Automotive NFC Market Size, Share, Opportunities, And Trends By Application (Brakes, Steering, Shock Absorbers), By Component (Master Cylinder, Slave Cylinder, Reservoir, Hose), By Vehicle Type (Passenger Vehicles, Light Commercial Vehicles, Medium & Heavy Commercial Vehicles), And By Geography - Forecasts From 2024 To 2029

The automotive NFC market is expected to grow from US$6.420 billion in 2024 to US$12.954 billion in 2029 at a CAGR of 15.07%.

Near-field communication (NFC) in automotive refers to a set of communications protocols that provide keyless access to vehicles through smartphones or other smart connected devices. It assists in exchanging car infotainment between vehicles and their users. The bolstering growth of connected automotive sales, followed by the growing IoT device consumption in today's modern vehicles, is driving the demand for NFC technology in the automotive sector.

Furthermore, various automotive manufacturers are investing in small communications platforms that provide an additional key backup for the user. Likewise, the increase in automotive theft prevalence has also stimulated the demand for near-field communications since it assists in retrieving information relating to the vehicle’s theft status. However, the limited coverage range and slow data transfer speed compared to other wireless technologies are some of the major drawbacks of NFC, which are expected to hamper the overall market expansion.

Automotive NFC Market Drivers: 

• Booming connected automotive sales are driving the market expansion.

Near-field communications have provided a next-level approach for smart automotive key development since they provide contactless vehicle pairing, which makes it easy to track personal and rented cars. Moreover, the close link between a vehicle and a smartphone is a diagnostic tool for showing error codes and information that enables car technicians to understand malfunctioning components.

The growing transition to promote IoT device adoption in automotive, followed by booming 5G penetration, has increased the frequency of connected vehicles globally. For instance, according to the white paper released by 5G Automotive Association in April 2023, in Q2 2022, the global sales of connected vehicles exceeded that of non-connected vehicles, with overall volume reaching 250 million. Moreover, as per the ‘Business Perspective on Vehicles-to-Network-to Everything” issued by the same association in May 2024, nearly 2.5 million passenger vehicles consumed data from connected objects and shared real-time data status through aftermarket solutions. Such high sales of connected vehicles are anticipated to drive the demand for NFC, bolstering the overall market expansion during the forecast period.

• The growing prevalence of automotive theft is propelling the need for smart key access.

NFC provides an intuitive connection between a vehicle and an end-user, granting them secure contactless access. Hence, the digital key has provided a breakthrough in smart key development, adding an extra layer of encrypted code that prevents unauthorized access. The growing prevalence of automotive theft has bolstered the demand for encrypted keys to increase vehicle safety.

According to the report issued by the National Insurance Crime Bureau, in 2023, the vehicle theft-related cases in California reached 1,020,729, signifying a 1.12% growth over the cases reported in 2022. Moreover, according to Interpol’s “Stolen Motor Vehicle Data”, in 2023, nearly 74,917 vehicles were reported stolen in the organization’s member countries. The ongoing shift towards innovations followed by the development of in-car infotainment systems will boost the NFC market expansion.

Automotive NFC Market Segment Analysis

• The sedan is expected to account for a considerable market share.

Based on vehicle type, the automotive NFC market is divided into sedan/hatchback, SUV, LCV, and HCV. Sedan/hatchback is estimated to constitute a remarkable market share as the model is effective and primarily family-oriented. The growing EV transition further bolstered the demand for sedan models, with major EV manufacturing companies experiencing positive growth in sales figures.

For instance, according to Tesla’s quarterly report, the company's Model 3/Y deliveries in Q2 2024 reached 422,405 units, representing a 14.23% growth over Q1 2024. Likewise, SUVs are poised for a positive expansion fueled by the growing demand for 7-seaters in major economies.

• Car keys are estimated to grow at a remarkable rate during the given timeframe.

Application-wise, the automotive NFC market is segmented into car keys, onboard units, and others. Car keys are poised for positive expansion and will account for a remarkable share since encrypted car keys provide secure and convenient access to vehicles, thereby forming an effective alternative to traditional keys.

Major automotive manufacturers are investing in digital vehicle access, driving the segment growth. For instance, in July 2024, BMW became the first automotive manufacturer to receive CCC Digital Key certification, thereby enabling the company to exercise digital vehicle access in its models.

Automotive NFC Market Geographical Outlook

• North America is anticipated to constitute a remarkable market share.

The automotive NFC market, based on geography, is segmented into North America, South America, Europe, the Middle East and Africa, and Asia Pacific. The North American region is expected to show rapid growth. It will account for a considerable share of the market owing to the favorable investment in bolstering vehicle connectivity technology in major economies, namely the United States, which stands at the forefront of technological innovations globally.

Moreover, the well-established presence of major NCF technology providers, namely NXP Semiconductors, Infineon Technologies, Texas Instrument Incorporated, and STMicroelectronics, followed by a strategic collaboration with major EV manufacturers, namely GM, Ford, and Tesla, which are adopting a new approach to enhancing digital mobility, are acting as additional driving factors.

