World News: Active vs passive RFID match isn’t over yet, says ABI

World News:  Active vs passive RFID match isn’t over yet, says ABI

Although the ISO committee concerned with cargo container security has finally released a standard based on active RFID, many end-users would prefer to employ passive RFID solutions, or none at all.

In the absence of a mandate from the US government, amid continuing questions about the costs and benefits of installing container security and tracking devices, the market for these systems remains largely undeveloped as forces driving and inhibiting its growth seek a balance, according to a new study from ABI Research.

“The cargo tracking and security market is not immune from the active vs. passive cost-benefit-performance debate,” says ABI Research director Michael Liard. “The ISO standards committee has been deliberating for years, and this year, amid industry rumours suggesting that the US government would mandate inspection of container seals on all incoming containers, it decided in favour of active technology.”

However the Department of Homeland Security (DHS) did not issue any mandate. So end-users have stepped back, maintaining a “wait and see” position.

Meanwhile, a number of passive RFID technology vendors have started working with other standards bodies to formulate a standard for less expensive passive RFID technology, which they believe would be used for container tracking.

“So far, the US government has wielded the ‘carrot’ of expedited processing of sealed containers, rather than the ‘stick’ of a legal mandate,” says Ippoliti, adding that the carrot has failed to tempt any of the interested parties.

He admits that while nobody wants a container-related breach of security, the government would only try to impose its will on the industry if there is a major incident.

“If and when that happens, we expect the container security market to explode,” says Ippoliti.

Leave a comment

Your email address will not be published. Required fields are marked *