Automotive NFC Market is estimated to cross USD 6 billion by 2025. The growth of the market is driven by the widespread adoption of smartphones across the globe. The automakers are using smartphone devices to communicate with in-car infotainment systems via NFC technology. This allows them to provide a better driving experience and access to several in-car applications ranging from door access to engine access to vehicle navigation systems. Moreover, the increasing adoption of Advanced Driving Assistance Systems (ADAS) and IoT in automotive is also augmenting the demand for effective wireless technology for in-vehicle communication.
The growing demand for personalization in luxury cars also acts as one of the primary drivers of the automotive NFC market. As the adoption of internet services is increasing, customer demands are also changing. Customers are demanding better and more personalized features in their vehicles. They are looking for information such as notification regarding traffic delays, routing to destinations, latest weather forecasts, and their favorite radio channels to be customized to their specific needs. This is augmenting the demand for NFC components in vehicles.
The 428 Kbit/S type NFC component market is estimated to account for more than 60% of the market share. The market growth is credited to the large-scale demand for high data connectivity speed and communication range in vehicles. Compliance with ISO standards for NFC communication standards also fosters market growth. Whereas, the 212 Kbit/S type NFC components are estimated to grow at a CAGR of more than 30% during the forecast timeline.
The high-end vehicles held over 50% share in the automotive NFC market in 2018. The increasing adoption of in-vehicle infotainment systems along with the integration of navigation and in-car applications is accelerating the growth of the market. Moreover, the growing demand for personalized driving experience among customers is supporting the market. On the other hand, mid-range vehicles are projected to attain a CAGR of over 37% during the forecast time period. Advancements in the semiconductor technology and growing supportive initiatives by the government to promote the integration of ADAS components into vehicles are guiding the market growth.
The interior application market was estimated to account for over 70% stake in the automotive NFC market in 2018. The rising need among automotive for cost-effective and accurate wireless communication technology is accelerating market growth. NFC simplifies the pairing mechanism, reduces the response time, and provides accurate communication between the end devices. Additionally, NFC?s compatibility with smartphones and low power consumption capabilities makes it an ideal fit for in-vehicle communication application. Whereas, the exterior application market is projected to grow with a CAGR of more than 36% during the forecast duration. The widespread adoption of NFC-enabled cards & smartphone application to offer secure & safe access to vehicles acts as the primary driver for the market.
Europe held over 35% share in the automotive NFC market. The growth of the market is attributed to the high vehicles sales volume in the region. Europe accounted for more than 37% share in the global passenger car sales in 2018. It is also the home of some of the leading automakers and OEM providers such as BMW, Audi, Volkswagen, and Daimler. These vehicle manufacturers are working with semiconductor solution providers to integrate their NFC components into vehicles.
The Asia Pacific Automotive NFC market will grow at a CAGR of more than 35% during the forecast timeline due to increasing sales of passenger vehicles in the emerging economies including India and China. Moreover, the large-scale adoption of smartphones in the region also acts as a major driver for the market. Additionally, the increasing semiconductor market in the region also presents myriad opportunities for the growth of the automotive NFC market.
The key vendors in the automotive NFC market are Samsung, Sony, NXP Semiconductors, Continental, Qualcomm, Broadcom, STMicroelectronics, Texas Instrument, Alpine Electronics, and Indie Semiconductors. These players are collaborating with the leading automakers to integrate their NFC components into vehicles. They are forming long-term bulk contracts with automotive manufacturers to gain market share and get an edge over competitors.