Enjoy complimentary customisation on priority with our Enterprise License!
The vehicle radio-frequency identification (RFID) tag market size is estimated to grow at a CAGR of 13.92% between 2023 and 2028. The market size is forecast to increase by USD 1.89 billion. The growth of the market depends on several factors such as the increase in tax revenue, the increasing parking-related issues, and the parking system convenience for users and operators.
This vehicle RFID tag market report extensively covers market segmentation by application (passenger cars and commercial vehicles), type (active RFID tag and passive RFID tag), and geography (APAC, North America, South America, Europe, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018-2022.
For More Highlights About this Report, Download Free Sample in a Minute
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The parking system's convenience for users and operators is the key factor driving market growth. The RFID technology is making toll and parking payments convenient and swift for drivers. Operators, too, can automate the process of collecting payment with minimum physical interaction, which increases their operational efficiency. The low cost of RFID tags also drives the adoption of RFID-based electronic toll collection in price-sensitive emerging economies. This system is also useful in extreme weather conditions, where quick entry and existence are imperative.
Moreover, RFID tags are also used for vehicle identification, which eliminates the inconvenience of carrying physical copies of vehicle papers. Hence, all major countries like the US, China, India, and others are making the integration of RFID tags a standard fitment in new vehicles. Hence, the convenience provided by RFID tags will increase the demand for vehicles and will contribute to the growth of the market during the forecast period.
The development of headlight-placed RFID tags is the primary trend shaping market growth. RFID tags used for electronic toll payments and parking charge payments have varying applications that range from traditional windshields to license plates. However, a recent development by prominent RFID tag suppliers added RFID tags to the vehicle headlight. Syndicate RFID and Confidex are the frontrunners in the development of RFID tags for headlight applications.
For example, Confidex developed Confidex Xenon, an RFID label developed for headlamps. Syndicate RFID developed a tamper-proof UHF headlight label. They are small and tamper-proof. This development will further strengthen the adoption of RFID tags in modern vehicles, which is crucial for the growth of the global vehicle RFID tag market during the forecast period.
Lack of proper coordination among government bodies is a challenge that affects market growth. Most regulators are demanding the use of vehicle RFID tags to make vehicle identification and online toll payments convenient. India lacks adequate infrastructure to support the mandatory RFID tag regulation. As a result, all 73 lakh vehicles carried dud RFID tags. This was due to poor coordination between the National Highways Authority of India and the transport ministry.
Furthermore, proper coordination is imperative to make the implementation of RFID tags successful in emerging economies that are high-volume adopters. Moreover, regulations without adequate infrastructure may impede the growth of the market during the forecast period.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Vehicle RFID Tag Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The passenger cars segment is estimated to witness significant growth during the forecast period. Passenger car's maximum contribution stemming from APAC. The increasing demand for passenger cars from developed and developing economies has made the segment important for the vehicle radio-frequency identification (RFID) tag market. The demand for sedans, coupes, hatchbacks, crossovers, and SUVs is increasing in China, the US, Canada, India, Germany, France, the UK, Spain, and others. High disposable income and convenient and attractive vehicle loan schemes by financial institutions and automobile manufacturers back this demand for vehicles.
Get a glance at the market contribution of various segments Download the PDF Sample
The passenger cars segment was the largest segment and was valued at USD 864.98 million in 2018. The escalating adoption of passenger cars is crucial for the growth of RFID tags. Government mandates also push automotive OEMs to offer RFID tags as standard fitments in new vehicles. Emerging economies like India, China, Malaysia, and many other countries are passing directives for the use of RFID tags in new vehicles. This trend is likely to be followed by other developing nations, further propelling the growth of the global vehicle RFID tag market through the passenger cars segment during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 67% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In the APAC vehicle radio-frequency identification tag market, emerging economies such as China, India, Indonesia, and Malaysia are witnessing a rise in the adoption of RFID tags due to the introduction of the electronic toll collection system. Furthermore, growth in the number of industries and the shift of manufacturing units from North America to APAC are other major factors for the adoption of automobiles.
As a result, the governments of APAC countries are continuously working to ease the toll payment process and increase their revenue. Electronic toll collection based on RFID technology attracts the interest of most regulators in APAC and drives vehicle radio-frequency identification tag market growth. This is because it is cost-effective. Therefore, the growing automotive industry in the region will boost the growth of the vehicle RFID tag market in APAC during the forecast period.
In 2020, the COVID-19 pandemic negatively affected the vehicle radio-frequency identification tag market in the APAC region. However, in 2021, the initiation of large-scale vaccination drives?lifted the lockdown and travel restrictions, which led to the resumption of supply chain activities. Furthermore, the increase in automobile production and growing demand for passenger vehicles in 2022 boosted the demand for RFID tags. Moreover, the increasing need for enhanced vehicle tracking and management is expected to drive the growth of the regional vehicle RFID tag market during the forecast period.
The vehicle RFID tag market report forecasts market growth by revenue at global, regional & country levels and analyzes the latest trends and growth opportunities from 2018 to 2028.
|
Vehicle RFID Tag Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
164 |
|
Base year |
2023 |
|
Historic period |
2018-2022 |
|
Forecast period |
2024-2028 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 13.92% |
|
Market Growth 2024-2028 |
USD 1.89 billion |
|
Market structure |
Fragmented |
|
YoY growth 2023-2024(%) |
12.57 |
|
Regional analysis |
APAC, North America, South America, Europe, and Middle East and Africa |
|
Performing market contribution |
APAC at 67% |
|
Key countries |
US, China, India, Japan, and Germany |
|
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
Alien Technology LLC, ASSA ABLOY AB, Avery Dennison Corp., Beontag Group, CAS DataLoggers, FEDRIGONI Spa, GAO Group Inc., Impinj Inc., Invengo Technology Pte. Ltd., Nedap NV, NXP Semiconductors NV, RFID Inc., SATO Holdings Corp., Shenzhen Hopeland Information Technologies Co. Ltd, SkyRFID LLC, Somfy Group, Star Systems International Ltd., TransCore, Xerafy Singapore Pte Ltd., and Zebra Technologies Corp. |
|
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
|
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Certified ISO 9001 : 2015
We are ISO 9001:2015 recognized that ensures quality services and product delivery to our clients.
We are GDPR and CCPA compliant! Your transaction & personal information is protected from unauthorized use.
Get lifetime access to our
Technavio Insights
Get the report (PDF) sent to your email within minutes.
