The global automotive NFC market is expected to reach USD 35 Billion by 2032 while displaying a CAGR of 30.2% during the timeframe of 2022 to 2032. The market is estimated to be valued at USD 3.26 Billion in 2022 and USD 2.5 Billion in 2021. Growing regulations of the government mandating the application of Advanced Driving Assistance Systems (ADAS) are expected to influence the market positively.
| Report Attributes | Details |
|---|---|
| Estimated Base Year Value (2021) | USD 2.5 Billion |
| Anticipated Market Value (2022) | USD 3.26 Billion |
| Expected Forecast Value (2032) | USD 35 Billion |
| Projected CAGR (2022 to 2032) | 30.2% |
The 212 Kbit/S automotive NFC type is anticipated to dominate the segment by expanding at a healthy CAGR during the forecast period. Development of the segment can be attributed to its increasing demand in high-end and mid-range automotive as they offer optimum data transmission speeds to automotive electronic components. On the other hand, the 106 Kbit/S automotive segment is expected to be a lucrative segment during the forecast period. The NFC tags with 106 Kbit/S are witnessing a significant demand in lower-end automobiles as their electronic components demand lower data transmission speeds.
The mid-range vehicle segment in automotive NFC is anticipated garner maximum traction during the forecast period. The development of the segment can be attributed to the growing adoption of luxury car features in the mid-range car segment. NFC technology consumes lesser power, which is another factor supporting the integration of NFC technology in mid-range vehicles. Further, the automotive players are offering consumers in-built vehicles personalized features like the infotainment system, lights, setting air conditioning, and target destination, among others.
In June 2022, Nio ES7 revealed another electric SUV with its debut ES7. The vehicle contains NFC support for alternative vehicles access methods such as smart keys and cards. Such initiatives are expected to benefit the market during the forecast period.
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The automotive NFC market is expected to grow in the coming period owing to the rising penetration of the Internet of Things (IoT), facial recognition, machine learning, big data, and others for upgrading the automotive specifics. Integration of modern technologies in automobiles is likely to widen the market size by offering growth opportunities to the industry. Such initiatives by players have increased the number of Electronic Control Units (ECUs) per vehicle. For instance, there are about 70 ECUs integrated into advanced vehicles, and the number is expected to increase to 500 in the coming time, which is higher than a rocket or space shuttle.
Expansion of the brand in developing nations has been identified as a significant opportunity for the market. For instance, in June 2022, French Car manufacturer, Citroen announced to launch of its first mass-market vehicle ‘The C3’ in the Indian market on July 20, 2022. The vehicle features a digital driver’s display and a 10-inch touchscreen infotainment system with Android Auto and Apple CarPlay as standard. Such initiatives are anticipated to positively impact the demand for NFC in the forecast period, thus, strengthening the automotive NFC market.
Lack of awareness and low adoption rate of NFC in automobiles by underdeveloped or developing nations are expected to hamper the market growth during the forecast period. Also, expenses associated with the technology are another factor likely to hinder the industry growth in the coming period.
However, emerging opportunities such as increasing demand for luxury vehicles, and rising integration of advanced technology in the automotive sector are anticipated to act as a significant counter to negative factors and propel the market expansion in the forecast period.
As per the analysis, Europe is expected to dominate the global market during the forecast period. Domination of the market can be attributed to the presence of key OEMs in the region along with the massive production of vehicles in the region. Also, the presence of key infotainment systems in Europe like Robert Bosch GmbH is anticipated to drive the regional market in the forecast period.
Supportive government initiatives are expected to benefit the market during the forecast period. As per European Data, in 2019 there were approximately 24,620 deaths due to road accidents. Thus, institutional bodies of the European Union and the General Safety Regulation were updated. As per the latest update, Advanced Driver Assistance Systems (ADAS) would be mandated in the newly registered vehicles. Implementation of such rules is expected to boost the demand for NFC in automobiles, thus, benefitting the industry in the forecast period.
According to the analysis, Asia Pacific (APAC) is anticipated to be the most lucrative market during the forecast period owing to the presence of developing nations that have various untapped markets. Besides, the surging disposable income owing to the rapid economic development along with the ongoing development in the automobile sector is expected to widen the market size in the coming time.
Growing initiatives of globally renowned players to enhance their sales in the region are expected to benefit the industry in the coming time. For instance, in 2019, the Hector Company sold 62.5 thousand connected cars in India. In another instance, Honda introduced connected car technology platform and there were about 30 thousand unit sales in 2020. Other than these, favorable initiatives taken by the government are anticipated to further augment the market size in the Asia Pacific.
For instance, in 2017, the Government of India passed a regulation that mandated heavy vehicles and passenger cars to be integrated with ADAS systems which can apply automated brakes if it senses any objects on the road. Such factors are likely to increase demand for automotive NFC in Asia Pacific and benefit the industry in the assessment period.
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Key players in the global automotive NFC market include Sony Corporation, NXP Semiconductors N.V., Broadcom Inc., Samsung Electronics Co. Ltd., STMicroelectronics N.V., Panasonic Corporation, Alpine Electronics Inc., Smartrac N.V, and PREMO S.A.
| Report Attribute | Details |
|---|---|
| Growth Rate | 30.2% CAGR from 2022 to 2032 |
| Market Value in 2022 | USD 3.26 Billion |
| Market Value in 2032 | USD 35 Billion |
| Base Year for Estimation | 2021 |
| Historical Data | 2017 to 2021 |
| Forecast Period | 2022 to 2032 |
| Quantitative Units | USD Million for Value |
| Report Coverage | Revenue Forecast, Volume Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered | Type, Vehicle Type, Application, Region |
| Regions Covered | North America; Latin America; Europe; Asia Pacific; Middle East & Africa |
| Key Countries Profiled | USA, Canada, Brazil, Mexico, Germany, France, United Kingdom, Italy, Spain, China, Japan, South Korea, Malaysia, Singapore, Australia, New Zealand, GCC Countries, South Africa, Israel |
| Key Companies Profiled | Sony Corporation; NXP Semiconductors N.V.; Broadcom Inc.; Samsung Electronics Co. Ltd.; STMicroelectronics N.V.; Panasonic Corporation; Alpine Electronics Inc.; Avery Dennison; PREMO S.A. |
| Customization Scope | Available upon Request |
The global automotive NFC market is estimated to grow at over 30% CAGR from 2022 to 2032
Known players in the global automotive NFC market are Sony Corporation, NXP Semiconductors N.V., Broadcom Inc., and Samsung Electronics Co. Ltd. among others.
| Estimated Market Size (2024E) | USD 7,247.7 million |
|---|---|
| Projected Market Value (2034F) | USD 17,316.1 million |
| Value-based CAGR (2024 to 2034) | 9.1% |
| Expected Base Year Value (2024) | USD 25,522.81 million |
|---|---|
| Anticipated Forecast Value (2034) | USD 100,591.84 million |
| Estimated CAGR (2024 to 2034) | 14.70% |
| Market Size (2023) | USD 5.2 billion |
|---|---|
| Market Size (2033) | USD 18.0 billion |
| Market CAGR (2023 to 2033) | 13.2% |
| Market Value (2023) | USD 2.02 billion |
|---|---|
| Market Anticipated Value (2033) | USD 41.78 billion |
| Market CAGR (2023 to 2033) | 35.4% |
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