Security applications including asset management and access control have been a traditional market for RFID technology. The early adoption of the technology enabled a significant evolution acclimatized to specific security applications. The percent of security applications in the total world RFID-based applications market is estimated at 33 percent according to Frost & Sullivan. The niche is expected to have a positive growth rate of 29.9 percent.
While the potential of the technology is quite evident, widespread adoption has been challenged by factors such as the cost of hardware, lack of standards, regional disparities of frequencies and investment, constant evolution of the technology and the need for upgrades. Apprehension centered on the security of tags represents a paradoxical situation since the fundamental rationale for RFID is to improve the efficiency of existing security applications. The challenge has, however, resulted in developmental efforts for in-built tag encryption and security features, thereby increasing end-user confidence.