The global RFID market in the automotive sector reached $312 million in 2005, according a report released by Venture Development Corp. on March 17. This market will see an annual growth rate of 20% through 2010, with revenue shipments projected to exceed $765 million within five years.
Hardware accounted for nearly 56% of the market (excluding transponder revenues for automobile immobilization and keyless entry).
When economies of scale are attained and improvements in performance are achieved, deployments to support supply chain, shop floor and asset management applications are expected to increase significantly. That should allow automotive companies to benefit in the following ways according to Natick, Mass.-based Venture Development.
- Improved visibility of products, assets, and materials within the enterprise;
- Automated tracking and inventory management of goods and materials;
- Increased operational efficiency and decreased resource expenses;
- Enhanced security and shrinkage reduction;
- Improved cradle-to-grave tracking capability;
- Removal of limited human interaction generally required with bar code systems;
- Improved supply chain collaboration (i.e., reduced warranty cost, shorter response time to open issues); and
- Compliance with current and future industry and customer mandates (NHTSA, AIAG, ODETTE, JAMA/JAPIA, Wal-Mart, etc).
For more information visit: http://www.vdc-corp.com/autoid/press/06/pr06-18.html
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