Companies are using Radio Frequency Identification (RFID) tags to transmit, store, and retrieve data. In fact, the global RFID market is projected to reach $48.51 billion by 2034, growing at a compound annual growth rate of 11.8%. Unlike barcode systems that require direct scanning, RFID tags work remotely, making them highly efficient for tracking a business’s assets.
But when it comes to active vs passive RFID, which option best suits your specific need? The two vary in functionalities, cost, capabilities, and best-suited applications. They also have distinct power sources and communication ranges. Understanding the distinction between the two is the best way to choose an RFID tag that fits into your workflow.
What Are Active RFID Tags?
Active RFID tags are radio frequency identification tags that have an internal power source. The built-in power supply enables active RFID tags to broadcast signals continuously or at a set interval without needing activation from a reader.
How Does Active RFID Work?
Since active RFID systems use self-powered tags, data transmission to RFID readers occurs without external activation. When the tag sends the signal, RFID readers capture it and transmit it to a software system. The system then logs real-time information, such as:
- Asset location
- Movement history
- Temperature readings
- Battery status of the tag
- Timestamp of the last transmission
Since the tag powers itself, the signal is stronger, allowing longer read ranges and more frequent updates.
Active RFID Pros and Cons
| Pros | Cons |
| ✔️ Longer range than passive tags ✔️ Allows real-time tracking ✔️ Frequent update = high data accuracy ✔️ Support sensors (temperature, motion, humidity) ✔️ Easy to embed into labels, cards, or packaging | ❌ Higher cost due to batteries and extra tech ❌ Bulkier due to built-in battery ❌ Limited battery life (needs replacement/recharge) |
What Are Passive RFID Tags?
Passive RFID tags are batteryless radio frequency identification tags typically used in smaller-scale operations and tracking systems. Instead of an internal power source, passive RFID tags rely on the energy that RFID readers emit to power them and transmit data.
How Does Passive RFID Work?
Passive RFID waits for the reader’s signal to respond. The reader emits a radio frequency signal. Then the tag’s antenna captures the energy, which powers its tiny chip. Once powered, the tag sends back its stored data, like serial numbers or product info, to the RFID reader. The reader then forwards the data to a software system for processing.
Since a passive tag only responds when energized by a reader, it can’t send updates on its own.
Passive RFID Pros and Cons
| Pros | Cons |
| ✔️ Cost-effective ✔️ Low maintenance, they don’t require battery replacement ✔️ Small and lightweight ✔️ Longer lifespan, no battery to replace ✔️ Strong signal handles interference well | ❌ Shorter read ranges ❌ No real-time tracking because they only respond when scanned ❌ Limited data storage and functionalities |
Active RFID vs. Passive RFID: 5 Differences
When evaluating RFID in supply chain management, you can distinguish active and passive tags based on five key elements: power source, signal range, cost, lifespan, and applications.
| Active RFID | Passive RFID | |
| Power Source | Built-in battery | External (Drawn for the reader’s signal) |
| Signal Range | Extended range, often up to 100 meters or more | Only within the area covered by the reader, typically up to three meters |
| Cost | Expensive due to advanced components | Cheap |
| Lifespan | Limited to about 5 years of battery life | Very high — can last indefinitely since they don’t have a battery. |
| Applications | Best for real-time tracking of high-value or moving assets across a large area | Suitable for short-range use cases like inventory tracking, access control, and item-level tagging |
How To Choose Between Active and Passive RFID
When choosing between passive and active RFID, consider the following factors:
Range Needs
If you want to track assets over long distances, like across warehouses, active RFID for warehouse efficiency is a better fit because it offers a range of 50 to 100+ meters. For short-range tracking, such as shelf inventory or entry access, passive RFID is more efficient and cost-effective.
Budget
Are you on a budget, or looking to tag lots of items? You’ll appreciate the affordability and scalability of passive RFID tags.
Active RFID costs more upfront. However, you get extra features like longer range and real-time tracking that might be worth the investment for high-value assets.
Intended Use
For simple tasks like tracking products, scanning tools, or managing access badges, passive RFID gets the job done. On the other hand, active RFID is better if you’re monitoring expensive equipment, vehicles, or fast-moving assets that need constant updates.
Environmental Conditions
Active RFID handles harsh environments better, especially when interference from metal, water, or long distances is involved. If you’re in controlled settings like offices, stores, or organized warehouses, passive RFID works best.
Use Cases for Active RFID Tags
Active RFID tags are better for:
- Tracking vehicles across large facilities or outdoor yards
- Monitoring high-value tools, machinery, or electronics
- Tracking employee presence in hazardous work zones
- Ensuring cold chain integrity for food or vaccines
- Tracking attendees, staff, or VIPs at large events
Use Cases for Passive RFID Tags
Passive RFID shines in environments where low-cost, short-range tracking is all you need:
- Retailers use passive RFID for stronger visibility, tracking products on shelves and in stockrooms to improve accuracy, speed up restocking, and prevent losses.
- In libraries, passive RFID speeds up check-in and check-out processes while reducing manual cataloging and losses.
- Passive RFID powers employee ID cards or badges to control entry into offices, labs, or secure areas.
- In manufacturing and hospitals, passive RFID tags track shared tools and prevent misplacement.
- Organizations use passive RFID to manage sensitive records or files by tracking their movement and storage locations.
Locate and Trace Your Products With Precision
Leading companies are already using RFID technology to gain control over asset movement, minimize inventory loss, and respond faster to supply chain disruptions. At Surgere, we combine deep industry expertise with cutting-edge IoT technologies — such as RFID, ultra-wideband, and GPS — through our Interius SaaS platform to deliver precise asset tracking. Our indoor and outdoor localization solutions provide precise, real-time location data, enabling you to make informed decisions and enhance operational efficiency. Request a demo today to discover how Surgere can help you achieve unparalleled precision in your supply chain operations.
