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Numerous variables impact the Near Field Communication (NFC) market, which in turn shapes its dynamics and propels its expansion. The ubiquitous use of smartphones and other linked gadgets is one important issue. NFC technology is becoming more widely integrated as people use smartphones for a wider range of purposes. This allows for safe and easy device-to-device interactions. The widespread use of smartphones and their function as a primary hub for financial and personal activities is a major factor driving the growth of the NFC industry.
One of the main drivers of the NFC technology industry is the need for contactless solutions. NFC offers a smooth and effective way to communicate over short distances as contactless payments, access control systems, and smart technologies become more prevalent worldwide. This requirement is apparent in a number of sectors, including banking, retail, healthcare, and transportation, where it is now critical to conduct transactions or interactions quickly and securely. The adoption of this technology is fueled by the ease that NFC provides, which is in line with customer demands.
Security concerns are a major factor affecting the NFC business. Because NFC technology is so widely utilized for things like access cards, mobile payments, and identity, it is crucial to make sure that data exchange and transactions are secure. New developments in NFC security features, such as encryption methods and secure aspects, help to foster confidence between consumers and companies. NFC's versatility in facilitating secure connection adds to its appeal in situations where security is a concern.
The standards and regulatory framework play a part in the market dynamics influencing the adoption of NFC. Interoperability and compatibility between devices and systems are ensured by adherence to international standards and laws. The use of NFC technology is further accelerated by regulatory backing for safe authentication procedures and contactless payment systems. NFC's market dynamics are also influenced by government programs that support digitization, contactless transactions, and the growth of smart cities.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Size Value In 2022 | USD 22.9 Billion |
| Market Size Value In 2023 | USD 24.23 Billion |
| Growth Rate | 14.3% (2022-2030) |
Global Near Field Communication Market Highlights:
Global Near Field Communication (NFC) Market Overview:
Near Field Communication (NFC) Market Size was valued at USD 24.23 Billion in 2023. The Near Field Communication (NFC) Market industry is projected to grow from USD 26.3 Billion in 2024 to USD 60.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.30% during the forecast period (2024 - 2032). The growing product use in contactless payment and information systems drives the worldwide near-field communication (NFC) industry. Accordingly, the growing trend of social isolation to reduce contact with others brought on by the COVID-19 disease has raised the adoption of intelligent payment solutions such as cashless or contactless payments are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Near Field Communication (NFC) Market Trends
Growing use of contactless payment to boost the market growth
The growing demand for secure and contactless information systems and payments is one of the main factors propelling the growth of the worldwide near field communication (NFC) market. The development of contactless near field communication (NFC) has greatly benefited the customer service, transportation, social networking, and healthcare industries. According to a Gartner report from 2020, 36 billion IoT devices will be used for NFC-enabled mobile payments. By 2025, according to the GSMA, smartphones and near field communication (NFC) will support 80% of all connections worldwide. This potent pairing of NFC and smartphones considerably drives the near field communication (NFC) market. Additionally, a spike in the usage of smart wearables and IoT-based devices is anticipated to support market expansion. Therefore, the growing use of contactless payment methods has enhanced the market CAGR in recent years.
Figure 1: Estimated market size of contactless payments in various regions worldwide from 2020 to 2024
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Near field communication (NFC) -capable jewelry such as rings, smartwatches, bracelets, wristbands, fitness monitors, and key fobs are rising in popularity worldwide. 304.69 million wearables shipped worldwide in 2021. The wearable market is anticipated to ship 344.9 million units globally in 2022, representing a 13.2% CAGR. The benefits of wearable payment devices, such as the potential to anticipate consumer requirements, improve customer interaction, and enhance merchant payment tracking, have significantly expanded the use of near field communication (NFC)-enabled wearable devices. Additionally, there is a significant chance that the industry will expand due to end users' increased use of cloud-enabled rings for low-value transactions throughout the globe. Thus, the growing wearable device industry is another factor driving the growth of the near field communication (NFC) market revenue.
Near Field Communication (NFC) Market Segment Insights:
Near Field Communication (NFC) Type Insights
The near field communication (NFC) market segmentation, based on type, includes non-auxiliary and auxiliary. Most near-field communication (NFC) markets consisted of non-auxiliary products. Internal NFC-enabled accessories, such as NFC IC/Chips made for smartphones to enable contactless payments, access control, and safe pairing with other NFC devices for data transfer, are known as non-auxiliary near field communication (NFC) items.
November 2021: STMicroelectronics has introduced a low-cost NFC Type 2 Tag IC with privacy features and enhanced NDEF. The solution provides a new cost-performance balance for high-volume usage cases, including consumer engagement, product information, and brand protection. This creation has broadened the growth opportunity for the near field communication (NFC) industry.
The second fastest-growing segment in the near field communication (NFC) industry is the auxiliary sector. Auxiliary near field communication (NFC) is also the best for network authentication, e-transactions, collecting toll road fares, securing access control e-payment, and e-ticketing for events and public transportation.
Near Field Communication (NFC) End-User Insights
The near field communication (NFC) market data has been bifurcated by end-user into cloud service, telecom service, and enterprise. The enterprise sector dominated the market with respect to the near field communication (NFC) market revenue. Because of the quick adoption of NFC technology in various applications, such as access control, product identification, and transactions, the market is growing in the retail sector.
