Automotive RFID System Market

An automotive Radio Frequency Identification System (RFID), is a vehicle identifying and tracking system that consists of a small chip. Automotive RFID tags electronically store information and is attached to the vehicle. Automotive RFID system uses radio waves to read and acquire information stored in the tag. It has the ability to allow access, identify, and track the vehicle from a specific distance.

Rise in technological advancement of navigation tracking system for automotive RFID system which is common in modern cars such as BMW 7series, Mercedes Benz S-class, Audi R8, and Jaguar XJ, is expected to be a key factor driving the automotive RFID system market during the forecast period. Implementation of stringent norms on automotive industry regarding identification and tracking and concerns by global regulatory bodies are also anticipated to augment the automotive RFID system market.

Automotive RFID system in automotive vehicles enables automatic deduction of toll charges. It allows car washing and car rental agencies to retrieve information such as identification and tracking of the vehicle without comparing with other vehicles. Automotive RFID system enables vehicle identification in a parking space. It identifies and tracks the unauthorized vehicle. Automotive RFID system is operated only from a specific distance. This is anticipated to hamper the automotive radio frequency identification market.

Automotive RFID system market can be segmented based on type of RFID tags, vehicle, end-user, frequency, and region. Based on type of RFID tags, the automotive radio frequency identification market can be segmented into active RFID and passive RFID. Active RFID uses a battery to transmit signals, while passive RFID does not contain battery and uses radio waves provided by reader to transmit signals. The passive RFID segment dominates the automotive radio frequency identification market.

Based on vehicle, the automotive RFID system market can be classified into passenger vehicles and commercial vehicles. The passenger vehicles segment includes hatchback, sedans, multi-purpose vehicles, and sport utility vehicles. The commercial vehicles segment comprises lightweight commercial vehicles and heavy commercial vehicles. Based on end-user, the automotive RFID system market can be segmented into luxury car, mid-segmented car, and sports car.

Based on frequency, the automotive RFID system market can be segregated into low frequency and high frequency. The high frequency segment accounts for a prominent share of the market, as high frequency automotive RFID systems are used by most global automotive industries as compared to the low frequency systems. High frequency RFID systems covers larger area vis-à-vis to low frequency RFID.

In terms of geography, the automotive RFID system market can be segmented into North America, Europe, Asia Pacific, Latin America, Middle East, and Rest of the World (ROW). North America accounts for a major share of the global automotive RFID system market, owing to the high adoption rate of automotive radio frequency identification and expansion of the automotive sector in the region. Germany, France, Italy, and the U.K. are leading countries in terms of adoption of automotive radio frequency identification technology in Europe. The automotive RFID system market in Asia Pacific, especially China, India, Japan, and South Korea, has been expanding owing to the rapid technological developments in the region. Latin America is also expected to witness significant expansion of the automotive RFID system market during the forecast period.

Key players operating in the global automotive RFID system market include Impinj, Inc., NXP Semiconductors, Avery Dennison Corporation, Confidex Ltd., SMARTRAC N.V, Alien Technology, LLC., Nedap N.V., and Invengo Technology Pte. Ltd.