Some advantages of an active RFID tag are:

• It can communicating data at distances of as far as 300 feet.
• It may have other sensors that can use electricity for power.
• Active tags are capable of operating in rugged environments for years at a time.
• Active tags are battery-powered, and can either transmit constantly or be activated by a signal from the reader.
• The capability of performing diagnostics
• the capability to perform independent monitoring and control
• the capability of initiating communications

Some disadvantages of an active RFID tag are:

• Cannot function without battery power, limiting the lifetime of the tag.
• Typically much more expensive than passive RFID
• The tag is physically larger, which may limit applications.
• Potential long-term maintenance costs for an active RFID tag if the batteries are replaced.
• Battery outages in an active tag can result in misreads.

Uses of active RFID tags include:

• Tracking high-value work in process (WIP) inventory in the aerospace and automotive manufacturing sectors
• Tracking trailers and containers in the transportation industry, both inside a warehouse and around the depot.
• In conjunction with GPS or GSM for locating people or things
• With Bluetooth to locate personnel in facilities (locating doctors in hospitals, for instance)
• Active RFID enhanced phones
• Animal tracking
• Security ID badges
• Track and locate valuable assets in the healthcare, manufacturing and logistics markets
• Health care applications- tags can be used on patients, personnel and expensive hospital equipment.