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New technologies that are replacing RFID in industry, logistics and SMEs

New technologies that are replacing RFID in industry, logistics and SMEs

RFID (Radio Frequency Identification) has for years been a key technology for tracking assets, i.e., physical assets such as machinery, equipment, materials, products in transit or warehouse stock, in industry and logistics.

lettore RFID emette onde radio verso vari tag RFID attaccati a oggetti come pacchi
The image depicts a logistics and industrial environment, where an RFID reader emits radio waves to various RFID tags attached to the company's physical assets, with the data flow represented visually. When RFID tags receive radio waves emitted by the reader, the wave energy either powers the tag's microchip (in passive systems) or is used in conjunction with an internal battery (in active and semi-active systems). The microchip, in turn, processes the signal and transmits stored data, such as the unique identification number or other programmed information, to the reader. The reader receives the response signal and forwards it to the management system, which processes the data for identification, tracking, or other application-specific functions.

However, with advances in technology and new requirements for connectivity and scalability, more efficient and cost-effective alternative solutions are emerging. Technologies with the greatest deployment and potential include NFC (Near Field Communication), BLE (Bluetooth Low Energy) and LPWAN (Low Power Wide Area Network). These solutions are revolutionizing asset management, logistics and real-time monitoring, offering significant advantages over RFID, especially for SMEs.

NFC: short-range tracking and authentication

NFC technology, already popular in contactless payments and mobile devices such as smartphones, tablets and wearables equipped with NFC chips, is finding increasingly relevant applications in industry and logistics.

Funzionamento della comunicazione NFC (Near Field Communication
The image illustrates the operation of near field communication (NFC). A mobile device interacts with an NFC access control system, transmitting data via short-range wireless signals. This technology is widely used for secure authentication, contactless payments and access management in industrial and logistics environments.

Advantages of NFC over RFID

  • Secure authentication: with advanced encryption, NFC is ideal for access control and security management in manufacturing and logistics environments.
  • Compatibility with mobile devices: the ability to use smartphones and tablets as NFC readers reduces the need for investment in dedicated hardware.
  • Accuracy and ease of use: NFC requires close interaction for reading, reducing the risk of misreading or interference.

Practical applications in different fields

  • Electronics: unique identification of components during assembly.
  • Mechanics: digital recording of machinery maintenance.
  • Plastics: quality control on production batches.
  • Warehouse logistics: staff authentication and access to inventory data (real-time visualization on quantity, location, status, and inventory movement).

BLE: real-time monitoring and increased range

Bluetooth Low Energy (BLE) is a wireless communication technology designed to provide efficient connectivity with low power consumption.

funzionamento della tecnologia Bluetooth Low Energy (BLE) in un magazzino
The illustration shows how Bluetooth Low Energy (BLE) technology works in a warehouse. BLE beacons (small devices that transmit low-energy signals via Bluetooth) emit signals to track the real-time location of assets and personnel. An IoT gateway collects data from the beacons and sends it to a cloud-based management system. An operator monitors the system via a tablet, optimizing logistics and inventory management.

Advantages of BLE over RFID 

  • Increased range: unlike RFID, BLE allows data transmission over longer distances, up to tens of meters. 
  • Continuous monitoring: BLE beacons can transmit data in real time, making it possible to constantly monitor assets and personnel. 
  • Integration with IoT: BLE easily integrates with IoT ecosystems, facilitating data collection and analysis. 


Practical applications in different fields 

  • Transportation logistics: monitoring the location of vehicles in real time. 
  • Agriculture: tracking of agricultural equipment for efficient fleet management. 
  • Food: real-time monitoring of environmental conditions (temperature and humidity) inside vehicles or containers used in refrigerated transport. 


LPWAN: long-distance tracking and energy efficiency 

Low power wide area networks (LPWANs) are the ideal solution for monitoring assets distributed over large areas, with a focus on energy efficiency and long-distance data transmission. 

 
Nella LPWAN (Low Power Wide Area Network), diversi dispositivi IoT, come sensori e contatori intelligenti, trasmettono dati su lunghe distanze verso un gateway centrale
In the LPWAN (Low Power Wide Area Network), several IoT devices, such as sensors and smart meters, transmit data over long distances to a central gateway, which in turn forwards the information to a cloud server for processing and analysis. This energy-efficient communication system is ideal for smart cities and industrial environments.

Advantages of LPWAN over RFID

  • Wide coverage: LPWAN enables asset tracking over distances of kilometers, making it ideal for logistics and supply chain.
  • Low power consumption: LPWAN devices can run for years on a single battery, lowering operating costs.
  • Scalability: the ability to manage thousands of devices with minimal infrastructure makes it perfect for SMEs.

Practical applications in different fields

  • Food & beverage: remote monitoring of temperatures in warehouses.
  • Warehouse logistics: tracking shipments between distributed warehouses.

Cost comparison between technologies and operational scope

Technology

Hardware Cost

Infrastructure Cost

Operating Cost

Scope

RFID

Medium-high

Medium-high

Medium

Short (up to 10 meters)

NFC

Low

Low

Low

Very short (up to 10 cm)

BLE

Medium

Medium

Medium-low

Medium-long (up to 100 meters)

LPWAN

Medium-High

Low

Very low

Long (up to 10 km)

Comparison of investment costs for SMEs of different sizes and sectors

Technology

SME Electronics (1,000 items)

SME Mechanics (5,000 items)

SME Food (10,000 items)

SME Logistics (20,000 items)

RFID

€15.000

€40.000

€50.000

€100.000

NFC

€5.000

€15.000

€25.000

€50.000

BLE

€10.000

€30.000

€40.000

€80.000

LPWAN

€12.000

€35.000

€45.000

€90.000

Why should SMEs adopt these technologies?

The adoption of NFC, BLE and LPWAN by SMEs offers tangible advantages over RFID, including:

  • Cost reduction: NFC and BLE use inexpensive hardware, while LPWAN minimizes large-scale communication costs.
  • Increased scalability: these technologies make it easy to adapt to growing needs without costly infrastructure upgrades.
  • Easy integration with IoT: The three solutions can connect to cloud platforms for advanced analytics and process automation.

Conclusion

RFID, while still used in many sectors, is gradually giving way to more efficient and versatile technologies. NFC, BLE and LPWAN represent more scalable, cost-effective alternatives that can be easily integrated with IoT systems. SMEs, in particular, can benefit enormously from these technologies, improving asset management, optimizing logistics and reducing operational costs. The future of industrial digitization lies in smart, connected and sustainable solutions, and these technologies are set to play a key role in this transformation.

Rizzitelli
21 March 2025

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