NEW YORK, Jan. 3, 2025 /PRNewswire/ — Report on how AI is redefining market landscape – The global vehicle RFID tag market size is estimated to grow by USD 3.20 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of about 19% during the forecast period. Increase in tax revenue is driving market growth, with a trend towards growing popularity of rfid-based license plates. However, presence of alternative technologies to rfid poses a challenge. Key market players include 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, SkyRFID LLC, Somfy Group, Star Systems International Ltd., Xerafy Singapore Pte Ltd., and Zebra Technologies Corp..
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Vehicle RFID Tag Market Scope
Report Coverage
Details
Base year
2024
Historic period
2019 – 2023
Forecast period
2025-2029
Growth momentum & CAGR
Accelerate at a CAGR of 19%
Market growth 2025-2029
USD 3203.3 million
Market structure
Fragmented
YoY growth 2022-2023 (%)
14.6
Regional analysis
APAC, North America, South America, Europe, and Middle East and Africa
Performing market contribution
APAC at 76%
Key countries
US, Canada, China, Japan, Germany, India, UK, South Korea, France, and Italy
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, SkyRFID LLC, Somfy Group, Star Systems International Ltd., Xerafy Singapore Pte Ltd., and Zebra Technologies Corp.
Market Driver
The Vehicle RFID tag market is experiencing significant growth due to increasing demands for enhanced security and improved supply chain management in various industries. With Industry 4.0’s focus on smart manufacturing, RFID technology is becoming essential for real-time intelligence and response times. The market is driven by trends such as product traceability, asset tracking, and counterfeit product prevention in sectors like healthcare, pharmaceuticals, agriculture, and aerospace. Security threats, including theft and stockouts, are major concerns, making RFID tags an attractive solution. RFID readers and sensor networks enable quick identification and location of vehicles and goods, reducing response times and improving safety. High initial costs are being offset by innovations like NFC and uhf technology, and the integration of RFID with the Internet of Things and product licensing. In the aerospace industry, RFID tags help maintain intellectual property rights and ensure safety. In healthcare and pharmaceuticals, they ensure product authenticity and improve patient safety. In agriculture, RFID tags help monitor livestock and optimize farming operations. Overall, the market’s future looks bright, with continued growth expected in the coming years.
RFID tags are utilized in the automotive industry for vehicle identification and toll payments. Traditional RFID tags are attached to windshields, enabling toll plaza readers to extract vehicle identification numbers for online transactions. Advanced RFID technology is integrated into electronic license plates, offering benefits such as tamper-proof registration, traffic management, and access control. European countries are testing these plates, while the Philippines is implementing them in on-road vehicles. In October 2019, Pakistan introduced RFID vehicle registration plates to meet international standards and enhance security against terrorism and auto theft.
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Market Challenges
The Vehicle RFID tag market is experiencing significant growth due to the increasing demand for real-time intelligence and product traceability in various industries. However, there are challenges that need to be addressed. Security threats, such as hacking and data breaches, pose a risk to RFID systems. Industry 4.0 and the Internet of Things require faster response times, which can be a challenge for some RFID readers. Industries like aerospace, healthcare, pharmaceuticals, agriculture, and logistics rely on RFID technology for asset tracking and counterfeit product detection. However, high initial costs and intellectual property rights can be barriers to entry. The use of NFC and UHF technology in RFID tags is driving innovations, but the market also faces challenges like stockouts, theft, and safety concerns. Sensor networks and product licensing are other factors influencing the market. RFID technology provides real-time intelligence for supply chain logistics and stock movements, but the need for high-security RFID systems and sensors to detect temperature and humidity is essential. The market for RFID tags in the automotive industry is expected to grow, with a focus on improving safety and reducing theft. Overall, the market for RFID tags is dynamic, with continuous innovations and challenges shaping its future.RFID technology is widely used in electronic toll collection systems in major economies worldwide, except for Europe and Japan. However, RFID faces competition from DSRC and GNSS technologies, which are popular in Europe. Automobile manufacturers are focusing on delivering connected services to drivers, using DSRC and GNSS technologies for real-time traffic, weather reports, and road condition alerts. DSRC enables direct communication between vehicles and other road users without infrastructure involvement, ensuring secure and high-speed data transfer.
