Automotive NFC Market Overview
As per MRFR analysis, the Automotive NFC Market Size was estimated at 1.49 (USD Billion) in 2022. The Automotive NFC Market Industry is expected to grow from 1.84(USD Billion) in 2023 to 12.173 (USD Billion) by 2032. The Automotive NFC Market CAGR (growth rate) is expected to be around 23.34% during the forecast period (2024 - 2032).
Key Automotive NFC Market Trends Highlighted
The automotive NFC market is expanding rapidly, driven by the increasing adoption of NFC-enabled smartphones and the growing popularity of contactless payments. Additionally, the rising demand for connected cars and the growing number of NFC-enabled car parks are also contributing to the market growth. Key market drivers include the convenience and security of NFC payments, the increasing adoption of NFC-enabled devices, and the growing demand for connected cars.
Opportunities for growth in the automotive NFC market include the development of new NFC applications, the expansion of NFC-enabled infrastructure, and the growth of the connected car market. Recent trends in the automotive NFC market include the increasing use of NFC for keyless entry and start systems, the growing popularity of NFC-based infotainment systems, and the development of NFC-enabled car-sharing platforms.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive NFC Market Drivers
Rising Adoption of Contactless Payment Systems
The growing popularity of contactless payment systems is a major driver of the automotive NFC market. NFC technology allows consumers to make payments quickly and easily by simply tapping their smartphone or other NFC-enabled device on a contactless payment reader. This convenience is driving the adoption of NFC-enabled vehicles as consumers seek to streamline their payment experiences. In addition, the increasing use of mobile wallets and digital payment platforms is also contributing to the growth of the automotive NFC market.
Mobile wallets allow consumers to store their payment information on their smartphones, making it even easier to make contactless payments. Digital payment platforms, such as Apple Pay and Google Pay, also support NFC technology, making it easy for consumers to make payments using their smartphones. The rising adoption of contactless payment systems is expected to continue to drive the growth of the automotive NFC market in the coming years.
As more consumers become accustomed to using contactless payments, they are likely to demand NFC-enabled vehicles. This will lead to increased demand for NFC-enabled automotive components, such as NFC readers and antennas. Contactless payment systems are extremely convenient, allowing consumers to make payments quickly and easily without having to fumble with cash or cards. Contactless payment systems are also very secure, as they use encryption technology to protect consumer data. Contactless payment systems are much faster than traditional payment methods, such as cash or cards. Contactless payment systems are also more hygienic than traditional payment methods, as they do not require consumers to touch a payment terminal.
Growing Demand for Connected Cars
The growing demand for connected cars is another major driver of the automotive NFC market. Connected cars are vehicles that are equipped with internet connectivity, allowing them to access a variety of online services and features. NFC technology can be used to connect cars to smartphones and other devices, enabling consumers to control their vehicles remotely and access a variety of in-car services. The growing demand for connected cars is being driven by a number of factors, including the increasing popularity of ride-sharing services, the increasing use of smartphones and other mobile devices, and the growing availability of affordable connected car technologies’ technology is expected to play a major role in the growth of the connected car market. NFC can be used to connect cars to smartphones, allowing consumers to control their vehicles remotely and access a variety of in-car services. For example, NFC can be used to Lock and unlock the car, Start the car, Adjust the climate control, Navigate to a destination, and Access entertainment and information. The growing demand for connected cars is expected to continue to drive the growth of the automotive NFC market in the coming years.
Government Regulations
Government regulations are also playing a role in the growth of the automotive NFC market. A number of governments around the world are implementing regulations that require new vehicles to be equipped with NFC technology. This is being done in order to improve road safety and reduce traffic congestion. For example, the European Union has implemented a regulation that requires all new vehicles to be equipped with NFC technology by 2032. This regulation is expected to have a significant impact on the automotive NFC market in Europe. Government regulations are expected to continue to drive the growth of the automotive NFC market in the coming years. As more governments implement regulations that require new vehicles to be equipped with NFC technology, the demand for NFC-enabled automotive components will increase.
Automotive NFC Market Segment Insights
Automotive NFC Market Vehicle Type Insights
The Vehicle Type segment of the Automotive NFC Market is categorized into Passenger Cars, Commercial Vehicles, Two-Wheelers, and Off-Highway Vehicles. Passenger Cars hold the dominant market share, driven by the increasing adoption of NFC technology in luxury and mid-range vehicles for features such as keyless entry, mobile payments, and vehicle diagnostics. The growing demand for connected and autonomous vehicles is further boosting the market growth. Commercial Vehicles, including trucks, buses, and vans, are witnessing a surge in NFC adoption for fleet management, cargo tracking, and driver authentication.
