Automotive Radio Frequency Identification (RFID) Market

Radio Frequency Identification (RFID) Market

RFID or radio frequency identification is a technology that depends on radio waves for identifying any tagged object. Nowadays RFID is used in various industrial and commercial applications for tracking products at the time of sale. The functions of an RFID are similar to that of a magnetic strip at the back of a credit card or similar to a barcode wherein data between the product or object and its authority via a wireless medium that runs on radio frequency. Besides retail, radio frequency identification is gaining popularity in the automotive industry due to the increasing demand for automated loaded vehicles with high security.

RFID gadgets are generally utilized in premium vehicles and ascend in per capita pay and expansion in buy power equality is assuming a significant part in driving the interest for premium vehicles, which thus is driving the RFID market for auto. Accessibility of different money structures is another key factor driving the superior vehicles market. Exorbitant cost of vehicles with programmed frameworks is probably going to frustrate the RFID market for auto soon. Besides, a few highlights, for example, electronic cost assortment framework require foundation for the use of this element, consequently an absence of foundation in a couple of areas is projected to adversely influence the market for the frameworks, for example, shrewd cost assortment framework.

Radio frequency identification (RFID) is gaining popularity in the automotive industry for manufacturing as well as for integrating it with different automotive technologies. RFID utilizes radio waves to read and capture data stored on a device attached to an object. It primarily comprises two components ? antennae and a label or tag ? that store information received from the antennae.

Market for radio frequency identification (RFID) for automotive is expected to expand at a significant pace during the forecast period due to rising global demand for smart systems that work on the basis of previously stored data, such as automatic vehicle identification, passive entry system, and vehicle immobilizer. Increase in demand for vehicles loaded with automatic systems and enhanced safety features is likely to propel the RFID market for automotive. RFID devices are mostly employed in premium vehicles and rise in per capita income and increase in purchase power parity are playing an important role in driving the demand for premium vehicles, which in turn is driving the RFID market for automotive. Availability of various finance structures is another key factor driving the premium vehicles market. High price of vehicles with automatic systems is likely to hinder the RFID market for automotive in the near future. Furthermore, some features such as electronic toll collection system require infrastructure for the application of this feature, thus a lack of infrastructure in a few regions is projected to negatively affect the market for the systems such as smart toll collection system.

The global RFID market for automotive can be segmented based on application, automotive systems, sales channel, vehicle, and region. Based on application, the vehicle integrated systems segment is anticipated to hold a major share of the market, owing to the high production of vehicles, while, on the other hand, presence of lesser number of automotive manufacturing units as compared to vehicle production is a key factor behind the lower expected market share of the manufacturing unit segment.

In terms of automotive systems, the passive entry systems segment is likely to hold a significant share of the market, owing to the integration of passive entry systems in most segments of passenger cars. Furthermore, vehicle immobilizer and electronic toll collection systems are highly lucrative segments of the RFID market for automotive.

In terms of sales channel, the original equipment manufacturer (OEM) segment is anticipated to dominate the radio frequency identification market for automotive owing to integration of the systems by automakers, and they require replacement or addition of RFID systems in very limited cases; however the aftermarket segment is expected to expand at a moderate pace during the forecast period.

Based on vehicle, the passenger vehicles segment is anticipated to hold a major share of the RFID market for automotive, owing to integration of higher number of systems with RFID in passenger vehicles, while commercial vehicles employ lesser number of the RFID systems. Furthermore, higher production of passenger vehicles, as compared to commercial vehicles, is the major factor responsible for the higher market share held by the passenger vehicle segment.

In terms of region, Europe is anticipated to hold a major share of the global market, followed by Asia Pacific. Production of a large number of premium vehicles in the region is expected to drive the RFID market for automotive. Asia Pacific has the highest production of the vehicles among all the regions, owing to the presence of major global manufacturers in the region with significant production bases.

Key manufacturers operating in the global RFID market for automotive are IAITO, Nordic ID, Pepperl+Fuchs GmbH, Siemens AG, Bar Code Graphics, Inc., and SML Group.

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