Global NFC Market Report and Forecast 2024-2032

Global NFC Market Outlook

The global NFC market size attained a value of around USD 36.20 billion in 2023 and is expected to grow in the forecast period of 2024-2032 at a CAGR of 28.4% to reach nearly USD 343.70 billion by 2032.

Near field communication, often abbreviated as NFC, is a short-range wireless technology. It allows compatible devices to communicate across short distances. To send the signal, at least one transmitting device and one receiving device are required.

NFC is based on RFID technology, operating at the 13.56 MHz frequency. It is a standard for smartphones and similar devices to establish communication with each other by touching them together or bringing them into proximity, typically within a few centimetres.

It allows for wireless communication between devices using electromagnetic fields and can work in two-way communication (allowing both devices to send and receive information) or one-way communication (where one device sends data, and the other reads it). NFC is quick and easy to use, especially in comparison to setting up Bluetooth connections or other wireless communications.

The NFC standard can be used by a wide range of devices, which can be passive or active. In passive devices, tags and other small transmitters can convey data to other NFC devices without requiring their own power supply. These devices do not process data from other sources and are unable to link to other passive components.

In active devices, these gadgets are capable of both sending and receiving data. They have the ability to communicate both with active and passive devices. NFC is another wireless data transfer standard that requires devices to follow certain standards in order to connect successfully.

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Key Trends in the Market

Increasing demand for NFC tags to aid the market value

Based on the product, the NFC tags segment is expected to hold a significant portion of the NFC market share. The segment is expected to grow as a result of the increasing demand for payment and access control applications. NFC tags are made up of microchips that can store data and can be read by a variety of mobile devices. NFC tags come in different types, with varying data storage capacities, typically ranging from a few bytes to several kilobytes. They can also be found in various forms, including stickers, key fobs, cards, and wristbands, among others.

The NFC tag allows you to share data saved on your phone with other NFC-enabled phones. It also performs a number of tasks, such as launching a website or altering the handset's settings. Unlike mobile apps and wallets, which bombard users with unpleasant pop-ups, other intrusions and distractions, and unwelcome advertising, NFC tags give consumers more control over their interactions.

These tags are widely used in marketing and advertising to provide additional information, such as linking to a product website or promotional content. Furthermore, NFC tags also find growing applications in retail to facilitate quick and secure payment processes.

Increasing usage of smartphones to bolster the growth of the market

The global NFC market growth is being driven by the rising usage of smartphones and mobile commerce. 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 smartphone users. As people were unable to go outside due to the lockdown imposed by the respective state governments, the online payment transfer for essentials surged.

In addition, the expansion of the worldwide near field communication market is also aided by the increase in mobile internet users. Furthermore, with technologies like NFC-enabled PoS systems, mobile devices have become an essential means of data transfer.

Growing integration of NFC technology in the healthcare sector

The deployment of NFC (Near Field Communication) technology in healthcare represents a significant advancement, offering improved efficiency, enhanced patient care, and better data management. Patients, especially in hospitals and elderly care facilities, can wear NFC-enabled ID bracelets. These tags can store essential patient information, which can be easily accessed by healthcare providers with a simple tap of an NFC-enabled device.

NFC allows for quick and secure access to electronic medical records (EMRs), which further propels the NFC market demand. Doctors and nurses can scan an NFC tag to instantly access a patient's medical history, allergies, and ongoing treatments. Additionally, NFC-enabled medicine bottles or packaging can track when a dose is taken, aiding in patient adherence to medication schedules.

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NFC Market Segmentation

By product, the market is divided into:

• SD Cards

• SIM Cards

• NFC Covers

• NFC ICs

• NFC Tags

• NFC Readers

Based on application, the industry can be segmented into:

• Access Control

• Ticketing

• Data Sharing

• Medical Devices

• Transaction

• Product Identification

• Others

The regional markets for the product include North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa.

NFC Market Analysis

The NFC (Near Field Communication) market is experiencing substantial growth globally, driven by various factors including technological advancements, changing consumer preferences, and the increasing adoption of mobile and contactless payments.

With the majority of new smartphones being NFC-enabled, there's a direct correlation between smartphone usage and the expansion of the NFC market. The pandemic has accelerated the adoption of contactless technologies, including NFC, as consumers and businesses seek safer, touch-free transaction methods. The convergence of NFC with other technologies like blockchain, IoT, and AI is is likely to create more sophisticated and integrated solutions.

Global NFC Market Share by Region

North America holds a substantial share, aided by the rise in m-commerce

Geographically, North America accounts for a leading share in the NFC sector due to the increased preference for cashless payments and the increase in mobile commerce in the region. As the need for multi-tasking devices grows around the world, consumer electronics companies are incorporating NFC technology into their tablets and smartphones to give consumers a single solution.

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Retailers in North America are rapidly adopting NFC technology for payment systems and for enhancing customer engagement through smart advertising and personalised shopping experiences. Financial institutions in the region are also increasingly incorporating NFC technology in their operations, particularly in credit and debit cards for secure and convenient transactions.

Asia Pacific to witness further expansion, driven by widespread use of NFC-based devices

Meanwhile, the Asia Pacific is expected to witness robust growth in the forecast period due to the increasing adoption of smart appliances and the rising per capita income of the population. One of the significant NFC market trends in the region is the burgeoning popularity of mobile payments, with platforms like Alipay and WeChat Pay in China leading the way in NFC-based transactions.

NFC technology is widely used in public transportation systems for ticketing and access control, particularly in urban areas. Additionally, efforts are being made to standardise NFC technology and its applications, which is crucial for interoperability and security.

Key Players in the Market

The report presents a detailed analysis of the following key players in the global NFC market, looking into their capacity, market shares, and latest developments like capacity expansions, plant turnarounds, and mergers and acquisitions:

• Thales Group

• Broadcom Inc.

• Infineon Technologies AG

• Identiv, Inc.

• NXP Semiconductors N.V.

• Others

The comprehensive report looks into the macro and micro aspects of the industry. The EMR report gives an in-depth insight into the market by providing a SWOT analysis as well as an analysis of Porter’s Five Forces model.

Key Highlights of the Report