RFID Asset Tracking Guide 2026: Top Systems and Prices

RFID stands for “radio frequency identification,” and refers to a technology that uses radio waves to transmit information short distances. An RFID asset tracking system lets businesses track assets with tags, that send radio waves, and readers, that pick them up.

These systems make the most sense for businesses that have small, movable, and expensive assets, like medical supplies, laptops, and office chairs. Larger assets require GPS trackers, while cheap or fixed assets can be tracked with barcodes that don’t transmit data at all.

RFID asset tracking centralizes all your business assets, keeping them visible. Here’s how it works and how much it costs.

In this guide:

• How It Works and Why It’s Essential
• Active, Passive, and Semi-Passive Asset Tracking
• RFID Asset Tracking vs Barcode Asset Tracking
• RFID Asset Tracking vs GPS Asset Tracking
• How Much Does RFID Asset Tracking Cost?
• Benefits of RFID
• Disadvantages of RFID
• RFID Case Studies
• The Best Asset Tracking Software
• Getting Started With Asset Tracking
• FAQs

RFID Asset Tracking Explained: How It Works and Why It’s Essential

RFID asset tracking utilizes a system of radio frequency identification tags to aid with the monitoring of business equipment as well as other assets valuable to companies. This could be anything from computers to livestock.

RFID tags can be placed on assets and information about those assets can be transmitted via radio waves to RFID readers, which are usually based at stationary locations. Then, this data can be stored on a computer system.

RFID systems can track the location of fixed assets or movable assets, but also other important information, like the condition of the objects and their maintenance needs.

What do you need for RFID tracking?

To create a functioning asset tracking system, you’ll need four pieces of equipment: RFID tags, an RFID reader, an antenna, and a computer database. 

• RFID tags are placed on and identify your assets. RFID tags can be active, passive, or semi-passive, which dictates how signals are sent and received (more on this later). They store data like an asset’s electronic product code, as well as maintenance needs and history (depending on the type of tag).
• An antenna will pick up signals sent by the RFID tags attached to your assets.
• An RFID reader will receive the data from your RFID tags via the antenna and send it to your computer.
• A computer database will securely store all the data it is sent from the reader.

The RFID tracking process

To better understand the RFID tracking process, let’s pretend you’d like to track an asset called Asset 1. It’ll be arriving at Warehouse A, and then moved to Warehouse B afterwards. Broadly, this is what the process would entail:

1. An antenna and an RFID reader are set up at both Warehouse A and Warehouse B.
2. An RFID tag is attached to Asset 1.
3. Asset 1 comes into the range of Warehouse A.
4. The antenna at Warehouse A picks up Asset 1’s RFID tag signal.
5. The RFID reader at Warehouse A, which is wirelessly connected to an antenna, transmits Asset 1’s data to your computer.
6. The data is logged in your tracking database.
7. Asset 1 is then loaded onto a truck inside Warehouse A and sent to Warehouse B.
8. Asset 1 comes into the range of Warehouse B.
9. The antenna at Warehouse B picks up Asset 1’s RFID tag signal.
10. The RFID reader at Warehouse B, which is wirelessly connected to an antenna, will transmit Asset 1’s data to your computer.
11. The data is logged in your tracking database.

Despite the existence of other methods for tracking stock and assets, many retail and pharmacy companies still use RFID for tracking. In fact, Texas Children’s Hospital pharmacies reportedly save $14 million annually with RFID.

Active, Passive, and Semi-Passive RFID Tracking: What’s the Difference?

RFID asset tracking comes in three main categories: passive, semi-passive, and active. These categories refer to how the RFID tags transmit data and how close you have to be to pick up their signals.

1. Active tags use a built-in battery and onboard transmitter to send out intermittent electromagnetic signals.
2. Passive tags send or ‘reflect’ back a signal that a passive RFID reader initially sends to them.
3. Semi-Passive tags have a battery, so they have the power reserves for additional features, but no onboard transmitter.

1. Active RFID Tags

An active RFID tracking system is composed of three parts: a tag, that tag’s antenna, and a reader. Signals are sent outward from the antenna of the battery-powered tag and will be received by the reader if it is within the read range, which is usually 50ft-100ft but can be as far as 600ft.

Some active RFID tags are called “transponders.” In order to better conserve battery life, these tags will only send a signal if first triggered by a signal from a reader. Other active RFID tags will constantly send a signal at set intervals and are termed “beacons.”

