RFID Chris Poulton chris.poulton@smartcitizen IDTechEx idtechex

1. RFID Chris Poulton chris.poulton@smartcitizen.net IDTechEx www.idtechex.com

2. IDTechEx is an independent strategic analyst on RFID smart labels, printed electronics and smart packaging. Our core services provide:

3. Agenda • What is RFID? • Why do we need it? • Compelling Applications • The Future • NFC

4. Reader sends signal and “reads” response Tag RFID System Basics Chip connected to an antenna May be powered Air interface Communications protocol Which RFID frequency? Back end infrastructure Real time connection to network?

5. We are already using RFID • Transport – Oyster, ITSO etc • Door entry • Car blippers • Passports • Citizencards • High end mobile phones

6. Example tag: Diagnostics KSW Microtec RFID tag with paper battery and temperature sensing. 13.56 MHz, range one meter $5+ Monitors blood samples, foods etc. Safety of drugs/consumables indicated

7. RFID Multiple choices of parameter

8. RFID is used for very different purposes • Healthcare – anti-counterfeiting, locating people and assets • Military – efficient logistics, battlefield intelligence • Retail – increased sales, reduced costs • Financial and transportation – faster, more secure transactions • Animals – accurate, fast, disease response, locating lost pets • Library – find lost books, automate procedures, anti-theft

9. Benefits of RFID vs alternatives(e.g. barcodes, magnetic stripe) • No line of sight needed • Greater reliability, speed and accuracy • Tougher for criminals to crack • More tolerant of obstructions and orientation • Works under environmental extremes • Some types gather data during use • Covert, cosmetic • Full track and traceability – from cradle to grave • Reader has no moving parts • Tags and reader have very long life

10. Some compelling RFID applications • Logistics • Security • Safety • Traceability / product recall • Anti-counterfeiting • Proof of ownership • Product handshaking • Carrying information around • Transactions • Positioning / locating • Toys • Brand enhancement • Diagnostics

11. Copiers, Clothing and Livestock Goldwin Sportswear Italy 500,000 per year Livestock millions per year RFID tagged Xerox copier cases auto-monitored Europe250,000 per year

12. Laboratory Test Tubes 13.56 MHz “coil on chip” RFID tag from Hitachi on test tube and a smart shelf for the simultaneous interrogation of large numbers of test tubes.

13. RFID and Merchandising • Nokia mobile phones: New mobile phone NFC technology is enabling users to pay at vending machines, sing karaoke, collect information from posters etc.

14. Smart Shelves A smart shelf system for DVDs in a Tesco supermarket in the UK that has increased sales by 4% due to reducing stockouts

15. Tesco – Smart shelves for DVDs atgoods inwards store in the supermarket

16. Gas Cylinders and Beer Kegs – about 10 million tagged so far

17. Tyre Tread Monitoring • Reporting requirement following Ford – Firestone fiasco • Only feasible with RFID in tyres • Pressure sensing typically added • UHF

18. Road tolling Reader deployment – open flow traffic at LAX airport

19. Item Level Tagging… happening faster than most think Pfizer, Purdue Pharma, GlaxoSmithKline item level tagging NOW Marks & Spencer apparel NOW – 350M yearly from 2008 DVDs in Tesco, books at manufacture, car tyres trials, DHL and FedEx postal packages invitations to tender……….. RFID Market 2006 by Tag Volume Sold Pallet/case 0.5 billion Item 0.2 billion Other 0.7 billion Total 1.4 billion Total Value $1.22 billion Research from “RFID Forecasts, Opportunities & Players 2006-2016” IDTechEx www.idtechex.com

20. RFID Knowledgebase – Applications

21. Most RFID is now packaged in labels not cards but cards remain the big spend

22. RFID Potential market sizes Global Potential (Billion/Year) RFID Leadership Library 0.1 Singapore Museums, art galleries 0.1 Europe Laundry 0.1 Europe Animals 1 Thailand, S America, US, Eur. Tires 1 Europe Tickets 1 Japan, Europe Cards 2 China Military items 2 US Blood 2 Europe/US Test tubes 2 Europe/US Archiving paperwork 2 US Air baggage 2 US, China Air freight 2 US Drugs 30 US Pallets, cases 40 US, Europe Books 50 Japan Postal 650 Europe Retail items 10,000 Europe/Japan/US ITEM LEVEL IN RED

23. RFID Applications and Tag Costs Low VolumeHigh Price $100 Military, medical, emergency services, tracking stolen vehicles $1 Secure access, containers, pallets, car immobilisers, libraries, reusable transport cards 50 cents Laundry, air baggage, archiving of folders and oil cores, cattle, designer goods 10 cents Disposable smart tickets, smart cards, lumber, cartons, expensive retail products High VolumeLow Price 1 cent or less Postage stamps, all barcodes, The Product Internet, archiving sheets of paper

24. IDTechEx forecast for RFID tags 2006-2016 Number of RFID Tags (billions)

25. Novelties For the Curious • Typical drivers for RFID are cost savings through replacing an old technology • However 20% of applications replace nothing • car blippers • talking drugs • toys etc • NFC consortium (Philips, Sony, Nokia, Samsung and HP) set up to market new consumer applications we didn’t know we needed

26. NFC • NFC Consortium set up by Philips and Sony • 13.56 MHz • Philips MiFare and Sony FeliCa compatible • ISO compliance? • Can be powered • Applications • Allows mobile phone to securely download value and emulate MiFare card • Allows mobile phone to read MiFare tags • Intended to provide wireless data port to many consumer electronic devices • Bluetooth competitor • Interest from mobile operators and banks

27. For further information read: RFID Forecasts, Players,Opportunities 2006-2016 RFID in Action Item Level RFID 2006-2016 Real Time Location Systems 2006-2016 The RFID Knowledgebase Over 2000 case studies listed and growing every month. Covering more than 2200 companies, 81 countries Learn from the successes and failures of others www.idtechex.com Tel: + 44 (0) 1223 813703