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Automotive industry to spend $600M on RFID technology this year

OYSTER BAY, N.Y.-The automotive industry will spend about $600 million on radio-frequency identification (RFID) technology this year, according to a new study from market research firm Allied Business Intelligence Inc.

“While the technology has made its way into millions of production vehicles each year, growth potential also exists in the automotive supply chain,” said Edward Rerisi, ABI’s director of research. “The same benefits that this technology can bring to retail supply chains are being realized-and proven-in the automotive supply chain.”

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ABI’s study, however, found that the automotive industry’s spending on RFID will decline to about 28 percent of the total market by 2008, compared with 46 percent of the total market this year. The group clarified that the automotive segment still shows positive growth, but other segments will begin to represent more significant portions of the market.

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