Active trackers have higher memory capacities and can store more information, but will only last between three and five years before their batteries must be replaced. They are typically fist-sized or smaller, with a surface of plastic or rubber.

While active and passive tags can be used in a variety of environments, active tags are ideal for higher-value assets. They are also better for travel between facilities, as the tags’ wider range and active signal provide more data and make them easier to find. The data also tracks asset conditions, which helps with preventative maintenance.

An example of an active asset tracking tag. Image source: Wikimedia

2. Passive RFID Tags

A passive RFID tracking system is composed of the same three parts as an active one: a tag like the one pictured below, the tag antenna, and a reader.

However, a passive tag won’t send its own signal — it must first be scanned by a signal sent from a handheld reader. The reader sends energy to the tag’s antenna, which turns the energy into radio frequency (RF) waves and sends a signal, called “backscatter,” back to the reader.

Passive tags can come in a wide range of sizes and materials. Some can handle extreme temperatures and weather, while others cannot.

They might be physical tags, they might be embedded in equipment, or they might look like a label and be called an ‘inlay’ — whatever the case, a passive RFID tag will last for decades before eventually breaking down from wear.

An example of a small passive asset tracking tag. Image source: Wikimedia

3. Semi-Passive RFID Tags

Semi-passive RFID tags have built-in batteries and are sometimes referred to as battery-assisted passive RFID tags. They’re more similar in size to passive RFID tags, but have a longer read range thanks to their batteries. They may use Bluetooth Low Energy tracking.

Semi-passive RFID tags are a great option if you need additional features that passive RFID tags can’t host. The fact that it doesn’t have an onboard transmitter to transmit its own signal independent of an RFID reader, however, means the range is still limited when compared with an active tag.

An example of a semi-passive asset tracking tag. Image source: Easy2log

Active vs Passive vs Semi-Passive RFID Asset Tracking

The main difference between passive and active RFID tags is that active tags have a built-in power source and can automatically broadcast their location to a reader, while passive tags have no power and can only respond to a reader’s signal.

Here’s a quick table to provide a clear comparison of the pros and cons offered by active and passive RFID asset tracking systems.

RFID Tracking vs Barcode Tracking

Both RFID and barcodes offer a way to automate asset data collection. With barcode asset tracking systems, each barcode labels must be directly scanned by a laser reader to be entered into the system.

Barcodes are generally best for inexpensive, small items that are frequently moved or sold, which is why this system is common in grocery stores.

RFID tags are better for owned assets, and allow faster and more secure audits. By one count, RFID tag reading is faster than barcode scanning by a factor of 20.

While barcodes are cheaper — unlike RFID tags, barcodes can be printed onto blank labels — RFID tags are more durable, and offer greater value for their cost. RFID is also more secure, since barcodes can be replicated more easily.

RFID Tracking vs GPS Tracking

The major difference in the asset monitoring benefits offered by RFID and GPS is the frequency, amount, and type of data each can log. RFID can send data, but only when logged by a handheld reader. GPS can bounce signals off a satellite, delivering them directly to its software anywhere in the world as frequently as every five seconds.

GPS hardware units are larger than active RFID tags. These units can be plugged into a vehicle or directly wired to its engine, which allows them to track engine status, log when the ignition turns on and off, and calculate how many hours it has been in operation.

Many GPS trackers can send automatic text or email alerts to managers, letting them know details like when a driver takes a turn too hard or passes outside of a certain geographic region.

An example of a GPS tracking hardware device. Source: Orbcomm

GPS is specifically oriented towards large, high-value movable assets, from construction equipment to forklifts and other vehicles. Since GPS trackers can tell managers where their assets are in real-time, managers can be sure of their exact location, rather than the assets checking in at set locations, as they do with RFID tracking.

How Much Does RFID Asset Tracking Cost?

RFID tags costs vary hugely. Passive tags typically cost $0.25-$5 each, while active tags may cost $25-$100. However, you can get some active trackers for cheaper costs: Tive is a well-reviewed brand that starts at $5 per tag.

Industrial handheld RFID readers can be pricey, often starting at $600-$2,000, while the software service that gathers, analyzes, and displays the collected RFID data may be another $35-$75 per month.

You can visit Tech.co’s guide to asset tracking costs for more details, or look at our guide to the (limited) free asset tracking options available.

Benefits of RFID

Asset trackers collect data that aids in asset lifecycle management. The type of tracking solution that’s best for you will vary.

