Energy consumption is a major aspect of every industry, and fuel is one of the world’s biggest forms of energy that is used in the transportation industry, fleet management industry, logistics, machinery in the manufacturing industry, etc. The fuel is generally generated via fossils that can be extracted from different forms of fuel. The global fossil fuels market size is estimated at USD 7.91 trillion in 2024 and is anticipated to reach around USD 13.01 trillion by 2034, growing at a CAGR of 5.10% between 2024 and 2034.4 Oct 2024.
Fuels are non-renewable sources of energy that should be managed efficiently for a sustainable future perspective. But with the conventional ways of managing fuel usage, this is not possible to utilize energy efficiently. There are many problems like theft, overuse, wasting of fuels, shortages, etc., that result in problems for the organizations and also affect the whole world in various manners. These issues can be solved by enabling proper tracking and management of fuel usage but need the implementation of some serious solutions.
Overview
RFID powered solutions have the full potential to enhance fuel tracking and management in an efficient manner. RFID tags and readers are used in oil, gas, and energy asset tracking systems to track and manage tools, supplies, and equipment. These technologies optimize processes across many energy sectors, improve security, and offer real-time insight. The integration capability of RFID also comes into play as it can integrate with other technologies like IoT to offer various use cases with data providing. There is a lot of detailed information that we will see in upcoming parts.
Related Statistics
Global fuel management systems involve various technologies or solutions, and recently many organizations have implemented RFID solutions. Since this is a new involvement, then there is not any sufficient data available. The global fuel management system market size was valued at USD 1.24 billion in 2023 and is projected to reach a value of USD 2.38 billion by 2032, registering a CAGR of 7.52% during the forecast period (2024-2032). On the other hand, if we talk about the individual impact of RFID on the global market, then the global market size for RFID solutions is projected to be between $14.98 billion and $15.86 billion in 2024.
So, hopefully, you got the idea and some basic information about the topic. We will provide you with more in-depth discussion and information about the topic as we move forward. In the end, we will wrap up the whole discussion in a concluding paragraph.
Also Read: Improving Equipment Utilization with Real-Time Asset Tracking
RFID Solutions for Efficient Fuel Tracking and Management
RFID is a great technology as it can track, trace, detect, and collect information, and it has easy integration with other technology, etc. This technology can play an important role in offering a sustainable future in terms of fuel management. By facilitating real-time asset tracking and monitoring, RFID improves security and efficiency in oil and gas operations. It minimizes theft, improves safety compliance, prevents unwanted access, and maximizes asset use and maintenance plans.
Also Read: Innovative RFID Solutions for Accurate Asset Tracking and Management
How Does It Work?
An electronic module installed on the car is part of RFID system. It receives information from an RFID tag close to the fuel nozzle and combines it with information from the vehicle, such as the odometer, hour meter, GPS location, or fault codes (if the car has one). The Island Control Unit or fuel truck records the fuel transaction and reports the extra data from the machine or vehicle’s electronic module after the module wirelessly sends the data back to it.
Installing the module can be as easy as connecting a cable to the RFID tag and inserting it into the onboard diagnostic (OBD) socket located beneath the dashboard of fleets that are primarily made up of on-road cars. Odometer readings and problem codes are just a few of the many pieces of information you can get from the car at every gasoline transaction thanks to the OBD connector’s interface to the computer systems of the vehicle.
It merely takes a few minutes to install systems that use RFID tags. Just fasten the RFID tag to the neck of the car’s fuel filler. Compared to RFID tag-only systems, the cost per unit is far lower, and installation is considerably simpler. Although it won’t retrieve any further data from the OBD, this will secure gasoline and guarantee that it enters the approved vehicle.
Also Read: Benefits of RFID- Why Do You Need RFID Solutions?
Benefits of RFID Solutions while Implementing Efficient Fuel Tracking and Management
So, it’s time to see some useful benefits of RFID solutions when they are implemented for fuel management. Here are a few key benefits mentioned below.
Automated on Fuel Tank
Accurate fueling is an important aspect of utilizing fuel consumption, but it cannot be possible without any tool. Where RFID solutions can provide automation with accuracy while fueling. As they can stick to petrol tank nozzles that give proper information about the fueling level. It helps to track the right amount and billing which enhances fuel management. This overall enhances the consumers’ experience towards the petrol pumps.
Saves Fuel from Theft
There are many drivers that do thefting with the organization that owns the vehicles they drive. This directly affects the total revenue generation for the organization, as they are not able to know the exact amount of fuel used in going a certain distance. But with RFID solutions, organizations can easily track the vehicle, fuel consumption, and distance traveled. This reduces theft in an efficient manner and results in cost efficiency too.
Optimization
Optimization of fuel is very crucial and saves a lot of fuel. With the RFID integration with other technologies like AI, IoT, etc., it is possible to gather data with tracking and analysis to identify the patterns of routes and fuel consumption. This helps organizations with route management, driving habits, speed, etc., which enhances the optimization of fuel consumption.
Avoid Out-of-Stocking
Inventory management is also very crucial for filling stations, as customers can get fuel anytime. However not having proper ideas or information about the storage level can lead to out-of-stocking conditions. With the RFID-powered solutions, this is possible to track the level of fuel storage that warns of out-of-stock conditions. This overall enhances inventory management as well as fuel tracking and management.
Establish Regulatory Compliance
Regulations and standards should be followed in every industry; otherwise, it could lead to fines or downtime for the organization. Many fuel organizations are not able to acknowledge the regulations about fuel consumption which causes them trouble. With RFID solutions, it is possible to establish compliance. By providing proper data about fuel consumption and management to upper authorities.
Challenges with RFID Solutions while Implementing Efficient Fuel Tracking and Management
Let’s see some challenges with the RFID solutions while implementing them for the fuel industry. Here are a few challenges mentioned below.
- Interference of water and metal can be a challenging part, as they can block the signal and provide inaccuracy in results.
- Range can be another issue, as RFID tags have a limited range that makes them not effective in large areas.
- Data collision is an issue, as many tags reading at the same time can result in data collision.
Related blog: RFID Asset Management Solutions for Your Operation
Final Words
RFID technology is the technology that provides tracking and tracing for many operations in various industries. For fuel tracking and management, RFID solutions have various roles as they can enhance real-time tracking, monitoring, proper optimization of fuels, restocking, and other operational efficiency. We have seen these benefits in detail earlier; you can recall them if you want.
While there are a few challenges too, like ranging, data collision, interference of external factors, tag durability, etc., the benefits far better outweigh the challenges. With Aeologic RFID solutions have the potential to enhance fuel tracking and management. We help you to develop a sustainable future for upcoming generations.
