Near Field Communication Market Statistics, 2028
The global NFC market size was valued at $15,531 million in 2019, and is projected to reach $54,521 million by 2028, registering a CAGR of 14.8% from 2021 to 2028. Near field communication (NFC) is a short-range wireless connectivity technology that makes life convenient and easier for consumers across the globe by enabling simpler exchange of the digital content, transactions, and connection with different electronic devices. It is mainly used in smartphones, laptops, and tablets for short range of data exchange (up to 10 cm or less). This technology is used for marketing and payment applications; however, it is also being used in many other applications such as chip-enabled mobile marketing, ticketing, identity & access, and gaming.
On the basis of product type, the NFC readers segment exhibited the highest NFC market share in 2019, and is expected to maintain its dominance in the upcoming years. This is attributed to its emerging applications as well as surge in demand for NFC readers in access control and authentication applications. In addition, NFC reader comes in compact size and offers various features such as access control, payments, mass transit, and attendance check. However, the NFC tags segment is expected to witness the highest growth, due to the high demand from payments and access control applications.
By Product Type
NFC Tags segment is projected as one of the most lucrative segments.
By end user, the global NFC market share was dominated by the consumer electronics segment in 2019 and is expected to maintain its dominance in the upcoming years, due to emergence of innovative consumer electronics products that integrate NFC technology. However, the healthcare segment is expected to witness the highest growth, owing to rise in adoption of near field communication to keep track of patients’ medical record. Companies introduced their new innovations such as wearable near field communication (NFC) tags for the healthcare industry. INFOSKIN is a wearable NFC tag that has multiple applications. It helps improve patient care with the automatic time stamps that helps record patient activity and allows easy maintenance and update of patient records in the healthcare & medical sector
Asia-Pacific is expected to observe the highest growth rate during the forecast period, due to increased adoption and awareness of NFC technology into transportation and retail industry. In addition, high penetration of smartphones in the countries such as India and China drives the growth of the near field communication market in the region. For instance, as per the study by Omidyar Network, mobile phone penetration in India is set to rise to 85-90% by 2020 from the levels of 65-75% in 2017.
By Region
Asia-Pacific region is projected as one of the most significant segments.
The report focuses on the growth prospects, restraints, and near field communication market analysis. The study provides Porter’s five forces analysis of the near field communication industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the NFC market trends.
Segment Review
The NFC market is segmented on the basis of product type, operating mode, end user, and region. By product type, it is categorized into NFC tags, NFC ICs/Chips, SIM cards, NFC readers, and others. By operating mode, it is classified into read/write mode, peer-to-peer mode, and card emulation mode. By end user, it is divided into retail, transportation, automotive, residential & commercial, medical & healthcare, consumer electronics, banking & finance, hospitality, and others. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Top Impacting Factors
The global NFC market is expected to exhibit robust growth during the forecast period. The need for convenient transfer and security of data and the proliferation of smartphones are the factors anticipated to boost the near field communication market growth. In addition, demand for improved customer experience along with the rise in demand for contactless payments due to the COVID-19 pandemic significantly fuel the growth of the market. However, short operational range and security concerns hamper the growth of the market during the near field communication market forecast period. On the other hand, surge in adoption of NFC-enabled wearable technology and recent technological advancements in NFC create lucrative growth opportunities for the market growth.
Rise in proliferation of smartphones
Smartphones have become an important part of the consumer’s lives today. Along with the traditional modes of communication, consumers are using their smartphones to make easier and faster payments. NFC provides convenient mode of payments since it merges a consumer’s mobile device with his/her wallet thereby enabling the user to make mobile transactions, easily exchange digital content, and connect their device with other devices through touch. Thus, there is an increase in number of smartphones enabled with NFC technology. This contributes toward the growth and trend of NFC technology among the developing economies. For instance, March 2021, Paytm, the digital payments company announced to let merchants use smartphones to accept near field communication (NFC)-based credit and debit card payments through its “Paytm Smart POS” for Android phones.
