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Global Market Insights Predicts Automotive NFC Market Will Be Worth $6 Billion by 2025
The automotive Near Field Communication (NFC) market size is set to exceed $6 billion by 2025, according to a new research report by Global Market Insights.
In this digital era, the firm reports, connected cars has emerged as a major change impacting the automobile ecosystem. Drivers expect their vehicles to be a digital extension of their lifestyle and customers want their automotive systems to be customized per their specific needs. Drivers are no longer considering cars as just a mode of transportation used for shopping and commuting to office places. Passenger cars are being viewed as a method to guide them to their required destinations, spot and report issues on the road, and provide parking assistance. Drivers are willing to embrace the paradigm shift in the automotive industry by seeking more advanced and personalized solutions, better suited for their driving needs and promoting the use of NFC solutions in automobiles.
Technological advancements in the connected-car landscape, coupled with the ever-rising need for saving time and maximizing productivity, are driving the penetration of IoT technology in the automotive market. Cars are being incorporated with IoT applications such as in-vehicle infotainment systems, predictive maintenance systems and dashboard reporting. The introduction of IoT systems in automobiles has been promoting the use of high-speed communication technologies that can offer faster data rates, response times, and secure vehicular communication.
NFC technology establishes a safe and secure communication channel when data is being transferred among automotive components, while preventing unauthorized access from external sources. One factor that has acted as a catalyst for the technology's adoption over Bluetooth and Wi-Fi, the firm reports, is its faster connection establishment and response times. Automakers are leveraging on this attribute to provide simple "tap and go" functionality for features, such as car access and engine ignition, supplementing the growth of the automotive NFC market.
NFC components accounted for a 60 percent share in the automotive NFC market, according to Global Market Insights, which is attributed to the growing use of various multi-media-based devices such as video players and rear-view cameras in automobiles. The automotive landscape has been gradually shifting toward 424 Kbit/S due to the influx of highly interconnected automotive components. These products are fully compliant with the requirement for fast and highly secure data transmission and flexible infrastructure. Such products adhere to all open global standards for air interface and cryptographic methods, making it a safe and highly reliable alternative for OEMs and automotive players to enhance their product performance without compromising the safety and security of the data being transmitted.
High-end vehicles in the automotive NFC market will register a growth rate of more than 31 percent over the forecast timeline, the firm predicts. The rising incorporation of smart driving applications into high-end passenger cars is transforming the automobile landscape by improving security and enhancing the driver experience. The use of NFC technology has played a key role in augmenting the driver experience, bringing personalized entertainment and connected infrastructure to the car environment. Automotive suppliers and car manufacturers are forming tie-ups with prominent automakers to develop customized NFC solutions for their automobiles.
The interior application held more than 71 percent revenue share in the automotive NFC market in 2018, according to the report. This market includes infotainment system, air-conditioning, engine access and ADAS communication interfaces. The interior application of NFC technology is used from low-end to high-end vehicles. The NFC technology is used for various interior applications, such as communication support, the interaction between a driver and car, and information retrieval. The ability of NFC technology to simplify the pairing process is the primary factor driving its usage in the automotive landscape. Without the use of NFC technology, it requires more than eight different interactions to establish the first connection between a car and a smart device. The use of NFC technology substitutes these transactions with a single transaction that only requires the NFC device to be held over an automobile's NFC dashboard.
The North American automotive NFC market will attain a CAGR greater than 32 percent over the projected time period, the report indicates, due to the introduction of various road-safety guidelines mandating the use of ADAS systems. Automakers in the region are incorporating smart driving features into automobiles, which has generated a myriad of opportunities in the integration of NFC solutions in vehicles.
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