Global Near Field Communication Market Size, Share, Trends, COVID-19 Impact & Growth Forecast Report – Segmented by Type (Non-Auxiliary and Auxiliary), Device (Smartphone, Tablet, Laptop & Computer), End-User (Cloud Service, Telecom Service, Enterprises), Application (NFC Payments, Ticketing, Reservation, Data Exchange, Authentication and Access Control, Healthcare, Games and Toys) and Region (North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) - Industry Analysis (2024 to 2029)

Updated On: January, 2024
ID: 10305
Pages: 150

Global Near Field Communication Market Size (2024 to 2029)

The global near field communications (NFC) market is predicted to reach USD 29.93 billion in 2024 and USD 58.14 billion by 2029, growing at a CAGR of 14.2% during the forecast period.

Near-field communication is a low-power, short-range communication protocol between two devices. One device, the initiator, uses magnetic induction to create a radio wave field that the target can sense and access, allowing small amounts of data to be transferred wirelessly over a relatively short distance.

The healthcare sector is expected to be the biggest adopter of near-field communication technologies. This technology can help medical institutes provide medical records directly by bringing devices into contact with each other. It uses current mobile technologies in conjunction with the cloud and is considered a revolutionary method for improving healthcare infrastructure around the world.

NFC end users can use the technology with little knowledge of the underlying technology. Communication starts automatically simply by physically joining two devices or a device and a tag respectively. Hence, NFC is very suitable for mobile payment and ticketing scenarios.

The Peer-to-Peer mode offered by NFC can be used for transparent money transfers between people and to exchange other forms of data. The Android operating system provides a feature called Android Beam. Android developers can use this option to transfer videos, pictures, websites, or other data by holding two suitable phones together.

Global Near Field Communication Market Drivers:

The main factors driving the global near-field communications market are the increasing adoption of NFC technology by various smartphone and similar device manufacturers, the convenient transfer and security of data, and the increasing use of smartphones for cashless transactions. However, a lack of awareness of the advantages of NFC, expensive development costs, competition from alternative payment methods, the problem of short-distance communications, and growing security concerns may hamper the growth of the worldwide NFC market.

NFC also offers multiple advantages in the field of medical applications. One promising approach offers various methods of monitoring health and recording the health status of patients using NFC. Patient monitoring via NFC, including the ideal technology for patient monitoring, such as smart sensors, which measure patients' fitness and transmit data to nearby monitoring devices, mobile networks, and healthcare professionals for monitoring and evaluation. In addition, the rise of wearable technology further drives the market's growth, as NFC also finds substantial applications in modern wearable devices. Patient monitoring solutions can be standard or customized to obtain personalized treatment and secure medical data. Therefore, many companies design personalized NFC tags for patients. NFC tags provide secure physical access to track patient data. Home monitoring using NFC-enabled devices is increasingly used, and medical data can, therefore, be transmitted to the doctor.

NFC innovations in patient monitoring include "MiniME," which is a biometric device developed by Ergonomic Design monitors, with parameters such as ECG, blood pressure, heart rate, body temperature, and many other functions that transmit data through the NFC cloud. In addition, Impak Health has developed home heart, lung, and sleep monitoring devices and has integrated NFC into “Rhythm Track,” which tracks the ECG and sleep cycle. Furthermore, the increasing number of innovations in NFC has led to the development of the technology.

Impact of COVID-19 on the global near field communication market:

Due to COVID-19, digital payments have increased and become a necessity. Payment companies have set records for new registrations and increased volume on online channels as the pandemic disrupted traditional payment methods. These cases are likely to drive the growth of the near-field communications market.

GLOBAL NEAR FIELD COMMUNICATION MARKET REPORT COVERAGE:

REPORT METRIC

DETAILS

Market Size Available

2023 to 2029

Base Year

2023

Forecast Period

2024 to 2029

CAGR

14.2%

Segments Covered

By Type, End User, Device, Application, and Region.

 

Various Analyses Covered

Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities

Regions Covered

North America, Europe, APAC, Latin America, Middle East & Africa

 

 

Market Leaders Profiled

NXP Semiconductors (Netherlands), Broadcom Corporation (United States), SAMSUNG (South Korea), Intel Corporation (United States), Qualcomm Inc. (United States), AMS AG (Austria), STMicroelectronics (Switzerland), Texas Instruments Incorporated (United States), MStar Semiconductor, Inc. (Taiwan), Flomio, Inc. (United States) and Others.

 

This research report on the global near field communication market has been segmented and sub-segmented based on the type, end user, device, application, and region.

