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Some believe this pilot could lead to a "smart dog tag" for soldiers that could transmit items such as name, serial number, blood type, allergies, unit, and other information critical during wartime. << from timlee11 >> April 2004 The Department of Homeland Security will also employ RFID technology over the near and intermediate term to improve security. DHS has a budget of roughly $40 billion annually and will likely begin to accelerate the use of RFID technology at key border points. State and local government, airlines, and logistics providers often augment DHS funds to get systems fielded.

Reader costs can be slightly misleading given the propensity to have small handheld units blended with larger fixed and mobile readers. We are projecting that the average price of readers will fall by more than 50% by 2008. Symbol, Matrics, Alien Technology, SAMSys, and Intermec are the leading providers. Growth Drivers: RFID adoption is the major driver and tag orders are the primary leading indicator. As the adoption increases, more readers will be needed to cover the increasing number of transit or nodal points.

These are companies that have competencies in RFID-related technologies and have spawned divisions to attack the market. The most notable examples include Texas Instruments and Philips Semiconductors. Both of these companies have significant experience in RF and semiconductor technologies and are leveraging these competencies to break into a lucrative market. In addition to this group's technological expertise, these companies are flush with capital and can outspend most of their competitors. Disadvantages include less familiarization with the end markets served and potentially some difficulty maintaining intellectual capital within the non-core divisions.

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