Additionally, the European region is estimated to grow steadily due to the growing prevalence of automotive theft, which has accelerated the demand for encrypted keys to bolster vehicle security. The APAC region is projected to show constant growth during the forecast period.

Automotive NFC Key Development:

• In July 2024, NXP Semiconductors announced that it received certification from the Car Connectivity Consortium for its “SN220” single-chip NFC under the “Digital Key Certification” program. The approval made NXP the first digital key solution provider to receive CCC certification for NFC chips. It bolstered its offerings to encompass Ultra-Wideband and Bluetooth Low Energy for car OEMs and mobile device manufacturers.
• In April 2024, IDEMIA Secure Transaction (IST) received NFC forum certification for the company’s Near Field Communication key cards, compatible with the Car Connectivity Consortium’s “Digital Key Key™.” The approval enabled IST to establish interoperability between the NFC-equipped vehicle and its key cards.
• In December 2023, Huf Hülsbeck & Fürst GmbH & Co. KG announced a million-dollar investment in the development of a future smart car key that will integrate Ultra-Wideband (UWB), Near Field Communication (NFC), and Bluetooth Low Energy (BLE) technologies, thereby meeting the CCC standards. The development would expand Huf’s “Phone as a Key” digital key system.

Automotive NFC Market Scope:

Report Metric	Details
Automotive NFC Market Size in 2024	US$6.420 billion
Automotive NFC Market Size in 2029	US$12.954 billion
Growth Rate	CAGR of 15.07%
Study Period	2019 to 2029
Historical Data	2019 to 2022
Base Year	2024
Forecast Period	2024 – 2029
Forecast Unit (Value)	USD Billion
Segmentation	Type Vehicle Type Application Sales Channels Geography
Geographical Segmentation	North America, South America, Europe, Middle East and Africa, Asia Pacific
List of Major Companies in Automotive NFC Market	NXP Semiconductors STMicroelectronics Sony India Samsung Electronics Co. Infineon Technologies AG
Customization Scope	Free report customization with purchase

The Automotive NFC market is analyzed into the following segments:

• By Type
  • 106 Kbit/S
  • 212 Kbit/s
  • 424 Kbit/S
• By Vehicle Type
  • Sedan/Hatchback
  • SUV
  • LCV
  • HCV
• By Application
  • Car Keys
  • Onboard Units
  • Others
• By Sales Channels
  • OEM
  • Aftermarket
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Others

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1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key Benefits for the Stakeholders

2. RESEARCH METHODOLOGY  

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Supplier

4.3.2. Bargaining Power of Buyers

4.3.3. The Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. AUTOMOTIVE NFC MARKET BY TYPE 

5.1. Introduction

5.2. 106 Kbit/S

5.3. 212 Kbit/S

5.4. 424 Kbit/S

6. AUTOMOTIVE NFC MARKET BY VEHICLE TYPE    

6.1. Introduction

6.2. Sedan/Hatchback

6.3. SUV

6.4. LCV

6.5. HCV

7. AUTOMOTIVE NFC MARKET BY APPLICATION    

7.1. Introduction

7.2. Car Keys

7.3. On Board Units

7.4. Others 

8. AUTOMOTIVE NFC MARKET BY SALES CHANNEL    

8.1. Introduction

8.2. OEM

8.3. Aftermarket

9. AUTOMOTIVE NFC MARKET BY GEOGRAPHY

9.1. Introduction

9.2. North America

9.2.1. USA

9.2.2. Canada

9.2.3. Mexico

9.3. South America

9.3.1. Brazil

9.3.2. Argentina

9.3.3. Others

9.4. Europe

9.4.1. UK

9.4.2. Germany

9.4.3. France

9.4.4. Italy

9.4.5. Others

9.5. Middle East and Africa

9.5.1. Saudi Arabia

9.5.2. Israel

9.5.3. Others 

9.6. Asia Pacific

9.6.1. Japan

9.6.2. China

9.6.3. India

9.6.4. South Korea

9.6.5. Indonesia

9.6.6. Thailand

9.6.7. Others

10. COMPETITIVE ENVIRONMENT AND ANALYSIS

10.1. Major Players and Strategy Analysis

10.2. Market Share Analysis

10.3. Mergers, Acquisitions, Agreements, and Collaborations

10.4. Competitive Dashboard

11. COMPANY PROFILES

11.1. NXP Semiconductors

11.2. STMicroelectronics

11.3. Sony India

11.4. Samsung Electronics Co. 

11.5. Infineon Technologies AG

11.6. Qualcomm Technologies, Inc.

11.7. MediaTek Inc.

11.8. Renesas Electronics Corporation.

11.9. Texas Instruments Incorporated.

11.10. Premo S.L.

NXP Semiconductors

STMicroelectronics

Sony India

Samsung Electronics Co. 

Infineon Technologies AG

Qualcomm Technologies, Inc.

MediaTek Inc.

Renesas Electronics Corporation.

Texas Instruments Incorporated.

Premo S.L.