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Top 5 Industries Benefiting from RFID Technology Adoption

  • Akansha Sharma
  • May 09, 2023
  • RFID
Top 5 Industries Benefiting from RFID Technology Adoption

AIDC has become an essential part of most industries. A majority of medium to big-sized business uses RFID technology to perform essential tasks like asset tracking and supply chain management. However, there are some industries where this technology has become godsent and has propelled productivity significantly. Today, we will discuss the top 5 industries benefiting from RFID technology adoption.

But, before we do that, let us first go over what RFID technology is & its applications.

A Brief Introduction to RFID Technology

Radio Frequency Identification, also known as RFID, is a technology of wirelessly communicating information by using radio waves. It is a type of AIDC system consisting of two major components, namely RFID Tags and a Reader. The tag enters the interrogation field (electromagnetic field) of the reader, and either backscatters the signal or broadcasts its signal. The reader then receives this signal using its antenna and converts it into a readable format.

RFID has become a prevalent piece of technology in the day-to-day operations of many industries. It streamlines a lot of processes, hardens security, and helps in improving productivity.

Applications of RFID Technology

As stated above, radio frequency identification systems have a variety of applications in the present day, from tracking to security to billing, we use RFID in almost all time-consuming identification & data capture processes. So, let’s check out some of these applications-

Asset Tracking

The most popular application of RFID technology must be asset tracking. Industries of almost all sorts utilize this technology to track items all the time. By successfully implementing this technology, businesses can keep track of the real-time location of their assets (items, products). This is not only used in industries like manufacturing or retail, but you can also use it in warehousing to locate items quickly for transit. It is also used in the healthcare industry, specifically hospitals to keep track of life-saving equipment and patients. RFID can be and is used throughout the supply chain to track the products from the time they’re just mere raw materials to the time they are in the hands of the consumers.

Security Systems

Another popular use of this technology is to set up robust security systems. You may have often seen security gates just before the exits of retail shops, these are RFID readers. RFID automatically identifies any tag within the interrogation zone of the reader. By strategically placing readers at the entry-exit points, inventory room, and display cabinets, businesses can ensure that no item leaves the store without authorization. Many high-end shops also utilize near-field antenna readers for the purpose of billings. This not only automates the process of making a bill but also eliminates the possibility of human error and over-charging.

Access Control

Many businesses employ this technology for access control, rather than traditional security staff. Like any human resource, traditional security staff is vulnerable to mistakes, negligence, and bribery. So, businesses simply automate the whole process with the help of RFID. Now, all you need to do is provide the authorized personnel (employees) with an encrypted RFID Smart Card. This system is also used in private parking systems, like Park+, a company that provides parking identification systems in residential societies. By implementing passive RFID tags on vehicles, you can automate the gate/parking security & deny access to anyone who isn’t authorized.

Supply Chain Management

Supply chain refers to the entire journey of a product from the time it’s raw materials till the time it becomes a finished product in the hands of the consumer. In order to ensure proper operations, managers & owners have to manage the movement of the items each step of the way. This includes making sure that all the materials are available along the production line at the time they are needed, preparing shipping manifests, storage location in the warehouse, transit of items between checkpoints, etc. Any errors in these processes can lead to increased costs and losses. By implementing RFID, you can easily automate this process and eliminate the possibility of any error.

Inventory Management

An essential part of running a business, especially a retail business is inventory management. Recording and controlling the inflow and outflow of items allows businesses to overcome problems like out-of-stock items, stock shrinkage, theft, item retrieval, etc. RFID is linked to the system and updates the database in real-time, whenever an item is moved from one location to another. According to studies, this technology has been shown to reduce theft by up to 75%. It also alerts you when a particular item is about to run out of stock so you can replenish it.

Which Industries Benefit the Most from RFID?

Now that we’ve discussed the basic applications of implementing RFID in different business industries, let’s check the industries that benefit the most from this technology.


Implementations of RFID in the retail sector have shown significant enhancement in productivity. By streamlining and automating time-consuming processes like billing, inventory management & data collection, RFID makes day-to-day retail operations vastly efficient. In addition to that, it also provides a component of security, studies depict that such systems can decrease the cases of stock shrinkage & theft by 55% and 75% respectively.


In the healthcare industry, hospitals use RFID to keep track of valuable items and resources. For example, tagging medical equipment like Defibrillators, ECG Machines, Crash Carts, etc, allows medical workers to locate them quickly in the event of an emergency. They can also use these systems to keep track of patients.


This is one of the most profiteering industries for RFID manufacturers and supplies in the present day. The aviation industry has heavily invested in AIDC technology like RFID to ensure robust safety systems. For example, airlines use RFID systems to keep track of essential aircraft components to ensure that it is ready for use. In addition, they also use this technology for the purpose of safety checks before every flight. The introduction of RFID in this sector has greatly reduced the risk of errors, further making flying safer for people. Also, airlines use RFID tags to have a real-time track of the check-in baggage of flyers, this has helped in preventing baggage loss and improved the chances of retrieval of lost items.


Security sectors prefer the use of this technology due to its reliability and low cost. By successfully implementing RFID into security systems like employee access control systems, attendance systems, etc., companies can automate a lot of unproductive processes that cost human resources. Automated systems like these are also invulnerable to errors or negligence and provide a greater level of security & accurate data.


Lastly, manufacturing industries have taken a huge advantage of radio frequency identification in the last decade. From logging incoming raw materials shipments from suppliers to making manifests of outgoing products to the warehouse, these companies use RFID throughout the whole process. This technology allows these businesses to coordinate and ensure the smooth movement of every asset along the production line. This makes the manufacturing process more efficient and prevents needless loss of raw material. It is also important to note, that using RFID can help you determine the sectors in your plant facing delays and productivity issues.

Frequently Asked Questions:

Q1. Which industries are RFID used in?

Ans - This question would have quite a long answer since any industry where tracking, logistics, and inventory management is involved can successfully use RFID technology. However, let’s name some industries where this technology is very popular-

(A). Retail

(B). Warehousing

(C). Logistics & Transportation

(D). Construction

(E). Healthcare

(F). Automotive Manufacturing

(G). Aviation

Q2. How is RFID technology used in industries?

Ans - There are many applications of RFID technology in the business sectors, like – asset tracking, inventory management, file & document tracking, security, access management, etc.

Q3. What are the benefits of RFID in fashion industry?

Ans - The fashion industry often deals with high-end clothing & accessories like designer dresses, luxurious jewelry, luxury accessories like bags, etc. Theft of any such item can lead to a lot of chaos and loss, not to mention reputation harm for the event organizers. Thus, every venue is outfitted with RFID security systems, even storage. All the items are tagged with RFID tags, and the high-value items are even tagged with active tags to provide real-time location.

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  • Created on May 09, 2023

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