The growth of Industrial Internet of Things (IIoT) and cloud have given a huge boost to the adoption of radio frequency identification (RFID) technology in Manufacturing 4.0, according to a recent market analysis by Frost & Sullivan.

The interconnectedness of devices has resulted in massive volumes of RFID data that needs to be managed and analysed, prompting RFID manufacturers to develop high-memory tags that can hold more information, software platforms with a business intelligence layer, as well as cloud-based solutions, asserted Frost & Sullivan’s report `RFID in Global Manufacturing 4.0 Market, Forecast to 2025.’

Focusing on the trends, challenges, and factors driving the market sectors of tags, readers, and software and services, the report pointed out that the RFID companies have innovated to harness the growth opportunities generated by Manufacturing 4.0. Also, the report suggested that passive RFIDs has a competitive edge over active RFID but technological advancements are helping to close the gap.

“Due to the rising need for resource and cost efficiency, manufacturers are demanding complete visibility and adopting RFID solutions that aid the real-time location tracking and monitoring of their assets, business processes, and personnel,” said Nandini Bhattacharya, Industry Manager for Measurement & Instrumentation at Frost & Sullivan.

“Passive RFID has experienced high-volume deployments in the past and will continue to grow, especially in the ultra-high frequency segment, while active RFID, although a smaller market, has potential in real-time location system (RTLS) applications.”

“As the total cost of ownership (TCO) of an active RFID system is prohibitive, small and medium enterprises opt for the more affordable passive RFID solutions,” noted Bhattacharya. “Active RFID manufacturers need to focus on the standardization of active 433 MHz RFID to drive its growth. The rising ubiquity of ultra-wideband (UWB) and Bluetooth low energy (BLE) RTLS solutions will give the solution an added boost.”

Overall, the growing demands for automation and digitisation are creating considerable growth opportunities for RFID vendors, it said. To take advantage of the market growth, Frost & Sullivan recommends RFID vendors to:

• Offer solutions that can be easily integrated into the existing manufacturing infrastructure and can enable IoT connectivity;

• Provide precise and accurate RTLS solutions at competitive prices;

• Develop devices with faster read rate, ability to read more number of tags in a single read as well as highly sensitive antenna, compatible form factors, and increased mobility; and

• Gauge customers’ requirements and re-structure their business models accordingly.