Automotive NFC (Near Field Communication) Market: Industry Analysis and Forecast (2024-2030)

Automotive NFC Market Overview:

NFC (Near Field Communication) is a contactless smartcard technology that uses radio waves to communicate. It was created to enable cashless payment and data exchange between devices via proximity. NFC is the technology that allows today's digital wallets to work by allowing you to tap your phone against an NFC reader to make a purchase. Automotive NFC is a new technology that uses Near Field Communication (NFC) to perform dedicated vehicle tasks such as unlocking doors and starting/stopping the engine without using conventional inputs such as buttons and switches in the car's interior.

 

 

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Automotive NFC Market Dynamics:

Automotive NFC (Near Field Communication) demand is expected to rise over the forecast period due to increased vehicle usage and end user preference for a convenient communication system installed in the vehicle. Automotive NFC consumption is highly dependent on automobile production and new sales worldwide. Rising per capita income and increased spending habits by the general population are expected to increase automobile sales in developing economies, thereby increasing the consumption of Automotive NFC in the long run. Individual preferences for new technology and innovative products are also expected to drive the growth of the Automotive NFC market. Increased sales of high-end automobiles have increased the market for automotive NFC, which is expected to fuel the market's growth over the forecast period (2024-2030).

 

The global Automotive NFC market is witnessing steady growth.

• The factors driving the market are rising demand for highly sophisticated safety and security features in vehicles, the need to reduce fuel consumption by optimizing its usage and increasing government initiatives towards the development of infrastructure-as-a-service (IaaS) based mobility solutions.
• Rising demand for highly sophisticated safety, Keyless entry systems, and security features in vehicles is one of the major factors driving the Automotive NFC market.
• Increasing government initiatives towards the development of infrastructure-as-a-service (IaaS) based mobility solutions also fuels the growth of this market.
• Moreover, growing acceptance of NFC enabled mobile phones for different applications across industry verticals is estimated to drive the global Automotive NFC market.

 

• Factors such as complexities in Automotive NFC, as well as associated high costs, put pressure on automotive OEMs to reduce the total cost of ownership for the automobile, and concerns about short-range connectivity of systems limit growth in the forecasted years (2024-2030).
• Furthermore, low adoption rates in developed economies are expected to limit the growth of the NFC automotive market over the forecast period (2024-2030).

 

Automotive NFC Market Segment Analysis:

On the basis of types, the Automotive NFC market is segmented into 106 Kbit/s, 212 Kbit/s, and 424 Kbit/s.

 

106 Kbit/s - The 106 Kbit/S automotive NFC segment is estimated to grow at a CAGR of over 16% during the forecasted period due to its high degree of compatibility with other automotive components. Automotive NFC tags with 106 Kbit/S data transmission speeds are widely used in lower-end automobiles because their electronic components require slower data transmission speeds. The storage capacity of 106 Kbit/S NFC tags is constantly being increased by OEMs and automotive suppliers. These memory enhancement efforts are aimed at increasing their use in various sophisticated applications and adding new security features, as well as promoting their adoption in various advanced automotive functions.

 

212 Kbit/s - The 212 Kbit/S automotive NFC market is estimated to grow at a CAGR of 30 per cent during the forecast period (2024-2030). Because they provide optimal data transmission speeds to automotive electronic components, 212 Kbit/S NFC tags have been widely used in various mid-range and high-end automotive.. As higher data transmission rates are offered by 424 Kbit/S NFC tags, 212 Kbit/S devices are gradually losing market share.

 

Based on Vehicle Type, the Automotive NFC market is segmented into Low-End, Mid-Range, and High End.

 

 

Low End - During the forecast period, the low-end automotive NFC market will expand significantly. As demand for high-end vehicles grows rapidly, particularly in China and India, due to rising per capita income in emerging economies, low-end car manufacturers operating in these markets are stepping up their efforts to provide drivers with connected driving experience. Lower-end car manufacturers are leveraging NFC technology across a variety of smart device offerings to enable users to connect with cars.

 

Mid-range – The increasing adoption of luxury car features in the mid-range segment, which is attributed to the rising desire for personalization in various mid-range vehicles, the segment is estimated to grow at a CAGR of 37% during the forecast period. NFC technology consumes less power, which is another factor supporting its inclusion in mid-range vehicles. Furthermore, automotive players are providing consumers with in-built vehicles with personalised features such as the infotainment system, lights, air conditioning settings, and target destination, among others.

 

Automotive NFC Market Regional Insights:

Regionally the Automotive NFC Market is segmented into North America, South America, Europe, Asia Pacific, Middle East & Africa.

