Now that the year is drawing to a close, Taggedplanet reviews a few new introductions from 2006.

2006 saw Gen 2 tags gaining a firm hold, which is good news for the retail supply chain. Interoperability is improving and better quality tag silicon is now available. Interest in item-level tagging is picking up, which is crucial for the long-term development of RFID. Perhaps the most heartening news is that ROI predictions for display tagging, airline bag tagging, and other niches may be fulfilled.  Other segments that showed encouraging signs include aviation and fashion markets.

RFID is also becoming a part of equipment being offered by manufacturers such as Lantech, a company which manufactures stretch wrapping machines. Lantech will provide the Symbol RD5000 RFID reader in the form of a drop-in option on its semiautomatic pallet stretch wrappers. Battery power and a motion detector power the reader which comes equipped with a wireless LAN capability.

Pharmaceutical companies will now be able to read HF and UHF tags simultaneously courtesy Blue Vector which has developed a reader tunnel that will allow UHF and HF tags to be read simultaneously. The setup will use readers from Symbol technologies.

TampTenna from Diagraph is a Class 1 RFID encoder retrofit option meant for its PA/5000LT Printer/Applicator. With this device it is possible to check and encode the RFID tags as they are placed on the package. The device works with tags from Avery Dennison, Zebra, Alien, and UPM Raflatac. It confirms whether the tags have been actually placed on the product or not.

The S84 is a series of print engines developed by Sato. These 4” wide devices have an RFID encoder already installed and will find application in manufacturing and product fulfillment.

The NCR TransitionWorks 5.2 software is designed for use in turn-key operations. It promises faster processing of information and smooth device integration. A graphical process modeling tool for AIDC design and more XML features are a part of the software.

On the education front, Lowry Computers has opened an RFID Center in Orange County, CA. The center will not only test but also develop RFID solutions for its clients and offer expert advice on issues such as tag-placement on the product. The center will also offer vendor-neutral RFID certification courses.

The DoD is a huge customer of RFID tags and now GlobeRanger has unveiled its new RFID software for companies that must adhere by the strict DoD regulations. The iMotion Edgware software is the basis for the DoD Supplier Solution Accelerator. The iMotion is already being used by several DoD installations to manage RFID readers, motion sensors, and handheld readers.

RFID Anywhere 3.0 from Sybase is the latest addition to its suite of network management software. The software will deliver better asset tracking and location and it integrates support for handheld, forklift, and PCMCIA card readers.

Assembly line production units can now make use of the software system by HK Systems which monitors and saves data that has been gleaned from RFID systems.

Unilever will be testing the ambitious Electronic Product Code Information Service (EPCIS) developed for it by RedPrarie. EPICS will be used as a supply chain and distribution tool for Unilever where tag information will be generated and assigned to cases and as the cases leave a warehouse, the information will be captured and stored in a single database.

An important finding was reported by Odin Technologies after it conducted tests on 18 RFID tags for performance under different conditions. Tags from companies such as KSW, Alien Technology, and OMRON were tested in the frequency ranges of 866-869 MHz, 902-928 MHz, and 951-954 MHz. Odin has been granted a patent for its technique of locating the best place for an antenna and tag on a piece.

According to IDTechEX 2006 was supposed to be the year in which RFID was expected to gain a footing in the retail industry. However, this is not how things have turned out and it does not look like 2007 will be any different. The main hurdles are high cost of tags and technical drawbacks in passive RFID.

RFID in retail may not have picked up but there is hope that the airlines and defense sectors will come forward as the biggest patrons of this technology. Contactless smart cards are also another exciting option where RFID is being deployed. The UK National ID card scheme is set to become the largest RFID exercise in the world. So long as the retail industry is unable to see any sustainable returns from investing in this technology, RFID will remain of use only in select niches.

Even though the business case for RFID is supposed to be strong, the technology is still not on a firm footing; ABI Research says that the reason for this is that the unit price of the RFID tags is still more than what the businesses would like it to be. The situation is a bit of a conundrum because prices can drop only if the passive RFID tags are produced in a large volume and the volumes will occur only when the businesses find the prices to be suitable.

So, what we are basically trying to achieve is an economy of scale across verticals that would give businesses a reason to invest in this technolgy. Till that happens, RFID will remain a technolgy of use mainly to those businesses that deal in expensive or persihable items.

The ABI Research report states that many leading EPC Gen 2 RFID vendors are actually functioning as “loss leaders” hoping to recoup their losses when the technology catches on. Yet, this can only be seen as a temporary activity that will give a short-term boost to RFID use. What is really required is the lowering of prodcution costs so that a business case can be made across a value chain.

Analyst firm Frost and Sullivan reports that the RFID printer and encoder market is set to grow at the rate of more than 50% per annum and the market in 2012 will be worth $209.3 million. This is a quantum leap from the market size in 2005, which was a mere $10.7 million. The reason for this phenomenal growth is that most RFID deployments require encoding and automatic validation capabilities.

Along with the European and American markets, the Asian markets are also set to witness a growth in the market for printer/encoder applications. The reason for this is that many manufacturing and retail hubs in Asia are working in sync with the giant retailers of Europe and North America and mandates that affect these retailers will affect Asian markets too.

