NFC Chip Market Size was valued at USD 2.971 Billion in 2023. The NFC Chip industry is projected to grow from USD 3.5313 Billion in 2024 to USD 11.837 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 16.32% during the forecast period (2024 - 2032). The global increase in the number of digital transactions and the growing requirement for fast transactions are the key market drivers strengthening the market growth.
Source: Primary Research, Secondary Research, MRFR Database, and Analyst Review
Market CAGR for the NFC chip market is being driven by the increase in focus on providing improved customer service. Mobile commerce has witnessed unparalleled growth during the last decade as it is a rapidly expanding tech area. Furthermore, the mobile has become an important means to transfer data with the products such as NFC, enabling PoS systems. Mobile application developers are being collaborated with by various financial institutions to develop applications to enable consumers to carry out business transactions.
Automotive & transportation, BFSI, retail, healthcare, building & infrastructure, and media & entertainment are the industries that use near-field communication chips. Smartphones and other mobile devices manufacturer install NSF chips in handsets to enable contactless payments and data transfer that are secure and easy to use. Contactless payment and e-ticketing also take advantage of the NFC card chip. As stated by the UN Conference on Trade and Development, there is an increase in online retail sales from 16% to 19%. The pre-sale, during-sale, and post-sale services of the retail market have also been using NFC technology. Henceforth, the public transportation service market and retail sector are increasing, including NFC-enabled systems.
The progressive medical application of NFC Chips also plays a crucial role in providing opportunities for market growth. Highly efficient and accurate outputs are processed through the NFC chips as the data generated by the medical device is usually within its capability to avoid delays in the generated output, hence, providing lucrative growth opportunities. The rise in the use of smart posters are the most talked about the application of NFC technology; these posters consist of sticker that holds digital data users can access on their NFC devices. The smart-cars and smart sensors have acquired popularity among customers, mainly young and tech-inclined customers providing an opportunity for well-known brands to enter new markets.
For instance, in March 2021, Paytm, this digital payments company, allowed the merchant to use smartphones to welcome NFC-based credit and debit cards payment through its 'Paytm Smart POS' for Android phones. Boarding passes, security access by airlines, and keyless entries for offices, buildings, and cars are also using NFC technology. Thus, driving the NFC Chip market revenue.
The NFC Chip Market segmentation, based on storage capacity, includes 64 Bytes, 168 Bytes, 180 Bytes, and 540 Bytes. The worldwide NFC chip market is dominated by the 180 Bytes segment. The NFC chip with 180 Bytes has a better scanning strength available at a reasonable rate. These chips are used for trains/bus passes and other transport applications. 180 Bytes and 540 Bytes chips simplify many applications involving security and encryption.
Figure 1: NFC Chip Market by Storage Capacity, 2022 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The NFC Chip Market segmentation, based on verticals, includes Banking and Financial Institutions, Media and entertainment, Retail, Hospitality, and Healthcare. Banking and financial institutions is the segment with the highest CAGR. The NFC uses current mobile technologies with the cloud and is considered a revolutionizing method in advancing the banking infrastructure across the world. The use of e-wallet apps such as Apple Pay tokenizes the bank details into something that can't be accessed by intruders; even when stolen, the details remain protected.
By region, the study gives market insights into Asia Pacific, North America, Europe, and the Rest of the World. The North America market area is expected to dominate this market for NFC chips because of the development of the data center along with the introduction of the 5G network within the North American region. The surge in the usage of payment gateways, increase in the number of reader terminals in retail stores, and adoption of NFC-enabled debit and credit cards are attributing to the market growth.
Further, the countries studied in the market report are The U.S., Canada, Spain, France, the UK, Italy, Germany, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: NFC CHIP MARKET SHARE BY REGION 2022 (%)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Asia-Pacific NFC chip market accounts for the second-largest market share because it is witnessing dynamic changes to adopt new technologies and advancements in the organization throughout the industries and also the rising demand for high-speed connectivity devices. There is a significant rise in mobile payments in the e-commerce sector, notably in India, China, South Korea, and Japan. Further, the China NFC Chip market held the largest market share, and the India NFC Chip market was the fastest growing market in the region.
The Europe NFC Chip Market are expected to experience steady growth in CAGR from 2024 to 2032. As per The German Banking Industry Committee, 75 million of the 100 million bank cards in Germany are equipped with NFC chips. In terms of the application of NFC chip technology in the healthcare sector, European countries like Germany, France, and Finland have been substantially ahead. Further, the German NFC Chip market held the largest market share, and the UK NFC Chip market was the fastest growing market in the European region.
Leading market companies are investing heavily in research and development in order to expand their product lines, which will help the NFC chip market grow even more. Market companies are also undertaking a variety of calculated activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the NFC Chip industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the NFC Chip Market industry to benefit clients and increase the market sector. In recent years, the NFC chip market industry has offered some of the most significant advantages to the technology. Major players in the NFC Chip market, including Intel Corporation (US), Verifone Systems Inc. (US), MStar Semiconductor Inc. (Taiwan), Broadcom Corporation(US), STMicroelectronics (Switzerland), Qualcomm Inc.(US), NXP Semiconductors (Netherlands), Ingenico Group (France), SAMSUNG (South Korea), Marvell Technology Group Ltd (Bermuda) and others, are attempting to increase market demand by investing in research and development operations.