 

Europe - In 2023, Europe dominated the automotive NFC market, accounting for approximately 35% of the total. This is attributed to the presence of several large automakers, including Audi, BMW and Mercedes are increasing investments aimed at innovation in the automotive NFC landscape. The increased sales volume of premium vehicles has also contributed to the market's expansion. The region's road safety bodies have also introduced regulations mandating the incorporation of ADAS systems in automobiles, promoting the use of NFC technology in automobiles.

 

Asia Pacific - The Asia Pacific automotive NFC market will grow at a CAGR of more than 35% during the forecast period, owing to rising sales of luxury vehicles, particularly in China and India. The steadily rising per capita income in economies such as India and China has added to the market's size. The availability of several low-cost third-party automotive accessories, such as in-car infotainment systems, has aided in the implementation of NFC technology in low-end vehicles. Furthermore, the presence of stringent government guidelines mandating the use of ADAS solutions is expected to increase the use of NFC technology in automobiles throughout the region. For example, the Indian Government passed a regulation in September 2017 requiring all heavy vehicles and passenger cars to be equipped with ADAS systems that can automatically apply brakes if it detects any objects on the road.

 

North America - The North American automotive NFC market will grow at a CAGR of more than 32% during the forecast period, owing to the implementation of various road safety guidelines mandating the use of ADAS systems. The region's automakers are incorporating advanced smart driving features into their vehicles, which has created a plethora of opportunities for the integration of NFC solutions in vehicles. The growing number of initiatives in the region aimed at advanced innovations in the autonomous landscape, combined with a favourable regulatory landscape, has contributed to the market's growth.

 

The objective of the Automotive NFC report is to provide industry stakeholders with a comprehensive analysis of the Automotive NFC market. The Automotive NFC report identifies the dominant trends in the Automotive NFC market and how these trends will impact new business investments and market development over the forecast period. The Automotive NFC report also assists in understanding the market dynamics and competitive structure by analysing market leaders, market followers, and regional players.

 

The data (quantitative and qualitative) provided in the Automotive NFC market report is intended to assist in understanding which market segments, regions, and factors affecting the market, as well as key opportunity areas, will drive the industry and market growth over the forecast period. The Automotive NFC report also includes the competitive landscape of the industry's key players, as well as their recent developments in the Automotive NFC market. The Automotive NFC report investigates factors such as company size, market share, market growth, revenue, production volume, and profits of the market's key players.

 

 

The Automotive NFC report includes Porter's Five Force Model, which aids in the development of market-specific business strategies. The report assists in determining the number of competitors, who they are, and the quality of their products in the Automotive NFC market. The Automotive NFC report also examines whether it is easy for a new player to establish a foothold in the market, whether they enter and exit the market on a regular basis, whether the Automotive NFC market is dominated by a few players, etc.

 

A PESTEL Analysis is also included in the Automotive NFC report, which aids in the development of company strategies. Political factors contribute to determining how much a government can influence the Automotive NFC market. Economic variables help in the analysis of economic performance drivers affecting the Automotive NFC market. Legal factors aid in understanding the impact of the surrounding environment and the influence of environmental concerns on the Automotive NFC market.

 

Automotive NFC Market Scope:

Automotive NFC Market
Market Size in 2023	USD 4.40 Bn.
Market Size in 2030	USD 10.36 Bn.
CAGR (2024-2030)	12.99%
Historic Data	2018-2022
Base Year	2023
Forecast Period	2024-2030
Segment Scope	By Type 106 Kbit/s 212 Kbit/s 424 Kbit/s
	By Vehicle Type Low-End Mid-range High-End
Regional Scope	North America- United States, Canada, and Mexico Europe – UK, France, Germany, Italy, Spain, Sweden, Austria, and Rest of Europe Asia Pacific – China, India, Japan, South Korea, Australia, ASEAN, Rest of APAC Middle East and Africa - South Africa, GCC, Egypt, Nigeria, Rest of the Middle East and Africa South America – Brazil, Argentina, Rest of South America

 

Automotive NFC Market Key Players

• Sony Corporation (Japan)
• Broadom (USA)
• NXP Semiconductors N.V. (Netherlands)
• Broadcom Inc. (USA)
• Samsung Electronics Co. Ltd. (South Korea)
• Polaric (USA)
• Automotive Component Manufacturers Association of India (ACMA)
• STMicroelectronics N.V. (Switzerland)
• Panasonic Corporation (Japan)
• FeliCa Networks, Inc (Japan)
• CCL Industries (Canada)
• LINTEC Corporation (Japan)
• Robert Bosch GmbH (Germany)
• Telefonaktiebolaget LM Ericsson (Sweden) 
• Alpine Electronics Inc. (Japan)