The global automotive NFC market is expected to grow significantly, with a projected compound annual growth rate (CAGR) of 30.2% from 2022 to 2032. Valued at USD 3.26 billion in 2022, the market is forecasted to reach USD 35 billion by 2032. This sharp rise follows an increase from the USD 2.5 billion valuation in 2021, driven primarily by favorable government regulations requiring the adoption of Advanced Driving Assistance Systems (ADAS), which are boosting market dynamics.
Within the NFC market, the 212 Kbit/s segment is anticipated to lead due to its faster data transmission, making it ideal for mid-range and high-end vehicles. Meanwhile, the 106 Kbit/s NFC segment is expected to see strong growth in lower-end vehicles, where lower transmission speeds are sufficient.
The mid-range vehicle segment is set to gain substantial traction, as luxury features are increasingly incorporated into these vehicles. NFC technology’s low power consumption makes it a perfect fit for mid-range models. Automakers are leveraging NFC to improve consumer experiences through personalized settings like infotainment systems, lighting, climate control, and navigation. For instance, the ES7 electric SUV launched by Nio in June 2022 integrated NFC for smart key and card access, a trend expected to further fuel market expansion in the coming years.
In-Depth Market Analysis: A Complete Report
Key Takeaways:
- The automotive NFC market is poised for rapid growth, driven by the increasing integration of Internet of Things (IoT), facial recognition, machine learning, and big data in vehicle technology.
- The incorporation of modern technologies is expected to enlarge the market, offering substantial opportunities for growth. Leading players are integrating Electronic Control Units (ECUs), with advanced vehicles now containing around 70 ECUs—a number predicted to rise to 500 in the future.
- Expanding into developing markets presents a key growth opportunity. For example, in June 2022, a French car manufacturer introduced its first mass-market vehicle, the C3, in India. Featuring a digital driver’s display and a 10-inch touchscreen with Android Auto and Apple CarPlay, this launch is expected to boost demand for NFC technology and strengthen the market during the forecast period.
Competitive Landscape
Prominent players in the global automotive NFC market are focusing on introducing new platforms in order to accelerate their introduction of digital car keys. This offers consumers keyless access through their mobile devices. Such supportive factors are expected to benefit the industry’s growth in the coming years.
Key Players
- 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.
More Insights into the Automotive NFC Market
The European region is anticipated to dominate the global NFC market over the projection period. The growth of this market is attributed to the presence of key OEMs in the region along with the massive production of vehicles in the region. Furthermore, the presence of high-tech infotainment systems in Europe like Robert Bosch GmbH is anticipated to drive the regional market in the forecast period.
According to the analysis, the Asia Pacific (APAC) region is expected to showcase promising growth opportunities over the assessment period. The growth in the APAC region is attributed 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.
Key Segmentations
By Type:
- 106 Kbit/S
- 212 Kbit/S
- 424 Kbit/S
By Vehicle Type:
- Passenger Cars
- Compact
- Mid-Size
- Premium
- Luxury
- SUV
- Light Commercial Vehicles (LCV)
- Heavy Commercial Vehicles (HCV)
By Application:
- Board Units
- Car Keys
- Other Applications
By Sales Channel:
- Aftermarket
- OEMs
By Region:
- North America
- Latin America
- Europe
- Asia Pacific
- Middle East & Africa
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