Figure 2: Near Field Communication (NFC) Market, by End-User, 2021 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The second fastest-growing segment in the near field communication (NFC) industry is the telecom industry. Due to its simplicity, security, and affordability in connecting Android and iOS mobile phones to appliances or other electronic devices, Near Field Communication (NFC) is becoming increasingly popular among designers and customers. Hence, rising applications of NFC in the telecom sector positively impact market growth.
Near Field Communication (NFC) Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. North America Near Field Communication (NFC) market accounted for USD 8.8 billion in 2021 and is expected to exhibit a significant CAGR of 43.9 percent growth during the study period. The near-field communication market is anticipated to grow rapidly across North America, particularly in the United States and Canada, along with the wide adoption of near field communication (NFC) solutions in banking, finance, retail, and healthcare. North America will also likely dominate the market due to many important competitors and the anticipated high adoption and development of near field communication (NFC) solutions. The near field communication (NFC) IC NTAG 210 from NXP is used in Identiv's Dry Inlay (25 mm diameter), which has been made available at a lower price.
Further, the major countries studied in the market report are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: NEAR FIELD COMMUNICATION (NFC) MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe near field communication (NFC) market accounts for the second-largest market share. Demand for near field communication (NFC) is rising as the region uses cutting-edge technologies like artificial intelligence and cloud-based apps more frequently. The proliferation of NFC-enabled payment wearables is the key driver anticipated to support European market expansion over the forecast period. The European wearable market is anticipated to reach 170.0 million units in 2025. Further, the German near field communication (NFC) market held the largest market share, and the UK near field communication (NFC) market was the fastest-growing market in the European region.
The Asia-Pacific Near Field Communication (NFC) Market is expected to grow at the fastest CAGR from 2022 to 2030. Demand for near field communication (NFC) is rising as the region uses cutting-edge technologies like artificial intelligence and cloud-based apps more frequently. The region's near-field communication market is also growing as more people in countries like China and India use smartphones. In China, there were almost 1.04 billion smartphone users in 2022. Moreover, China near field communication (NFC) market held the largest market share, and the India near field communication (NFC) market was the fastest growing market in the Asia-Pacific region
Near Field Communication (NFC) Key Market Players & Competitive Insights
The market for near field communication (NFC) will continue to rise due to major market players spending a lot of money on R&D to diversify their product offerings. Market participants are engaging in various strategic initiatives to improve their worldwide presence along with important market developments such as new product releases, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. Competitors in the near field communication (NFC) industry must offer reasonably priced products if they want to thrive and survive in a hostile environment where competition and the market are expanding.
One of the primary business strategies manufacturers use in the near field communication (NFC) industry to assist clients and expand the market sector is local manufacturing to reduce operating costs. Some of the most significant advantages recently given to medicine by the near field communication (NFC) industry. Near field communication (NFC) market major players in the biosensor industry, including Texas Instruments (US), STMicroelectronics (Switzerland), Qualcomm (US), and NXP Semiconductors (The Netherlands), are supporting R&D projects to boost market demand.
Osram Licht AG is a German manufacturer of electric lighting with headquarters in Munich and Premstätten (Austria). Osram sees itself as a high-tech photonics company with a growing emphasis on sensor technologies, visualization, and light treatment. In May 2021, Osram and Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) joined forces to allow industry-wide Near Field Communication (NFC) programming. Infineon's NLM0011 and NLM0010 dual-mode NFC wireless configuration integrated circuits (ICs) with pulse width modulation are used in Osram's new OPTOTRONIC ® FIT product family (PWM).
Pragmatic is a low-cost, flexible electronics company. Their flexible integrated circuits (FlexICs) are thinner than human hair and maybe invisibly placed in objects, allowing inventors to build unique solutions to everyday problems that would be impossible to solve with traditional electronics. In July 2021, PragmatIC Semiconductor (a flexible electronics firm), Avery Dennison (a manufacturer of inlays), and Schreiner MediPharm (a pharmaceutical packaging company) collaborated to develop a low-cost solution: an NFC-enabled smart label for pharmaceuticals. This will allow for better monitoring of pharmaceuticals and healthcare items by enhancing and identifying potential tampering and authentication, allowing patients to reorder instructions and information.
Key Companies in the near field communication (NFC) market include
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NXP Semiconductors (The Netherlands)
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Qualcomm (US)
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Broadcom (US)
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STMicroelectronics (Switzerland)
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Texas Instruments (US)
Near Field Communication (NFC) Industry Developments
July 2022: Infineon offers the NAC1080: a single-chip solution with an integrated H-Bridge for passive NFC lock applications. The NAC1080 MCU uses the near field communication (NFC) interface to allow cell phones to operate devices directly. Advanced local and cloud functionalities can be added to the regional marketing partners' mobile apps. This decreases the material bill and promotes miniaturized product design.
June 2020: NXP Semiconductors, Mastercard, and Xiaomi Inc. announced that they would deliver more convenient and secure contactless experiences to Russia as part of the first phase of a European-wide rollout of NXP's mobile wallet solution. NXP's mWallet 2GO, which powers mobile payments for Xiaomi's Mi Smart Band 4 NFC wearable devices, enables an expedited roll-out across Europe by answering OEMs' needs for simple yet secure and scalable wallet implementations.
Near Field Communication (NFC) Market Segmentation:
Near Field Communication (NFC) Type Outlook
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Non-Auxiliary
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Auxiliary
Near Field Communication (NFC) End-User Outlook
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Cloud Service
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Telecom Service
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Enterprise
Near Field Communication (NFC) Regional Outlook
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North America
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US
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Canada
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Europe
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Germany
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France
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UK
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Italy
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Spain
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Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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