(MENAFN- GlobeNewsWire - Nasdaq) As detailed in the latest report by Towards Automotive, the global vehicle RFID tags market is forecast to grow from USD 974.49 million in 2026 to about USD 1358.48 million by 2034, at a CAGR of 4.24% between 2025 and 2034.

Ottawa, Oct. 14, 2025 (GLOBE NEWSWIRE) -- The global vehicle RFID tags market reported a value of USD 934.85 million in 2025, and according to estimates, it will reach USD 1358.48 million by 2034, as outlined in a study from Towards Automotive, a sister firm of Precedence Research.

The vehicle RFID tags market has been growing in recent periods due to increasing demand for automated toll collection, smart parking , fleet management , enhanced security and anti-theft measures, and streamlined supply chain processes within the automotive industry.

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Key Highlights of the Vehicle RFID Tags Market

• By region, the Asia Pacific dominated the vehicle RFID tags market, whereas North America is expected to grow in the foreseeable period.
• By application, the vehicle tracking and identification segment led the vehicle RFID tags market, whereas the access control and security segment is expected to grow in the foreseeable period
• By end user, the transportation and logistics and retail, and automotive aftermarket segments led the vehicle RFID tags market
  

Market Overview

What is the Vehicle RFID Tags Market?

The vehicle RFID tags market is witnessing rapid growth, driven by the logistics and transportation sectors embracing automated tracking and intelligent management systems. The market for vehicle RFID tags is growing. Market expansion is being propelled by rising demand for improved fleet management, toll collection, and vehicle security . It is being accelerated by technological advancements.

Market Outlook

• Industry Growth Overview: With the rise of automated vehicle tracking and smart transportation, the market for vehicle RFID tags is expanding gradually. The growth of the industry is being driven by rising demand from fleet management, logistics, and toll collection applications.
• Sustainability Trends: RFID technology promotes more efficient fleet operations and less paper use, both of which improve environmental efficiency. Integration with smart city projects encourages transportation systems to use less energy and emit fewer emissions.
• Startup Ecosystem: Startups are innovating RFID hardware, software, and IoT-enabled vehicle tracking solutions. Collaborations with established automotive and logistics companies help scale technologies and accelerate adoption.
  

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Restraint

High Implementation Costs

Smaller fleet adoption is constrained by the high upfront costs associated with deploying RFID infrastructure, which includes tags, readers, and software systems. For operators with limited funds, RFID is less practical due to the additional expenses associated with staff training and integrating it with current transportation management systems.

Opportunity

Fleet Management & Logistics Optimization

Growing demand for real-time tracking and automated fleet management systems creates opportunities for RFID adoption among logistics, delivery, and rental vehicle operators. RFID helps reduce fuel costs, monitor driver behavior, and improve asset utilization across fleets.

Segmental Insights

By Application

Vehicle tracking and identification segment dominated the market as it is essential for fleet management, toll collection, and public transportation systems. The segment benefits from widespread adoption in commercial fleets, government transport departments, and logistics companies, offering real-time monitoring, improved operational efficiency, and enhanced safety.

Access control and security are growing rapidly as more businesses employ RFID tags for secure facility entry, gated community access, and parking management. The need for convenient RFID-based security solutions that minimize manual intervention is growing as smart buildings and IoT integration become more prevalent.

By End-User

Transportation and logistics remain the dominant end-user segment due to the critical need for real-time vehicle tracking, route optimization, and fleet monitoring. Companies in this sector are adopting RFID technology to reduce operational costs, improve supply chain efficiency, and enhance overall fleet safety.

Retail and automotive aftermarket are growing rapidly since inventory management and anti-theft measures vehicle identification, are all using RFID tags increasingly. The development of this end-user market is being driven by growing consumer awareness, digital adoption, and smart car solutions.

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Regional Analysis

Asia Pacific dominated the vehicle RFID tags market in 2024, owing to widespread adoption aided by growing logistics, public transit projects, and smart city programs. Major centers for the production of automobiles and expanding infrastructure investments help to increase the region's market share.

North America is the fastest-growing region, driven by the adoption of smart highways, connected vehicle initiatives, and advanced transportation management systems. Technological advancements, government support for intelligent transport systems, and rising demand from logistics and fleet operators are accelerating growth in this region.

Country-Level Investments/Funding Trends for Vehicle RFID Tags Market

Country	Investment Trends	Funding Trends	Government Initiatives & Policies
U.S.	Advanced RFID for chase, inventory, and security. Focus on change and early adoption.	Significant investment in R&D by automakers and high-tech companies.	Federal mandates for vehicle safety, traffic control, and electronic identification.
Germany	Secure, high-performance tags for the automotive sector, including diverse technologies, RFID.	Strategic alliances for interoperable systems, aligned with the EU level.	Strong automotive industry and smart tolling mandates to foster.
India	Rapid adoption for toll collection (FASTag), traffic management, and digital city applications.	Supports domestic manufacturing and profitable, scalable solutions	The FASTag mandate is a major driver for RFID adoption.
UAE	Tailored RFID solutions with advanced security, focusing on environmental conditions and fraud prevention.	Investment driven by smart city projects and high-tech public works.	Data protection laws and digital transformation initiatives encourage secure RFID use.

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Top Companies in the Vehicle RFID Tags Market

• Zebra Technologies Corporation
• HID Global Corporation
• Impinj, Inc.
• Honeywell International Inc.
• NXP Semiconductors N.V.
• Siemens AG
• Avery Dennison Corporation
• Alien Technology, LLC
• GAO RFID Inc.
• Confidex Ltd.

Recent Developments

• In September 2023, Avery Dennison introduced the AD-843 UHF RFID tag, designed for automotive exterior applications such as vehicle registration, tolling, and electronic vehicle identification (EVI). The tag offers weather-resistant construction, adhesive backing, and global frequency compatibility.
• In November 2024, PulpaTronics launched paper-based RFID tags without metal or silicon components to reduce single-use electronics waste. These chipless, paper-only tags replace traditional RFID tags, creating self-checkout and improving inventory management and theft prevention in retail stores.

Segments Covered in the Report

By Application

• Vehicle Tracking and Identification
• Access Control and Security
• Inventory Management
• Toll Collection and Road Pricing

By End-User

• Automotive Manufacturing
• Fleet Management
• Transportation and Logistics
• Retail and Automotive Aftermarket

By Region

• North America
  • United States
  • Canada
• Europe
  • Germany
  • United Kingdom
  • France
• Asia-Pacific
  • China
  • Japan
  • India
• Latin America
  • Brazil
• Middle East and Africa
  • South Africa
    

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About Us

Towards Automotive is a leading research and consulting firm specializing in the global automotive industry. We deliver actionable insights across key segments such as electric vehicles (EVs), autonomous driving, connected cars, automotive software, aftermarket services, and more. Our expert team supports both global enterprises and start-ups with tailored research on market trends, technology, and consumer behavior. With a focus on accuracy and innovation, we empower clients to make informed decisions and stay competitive in a rapidly evolving landscape.

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