Automotive NFC Market is expected to reach $35bn by 2032
The global Automotive NFC (Near Field Communication) Market is anticipated to grow at a CAGR of 30.2% from 2022 to 2032, reaching 35bn.
In 2022, the market is expected to be worth $3.26bn, up from $2.5bn in 2021. The government’s increasing rules requiring the use of Advanced Driving Assistance Systems (ADAS) are anticipated to have a favourable impact on the market.
The continuously changing world and the technological enhancement in the field of communication becoming more connected, thereby creating the need to boosting the technology in an automobile at a faster pace automotive radar, NFC, cellular connectivity, and wireless power are now integrated into the mid and high-end automobile.
Automobiles are no longer just a means of transportation but are embedded with various communication interfaces and devices. Automotive NFC is basically a short-range bidirectional communication technology which allows interaction distance of a few centimetres at a specified data transfer rate.
Automotive NFC is a set of communication practices that allows two pieces of electronic equipment, one of which is usually a portable device such as a smartphone, to establish communication by bringing them within the short distance of other which is fixed to the part.
A subset of NFC, RFID appears to expand beyond mobile phones to automobile applications. This can be seen as a differentiating factor for many new in-car functions for the customers and can simplify the existing in-car functions. Near-field communication stack for an automobile is a runtime software which implements the NFC protocol stack.
Automotive NFC Market: Dynamics
Demand for Automotive NFC is estimated to increase over the forecast period due to growing usage of vehicles and increasing preference by end users to have a convenient communication system installed in the vehicle.
Automotive NFC consumption is highly dependent on the production and new sales of automobile across the globe. Attributes, such as rising per capita income and increased spending by the general population are expected to increase the sales of automobile in the developing economies which are expected to boost the consumption of Automotive NFC in the long-term scenario. Also, individual preference towards the adoption of new technology and innovative products is also expected to fuel the growth of the Automotive NFC market. Increase in the sales of high-end automobiles life have also increased the market and anticipated to fuel the growth over the forecast period as well.
Automotive NFC Market: Regional
Europe, followed by North America, is expected to hold a major share in the global Automotive NFC market and is expected to behold it even in the forecast period.
The Asia Pacific is expected to be the fastest growing market in the Automotive NFC market owing to high growth in new vehicle sales in the region. North America and Europe are a mature market, and it is expected to hold more than half of the market share of the global Automotive NFC market. Rest of the world is estimated to account for a relatively small share of the market.
Key players in the 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.
In June 2022, STMicroelectronics, global manufacturer of semiconductors, introduced a new platform to accelerate the introduction of digital car keys, providing consumers keyless access through their mobile devices. Such supportive factors are expected to benefit the industry growth in the coming period.