The increase in the sales of the encoders and printers also points to the fact that RFID adopters would rather print their own labels than source them from outside. The idea of in-house RFID label printing also gains strength from the availability of wireless printing solutions and software-based upgrades. At the same time, a lack of understanding of what RFID entails and the technical skills required for it are also slowing down the adoption of this technology.

AdvantaPure has come up with RFID tags that are resistant to gamma radiation, GammaTag as the tag is called will allow pharma companies to start tagging before the sterilization process. The tags will be absorb radiation up to 45 kilograys. Many sterilization processes require gamma-irradiation and till now RFID tags had failed to absorb the radiation and survive. The new tags will allow for earlier tagging leading to improved supply chain procedures. The GammaTag will cost around 20-25 cents more than the standard tags but for many companies the advantages of full traceability outweigh the cost increase. The GammaTag is a read-write tag.

CMP RFID World will be hosting the first “RFID Excellence in Business” Awards. The event is billed as the largest industry event with a focus on RFID and is scheduled for March 26 – 28, 2007. The venue for the event is the Gaylord Resort Hotel near Dallas. More than 200 companies from all over the world will be exhibiting their wares at the site. Sponsors include ThingMagic, Reva Systems, Impinj, BEA Systems, and others.

The objective of the award is to recognize and promote achievement and innovations that further the cause of RFID. You can submit applications for the award at www.rfid-world.com. The deadline for submissions is 12:00 p.m PST. There are five categories and each submission will be judged by three distinguished authorities. An interesting aspect to the award is that the winner in one category will be decided by a vote from the people attending the function.

If you are a business house looking to introduce RFID into your production and tracking or for any other use, be sure to book your ticket for the conference. There will be many new ideas discussed that can help you gain awareness. You can meet important decision makers and learn about the primary factors that influence the adoption of RFID across various verticals.

Frost and Sullivan have reported that the RFID market will continue to grow and that too at a CAGR of 20% for the next six years. According to the report even though the technology is really taking off there is a lack of trained personnel that may hinder smooth adoption by industry. For learning more on the impending shortage of qualified people to handle RFID, go here.

Factors that are in favor of rapid RFID adoption include establishment of global standards, interoperability, and a reduction in prices. The prime mover for the technology of course is the cost and now we have tags that are available for around 10 cents. High-end electronic items and pharmaceuticals will adopt RFID more aggressively as compared to other industries in 2007.

Malaysia has decided to turn to RFID to combat car-theft. Thirty luxury cars are stolen daily in Malaysia. Car license plates will now be embedded with microchips that will contain information about the vehicle and its owner.

The government hopes that this will bring down the number of car thefts in the country and tracing stolen vehicles will become easier; for example car details can be checked at roadblocks. New cars that roll off the plant will come with the system in place and existing cars will be made compliant in stages. The RFID chip will transmit data up to 100 meters and its battery will last for 10 years.

Sybase iAnywhere has come out with a feature-packed version of its Anywhere sensor management software. In its new avatar, Anywhere 3.0 comes with location tracking capabilities and greater support for an increased number of sensor technologies.

The new version will allow better tracking and reporting of the collected data into a single system. The data can be gathered from technologies such as active and passive RFID, Real Time Location System (RTLS), and even the age-old barcodes. Sybase believes that the new generation of RFID will help companies in making advanced business decisions. This is an evolution ahead of what the technology was used for earlier – mainly asset tracking.

With RFID Anywhere 3.0, businesses can access contextual information from a common infrastructural arrangement that acts as a repository for data gathered through various sources. The software can be deployed on multiple locations and customers pay based on the number of data collection sensors that they choose to attach to the sensor network.

The upgraded RFID Anywhere 3.0 will use Application Protocol Interfaces (APIs) for extracting location data from RTLS devices supplied by companies such as AeroScout and Ekahau. Companies can now use forklift-mounted readers and handheld computers to read RFID data. This is an addition in the upgraded Anywhere 3.0 software; this was not present in the older versions. Other new features include a new label designer, enterprise-messaging connectors for Java messaging service and message-oriented middleware from WebSphere.

The US Department of State decision to use Gen2 technology for RFID-enabling passports has met with opposition by the Smart Card Alliance. The SCA counts in its ranks many top notch tech firms and it believes that the passport tagging better achieved using the ISO/IEC 14443 standard which is a standard for smart cards and not Gen2, which is better suited to supply chains. The passport card program aims to allow US citizens who re-enter the US from Canada, Mexico, and the Caribbean nations a passport alternative.

The SCA’s arguments against Gen2 for the passport card program are that with Gen2 there is a chance of secure information on the passport getting compromised; also the technology is unable to guarantee the authenticity of a passport. The SCA argues that this vulnerability of Gen2 can lead to public distrust of the entire RFID technology.

The RFID standard forwarded by the SCA has a reputation for performing well in applications where security is paramount. Interestingly, the US government is already using the ISO/IEC 14443 for its ambitious ePassport program. If the same standard were to be used for the passport card program, it can use the same hardware and infrastructure and the deployment would be easier.

Since there is a precedent of the US government using the ISO/IEC 14443, it seems that the SCA does have a strong case; and for those who may feel that business interests are behind the SCA’s push for ISO/IEC 14443, here’s an interesting fact. Several members of the SCA are big players in the supply chain RFID field. These include Zebra Technologies; Texas Instruments; VeriSign; NXP, and others.