We need RFID in an era of rapid technological development

Today, rapid technological development and iteration—especially in the realms of the Internet of Things (IoT) and the Industrial Internet—are reshaping how businesses operate. As a foundational sensing technology in IoT, RFID enables efficient data collection and real-time tracking, acting as a bridge between the physical and digital worlds. RFID tags, cards, and wristbands provide powerful support across industries such as retail, logistics, data centers, and event management.

With the rise of cloud computing, big data, and AI, the demand for real-time, accurate data has surged. Far from becoming obsolete, RFID technology is gaining greater significance. This article explores the unique advantages of RFID, its integrating with advanced technologies, how it reduces labor costs and human error in applications such as inventory automation, and highlights the recent trends and case studies demonstrating RFID's irreplaceable role in digital and intelligent transformation.

Unique Advantages of RFID Technology

RFID uses radio waves to identify and track objects. Compared to alternatives like QR codes and Bluetooth, it offers several key advantages: 

● No line-of-sight required: Unlike QR codes, RFID tags do not need visible light, enabling rapid data collection in those complex environments.

● Simultaneous multi-tag reading: RFID can read dozens of tags at once, greatly improving efficiency over individual QR scans.

● Longer read range: RFID tags typically offer read distances ranging from several meters to 10 meters—far beyond the 5–8 cm range of QR codes.

● Durability: RFID performs reliably in harsh conditions such as high temperatures, moisture, or dirt, making it ideal for industrial use.

● High security: Encryption can be applied to RFID data, reducing the risk of unauthorized access.

● Long lifespan: Unlike Bluetooth, passive RFID tags require no battery and can last up to 20 years, with low maintenance cost.

These advantages make RFID indispensable in IoT and the Industrial Internet, especially for scenarios demanding efficient, reliable data collection.

RFID Meets Cloud, Big Data, and AI

RFID-generated data—such as IDs, locations, and movement trajectories—provide rich inputs for cloud computing, big data analytics, and AI systems. Stored and processed via the cloud or edge computing, this data helps discover trends and patterns, enabling predictive analytics and automated decision-making through AI. For example:

● Predictive maintenance: In manufacturing, AI analyzes RFID data to predict when machines need maintenance, reducing downtime.

● Inventory optimization: In retail and factory, RFID-driven inventory data combined with AI helps maintain best stock levels and reduce waste.

● Anomaly detection: AI can detect irregularities in RFID data, such as stock shortages and so on.

● Enhanced security: AI algorithms can flag unauthorized tags or abnormal movements, protecting high-value assets.

In real-field applications, AI-processed RFID data enables real-time inventory optimization and anomaly detection in retail and logistics. The technology is now widely used across industries including healthcare and manufacturing.

Applications Across Industries

RFID plays a critical role in various sectors. Here are some stand out use cases.

Retail: Streamlining Inventory Management

In retail, RFID improves inventory efficiency through automated tracking. For example, restaurants can track food ingredients from suppliers to kitchens using RFID, achieving real-time supply chain transparency. In an actual case, manual inventory checks have been shortened from 30–45 minutes to just seconds. This reduces labor costs and minimizes errors.

Logistics: Enhancing Transparency and Efficiency

In logistics, trucks outfitted with RFID readers can process and track parcels rapidly. Combined with real-time traffic data, RFID helps optimize delivery routes, reduce fuel consumption, improve on-time delivery rates and also reduces manual scanning errors and increases supply chain transparency.

Data Centers: Automating Asset Tracking

RFID helps track servers, networking equipment, and other IT assets in data centers. Attaching RFID tags to servers allows operators to quickly locate and manage inventory automatically, minimizing human error. In centers with over 10,000 servers, RFID dramatically shortens inventory audits and enhances equipment availability and security.

Event Management: Enhancing the Attendees Experience

In events like music festivals and sporting events, RFID has proven revolutionary. Festival organizers use RFID wristbands to streamline access and elevate the participant experience.

With tens of thousands of attendees, RFID enables entrance systems to scan 20 or more people per minute—reducing wait times and entry-point bottlenecks.

RFID also boosts security: each tag's unique identifier makes ticket duplication nearly impossible. Furthermore, real-time tracking of attendee movements enables better crowd flow mangement.

Latest Trends in RFID Technology

RFID is at an important evolutionary point. Here are some current trends:

● AI integration: AI is increasingly applied to RFID data. AI-driven platforms optimize in-store product placement and layout, improving customer experience.

● Sustainability: Reusable RFID tags are being designed for use in returnable packaging to support circular economy initiatives and reduce waste.

● Enhanced compliance: RFID improves traceability and compliance in industries like pharmaceuticals, food, and automotive manufacturing.

● Innovative applications: AI fitting rooms powered by RFID offer personalized shopping experiences.

These trends show RFID moving toward smarter, greener, and more regulation-compliant directions—delivering greater value to businesses.

Conclusion

As technology evolves, the value of RFID only becomes more pronounced. Beyond simple ID recognition, RFID is a driving force behind IoT and the Industrial Internet. In 2025 and beyond, the fusion of RFID with AI and sustainability technologies is expanding its use cases. From manufacturing and retail to data centers, event management, and logistics, RFID is powering digital transformation across industries.

We will continue to track developments and best practices in RFID deployment and remain committed to innovation—delivering high-value RFID tags, cards, and wristbands to help customers stay ahead in their digital transformation journeys.