NFC Chip Market

• Focus on providing improved customer service is driving the market growth

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 Global NFC Chip Market Industry is poised for remarkable growth, with projections indicating a market value of 3.53 USD Billion in 2024 and an anticipated rise to 18.6 USD Billion by 2035. This growth trajectory suggests a robust compound annual growth rate (CAGR) of 16.32% from 2025 to 2035. The increasing adoption of NFC technology across various sectors, including retail, automotive, and smart devices, is likely to drive this expansion. As businesses and consumers continue to embrace contactless solutions, the market is expected to evolve, reflecting the growing importance of NFC technology in everyday transactions.

The proliferation of smart devices is significantly influencing the Global NFC Chip Market Industry. With an increasing number of smartphones, wearables, and IoT devices incorporating NFC technology, the market is poised for substantial growth. In 2024, the market value is estimated at 3.53 USD Billion, reflecting the rising integration of NFC chips in everyday gadgets. Companies are focusing on enhancing user experiences through NFC-enabled functionalities, such as quick pairing and data sharing. This trend suggests that as more devices become interconnected, the demand for NFC technology will likely escalate, further propelling market expansion.

The automotive sector is emerging as a key driver for the Global NFC Chip Market Industry. NFC technology is increasingly being integrated into vehicles for applications such as keyless entry, vehicle-to-vehicle communication, and infotainment systems. This trend is indicative of the automotive industry's shift towards smart and connected vehicles. As the market evolves, it is projected to reach 18.6 USD Billion by 2035, with a CAGR of 16.32% from 2025 to 2035. The integration of NFC chips in automotive applications not only enhances security but also improves user convenience, suggesting a promising future for NFC technology in this sector.

The development of smart city initiatives is significantly impacting the Global NFC Chip Market Industry. Governments worldwide are investing in smart infrastructure, which often incorporates NFC technology for various applications, including public transportation, smart parking, and information kiosks. This trend is expected to drive market growth as cities aim to enhance urban living through technology. The integration of NFC chips in public services not only improves efficiency but also enhances user engagement. As smart city projects gain momentum, the demand for NFC technology is likely to increase, contributing to the overall expansion of the market.

Security concerns are driving the demand for NFC technology within the Global NFC Chip Market Industry. As data breaches and identity theft become more prevalent, businesses and consumers are seeking secure transaction methods. NFC technology offers enhanced security features, such as encryption and tokenization, making it a preferred choice for secure payments and data exchange. The market's growth is supported by the increasing implementation of NFC in access control systems and secure identification solutions. This heightened focus on security indicates that NFC technology will likely play a crucial role in safeguarding sensitive information in various applications.

The Global NFC Chip Market Industry is experiencing a notable surge in the adoption of contactless payment solutions. As consumers increasingly prefer the convenience and speed of tap-and-go transactions, NFC technology is becoming integral to payment systems. For instance, in 2024, the market is projected to reach 3.53 USD Billion, driven by the growing acceptance of mobile wallets and contactless cards. Retailers and financial institutions are investing in NFC-enabled terminals, enhancing customer experience and operational efficiency. This trend is likely to continue, as the demand for seamless payment solutions appears to be a driving force behind the industry's growth.

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.