While RFID made its first appearance in the automotive industry twenty years ago, its growth potential lies in automating the manufacturing process, according to ABI Research analyst Robert Foppiani.
General Motors and Volkswagen use RFID tags and readers in their manufacturing operations. (Siemens and Escort Memory Systems use RFID in assembly line automation as well.)
Adoption of RFID varies according to location according to Foppiani. "With respect to manufacturing, Asia is definitely the hotspot, with European and, to a lesser extent, cash-strapped North American automakers following the trend."
Currently RFID has a strong presence in vehicle entry and security systems, principally the immobilizers that disable a vehicle unless its RFID reader detects the correct tag in the driver's ignition key. Some 40% of new cars being produced in North America today contain such immobilizers. In the past five years volumes for this type of usage has increased with worldwide revenues of $3.7 billion reported in 2005.
Auto manufacturers are using RFID in its more traditional role as well -- GM parts moving from Canada to the U.S. are RFID-tagged.
To view the report, "Automotive RFID Markets: Vehicle Entry and Security Systems, TPMS, Automotive Manufacturing, ETC and AVI visit: http://www.abiresearch.com/products/market_research/Automotive_RFID_Markets
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