ADAS to drive automotive NFC market
According to a report on the automotive Near Field Communication (NFC) market by Future Market Insights, the global market is anticipated to grow at a CAGR of 30.2 percent from 2022 to 2032, reaching US$ 35 billion. In 2022, the market is expected to be worth US$ 3.26 billion, up from US$ 2.5 billion 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.
As the world becomes more and more connected, there is a need to boost automotive technology at a faster pace. Currently, automotive radar, NFC, cellular connectivity, and wireless power are now integrated into the mid and high-end automobile. The automobile is no longer just a means of transportation but has been embedded with various communication interfaces and devices. Automotive NFC allows two electronic equipment, where one is usually a portable device such as a smartphone and the other is part of the vehicle, to establish communication by bringing them within the short distance of each other. A subset of NFC, RFID expands beyond mobile phones to automobile applications. This can be seen as a differentiating factor for many new in-car functions for customers and also can simplify the existing in-car functions. The near-field communication stack for an automobile is a runtime software which implements the NFC protocol stack.
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. 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 automobiles in 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 have also increased the market of automotive NFC and anticipated to fuel the growth of automotive NFC market over the forecast period as well.
Europe, followed by North America, is expected to hold a major share in the global automotive NFC market and is expected to hold its share during the forecast period. 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 mature markets and they are 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.
In June 2022, STMicroelectronics, the global semiconductor manufacturer, 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.
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