Top 10 RFID Trends of 2006, Part 1 (RFID Update)

As return-on-investment stubbornly eluded end users under customer mandate, many got creative with RFID by seeking ROI from non-compliance applications. The most common was closed-loop asset tracking, in which RFID is used to better track, manage, and utilize assets within a company's own four walls. Asset tracking provided a much-needed revenue stream for some passive RFID vendors, however it will likely only be a stopgap niche; these vendors still require the widespread adoption of supply chain RFID to survive and thrive in the long term. Furthermore, it has proven difficult to quantify just how large (or small) the asset-tracking opportunity is, since the applications are so diverse and particular to individual end users' processes.

The focus on asset tracking also opened end users' eyes to the full gamut of available technologies, beyond just the passive RFID required by mandates. Vendors of active RFID and real-time locating systems (RTLS) benefited as they landed business in the healthcare, logistics, and manufacturing industries. RTLS saw a further boost as G2 Microsystems introduced a new chip that brought down the price, energy consumption, and form factor of tags. These positive developments did not go unnoticed by investors, who bought equity in firms like RF Code, Ekahau, and Ubisense. Also, by far the biggest deal of the year was juggernaut defense contractor Lockheed Martin's acquisition of active RFID leader Savi Technology for a cool $425 million.