand, extend this also drives the mobile phone function. There is a Canada Company, recently launched the world's first use of Bluetooth mobile RFID reader. Implementation scheme of dedicated like pen like Bluetooth reading pen, and every kind of handheld devices. But the essence is the use of the built-in Bluetooth technology, complete the automatic recognition of various labels, thus no data link to the server, more is to save a lot of heavy equipment, reduce cost.

In the pure application field now also in constant evolution. The initial target application RFID only objects recognition and tracking. But with the development of Internet and personal area network, presents a given RFID more feature rich trend. For example, have emerged through the Internet to remote control industrial applications and medical application of refrigerators, through the RFID to achieve the temperature precision management, the implementation of the items inside the refrigerator quantity and change etc. The patient information by implantation of RFID in low cost, remote medical also began to appear.

The shortage of talents which restricts the development of enterprises

A market research firm recently published report pointed out that the expected compound year manufacturing and logistics of the RFID market growth rate will be close to 20%. But about 75% of the surveyed enterprises of science and technology said not enough trained staff in this area. 80% of respondents said they believed that the lack of relevant personnel will hinder the promotion of RFID. (RFID talent gap is a worry)

An electronic commerce and software solution to the VP said that in the comprehensive promotion of many factors, the RFID market will continue to grow, but the enterprise must attach importance to staff training, to ensure that the technology can be used for the. Global standards, interoperability and falling prices are conducive to get the rapid adoption of RFID. In 2007, consumers see more RFID tags in a single item above. They will appear in the electronics and pharmaceutical high-end above, and then into the other everyday products. When the RFID is used in clothing and personal items such as above, the retailer may allow consumers in the checkout counters through RFID tag checkout. But the priority is the enterprise must be trained or hired mastered the technologies of the RFID.

Cost factors restricting the development of RFID

The price is still a Hom RFID insurmountable. Display ABI survey firm published an article on the end user survey, although the RFID technology has so many advantages, but when it comes to RFID, people will have a lot of questions. The first is: who is going to pay for RFID? (a huge cost RFID encounter retail universal problem) with the RFID tag as an example, the industry has generally believe that each of the 5 cents is a "blowout" critical point price, now the results of 5 cents per label has been reached, the mouth of a well production has increased, but with the blowout phase go far, soon even before each one cent did, so what? If purely by low-cost RFID technology promotion, the effect is certainly not ideal, especially for the mass consumer goods manufacturers, supermarkets and other retailers, they have to manage a commodity millions of pieces, even if each tag prices just a penny, this is a very substantial cost!

China's promotion of RFID compared with the developed countries not to say is Binghuoliangzhongtian, but at least that there is a big difference. Mainly because China has the ultra cheap artificial cost. "For example, China has a printing plant, because of the international business is more, involves a variety of language products, in a warehouse hired 200 people managers feel hard, but also do not want to RFID system". According to Shenzhen Huitian company marketing manager Cheng Mingming provide information, last year, almost no what local user, Chinese encapsulated chips are almost all exports, he also believes that this year the situation is not too good. Although this year the overall development of the situation will be better than last year, but the distance "there is still a considerable distance fire" degree! Although RFID related costs each year to a rate of around 20% in the fall, but the pace of decline was less than expected, according to the survey found that, in China, consumers on the RFID tablet core costs psychological price should be in 0.5 yuan of the following.

Dynamic dispatch net thinks, though the cost problem is still in, but should not be blindly pessimistic. Experts also pointed out, the price tags for the RFID market is very important, but it is not only the key limiting factors. The user should be the cost of construction and operation of RFID system in the system put weigh down income backgrounds, namely from the input-output ratio of perspective to judge. Because China has a special case, namely the cheap labor and excessive population. With the RFID cost every year in the fall, the problem should be gradually fade out in the last two years.

The safe hidden trouble of RFID application

Detonating cords from NXP Mifare (contactless smart card chip to be cracked events) classic. Later, Holland researcher revealed, London Oyster travel smart card chip group similar are also used in security vulnerabilities. While the Mifare Classic chipset used in the researcher's experimental safety protection in "null and void". The chip manufacturer company NXP caused great panic. The industry which began on the RFID to the security of a new round of intense discussion. (see dynamic news network topics: RFID technology trapped security problems)

The focus of this discussion is that reading and convenient RFID, makes the personal information stored on the chip very easily by other people get. And even in many non voluntary given circumstances, their privacy information will be read in casual, and even cause by tracking. For access control products and financial products, more serious consequences. Break the chip, hackers can extract the original card information to replicate a and the original card with the same authentication information in the new card. Use the clone card, a hacker can free access to restricted areas, or credit card spending. Build using RFID technology of mobile payment function is the global popularity, consumer acceptance and love this portable consumption patterns, the market prospect is very considerable. However, one day does not lift the safe hidden trouble, the real mobile payment times will not come.

The privacy issues for the RFID technology, is unavoidable, so the industry have adopted a positive attitude towards. Although there is no totally effective treatment to eliminate "illegal hacking" and "clone", but the government and companies are actively seeking solutions. New laws and regulations, and the research of new encryption technology, makes the event right direction, as the rapid development of RFID technology, foster a healthier environment.

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