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Segment Overview
This vehicle rfid tag market report extensively covers market segmentation by
Application 1.1 Passenger cars1.2 Commercial vehiclesType 2.1 Active RFID tag2.2 Passive RFID tagGeography 3.1 APAC3.2 North America3.3 South America3.4 Europe3.5 Middle East and Africa
1.1 Passenger cars- The passenger cars segment is experiencing notable growth in the global vehicle RFID tag market, with the Asia Pacific region leading the charge. The increasing demand for passenger cars in both developed and developing economies, such as India, China, and others, is fueling this growth. In 2022, India recorded its highest-ever passenger vehicle sales, with a total of 3.8 million units sold, a significant increase from the 3.34 million units sold in 2018. This trend is also visible in countries like China, the US, Canada, Germany, France, the UK, Spain, and more, where high disposable income and attractive financing options are driving the demand for vehicles. RFID tags are becoming increasingly essential for the automotive industry due to their convenience and safety benefits. For instance, they are used in automatic parking systems for contactless payment and in electronic vehicle registration for identification and data validation. Government mandates in emerging economies like India, China, Malaysia, and others are also pushing automotive OEMs to include RFID tags as standard features in new vehicles. The growing demand for passenger cars and the resulting need for added features will continue to boost the growth of the global vehicle RFID tag market through the passenger cars segment during the forecast period.
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Research Analysis
The Vehicle RFID tag market is witnessing significant growth due to the increasing adoption of RFID technology in various industries for asset management and supply chain optimization. RFID middleware plays a crucial role in enabling interoperability between RFID readers and applications. The return on investment (ROI) for RFID systems can be substantial, with benefits including real-time inventory tracking, improved productivity, and enhanced security. Implementation costs and system design are important considerations for RFID deployment. Compliance with industry standards and best practices is essential for successful implementation. RFID software and data analytics tools help organizations make informed decisions based on the data collected by RFID tags. High-frequency RFID tags are commonly used in vehicle applications due to their long read ranges. Semi-passive tags offer a good balance between cost and functionality. NFC technology, a type of RFID, is gaining popularity for its use in IoT solutions, IoT platforms, and NFC applications, including payments and access control. Asset management is a major use case for RFID in the automotive industry, with RFID tags used to track vehicles and their components. Warehouse automation and IoT devices are other areas where RFID is being used to improve efficiency and productivity. Data security is a key concern in RFID systems, with IoT security and NFC security being important considerations. Training and consulting services are available to help organizations with RFID implementation and integration into existing systems. RFID labels and IoT devices come in various sizes and shapes to suit different applications. The benefits of RFID include improved accuracy, increased efficiency, and reduced labor costs. In conclusion, the Vehicle RFID tag market is a dynamic and growing industry, with RFID technology being used in various applications to improve efficiency, productivity, and security. RFID middleware, software, and data analytics tools are essential components of RFID systems, and compliance with industry standards and best practices is crucial for successful implementation. NFC technology is a key trend in the market, with applications ranging from payments to access control. Data security is a major concern, and organizations can turn to training, consulting, and IoT security services for assistance.
Market Research Overview
The Vehicle RFID tag market is experiencing significant growth due to the increasing demand for real-time intelligence and enhanced security in various industries. RFID technology, which utilizes sensors and readers to automatically identify and track vehicles and assets, is becoming a crucial component of Industry 4.0 and the Internet of Things. However, the market faces challenges such as security threats, high initial cost, and intellectual property rights. The automotive industry, aerospace, healthcare, pharmaceuticals, agriculture, and supply chain logistics are major sectors adopting RFID technology for product traceability, counterfeit product detection, and stock movements. Response times and safety are key considerations, with UHF technology and NFC gaining popularity for their long-range capabilities. Innovations in RFID technology, such as sensor networks and real-time intelligence, are further driving market growth. However, concerns over stockouts, theft, and asset safety remain, necessitating continuous advancements in RFID technology and supply chain management systems.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
ApplicationPassenger CarsCommercial VehiclesTypeActive RFID TagPassive RFID TagGeographyAPACNorth AmericaSouth AmericaEuropeMiddle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
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Email: media@technavio.com
Website: www.technavio.com/
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SOURCE Technavio
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