The NXP Semiconductors collaborated with FeliCa Networks Inc. To make the mobile payments and ticketing ecosystem stronger as per Japan's preparation for worldwide events in the future. NXP's new GlobalPlatform-based solution, PN81 series, supports and consolidates FeliCa, EMVCo, and mobile transit MIFARE in a single solution to let smartphones and other mobile devices conveniently link mobile payments in Japan and across the borders and feature mobile ticketing, access control, and loyalty programs. The NXP PN81 series with FeliCa support features NFC, embedded secure element (eSE) technology, and support worldwide security standards like GlobalPlatform to unlock the potential of security, smooth transaction, and access use cases. Furthermore, NXP semiconductor, along with Mastercard and Xiaomi Inc., together has announced to bring a more convenient and secure contactless experience to Russia as the first phase of a European-wide roll-out with nxp's wallet solution. Powering the mobile payments for Xiaomi's Mi Smart Band 4 NFC wearable device, NXP's mWallet 2GO hastened a roll-out across Europe by addressing OEMs' needs for easy, secure, and scalable wallet implementation.
India’s first NFC technology-enabled 'Wallet,' introduced by PVR, was driven by the NEC for BlakBerry 10 smartphones. This NFC-enabled 'Wallet' app offered 'tap & pay' for movie tickets and snacks without the use of hard cash across 15 PVR cinemas in the cities. NFC is an important technology utilized to amalgamate the smartphone owner to the physical online world for an improved users experience. NEC India provided end-to-end cloud-based e-payment system called NFC e-Money to PVR, that includes itself improving the interactivity within the devices for any monetary transactions. This initiative helped movie lovers consumers to utilize the latest technology and innovative features.
April 2024: It is worth noting that in April 2024, the UAE’s hosting of the Miss World pageant led to an increase in the NFC market thus prompting firms like Pcard to conclude aggressive expansion strategies in GCC. Further industry growth was expedited by the post-pandemic surge in events.
December 2023: Consequently, Apple bowed down under EU pressure in December 2023, relinquishing its NFC exclusivity stance and possibly expanding payment options on iPhones. However, integration of Google Wallet into it still looks uncertain as Apple still resists ceding control over mobile wallet technology.
May 2023: Identiv Inc. (NASDAQ: INVE), a global leader in smart card-based digital safety products and detection for the Internet of Things (IoT), added new near field communication (NFC) tags from STMicroelectronics (ST) that are novel to specific form factors for bitse.io IoT system within their tag making and brand revealing purposes.
March 2023: Korea witnessed the launching of Apple Pay in March 2023 after years of anticipation. This App was made possible through an exclusive partnership with Hyundai Card that allowed users to make contactless payments at many retail outlets and other establishments thereby being a major landmark for Apple’s expansion attempts in this region.
February 2023: STMicroelectronics held a webinar aimed at examining how NFC dynamic tags can facilitate the integration process of new IoT equipment into existing systems found within smart homes or any other smart buildings.
Toppan unveiled an eco-friendly NFC Tag Label globally this January, which utilize paper instead of plastic for antenna substrate material. Ground-breaking circuit fabrication technology ensured communication performance while preventing fraud upon removal by breaking apart upon trying to remove them.
May 2022: NXP Semiconductors launched NTAG 22x DNA, which is considered an advanced-generation NFC tag. These have tamper-evident feature as well as condition-monitoring capabilities, all crammed into one chip!
January 2022: Infineon Technologies AG paid about $2 million to buy NFC patents from Verimatrix in January 2022.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 2.971 billion |
| Market Size 2024 | USD 3.5313 billion |
| Market Size 2032 | USD 11.837 billion |
| Compound Annual Growth Rate (CAGR) | 16.32% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Storage Capacity, Verticals, and Region |
| Geographies Covered | North America, Asia Pacific, Europe, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, the UK, Italy, India, China, Japan, Spain, Australia, South Korea, and Brazil |
| Key Companies Profiled | Intel Corporation(US), Verifone Systems Inc.(US), MStar Semiconductor Inc.(Taiwan), Broadcom Corporation(US), STMicroelectronics(Switzerland), Qualcomm Inc.(US), NXP Semiconductors(Netherlands), Ingenico Group(France), SAMSUNG(South Korea), Marvell Technology Group Ltd(Bermuda). |
| Key Market Opportunities | Growing penetration in medical applications and manufacturing industries. |
| Key Market Dynamics | The rise of digital transactions and growing need for a speedy transactions. |
Frequently Asked Questions (FAQ) :
The NFC Chip Market size was valued at USD 2.971 Billion in 2023.
The global market is expected to grow at a CAGR of 16.32% during the forecast period, 2024-2032.
North America had largest share of the global market
The key players in the market are Intel Corporation(US), Verifone Systems Inc.(US), MStar Semiconductor Inc.(Taiwan), Broadcom Corporation(US), STMicroelectronics(Switzerland), Qualcomm Inc.(US), NXP Semiconductors(Netherlands), Ingenico Group(France), SAMSUNG(South Korea), Marvell Technology Group Ltd(Bermuda).
The 180 Bytes category dominated the market in 2022.
Banking & Finance Institutions had the largest share of the global market.
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Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
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