The RFID chip is making strides to replace barcode identification.
Radio Frequency Identification (RFID) chips are tags that contain an antenna allowing the chip to broadcast and receive radio transmissions to and from readers. The chips have endless uses, including the tracking of anything from products, documents, animals and even humans. Since the RFID chips can process and store information, they can easily be updated to keep data current. Congress has, on several occasions, attempted to pass laws requiring RFID chips be mandatory in American identification cards, though they have yet to find enough votes.
Replacing Barcodes
RFID chips have a read-write option, making it easy to keep information current. RFID chips can be reprogrammed, while barcodes have to be replaced. Additionally, while barcodes are bound to around 50 bytes of information, there is nearly no limit to the data capacity of an RFID chip. Though RFID chips are more expensive than barcodes, they become cost-effective when purchased in bulk, as they are a good form of theft protection.
Cost Reduction
RFID chips have been implemented by the airline industry, tracking luggage and flight equipment, an expense that has cost the airlines an estimated $12 billion per year in the past. RFID chips are being implemented in retail stores more and more as well to reduce the loss and misplacement of goods. Because the tag can be read through radio waves up to a few meters away, it is also far easier to keep track of products that use them. It also means a store can potentially know exactly how many products are on the floor at any given time without having to individually count or scan each product or barcode. There is also potential to use RFID technology in ticket sales for concerts and sporting events to prevent against counterfeit ticket sales.
Human Tracking
The use of RFID chips in humans has mainly been in foreign countries where kidnapping may run rampant, specifically against children. In Mexico, a company called Xega offers systems centered on an RFID implant injected into the client's arm. The RFID chip transmits a signal to an external GPS device the client must carry. If the client is kidnapped, there is a panic button on the device that alerts Xega. A satellite can then locate the victim. The company has seen steady sales increases with over 2,000 customers, and they expect to expand operations to Brazil, Colombia and Venezuela.
Revenue
The RFID market exceeded $5.6 billion in sales in 2009 in spite of the recession, an increase of over $240 million from the previous year. The market for pallet, case and item-level tracking is expected to grow by 20.5 percent per year globally, between 2009 and 2014, from $169.9 million to $431.6 million, with recent expansions in its program to include more Chinese and Indian suppliers. Analysts expect the market to reach more than $9.2 billion in 2014.
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