The global automotive near field communication (NFC) market is predicted to reach USD 30.62 billion in the year 2024, where it is estimated to reach USD 59.47 billion by the end of 2029 with an anticipated compound annual growth rate of 14.2% during the forecast period.
It is a two-way communication technology that allows communication or interaction between the two devices is possible within a few centimeter distances. The automotive near field communication is a simple way of exchanging the data between the devices, which the vehicle user can also personalize their vehicle environment.
In addition, factors such as the increasing trend of mobile commerce and the growing adoption of wearable technology are driving the market's growth. Another major driving factor of the Automotive Near Field Communication (NFC) market was a rise in demand for personalization in luxury vehicles propels the growth of revenue of the Automotive Near Field Communication (NFC)s market.
The rising of government regulations mandating the use of ADAS and the rising proliferation of IoT in cars are some of the growth-supporting factors of the Automotive Near Field Communication (NFC) revenue rate during the outlook period.
Another major growth driving factor of the Automotive Near Field Communication (NFC) market was the rise in research and development activities; the growing trend of wearable technology promotes the demand for the Internet of Things in manufacturing.
Security concerns related to near field communications, competition from substitute payment methods are also some of the major restraints which hinder the growth of the Automotive Near Field Communication (NFC) Market.
The high cost of the installation and manufacturing of near field communications and issues related to short-range communication are some of the major restraints that hinder the growth of the automotive near field communication revenue rate. High manufacturing and maintenance costs pose a huge challenge for the Automotive Near Field Communication (NFC) market demand.
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REPORT METRIC |
DETAILS |
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Market Size Available |
2023 to 2029 |
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Base Year |
2023 |
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Forecast Period |
2024 to 2029 |
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CAGR |
14.2% |
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Segments Covered |
By Device Operating Mode, Offering, Application, and Region. |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regions Covered |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Market Leaders Profiled |
Broadcom Inc.,Identive,Infineon Technologies,MagTek,NXP Semiconductors,QualcommTechnologies,Inc.,Samsung Electronics Co.Ltd., Sony Corporation,Texas Instruments Incorporated,Thales Group and Others. |
Among these segments, the reader emulation segment holds the major share of the market since the majority of mobile phones and retail applications in NFC chips are in reader emulation mode. Furthermore, the high adoption of NFC-based mobile wallets such as Gpay, Phonepe, Android Pay, owing to the high demand originating from the payments, helps the market's growth.
Among these segments, the non-auxiliary products segment holds the major share of the market since these products are designed for smartphones to make contactless payments, access controls, and secure paring with other NFC devices.
Among these segments, the Banking and Finance segment holds the major share of the market. Moreover, it is expected to hold dominance during the forecast period since the NFC technology uses current mobile technologies and the cloud.
Asia Pacific region holds the major share of the market owing to the factors such as increasing adoption of new technologies and also the advancements in organizations across industries, especially in some of the countries such as India, China, and Korea, which helps the growth of the market of Automotive Near Field Communication (NFC)s in Asia Pacific region.
Furthermore, the rise in the research and development activities and growing trend of wearable technology is also one of the major driving factors that propel the market of Automotive Near Field Communication (NFC)s in the Asia Pacific region. Therefore, this Asia Pacific region is expected to hold dominance during the forecast period.
The European region is expected to increase the market value of Automotive Near Field Communication (NFC). The rise in demand for personalization in luxury vehicles propels the growth of the market in the European region.
North America region holds the second-largest share of the market of Automotive Near Field Communication (NFC) owing to the Increasing adoption of smartphones across the especially in some of the emerging economies such as the United States and Canada, promotes the growth of the market of Automotive Near Field Communication (NFC)s to grow further in the North America region.
Latin America and Middle East & Africa are estimated to have declined growth opportunities during the forecast period.
Some of the key market players of the Automotive Near Field Communication (NFC) market are:
Broadcom Inc.
Identive
Infineon Technologies
MagTek
NXP Semiconductors
Qualcomm Technologies, Inc.
Samsung Electronics Co. Ltd.
Sony Corporation
Texas Instruments Incorporated
Thales Group
NXP semiconductors collaborated with Felica Networks in February 2019 to strengthen the mobile payment and ticketing ecosystem as part of Japan's preparation for worldwide events in the future. NXP's new platform-based solution named PN81 series supports and integrates Felica, EMVCo, and mobile transit MIFARE in a single solution to allow the smartphones and other mobile devices to conveniently bridge mobile payments in Japan also across the borders.
In February 2018, NXP semiconductors announced breakthroughs in GSMA complaint e-SIM solutions that radically make it easier for the device manufacturers to bring the consumers remote SIM provisioning and over-the-air updates with multiple mobile network operators subscriptions.
By Device Operating Mode
By Offering
By Application
By Region
Frequently Asked Questions
The key drivers include the increasing demand for advanced automotive connectivity solutions, rising adoption of smart and connected vehicles, the growing emphasis on enhancing in-vehicle user experience, and the push for improved vehicle security systems. Additionally, the proliferation of smartphones with NFC capabilities has also spurred market growth.
In automotive applications, NFC technology is used for keyless entry and start systems, enabling drivers to unlock and start their vehicles using NFC-enabled devices such as smartphones or smart cards. It also facilitates mobile payments for fuel, tolls, and parking, allows for personalized in-car settings (e.g., seat positions, climate control), and enhances vehicle-to-device communication for improved infotainment and telematics services.
The main challenges include concerns over the security and privacy of NFC transactions, the need for standardization and interoperability across different devices and systems, and the high cost of implementing NFC technology in vehicles. Additionally, there is a need for widespread consumer education on the benefits and uses of NFC in automotive settings.
Future trends include the integration of NFC with other advanced technologies such as blockchain for secure transactions, the development of multi-functional NFC applications that combine keyless entry with mobile payments and personalized settings, and the increasing use of NFC in electric vehicles (EVs) for charging and energy management solutions. There is also a growing focus on enhancing the user experience with seamless connectivity and intuitive interfaces.
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