The global NFC market is anticipated to grow at a CAGR of around 14.1% during the forecast period. NFC is a form of wireless communication between devices such as smartphones, tablets, laptops, and so on. The NFC technology is used for short-range (up to 10 cm) communication and data sharing. NFC utilizes electromagnetic radio fields while other technologies such as Bluetooth and Wi-Fi are focused on radio transmissions. NFC technology enables contactless communication which allows a user to send information by waving the smartphone over an NFC-compatible device without needing to touch the devices. Furthermore, NFC technology has also enabled the trend of contactless payments. Contactless payments are widely popular in the US, UK, Australia, and Canada. Further, NFC payments more secure than EMV or chip card payments. Apple Pay, Samsung Pay, PayPal, and Android Pay are all examples of NFC payments.

The high use of smartphones along with the increasing trend of M-commerce are the main factors that are driving the market growth. Further, continuous development in NFC technology has also a significant contribution to the market. However, high-security concerns and the high cost of deployment are expected to hinder the growth of the near-field communication market. During the COVID-19 pandemic, the market has experienced growth owing to the increase in sign-ups for new payment procedures and the increased number of smartphones user. People were unable to go outside due to the lockdown imposed by the respective state governments, due to this the online payment transfer for essentials has surged. That led to the high use of these technologies. Hence market has registered growth.

Segmental Outlook  

The global NFC market is segmented based on application, product, and device. Based on application, the market is segmented into contactless payment, booking, sharing of information/data, and healthcare monitoring. Based on products, the market is segmented into two main categories which include auxiliary and non-auxiliary products. Auxiliary products include NFC Micro SD cards, NFC sim cards, and NFC software whereas non-auxiliary products include NFC controller IC’S, NFC tags, NFC readers, and NFC secure element. Whereas, based on device, the market is segmented into smartphones, PC & laptops, and others. Among these, the smartphone segment is anticipated to be the fastest growing owing to the increasing number of smartphone users and rising penetration of the internet. 

Global NFC Market Share by Products 2020 (%)

Non-Auxiliary Segment Holds the Significant Market Share in Global NFC Market

Among products, the non-auxiliary segment accounted for the largest share in the global NFC market, and it is further projected to grow with significant CAGR during the forecast period. The NFC non-auxiliary products are further categorized into controller IC’S, tags, readers, and secure elements. Among these, the demand for NFC readers is high owing to the use of these devices in smartphones for contactless payments, access control, and secure paring with other devices. The increasing smartphones user globally and adoption of secure payment option via smartphones are the prominent factors driving the demand for these devices, due to which the market value for NFC readers will be high, that will further boost the NFC market growth. 

Regional Outlook 

Geographically, the global near field communication (NFC) market is classified into four major regions including North America (the US and Canada), Europe (UK, Germany, France, Italy, Spain, and Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, ASEAN, and Rest of Asia-Pacific), and Rest of the World (Latin America and the Middle East and Africa (MEA)). North America is projected to dominate the global NFC market during the forecast period. The presence of dominating market players such as Broadcom, Qualcomm, Texas Instruments, among others in the US, and continuously launching innovative products by them is the major factors driving the growth of the market in the region. Further, the high penetration of smartphones is also contributing to the market growth.

Global Near field communication (NFC) Market Growth, By Region 2021-2027

Asia-Pacific is projected to hold the largest share in the global near field communication (NFC) market

Geographically, Asia-Pacific is projected to be the fastest-growing region and expected to hold the largest share in the market during the forecast period. The factors driving the growth of the market in the Asia-Pacific region include the rising income, high adoption of smart appliances, and rising per capita income in countries such as India and China. The adoption of NFC technologies in consumer applications, and other verticals, and high internet penetration owing to a large number of smartphone users is accelerating the demands for non-auxiliary products. Which is further expected to increase the market value in the region. According to the Cellular and Electronics Association (ICEA), in India, 500 million smartphone users were reported at the end of 2019 the user base is expected to swell to 820 million by 2022.

Market Players Outlook

The key players in the NFC market contributing significantly by providing different types of products and increasing their geographical presence across the globe. The key players of the market include Broadcom, Inc., Infineon Technologies AG, NXP Semiconductors N.V., STMicroelectronics N.V., Texas Instruments Inc., Toshiba Corp, Qualcomm Technologies, Inc., among Others. These market players are adopting several market strategies including product launch and approvals, merger and acquisition, partnership collaboration, business, and capacity expansion, and others. For instance, in February 2019, Thales Group has completed the acquisition of Gemalto, a software company. Through this acquisition, Thales has expanded its business footprints in digital identity and security, and also covered the entire critical decision chain in a digital world, from data generation via sensors, to real-time decision support.

The Report Covers

• Market value data analysis of 2020 and forecast to 2027.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global near field communication (NFC) market. Based on the availability of data, information related to pipeline products, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.