The global near field communication (NFC) market is projected to expand at a substantial CAGR during the forecast period, 2021 – 2028. The growth of the market is attributed to the increasing mobile penetrations with advanced payment infrastructure and data connectivity. Near field communication is a type of communication system that offers the interaction or connection between two electronic devices in a short distance. The system allows a proper connectivity of devices within a distance of 4 cm or less than 4cm, thus, the devices need to be placed in a close range.
The NFC technology enables users to perform functions such as secure transactions and exchange digital content between two ends. It is widely used in pay terminals and contactless payment with the help of smartphone devices. Google wallet is the best example for NFC technology, which has been extensively adopted by retailers such as Walgreens, Macy’s, Target, and others.
For maximization of potential sales, several businesses in developing countries including Japan, Malaysia, India, Taiwan, and China are developing several local mobile payment platforms for the mobile payment. High penetration of advanced NFC technology in developed markets is a key aspect boosting the mobile transactions among financial institutions and consumers, and between the individuals. To enhance the productivity along with improved security, several businesses in the industries are adopting innovative NFC products.
Near Field Communication (NFC) Market Trends, Drivers, Restraints, and Opportunities
- Growing demand for easy and effective payment solution to avoid contactless transaction is a key driving factor for the market expansion.
- Rising demand for secured payment method from business organization to ensure consumers’ convenience is another key factor boosting the market growth.
- Wide use of smartphone devices and increasing preference for online transaction from consumers are expected to fuel the market expansion.
- Risk of computer hacking or phone hacking related to owner credit card information, social security information, and bill payments are some key restraining factors that can hinder the market growth over coming years.
- Ongoing R&D activities and huge investments from major market players are presenting significant opportunities for the expansion of market.
Scope of the Near Field Communication (NFC) Market Report
The report on the global near field communication (NFC) market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Near Field Communication (NFC) Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2020
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Historic Data
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2018–2019
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Forecast Period
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2021–2028
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Segmentation
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Products (NFC Tags, NFC Cover, NFC ICs, NFC Readers, SD Cards, and SIM Cards) and Applications (Access Control, Data Sharing, Medical Devices, Product Identification, Ticketing, Transaction, and Others)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Huawei Technologies Co., Ltd, Infineon Technologies AG, Mediatek Inc., and NXP Semiconductors
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Near Field Communication (NFC) Market Segment Insights
NFC tags and NFC readers segments are projected to account a large market share
Based on products, the market is divided into NFC tags, NFC cover, NFC ICs, NFC readers, SD cards, and SIM cards. The NFC tags and NFC readers segments are projected to account for a large market share during the forecast period owing to the increasing demand for the products for mobile payments and access control solution using smartphones. Less cost infrastructure owing to the technology of combining SD card with the NFC technology for the manufacturers is acting a key driving factor for the segments growth.
The product is further anticipated to expand due to the wide adoption of SIM cards for cashless payments that help improve user experience. On the other hand, the NFC cover segment is projected to register a substantial growth rate in the coming years. For transforming smartphones into NFC-enabled smartphones, the NFC cover is widely adopted as the main accessory. The technology is increasingly implemented in the developing regions and has been vastly adopted by the developed economies including Canada, the U.K., and the U.S.
Transaction segment is expected to dominate the market
On the basis of applications, the market is classified as access control, data sharing, medical devices, product identification, ticketing, transaction, and others. The transaction segment is expected to dominate the market registering a high revenue share during the forecast years owing to the increasing proliferation of smartphone devices and the growing requirement for better consumer experience. On the other hand, the ticketing segment is anticipated to expand at a significant growth rate in the coming years owing to its increasing demand for enabling the computers to use the NFC mobile for a contactless transport ticket.
The NFC-based ticketing application allows passenger to handle their itinerary details using their mobile phone. However, the medical devices segment is projected to register a high CAGR during the forecast period. The growing requirement for digitalization of medical records and to track the consumers’ fitness are key drivers for the segment growth.
Asia Pacific is anticipated to account a key revenue share
In terms of regions, the global near field communication (NFC) market is categorized into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. Asia Pacific is anticipated to account a key revenue share during the analysis years owing to the large adoption of NFC technology due to the growing penetration of smartphone devices and tablets in this region. The collaboration between market players due to the rapidly expanding of payment services is a key driving factor for the regional market growth.
However, the market in Europe is projected to expand at a high growth rate over the coming years owing to the rising implementation of NFC technology and increasing adoption of POS terminals at retail outlets for contactless mobile payments and Visa Cards.
Segments
The global near field communication (NFC) market has been segmented based on
Products
- NFC Tags
- NFC Cover
- NFC ICs
- NFC Readers
- SD Cards
- SIM Cards
Applications
- Access Control
- Data Sharing
- Medical Devices
- Product Identification
- Ticketing
- Transaction
- Others
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
Some of the major participants competing in the global near field communication (NFC) market include Huawei Technologies Co., Ltd, Infineon Technologies AG, Mediatek Inc., and NXP Semiconductors.
These leading market players are using strategies including mergers, acquisition, partnerships, new launches, collaborations, and product development to build their strong position in the market. They are continuously working towards launching advanced and improved NFC-enabled devices to expand the customer base and to increase the product offerings.
For instance, in November 2020, Huawei Technologies Co., Ltd declared the integration of a CBDC wallet in a post on its official Weibo account. In June 2020, NXP Semiconductors, MasterCard, and Xiaomi Inc. declared that they would join hands to roll out with NXP’s mobile wallet solution for more convenient and secure contactless experiences. Xiaomi introduced its mobile payments using its Mi Smart Band 4 NFC wearable devices, NXP’s mWallet 2GO, which accelerated its roll out across Europe by addressing OMEs’ requirements for easy but secure wallet applications.
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