Global Near Field Communication Market - By Type:

  • Auxiliary   

  • Non-Auxiliary 

The global NFC market is segmented into non-auxiliary and auxiliary. The non-auxiliary segment is further subdivided into ICs and NFC antennas, NFC tags, and NFC readers. The auxiliary segment is further subdivided into NFC micro-SD cards, NFC SIM / UICC cards, and NFC covers.

Global Near Field Communication Market - By End User:

  • Cloud Service         

  • Telecom Service   

  • Enterprises             

The worldwide market is separated into cloud services, telecom services, and enterprises.

Global Near Field Communication Market - By Device:

  • Smartphone           

  • Laptop      

  • Tablet        

  • Computer

The market is segmented into smartphones, tablets, laptops, computers, and others.

Global Near Field Communication Market - By Application:

  • NFC Payments       

  • Ticketing  

  • Reservation            

  • Data Exchange       

  • Authentication and Access Control               

  • Healthcare              

  • Games and Toys   

The market is segmented into NFC payments, ticketing, reservation, data exchange, authentication and access control, healthcare, games, and toys.

Global Near Field Communication Market - By Region:

  • North America

    • The United States

    • Canada

    • Rest of North America

  • Europe

    • The United Kingdom

    • Spain

    • Germany

    • Italy

    • France

    • Rest of Europe

  • The Asia Pacific

    • India

    • Japan

    • China

    • Australia

    • Singapore

    • Malaysia

    • South Korea

    • New Zealand

    • Southeast Asia

  • Latin America

    • Brazil

    • Argentina

    • Mexico

    • Rest of LATAM

  • The Middle East and Africa

    • Saudi Arabia

    • UAE

    • Lebanon

    • Jordan

    • Cyprus

North America is expected to dominate the market, followed by Europe, due to the presence of advanced technologies and the presence of global players. Asia-Pacific is expected to become the fastest growing market for near-field communications due to strong demand for NFC-enabled smartphones, growth in the consumer electronics industry, and growing security concerns in the sectors like BFSI. Furthermore, rising revenue, high adoption of smart devices, and rising per capita income in countries such as India and China are expected to drive strong growth for the near-field communications market in the Asia Pacific region.

Europe and North America are the top two contributors to the NFC chip industry. These two regions collectively represent more than 50% of the global markets due to the higher rate of adoption of NFC applications. Germany and the UK are expected to be the most lucrative NFC markets in the near future. Also, each country has its own contactless payment limit.

KEY MARKET PLAYERS:

The main players in the global near-field communications market include NXP Semiconductors (Netherlands), Broadcom Corporation (United States), SAMSUNG (South Korea), Intel Corporation (United States), Qualcomm Inc. (United States), AMS AG (Austria), STMicroelectronics (Switzerland), Texas Instruments Incorporated (United States), MStar Semiconductor, Inc. (Taiwan), Flomio, Inc. (United States), among others.

RECENT DEVELOPMENTS:

  • In June 2020, NXP Semiconductors, Mastercard, and Xiaomi Inc. announced that they will bring more convenient and secure contactless experiences to Russia as part of the first phase of a Europe-wide deployment with NXP's mobile wallet solution. NXP's mWallet 2GO, which powers mobile payments for Xiaomi's Mi Smart Band 4 NFC wearable devices, supports accelerated deployment in Europe by meeting OEM needs for easy yet secure and scalable wallet deployments.

  • In April 2020, Infineon Technologies AG completed the acquisition of Cypress Semiconductor Corporation. With this, the company can offer its customers the most comprehensive portfolio in the industry to connect the real to the digital world and shape digitization, one of the most important global trends.

 

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Frequently Asked Questions

How does NFC technology contribute to enhancing security in various applications globally?

NFC technology ensures secure data transmission through encryption protocols, authentication mechanisms, and tokenization techniques, thereby bolstering security in payment transactions, access control systems, and identification processes.

What are the key challenges hindering the widespread adoption of NFC technology globally?

Challenges such as interoperability issues between different NFC-enabled devices, concerns regarding privacy and data security, and the need for standardization across various NFC applications pose hurdles to its widespread adoption.

What role does NFC technology play in advancing the concept of smart cities globally?

NFC technology enables smart city initiatives by facilitating contactless payment systems for public transportation, access control solutions for government facilities, and data exchange between IoT devices, contributing to improved urban efficiency and citizen convenience.

What are the emerging trends shaping the future of the NFC market on a global level?

Emerging trends include the integration of NFC technology with emerging technologies like IoT and AI, the adoption of NFC-enabled wearables, and the expansion of NFC applications beyond payment and access control to areas such as marketing and healthcare.

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