Growing Popularity of RFID-Based License Plates

The growing popularity of RFID-based license plates is to push growth in the market. These electronic license plates can be used for tamper proof vehicle registration and identification, traffic management, and access control.

Economies like India, Indonesia, Thailand, and others are encouraging the integration of RFID tags in vehicle to make toll payments convenient. This increases the revenue from toll operations that can be used to enhance road infrastructure. Hence, RFID tags are crucial to increase revenue.

RFID tags are still a concern for vehicle security. The system uses RFID that is exchanged between the RFID tag in the vehicle and RFID receivers. RFID tags are prone to hacking for the extraction of vehicle identification number.

The market appears to be fragmented and with the presence of several companies including AVERY DENNISON and Confidex, the competitive environment is quite intense. Factors such as the rising growing popularity of RFID-based license plates and the increase in tax revenue, will provide considerable growth opportunities to vehicle RFID tag manufactures.