Two-wheelers, comprising motorcycles and scooters, are gaining popularity due to the integration of NFC for keyless ignition, anti-theft systems, and mobile payments. Off-Highway Vehicles, such as construction equipment and agricultural machinery, present opportunities for NFC applications in asset tracking, maintenance management, and operator safety. Overall, the Vehicle Type segment is expected to contribute significantly to the Automotive NFC Market revenue, with Passenger Cars leading the growth and other segments offering substantial growth potential.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive NFC Market NFC Chip Type Insights
The NFC Chip Type segment of the Automotive NFC Market is divided into Passive NFC and Active NFC. Passive NFC chips do not have their own power source and rely on the electromagnetic field generated by the NFC reader to power them. Active NFC chips, on the other hand, have their own power source and can initiate communication with NFC readers. In 2023, the Passive NFC segment accounted for a larger share of the Automotive NFC Market revenue due to its lower cost and simpler design. However, the Active NFC segment is expected to grow at a faster rate during the forecast period, owing to its superior performance and ability to support more advanced applications.The growth of the Passive NFC segment is being driven by the increasing demand for contactless payment systems in the automotive industry. Passive NFC chips are being integrated into car keys, fobs, and other devices to enable drivers to pay for fuel, tolls, and other services without having to use their wallets or credit cards. The growth of the Active NFC segment is being driven by the increasing demand for more advanced NFC applications, such as vehicle access control, keyless ignition, and infotainment systems. Active NFC chips are also being used in automotive manufacturing to track and identify vehicles and components throughout the production process.
Overall, the NFC Chip Type segment of the Automotive NFC Market is expected to grow significantly over the next ten years, driven by the increasing demand for contactless payment systems and more advanced NFC applications in the automotive industry.
Automotive NFC Market Application Insights
Application Segment Insight and Overview The Automotive NFC market is segmented based on application into Vehicle Access, Payment and Tolling, Keyless Entry, Vehicle Diagnostics, and Infotainment.
Among these, the Vehicle Access segment is projected to lead the market with a significant share in 2023. The growing adoption of NFC-enabled smartphones and the increasing demand for enhanced vehicle security and convenience are driving the growth of this segment. The Payment and Tolling segment is expected to witness significant growth due to the rising use of NFC technology for contactless payments and toll collection systems.
The Keyless Entry segment is also anticipated to grow steadily, fueled by the convenience and security benefits offered by NFC-based keyless entry systems. The Vehicle Diagnostics and Infotainment segments are expected to contribute notably to the overall market growth, driven by the increasing integration of NFC technology into vehicle diagnostics and infotainment systems.
Automotive NFC Market Communication Interface Insights
The communication interface segment of the Automotive NFC Market is segmented into Bluetooth, Wi-Fi, and Cellular. Bluetooth is expected to dominate the market in 2023, accounting for over 50% of the revenue share. This growth is attributed to the increasing adoption of NFC technology in vehicles, the rising demand for connected cars, and the growing popularity of mobile payments. Wi-Fi is expected to be the fastest-growing segment, with a CAGR of 25.6% over the forecast period. Cellular is expected to account for a smaller share of the market, but it is expected to grow at a steady pace due to the increasing deployment of 5G networks.
Automotive NFC Market Device Type Insights
The Automotive NFC Market is segmented by Device Type into On-Board Units, Mobile Devices, and NFC Tags. Among these, the Mobile Devices segment held the largest market share in 2023, accounting for over 55% of the Automotive NFC Market revenue. The segment is expected to continue its dominance throughout the forecast period, owing to the increasing adoption of smartphones and tablets in vehicles.
The On-Board Units segment is anticipated to witness significant growth during the forecast period. The growth of this segment can be attributed to the rising demand for advanced driver assistance systems (ADAS) and infotainment systems in vehicles. These systems require on-board units to communicate with other devices in the vehicle, such as sensors, cameras, and displays.
The NFC Tags segment is expected to grow at a steady pace during the forecast period. NFC tags are used for a variety of applications in the automotive industry, such as keyless entry, payment, and vehicle tracking. The growth of this segment is driven by the increasing adoption of NFC technology in vehicles.
Automotive NFC Market Regional Insights
The regional segmentation of the Automotive NFC Market offers valuable insights into the market's growth dynamics across different regions. North America is anticipated to hold a significant market share in the coming years due to the presence of established automotive manufacturers and a high adoption rate of NFC technology in the region.
Europe is another key market, with a strong focus on technological advancements and a growing demand for connected vehicles. The APAC region is expected to witness substantial growth, driven by the increasing production and sales of automobiles in countries like China and India.
South America and MEA are emerging markets with a growing demand for NFC-based solutions in the automotive industry. These regions present significant opportunities for market expansion and revenue generation. Overall, the Automotive NFC Market is poised for robust growth in the coming years, with each region contributing to its overall success.
