In the past few years, the use of NFC for contactless payments has rapidly gained popularity. Similar advantages are being obtained in the automobile industry for improved in-vehicle user experience. With just one tap and a few seconds, NFC in cars makes it easier to associate a device with the car. Passengers or the car’s driver may then use it to tailor the interior of the vehicle, including the air conditioning, audio system, radio controls, etc., to suit their demands. NFC is expected to play a significant role in the development of new ideas including corporate fleet management, automobile sharing, and rental cars.
Some of the factors that would help push the growth of the automotive NFC market during the forecast period include the explosive growth of smart devices like smartphones and tablets along with the significant advancements in device communication technologies, burgeoning demands for a customized user experience in automobiles especially the premium cars segment, and growing adoptions of luxury cars in the mid-priced car segments. Automotive OEMs are under pressure to reduce the total cost of ownership for the vehicle due to factors including the complexity of automotive NFC and the high expenses connected with it. Additionally, worries about the short-range connection of systems will impede growth over the next few years.
However, increased interest in short-range communication due to connection issues that are becoming less of a problem is going to offer market participants a significant potential platform, particularly in the emerging nations of the Asia Pacific and African area.
Growth of NFC market
The growing need for secure and contactless information systems and payments is one of the main reasons propelling the growth of the worldwide NFC market. The development of contactless NFC communication has greatly benefited the customer service, transportation, social networking, and healthcare industries. Due to the fact that smartphones have made everything possible, NFC is growing in popularity alongside smartphone demand. According to a Gartner study from 2020, there will be 36 billion IoT devices used for NFC-enabled mobile payments. By 2025, according to the GSMA, smartphones and NFC will be able to support 80% of all connections worldwide. The NFC industry is being considerably driven by this potent pairing of NFC and smartphones.
Additionally, a spike in the usage of smart wearables and IoT-based devices is anticipated to support market expansion. However, the market development is projected to be constrained by growing safety concerns, the availability of alternative payment methods, and short-range communication. On the other hand, increased urbanization combined with rising demand for contactless payment and device connection is anticipated to open up a wide range of prospects in the NFC industry.
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Scope of Global NFC Market:
Near Field Communication (NFC) is the name for the contactless communication between various devices (NFC). Smart phones, tablets, and other NFC-capable gadgets can be used as these devices. It transmits information from a transmitter to a receiver that is close to one another using the electromagnetic radio field theory. The approximate communication distance between NFC devices is 10 cm. This short range is advantageous for secure communication between NFC-enabled devices, making it more practical and adaptable. According to the 2019 US Consumer Behavior Report, Worldpay, a pioneer in NFC technology, supports other companies in implementing quick and secure NFC connection for payment methods. 66% of US consumers think that traditional payment cards will be replaced by smart cards.
COVID-19 Impact on Automotive NFC Market
- The World Health Organization (WHO) has declared the COVID-19 virus a public health emergency as a result of its global spread since its discovery in December 2019. The worldwide automotive NFC industry has been severely impacted by the COVID-19 outbreak. The number of new projects has decreased globally, which has decreased demand for analogue semiconductors. Due to workers remaining at home, global supply chains have been disrupt as manufacturing struggles to incorporate new automotive NFCs.
- The COVID-19 Pandemic has had a significant impact on many sectors all around the world, with both beneficial and bad results. The popularity of smart payments such as cashless or contactless payments has grown due to a greater awareness among citizens of the dangers of social isolation and excessive human interaction. Due to these uses, technologies like IoT, NFC, and other comparable communications are in demand and have a beneficial influence due to their global acceptance.
- The COVID-19 lockout prompted businesses to think about more advanced vehicle NFCs in order to boost productivity. Due to the manufacturing and supply chain interruptions caused by COVID-19, its effects on the automotive NFC industry were only temporary. As things get better, production, supply chains, and demand for automotive NFCs will all gradually increase.
Automotive Near Field Communication (NFC) Market Dynamics
Increasing the rate of automotive innovation
The rate of market expansion will accelerate by improvements in autos. It is anticipate that the low-end automotive NFC market would grow greatly in the coming years. In addition, the demand for luxury cars is growing quickly, especially in China and India, as a result of increased per capita income in emerging markets. Additionally, in order to give drivers a better connected driving experience, low-cost automakers are boosting their operations in these developed and developing regions.
Government regulations are strict
Strict government laws and regulations will accelerate the market’s growth for vehicle near-field communications (NFC). NFC technology usage in cars is project to pick up steam as a result of the implementation of strict regulatory regulations mandating the use of ADAS technology, particularly in the Asia Pacific area.
Increase in the number of vehicle near field communication applications (NFC)
The internal market includes components including infotainment systems, engine access, and ADAS communication interfaces. NFC technology is employee in a range of automotive applications, including high-end and entry-level automobiles. In addition to making communication easier, NFC technology also speeds up reaction times and reduces processing cycles.
Additionally, market value growth will fuel by increase urbanization and rising levels of disposable income. The expansion of the internet of things (IoT) in automobiles is another important element affecting the market’s growth rate.
News: Tech companies produce affordable flexible NFC medicine labels.
19 January 2021; NFC-enabled smart labels for prescription drugs were develop by PragmatIC Semiconductor (a flexible electronics firm), Avery Dennison (a maker of inlays), and Schreiner MediPharm (a pharmaceutical packaging company). By enhancing and recognising any potential tampering, authenticating, and enabling patients to rearrange instructions and information, this will make it feasible to monitor drugs and healthcare items.
Infineon launched the Employee Card and MasterCard Payment card.
18 January 2021; A semiconductor company called Infineon has built a new smart card system that combines employee ID for building access with MasterCard contactless payments. Near Field Communication (NFC) technology will use with this card, which is dub the Campeon Card. The card is develop in collaboration with peta Fuel, PayCenter, and MasterCard.
The automotive near field communication (NFC) market is estimate to be worth USD 984.5 million in 2021. And is anticipate to grow to USD 8240.80 million by 2029. The showing a CAGR of 30.42% from 2022 to 2029, according to Data Bridge Market Research. The Data Bridge Market Research team’s in-depth expert analysis, import/export analysis, price analysis. The production consumption analysis, and pestle analysis are all included in the market research.
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