RFID technology has been around for some time. Traditionally, it has been used in applications ranging from access control and toll collection to security. More recently, advances in range, readability and implementation have increased customer awareness, broadened the technology's appeal and opened the door to a new range of applications such as point-of-sale (POS) payment, baggage handling, document tracking and even medical monitoring. Reducing price levels will continue to ensure RFID adoption in the months and years ahead, but today's users want more than just the right solution at the right price. They demand reliability. True widespread proliferation will depend on the industry's ability to effectively address this issue.

What exactly does reliability mean? In the case of the RFID tag, it refers to basic data. In other words, RFID tags must be able to provide the right information at the right time — every time they are read by an RFID reader.

This growing focus on tag reliability stems from two things: reports of “brain dead” inlays and tag shipments with low yields of functional units and the rise of security-critical applications. A supplier's track record with regard to its tags and inlays is no longer the main issue. Instead, the track record of the tags themselves, as used over time, has fallen under intense scrutiny — especially with regard to how they operate in different environments; whether it is extreme as in the case of radiation or substantial radio interference, or more temperate, as in the case of hot or cold.

Current and emerging security-critical applications also now demand a high level of reliability. It simply is not acceptable to lose track of valuable military cargo, for example. RFID certification may help ensure some level of reliability, but it is also incumbent on tag suppliers to take extra measures.

Achieving the level of reliability now required also mandates that the RFID industry demonstrate some level of maturity. It needs to focus more attention on things like yield and reliability in the field. If the tag loses data or gives unreliable data, then it puts into question the entire identification process. This simply is not acceptable in an industry poised for growth.

While reliability will be a key issue for RFID technology, its price is still a prime concern as well. Lack of IC integration and low production volumes are the main culprits in driving up prices. Once integrated reader chipsets become available, prices will likely fall. This is expected to occur sometime in the 2006/2007 timeframe. Also, as more RFID activities grow from small-scale trials to full-scale deployments, greater production volumes will drive prices down.

While no one knows for sure when this will occur, the signs are promising. In 2004, the global RFID market rose to $1.75 billion, and in 2006 suppliers worldwide will initiate pilot programs. In Asia, for example, these efforts will be spearheaded by Korea and Japan. If the issue of rising cost can be kept at bay and the need for reliability adequately addressed, pilot projects are sure to continue at a steadily increasing pace; making RFID finally ready for its primetime debut.