Benefits of RFID for asset tracking

• Increased accuracy: RFID drastically improves inventory accuracy, from an average of 65% to more than 95%.
• Streamlined receiving time: RFID technology can lead to a 90% improvement in receiving time and generally it reduces labor time significantly.
• Improved health and safety: Information about safety checks can be uploaded to RFID tags and the use of assets that have failed or missed inspections can be limited.
• Quality assurance: RFID can ensure that a level of consistent quality is maintained, regardless of where your assets are.
• Better data visibility: Contemporary RFID systems are cloud-based — everyone who needs to see the data can.

Benefits of RFID over barcode tracking

• Less limited: Barcodes require line-of-sight access to every barcode, on every item. You don’t have to be in the line of sight whilst using RFID, which uses electromagnetic radio waves instead.
• Quicker: A barcode machine can only scan one item or asset at a time, whereas RFID tags can be detected and read simultaneously.
• Increased durability: You can’t rip an RFID tag, nor will it become wrinkled and subsequently unreadable. Overall, they’re much more durable and can withstand much harsher weather conditions, for instance.
• More information: You can store more data in an RFID tag than you can in a barcode.

Benefits of RFID over GPS

• Space: RFID tags are less bulky than GPS trackers and thus better for tracking smaller items, like baggage.
• Power: GPS trackers require more power than RFID tags.
• Cost: GPS trackers generally cost more than RFID tags, which, if bought in bulk, often cost just a few cents per tag.

Different physical tracking systems have different pros and cons, but no matter which is best for you, your operation will also need to incorporate digital asset tracking tools, from IT asset management, like SysAid or Snipe-IT, to low-tech spreadsheet tracking.

Disadvantages of RFID

The limits of RFID technology can lead to security or cost concerns, depending on the industry and circumstances.

• Higher cost: RFID asset trackers are more expensive than barcode scanning systems, and in some cases are 10 times more costly.
• Lost signals: Some materials can reduce an RFID signal — metals and liquids, in particular, may impact the signal.
• Short range: Typical passive RFID tags can send data about 10ft, but their range can be as short as 2ft, depending on the type of tag or weather conditions.
• Limited storage space: RFID tags require less power than GPS, but that’s because they’ll store less data overall. This is limiting for operations that need more visibility.
• Security can’t stop third parties: Anyone with a compatible tag-reading device will be able to scan your asset tags. If your assets are left in public, your data might leak to third parties.

RFID tags are limited by nature. If you need a stronger tracker to net a better asset tracking ROI, there’s always the (pricier) GPS option to fall back on.

RFID Case Studies

This type of asset tracking system has plenty of interesting applications, so we’ve rounded up a few examples, from retail and events to our favorite — specimen tracking.

RFIDs in sports retail

RFID tracking can be used for products as well as assets: Sensormatic Solutions led a project in Brazil to install more than 450 RFID self-checkout stations for Decathlon, the world’s largest multi-sport retailer.

Creating a fully integrated and automated inventory management system was a first for the retailer’s Brazilian operation. So, it required test models conducted at the Paulista and Tamboré stores in São Paulo first.

The final results: a massive reduction of as much as 50% for checkout times, along with a large 38% boost in operational efficiency and an incremental uptick of 3% better stock management.

RFIDs in event rental management

RFID tags continue to power smart tracking across entirely new industries. Darren Morizet, the founder of Easy RFID Pro, recently spoke with Rental Management about the “immediate benefits” of creating a custom RFID tracking system for his full-service event rental company.

“Sending out wrong equipment due to employee errors is by far one of the biggest problems we face. By using RFID technology, we greatly reduce the chance that an error will be made by loading the wrong equipment or miss counting a quantity.” — Darren Morizet, founder of Easy RFID Pro

RFIDs in healthcare specimen tracking

One important yet unexpected way RFID technology is revolutionizing healthcare asset tracking? Specimen tracking.

Tissue samples and other specimens can compromise patient safety when they’re misplaced and delayed. According to Mobile Aspects, RFID tags can serve to track each sample from the point of collection to the final destination, boosting health and saving costs, while remaining in compliance with regulations.

Similarly, RFID tags can supercharge inventory tracking, both inside and outside the healthcare industry. Oracle offers healthcare inventory support that relies on RFID tech to deliver benefits, including reduced human error, real-time inventory visibility, and automated alerts to ensure stock is replenished on time.

The Best Asset Tracking Software

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At Tech.co, we have years of experience in our areas of expertise, and whether you’re looking for asset tracking or the best website builders, you can trust our opinion. Find out more about how we carry out our research.

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