NFC Market By Application (Payment, Ticketing, Healthcare, Access Control, Information Exchange, Others), Product Type (NFC Tags, NFC Readers, NFC Chips, NFC Secure Elements, NFC-enabled Smartphones, Others), End-User (Retail, Transportation, Healthcare, Automotive, BFSI (Banking, Financial Services, and Insurance), Others), & Region for 2024-2031

Published Date: August - 2024 | Publisher: MIR | No of Pages: 320 | Industry: latest updates trending Report | Format: Report available in PDF / Excel Format

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NFC Market Valuation – 2024-2031

The NFC market is really taking off! People everywhere want safer, easier, and faster ways to communicate and pay, and NFC is delivering. You know, that tech that lets devices connect just by being close, like within a few centimeters? That's NFC! It's perfect for things like tapping your phone to pay, using it as a keycard, swapping info, and even getting cool deals. But the real kicker is the boom in digital payments – that's a major reason NFC is in such high demand. It's projected to zoom past 20.94 Billion USD this year alone, and get this – they're saying it'll be worth around USD 81.35 Billion by 2031!

NFC’s adaptability is driving its use in other industries as well. In transportation, NFC is utilized for contactless ticketing systems which allow passengers to board buses, trains, and subways by merely tapping their NFC-enabled devices. This improves the commuting experience by removing the need for actual tickets or cards. Furthermore, NFC is becoming increasingly important in smart home and office contexts where it enables simple pairing and control of smart devices improving automation and user convenience by enabling the market to grow at a CAGR of 18.49% from 2024 to 2031. 

NFC MarketDefinition/ Overview

NFC, or Near Field Communication is a short-range wireless technology that allows devices to communicate with one another while they are nearby, usually within a few centimeters. Consider NFC to be a form of very short-range Bluetooth that does not require pairing or human configuration. It’s intended to be a rapid, simple, and secure method for devices to share data. For example, when you touch your smartphone on a contactless payment terminal, NFC technology allows your phone to interact with the terminal and conduct the transaction.

NFC technology which enables devices to connect wirelessly across short distances is transforming many features of daily life. Contactless payments are one of NFC’s key applications. Users can conduct purchases quickly and securely by just tapping their NFC-enabled smartphone or card on a payment terminal. This convenience has resulted in the widespread use of NFC payments in retail outlets, public transit, and even vending machines.

The future use of NFC includes a variety of new applications that can revolutionize ordinary encounters. In the healthcare industry, NFC has the potential to transform patient care and medical data administration. For example, NFC-enabled gadgets can help healthcare providers communicate patient information securely and efficiently. Patients can wear NFC-equipped wristbands or carry NFC cards that retain their medical history making important information readily available in emergencies.

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Will the Adoption of Mobile Payment Solutions and Contactless Transactions Drive the NFC Market?

The proliferation of mobile payment solutions and contactless transactions is a key driver of the NFC (Near Field Communication) market. NFC-enabled mobile payments are becoming increasingly popular among both consumers and companies due to their convenience, speed, and security. According to a Federal Reserve analysis, the use of mobile payments in the United States has continuously increased, with 43% of mobile phone owners making payments with their devices in 2020, up from 39% in 2019. The COVID-19 pandemic has further expedited this trend to contactless payments with the World Health Organization.

Another important market driver is the increasing integration of NFC technology into smartphones and other devices. The ubiquitous availability of NFC-capable gadgets fosters a strong ecosystem for contactless transactions. Furthermore, the development of NFC beyond payments into public transit, access control, and identity verification is driving market growth. For example, the American Public Transportation Association states that more than 80% of transit agencies in the United States use or plan to use contactless fare payment systems.

Will Security Issues Hamper the NFC Market?

So, the NFC, or Near Field Communication, market is really taking off, and there are a few big reasons why. For starters, everyone's using contactless payments more and more. The Federal Reserve says that contactless payments in the US jumped a whopping 150% between 2019 and 2021! Blame it on the pandemic – people want those touch-free options. Plus, almost every new smartphone has NFC built-in. GSMA thinks we'll be shipping 2.2 billion NFC-enabled smartphones by 2025; that's over 90% of all smartphones! With so many devices using NFC, it's creating cool possibilities beyond just payments, like NFC for getting into buildings, using public transport, and even quickly pairing your devices.

