Wi-Fi-based RTLS to invade RFID's turf

Wi-Fi is starting to muscle into the market for radio frequency identification (RFID) tags, as the growth in Wi-Fi deployment is resulting in people using the technology in unorthodox ways, such as Wi-Fi based real-time location services (RTLS) for security and tracking, according to research published today.

As a result the market, which is worth $59 million today, is likely to explode monetarily to reach $839 million in 2012, claims ABI Research's report entitled 'Wi-Fi Real Time Location Systems.'

"RTLS has historically been associated with RFID and it's only recently that Wi-Fi [tagging] has started to play in this arena," said Stan Schatt, the analyst's vice president and research director.

"In the past, companies wishing to deploy RTLS had to buy proprietary RFID systems, including very expensive readers. But there is now such a large installed base of Wi-Fi equipment worldwide that Wi-Fi-based RTLS becomes cost-effective for companies that had never considered it before."

Indeed many companies have already realised that costs and complexity can be a barrier to RFID deployments. Earlier this month, BT launched Auto-ID Lite, a new lower-cost tag-based asset tracking and monitoring solution to encourage UK adoption of the technology.

However, ABI Research does warn that Wi-Fi-based RTLS does have some drawbacks compared with conventional RFID, namely the fact that it is less accurate particularly when used outside, it is less secure and can require users to beef up the number of Wi-Fi access points connected to their networks by up to 20 per cent.

On the plus side, organisations with an existing Wi-Fi network benefit as they don't require extra cables to make use of Wi-Fi-based RTLS. In addition, they can take comfort in the fact that the technology is standards based and cost effective as the RTLS functions are handled by special software which accounts of the lion's share of the financial investment required, according to ABI.

"This market is opening up to new software developers," added Schatt. "Wi-Fi equipment manufacturers are new to this kind of application, so they are reselling RTLS software solutions. Vendors would be well-advised to partner with experienced resellers who have been in the vertical market selling proprietary solutions, because it is a sophisticated solution that requires a knowledgeable reseller. I think there will be a good deal of competition for the most experienced resellers."

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