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The Vehicle RFID Tags Market size is forecast to increase by USD 1.89 billion, at a CAGR of 13.92% between 2023 and 2028.
Several factors play a crucial role in the market's growth, such as the increase in tax revenue, the increasing parking-related issues, and the parking system convenience for users and operators. The report provides market size, historical data spanning from 2018 - 2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments.
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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 radio-frequency Identification technology is revolutionizing toll and parking payments, offering drivers a convenient and swift experience. Operators benefit from automated payment collection with minimal physical interaction, enhancing operational efficiency. The cost-effectiveness of these tags promotes RFID-based electronic toll collection, especially in price-sensitive emerging economies. This system proves valuable in extreme weather conditions, ensuring quick and seamless entry and exit.
Furthermore, RFID tags serve for vehicle identification, eliminating the need to carry physical copies of vehicle papers. Consequently, major countries like the US, China, and India are standardizing the integration of these tags in new vehicles. The RFID tag market is expected to grow, driven by its diverse applications in various industries, including retail, inventory management, and security, despite facing challenges such as legal limitations and privacy concerns related to read ranges and technical aspects. Hence, the convenience provided by these 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 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 these tags in modern vehicles, which is crucial for the growth of the global 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 implement radio-frequency Identification 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 forecasting 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 market growth analysis strategies.
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.
Alien Technology LLC: The company offers vehicle RFID tags such as Squiggle, Doc tag, and Squig tag.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about 21 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 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.
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The passenger cars segment was the largest and was valued at USD 864.98 million in 2018. Moreover, the escalating adoption of passenger cars is crucial for the growth of these tags. Government mandates also push automotive OEMs to offer these tags as standard fitments in new vehicles. Emerging economies like India, China, Malaysia, and many other countries are passing directives for the use of these tags in new vehicles. This trend is likely to be followed by other developing nations, further propelling the growth of the global market through the passenger cars segment during the forecast period.
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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 these 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 this 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 market in APAC during the forecast period.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest market trends and growth opportunities from 2018 to 2028.
The Market is witnessing significant growth driven by the expanding use of Radio-Frequency Identification (RFID) technology across various industries. While the logistics and supply chain sectors benefit from improved asset management, inventory tracking, and antitheft measures, the retail industry leverages RFID for retail applications, enhancing efficiency in inventory management. However, the market faces challenges related to privacy laws and legal compliance, with potential fines posing a threat to a company's reputation and liability. The industry encounters complexities inaccurate data capture, and tag costs that contribute to initial investment considerations. Despite challenges, the RFID market is expanding, driven by economies of scale and innovations in manufacturing processes and materials. Scalability is a crucial factor, in making RFID solutions accessible to both larger enterprises and smaller businesses, particularly in emerging markets. Technical limitations, such as read range and susceptibility to interference, are addressed through the differentiation between passive RFID tags, which rely on external signals, and active RFID tags with built-in power sources. The frequency band selection becomes pivotal for specific applications, whether it's optimizing retail inventory management or tracking vehicles in a parking lot, overcoming interference caused by metals or liquids. The Market continues to evolve, offering versatile solutions with implications for diverse industries.
The Market is rapidly transforming cashless transactions, particularly at toll plazas, streamlining processes for improved efficiency. Leveraging Electronic Product Code (EPC) standards, these RFID tags incorporate unique digits, ensuring accurate product identification. However, the industry faces regulatory and legal challenges, particularly in areas like data protection, healthcare, finance, and logistics, where RFID plays a crucial role in patient identification, asset tracking, and secure access control. Balancing the need for enhanced consumer privacy with regulatory compliance is a shared responsibility among market participants. Challenges such as inaccurate data capture need to be addressed to sustain the expansion of the market, which continues to play a pivotal role in various sectors, from transportation to supply chain management. As global standards organizations work towards refining EPC codes, the Market remains at the forefront of technological advancements with implications for diverse industries.
Market Scope |
|
Report Coverage |
Details |
Page number |
166 |
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., Hana Microelectronics Public Co. Ltd., IMPINJ INC., Invengo Technology Pte. Ltd., Nedap NV, NXP Semiconductors NV, RFID Inc., Roper Technologies Inc., SATO Holdings Corp., Shenzhen Hopeland Information Technologies Co. Ltd, SkyRFID LLC, Somfy Group, Star Systems International Ltd., 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
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