So, even though the NFC world is expanding and looking good, there's a big "but" – security. It's a real worry that could slow things down. The National Institute of Standards and Technology (NIST) has found some chinks in NFC's armor, like sneaky eavesdropping, messing with data, and those annoying relay attacks. And get thisa study in the Journal of Cybersecurity says 67% of us are nervous about contactless payments! That's not just paranoia, either. The Federal Trade Commission saw a 70% jump in contactless payment fraud between 2019 and 2021. Still, before you ditch your phone for cash only, remember the overall fraud rate for NFC is still relatively low compared to how we used to pay.

Category-Wise Acumens

Will Widespread Adoption of Smartphones Drive Growth in the Product Type Segment?

NFC-enabled smartphones are the main sector. This domination is partly due to the massive adoption of smartphones worldwide and their prominent role in everyday life. NFC-enabled smartphones provide a versatile platform for a wide range of applications including contactless payments, data sharing, smart home control, and public transportation access. The incorporation of NFC technology into smartphones has converted them into strong tools for smooth and secure transactions making daily tasks easier. As the number of smartphone users increases, so does the potential for NFC applications highlighting the relevance of NFC-enabled smartphones in the market.

NFC-enabled smartphones are everywhere, and it's easy to see why! Mobile tech just keeps getting better, and the world of NFC apps is booming. Big names like Apple and Samsung always include NFC in their phones, which means a huge chunk of the global population can use it. This wide availability encourages developers to build awesome, new NFC-based apps, making things even more exciting. Think about itmobile payments like Apple Pay and Google Pay depend heavily on NFC for secure, contactless transactions. Plus, we're seeing NFC smartphones being used more and more for digital IDs, ticketing, and even access control – it’s a truly versatile solution across all sorts of industries!

Will the Increasing Demand for Quick and Convenient Transaction Methods Drive the Application Segment?

NFC technology really shines when it comes to payments – think mobile and contactless options. It's so popular because everyone wants transactions to be fast, safe, and easy, especially when they're at the store, grabbing a bite, or paying for anything else. With NFC, customers can just tap their phone or an NFC card to pay, which makes checkout way faster and the whole experience much better. Plus, mobile wallets like Apple Pay, Google Wallet, and Samsung Pay are pushing NFC adoption even further. These digital wallets use NFC to give you a super secure and smooth payment process, so you can leave those old cards and cash at home.

NFC's security features are a big reason why it's taken over the payment world. Think about itNFC transactions are super secure thanks to that short-range thing and how they use encryption. This makes sure your precious payment info is safe and sound during the whole process, which really cuts down on fraud and leaks. And, you know, with COVID-19 hitting, everyone's been scrambling for contactless ways to pay, which just made NFC even more popular. Its ease of use and security have turned NFC payments into a must-have in retail, and they're only getting bigger! Plus, you can even hook up loyalty programs and special deals with NFC payments, which gives customers another reason to come back and keeps them happy.

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Country/Region-wise Acumens

Will Rapid Diversification of Mobile Payment Services Drive the Market in the Asia Pacific Region?

The Asia-Pacific NFC market is really taking off, and it's largely because of the explosion in mobile payment options. What's fueling this? Well, more and more people are using smartphones and demanding contactless ways to pay. GSMA estimates that by 2025, Asia Pacific will have a whopping 3.1 billion smartphone connections – that's about 80% of all mobile connections! This huge smartphone base creates the perfect environment for NFC mobile payments to flourish. Plus, the COVID-19 pandemic really sped things up. A Mastercard poll showed that 91% of Asia Pacific consumers switched to digital payments during the pandemic, and get this – 75% plan to stick with them!

Mobile payments in Asia Pacific? It's a wild west, really! While it changes from country to country, you've got the big guys like Alipay and WeChat Pay ruling the roost in China, Paytm being huge in India, and GrabPay making waves in Southeast Asia. But they're not just doing payments anymore! These companies are getting into everything – loyalty programs, micro-loans, even helping you manage your money. And all this is pushing people to adopt NFC tech faster. For instance, the People's Bank of China says the mobile payment market there – pretty much Alipay and WeChat Pay's playground – hit a whopping 432.16 trillion yuan (that's around USD 62.2 Trillion!) in transactions back in 2021. And in India, the United Payments Interface (UPI), which plays nice with NFC, processed over 7.82 billion transactions worth 12.82 trillion rupees (about USD 158 Billion).

Will Increasing Activities by Key Players Drive the Market in the North American Region?

Hey, it looks like the NFC (Near Field Communication) market is really taking off in North America! The United States is expected to lead the charge with some seriously fast growth. What's fueling all this? Well, more and more people are using contactless payments, and NFC tech is popping up everywhere. That increasing demand for touch-free payments is a huge deal for the NFC industry here. Just check out these numbersthe Federal Reserve Bank of San Francisco says contactless card use in the US jumped from 0.3% in 2019 to 1.6% in 2021! And it's not stopping there. A Visa survey showed that 65% of consumers would rather tap-to-pay as much as possible, if not even more!

