Vehicle RFID Tags Market Size - By Components (Tags [Passive, Active], Readers, Software), Applications (Keyless Entry Systems, Tolls, Tracking, Smart Parking Systems, Fleet Management), Frequency, Vehicle Type, Regional Outlook & Forecast, 2024 - 2032

Vehicle RFID Tags Market Size - By Components (Tags [Passive, Active], Readers, Software), Applications (Keyless Entry Systems, Tolls, Tracking, Smart Parking Systems, Fleet Management), Frequency, Vehicle Type, Regional Outlook & Forecast, 2024 - 2032

Vehicle RFID Tags Market size is poised to expand at over 8% CAGR from 2024 and 2032 driven by the ongoing shift towards automation across multiple industries. With the automotive sector embracing autonomous and connected vehicles, the need for RFID tags to enable seamless communication and identification has substantially soared. RFID technology helps to enhance vehicle automation by enabling functions, such as automatic toll payments, secure access control, and streamlined logistics.

RFID tags facilitate real-time data exchange for ensuring accurate and secure information flow within connected vehicle ecosystems. The growing emphasis on smart transportation solutions, including RFID-based technologies is driving the adoption of RFID tags in vehicles for efficient management, further accelerating the industry expansion. To cite an instance, in August 2023, India-based Tata Power unveiled its latest modern RFID card designed for making EV charging easier and more available for consumers all around the country.

The vehicle RFID tags industry is segmented into component, application, frequency, vehicle type, and region.

Based on component, the market value from the software segment is projected to gain significant traction between 2024 and 2032. The increasing application of sophisticated software solutions is complementing the use of RFID tags for enhanced security and operational efficiency across industries. RFID tags integrated with advanced software solutions help to enhance vehicle tracking, authentication, and data management. Additionally, these software solutions optimize RFID functionalities for enabling efficient vehicle identification, and ensuring seamless integration with existing systems, further contributing to the segment growth.

In terms of application, the vehicle RFID tags market from the fleet management segment is set to witness high demand from 2024 to 2032. The growth can be attributed to the surging number of fleet operators leveraging RFID technology for efficient vehicle identification, inventory management, and maintenance tracking. RFID tags play a crucial role in revolutionizing fleet management by providing real-time tracking, secure access control, and data analytics. The integration of RFID tags in fleet management systems also helps to enhance the overall visibility, security, and productivity.

Regionally, the North America vehicle RFID tags industry generated considerable revenue in 2023 and is estimated to exhibit robust growth through 2032 attributed to the increasing adoption of advanced vehicle tracking and management solutions in the region. Government mandates and investments in intelligent transportation systems will support the product adoption. Several industries in the region are prioritizing enhanced security, operational efficiency, and smart transportation initiatives, further surging the deployment of RFID technology in-vehicle applications. The increasing efforts led by industry players on developing advanced solutions for catering to the evolving consumer requirements will also augment the industry outlook. For instance, in August 2023, SML unveiled a new feature of its Clarity® Store system using fixed RFID readers mounted in trailer and truck ceilings to automate precise, hands-free verification of delivery at retail locations for eliminating the need for stock receiving at destinations.