Source Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive NFC Market Key Players And Competitive Insights
Major players in the Automotive NFC Market industry are constantly striving to gain a competitive edge by investing in research and development, expanding their product portfolio, and forming strategic alliances. Leading Automotive NFC Market players are focusing on developing innovative solutions that cater to the evolving needs of the automotive industry. As a result, the Automotive NFC Market is witnessing rapid advancements in technology, with new features and functionalities being introduced regularly. The Competitive Landscape of the Automotive NFC Market is characterized by intense competition among the established players. These players are employing various strategies to gain market share and establish a strong brand presence.
A leading player in the Automotive NFC Market is NXP Semiconductors. The company offers a wide range of NFC solutions for the automotive industry, including NFC tags, readers, and controllers. NXP Semiconductors has a strong focus on innovation and has developed several patented technologies for the Automotive NFC Market. The company's products are used by major automakers around the world, including Audi, BMW, and Volkswagen.A key competitor in the Automotive NFC Market is Infineon Technologies. The company offers a comprehensive portfolio of NFC solutions for the automotive industry, including NFC chips, modules, and antennas. Infineon Technologies is known for its high-quality products and its commitment to customer satisfaction. The company's products are used by automakers such as Ford, General Motors, and Toyota.
Key Companies in the Automotive NFC Market Include
- Laird
- Zebra Technologies
- Qualcomm Technologies
- Renesas Electronics
- Avery Dennison
- Murata Manufacturing
- Broadcom
- InfineonneuparaSTMicroelectronics
- TDK Corporation
- ON Semiconductors
- Texas Instruments
- HID Global
- NXP Semiconductors
- Analog Devices
Automotive NFC Market Industry Developments
The Automotive NFC Market is projected to grow significantly over the next decade, driven by increasing demand for contactless payments and other NFC-based applications in the automotive industry. In 2024, the market is expected to be valued at USD 2.3 billion, and it is forecast to reach USD 12.173 billion by 2032, exhibiting a CAGR of 23.34%.Recent developments in the automotive NFC market include the launch of new NFC-enabled devices and applications. For instance, in 2023, NXP Semiconductors introduced a new NFC controller IC that supports multiple NFC protocols and offers enhanced security features. Additionally, various automotive manufacturers are integrating NFC technology into their vehicles to enable features such as keyless entry, mobile payments, and vehicle diagnostics.Key players in the automotive NFC market include NXP Semiconductors, Infineon Technologies, STMicroelectronics, Texas Instruments, and Samsung Electronics. These companies are investing in research and development to enhance the capabilities and applications of NFC technology in the automotive industry.
Automotive NFC Market Segmentation Insights
Automotive NFC Market Vehicle Type Outlook
- Passenger Cars
- Commercial Vehicles
- Two-Wheelers
- Off-Highway Vehicles
Automotive NFC Market NFC Chip Type Outlook
Automotive NFC Market Application Outlook
- Vehicle Access
- Payment and Tolling
- Keyless Entry
- Vehicle Diagnostics
- Infotainment
Automotive NFC Market Communication Interface Outlook
Automotive NFC Market Device Type Outlook
- On-Board Units
- Mobile Devices
- NFC Tags
Automotive NFC Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
1.49(USD Billion) |
| Market Size 2023 |
1.84(USD Billion) |
| Market Size 2032 |
12.173(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
23.34% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Laird, Zebra Technologies, Qualcomm Technologies, Renesas Electronics, Avery Dennison, Murata Manufacturing, Broadcom, InfineonneuparaSTMicroelectronics, TDK Corporation, ON Semiconductors, Texas Instruments, HID Global, NXP Semiconductors, Analog Devices |
| Segments Covered |
Vehicle Type, NFC Chip Type, Application, Communication Interface, Device Type, Regional |
| Key Market Opportunities |
1 Increased adoption of digital wallets and mobile payments2 Growing demand for enhanced vehicle security features3 Integration of NFC technology with infotainment systems4 Expansion of NFC-enabled automotive applications5 Government regulations and initiatives promoting NFC adoption |
| Key Market Dynamics |
Increase in demand for smart vehicles Rising adoption of IoT Growing focus on vehicle security Integration of NFC technology in infotainment systems Advancement in NFC technology and infrastructure. |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Automotive NFC Market is expected to reach a market size of USD 1.84 billion in 2023.
The Automotive NFC Market is expected to grow at a CAGR of 23.34% from 2024 to 2032.
Key regions driving growth include North America, Europe, and Asia Pacific.
Major applications include keyless entry, mobile payments, and vehicle diagnostics.
Key competitors include NXP Semiconductors, Infineon Technologies, and STMicroelectronics.
The top 5 players are expected to account for approximately 60% of the market share in 2023.