In healthcare, think of NFC as a helpful tool for things like quickly identifying patients, easily pairing medical devices, and even making sure people are taking their medications correctly. The United States Food and Drug Administration has given the thumbs-up to a bunch of medical devices that use NFC, which shows it's catching on big time in the medical world. And it's not just healthcare! Retailers are using NFC to keep tabs on inventory and get customers more engaged. Zebra Technologies says that by 2026, a whopping 75% of retailers plan to use NFC for inventory management. All this buzz around NFC across different industries? It's probably going to make the market in North America explode as companies keep coming up with cool new ways to use it, especially with everyone wanting more and more NFC-enabled goodies.

Competitive Landscape

The NFC market is a dynamic and competitive space, characterized by a diverse range of players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support. The organizations are focusing on innovating their product line to serve the vast population in diverse regions.

Some of the prominent players operating in the NFC market include

  • Gemalto N.V.
  • DeviceFidelity, Inc.
  • Visa, Inc.
  • Broadcom, Inc.
  • STMicroelectronics N.V.
  • Toshiba Corp.
  • Samsung Electronics Co. Ltd.
  • Identive Group, Inc.
  • NXP Semiconductor
  • Infineon Technology
  • On Track Innovation Ltd.

Latest Developments

  • In April 2024, The UAE’s hosting of the Miss World pageant sparked a surge in the NFC market, prompting companies like Pcard to finalize aggressive expansion plans in the GCC. The post-pandemic boom in events further accelerated industry growth.
  • In December 2023, Apple caved into EU pressure, abandoning its NFC exclusivity stance and potentially expanding payment choices for iPhones. However, Google Wallet integration is dubious as Apple maintains control over its mobile wallet system.

Report Scope

REPORT ATTRIBUTESDETAILS
Study Period

2021-2031

Growth Rate

CAGR of ~18.49% from 2024 to 2031

Base Year for Valuation

2024

Historical Period

2021-2023

Forecast Period

2024-2031

Quantitative Units

Value in USD Billion

Report Coverage

Historical and Forecast Revenue Forecast, Historical and Forecast Volume, Growth Factors, Trends, Competitive Landscape, Key Players, Segmentation Analysis

Segments Covered
  • Application
  • Product Type
  • End-User
Regions Covered
  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa
Key Players

Gemalto N.V., DeviceFidelity, Inc., Visa, Inc., Broadcom, Inc., STMicroelectronics N.V., Toshiba Corp., Samsung Electronics Co. Ltd., Identive Group, Inc., NXP Semiconductor, Infineon Technology, On Track Innovation Ltd.

Customization

Report customization along with purchase available upon request

NFC Market, By Category

Application

  • Payment
  • Ticketing
  • Healthcare
  • Access Control
  • Information Exchange
  • Others

Product Type

  • NFC Tags
  • NFC Readers
  • NFC Chips
  • NFC Secure Elements
  • NFC-enabled Smartphones
  • Others

End-User

  • Retail
  • Transportation
  • Healthcare
  • Automotive
  • BFSI (Banking, Financial Services, and Insurance)
  • Others

Region

  • North America
  • Europe
  • Asia-Pacific
  • South America
  • Middle East & Africa

Analyst’s Take

In conclusion, the NFC Market is experiencing robust growth driven by the increasing adoption of mobile payment solutions, the proliferation of NFC-enabled devices, and the growing demand for seamless connectivity and convenience in various applications such as retail, transportation, healthcare, and smart homes. The market is poised for further expansion as businesses and consumers recognize the benefits of NFC technology in enhancing user experiences, improving operational efficiency, and enabling innovative services and applications.

Research Methodology of Market Research

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Pivotal Questions Answered in the Study

Some of the key players leading in the market include NXP Semiconductors, Broadcom, Qualcomm, Texas Instruments, and STMicroelectronics.
The primary factor driving the NFC market is the increasing demand for contactless payments and secure, convenient mobile transactions. As consumers and businesses seek faster, more efficient, and more secure payment methods, NFC technology provides a seamless solution, significantly boosting its adoption in retail, transportation, and various other sectors.
The NFC market is estimated to grow at a CAGR of 18.49% during the forecast period.
The NFC market was valued at around USD 20.94 Billion in 2024.
The sample report for the NFC Market can be obtained on demand from the website. Also, the 24*7 chat support & direct call services are provided to procure the sample report.

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