Global Near Field Communication (NFC) Market Extends at a Healthy CAGR of 14.8% by 2030

Introduction

Near-field communication (NFC) is an array of protocols based on a wireless interface that enables communication devices and electronic gadgets to establish radio communication with each other under proximity. For short-range data sharing, near-field communication technology is primarily used in smartphones, laptops, and tablets (up to 10 cm or less). NFC is used mainly in marketing and payment applications, while numerous other uses, such as those for medical devices and ticketing.

Market Dynamics

Growing Need for Convenient Transfer and Security of Data Drives the Global Market

NFC enhances collaboration in office settings by facilitating the quick and secure transfer of files, documents, and sensitive information. Compared to competing technologies like Bluetooth, which need a few seconds to establish the same connection since it takes roughly 100 milliseconds, NFC is substantially better and faster. The customer's credit card details are saved during checkout in a safe area of the mobile device. This component may be a secure digital card, protected chips, or a subscriber identity module.

Upsurge in Adoption of NFC-Enabled Wearable Technology Creates Tremendous Opportunities

NFC-capable jewelry such as rings, smartwatches, bracelets, wristbands, fitness monitors, and key fobs are rising in popularity worldwide. 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 NFC-enabled wearable devices. The NFC sector has seen a lot of technological advancements. For instance, the just-released Apple iOS 14 lets customers link a digital car key to their Apple Watch, iPhone, and Apple Wallet to start and unlock cars wirelessly. Its purpose mainly serves to supplement NFC. Numerous industry players are also offering innovative, cost-effective NFC solutions.

Regional Analysis

North America is the most significant shareholder in the global near-field communication (NFC) market and is expected to grow at a CAGR of 13.00% during the forecast period. The near-field communication market is anticipated to proliferate across North America, particularly in the United States and Canada, along with the widespread adoption of NFC solutions in retail, healthcare, and banking and finance sectors. North America is also likely to dominate the market due to many essential competitors and the anticipated high level of adoption and development of NFC solutions. The near-field communication IC NTAG 210 from NXP is used in Identiv's Dry Inlay (25 mm diameter), which has been made at a lower price. The market in North America is anticipated to gain from several growth opportunities brought on by such innovations.

Asia-Pacific is expected to grow at a CAGR of 16.5%, generating USD 24,474.5 million during the forecast. Due to growing NFC technology knowledge and adoption in the retail and transportation sectors, Asia-Pacific is predicted to have the quickest growth rate throughout the forecast period. The region's near-field communication market is also growing as more people in countries like China and India use smartphones. The rise in popularity of mobile payments and NFC wireless apps is also contributing significantly to the market expansion in the region. Due to regional government measures to promote NFC in the banking sector, the market is growing. The Indian Finance Ministry instructed the country's banks to provide its customers with field communication-capable credit and debit cards (NFC).

The market value of NFC is rising significantly in Europe. The proliferation of NFC-enabled payment wearables is the critical driver anticipated to support European market expansion over the forecast period. The growing use of near-field communication systems by retailers and the development of contactless payment apps by numerous local banking institutions are driving the growth of the near-field communication industry in Europe. Introducing modern NFC-enabled smartphones in Europe contributes to the market's growth. For instance, Xiaomi announced the June 2020 delivery date for the NFC-capable Mi Band 4 in Europe. This version, which was first only offered in China, will soon be accessible in Russia and Europe.

Key Highlights

• The global near-field communication (NFC) market was valued at USD 20,795 million in 2021. It is projected to reach USD 72,017.15 million by 2030, growing at a CAGR of 14.8% during the forecast period (2022–2030).
• Based on product type, the global near-field communication (NFC) market is bifurcated into NFC tags, NFC ICs, SIM cards, NFC readers, and others. The NFC readers segment is the highest contributor to the market and is expected to grow at a CAGR of 13.9% during the forecast period.
• Based on operating mode, the global near-field communication (NFC) market is bifurcated into read/ write mode, peer-to-peer mode, and card emulation mode. The NFC readers segment owns the highest market share and is expected to grow at a CAGR of 14.5% during the forecast period.
• Based on end-users, the global near-field communication (NFC) market is bifurcated into retail, transportation, automotive, residential and commercial, medical and healthcare, consumer electronics, banking and finance, hospitality, and others. The consumer electronic segment is the highest contributor to the market and is expected to grow at a CAGR of 13.3% during the forecast period.
• North America is the most significant shareholder in the global near-field communication (NFC) market and is expected to grow at a CAGR of 13.00% during the forecast period.

Competitive Players

Competitive Players

The global near-field communication (NFC) market’s major key players are Broadcom Inc., Identive, Infineon Technologies, Magtek, Nxp Semiconductors, Qualcomm Technologies, Inc, Samsung Electronics Co. Ltd, Sony Corporation, Texas Instruments Incorporated, and Thales Group.

Recent Developments

Market News

• In July 2022- Indentive Infineon introduced NAC1080: Single-chip solution with an integrated H-Bridge for passive NFC lock applications.
• In September 2022- The launch of Broadcom Ships Trident 4C, the Industry’s Highest Performance Security Switch.

Segmentation

Global Near Field Communication (NFC) Market: Segmentation

By Product Type

• NFC Tags
• NFC ICs
• SIM Cards
• NFC Readers
• Others

By Operating Mode

• Read/ Write Mode
• Peer to Peer Mode
• Card Emulation Mode

By End-Users

• Retail
• Transportation
• Automotive
• Residential and Commercial
• Medical and Healthcare
• Consumer Electronics
• Banking and Finance
• Hospitality
• Others

By Regions

• North America
• Europe
• Asia-Pacific
• LAMEA