Surge in focus toward providing improved customer experience
Companies can lock in their customers by providing NFC-enabled contactless payments and other diversified extended range of applications that can help them improve their workflow as well as improve customer experience. In addition, new uses of NFC such as smart posters, NFC-enabled smart cars, and smart sensors have gained popularity among the consumers, especially the young and technically inclined customers proving an opportunity to the established brands to enter new markets. Apart from payments and device-to-device sharing, NFC technology is being used for boarding passes and security access by airlines, keyless entries for offices, buildings, and cars, thereby offering growth opportunities for the NFC market.
COVID Impact Analysis
The current estimation of 2028 is projected to be higher than pre-COVID-19 estimates. The COVID-19 pandemic has significantly pushed the growth rate of the near field communication market owing to the rise in demand for contactless solutions. During the pandemic, businesses are faced with various challenges such as fluctuating supply chains, shifting business hours, and protecting their employees while ensuring that the public health is a priority. Therefore, contactless technologies such as NFC tags and others are experiencing an increase in demand during the pandemic.
In addition, the market players have introduced innovative near field communication enabled products during the pandemic to ensure better customer experiences. This factor drives the market growth. For instance, in May 2019, Samsung Electronics launched a vertical TV that uses NFC functionality to work as a standard TV in horizontal mode and as a mirror of a user’s phone when in vertical mode.
Key Benefits for Stakeholders
- This study includes the market analysis, near field communication market trends, and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and near field communication market opportunity.
- The NFC market size is quantitatively analyzed from 2019 to 2027 to highlight the financial competency of the industry.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in near field communication market.
Near Field Communication Market Report Highlights
| Aspects | Details |
 By Product Type |
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 By Operating Mode |
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 By End User |
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 By Region |
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 Key Market Players | TEXAS INSTRUMENTS INCORPORATED, SAMSUNG ELECTRONICS CO. LTD, BROADCOM INC., NXP SEMICONDUCTORS, INFINEON TECHNOLOGIES, MAGTEK, THALES GROUP, IDENTIVE, QUALCOMM TECHNOLOGIES, INC, SONY CORPORATION |
Analyst Review
According to the CXOs of leading companies, NFC-enabled contactless/wireless communication allows a user to establish a wireless connection between smartphone and other NFC-enabled devices to send information. This technology generally maintains interoperability between different wireless communication devices such as Bluetooth and other NFC standards including FeliCa. Some of the major benefits provided by NFC technology is fast performance and information security. This technology is more popular in parts of North America and Europe. This technology is also used by businesses; for instance, it makes communication convenient and improves customer satisfaction through contactless payment & information systems. Continuous technological advancements and increase in use of contactless payment facilities boost the market growth in the developing and emerging economies.
Although NFC is widely being used in payment systems and for data transfer, it has evolved dramatically over the years along with the proliferation of smartphones. With over 3.4 billion active smartphones across the globe, smartphone penetration is at an all-time high. In recent times, consumers are actively using their smartphones to enable easier and faster payments. NFC provides convenient mode of payments since it merges a consumer’s mobile device with his/her wallet thereby enabling a user to make mobile transactions, easily exchange digital content and to connect their device with other devices with just a touch. Therefore, the NFC technology market is anticipated to experience growth owing to rise in demand for smartphones.
Moreover, the COVID-19 pandemic has significantly increased the growth rate of the near field communication market owing to rise in demand for contactless solutions. During the pandemic, businesses faced various challenges such as fluctuating supply chains, shifting business hours, and protecting their employees while ensuring that the public health is a priority. Therefore, contactless technologies such as NFC tags are on the rise.
The CXOs further added that the near field communication market is competitive and comprises number of regional and global vendors competing based on factors such as cost of solutions, reliability, and support services. The growth of the market is impacted by rapid advances in the NFC offerings, whereas the vendor performance is impacted by COVID-19 conditions and industry development. Vendors operating in the market are offering advanced NFC products and services to improve the customer experiences owing to the competition in the market. This drives the growth of the market. In addition, the key players in the market are actively introducing innovative NFC-enabled products to enhance their market presence. For instance, in September 2020, Samsung Electronics launched the new Galaxy Tab Active3. The tab supports NFC with EMV Level 1 for payment.
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