Top 4 trends driving NFC adoption in the auto industry

Widespread adoption of smartphones and penetration of internet have been among the major factors fueling global automotive NFC market trends in recent years. Automakers are increasingly using smartphones to interact with in-vehicle navigation and infotainment systems via NFC technology. It unlocks a much better driving experience and provides access to numerous in-vehicle applications ranging from vehicle navigation systems to engine or door access.

Global Market Insights, Inc., predicts that global automotive NFC market size will reach an annual valuation of approximately US$6 billion by 2025, with ongoing innovation in the automotive sector. Described below are some of the key factors driving NFC technology adoption in the auto industry.



  • Demand for personalization in luxury cars

Customization and personalization have been among the top trends in the luxury vehicles space over the past few years. With growing adoption of smartphones and availability of high-speed internet connectivity, consumer demand for better and more personalized features is also rising. Leading players are focusing on integrated innovative NFC-based technologies into vehicles.

In June 2020, Apple had announced plans to launch a new NFC CarKey which will enable iPhone users to lock, unlock and start cars. Auto major BMW was likely to be the first vehicle manufacturer to add support for the new technology.

  • Supportive initiatives to promote ADAS integration

The market share from mid-range vehicles is projected to record a 37% CAGR through 2025, with robust advancements in semiconductor technology. In addition, governments and regulatory authorities have undertaken numerous initiatives to promote the integration of advanced driver assistance systems (ADAS) into cars.

Considering the type of vehicle, high-end vehicles accounted for more than 50% revenue share of automotive NFC industry in 2018 and will witness notable growth by 2025. These trends will be mainly influenced by high consumer demand for in-vehicle infotainment and navigation systems to unlock a more personalized driving experience.

  • Extensive use in interior applications

Interior applications held over 70% revenue share of automotive NFC market in 2018 and will continue to dominate the market in the upcoming years. Automakers are currently focusing on integrating cost-effective and accurate wireless technologies to provide a seamless driving experience.

NFC technology provides accurate communication between the end devices, streamlines the pairing mechanism, and reduces response time. The industry share from exterior applications is slated to witness a healthy 36% CAGR through 2025, with wide adoption of NFC-based smartphone applications among consumers.

  • Rising passenger vehicles sales globally

Europe is likely to capture more than 35% revenue share of automotive NFC industry by 2025, with high passenger vehicle sales volume. The region accounted for nearly 37% of global passenger car sales in 2018. The presence of leading automakers including Audi, BMW, Daimler, and Volkswagen will bolster the regional outlook.

Asia Pacific automotive NFC market size will record a CAGR of nearly 35% up to 2025, driven by increased passenger vehicle sales in China and India. The growing adoption of smartphones and high-speed internet services will certainly augment the regional technology adoption.

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