Near Field Communication Market - Trend & Share Analysis (2024-2032)

Near Field Communication Market Synopsis:

Near Field Communication Market Size Was Valued at USD 20.7 Billion in 2023, and is Projected to Reach USD 72.01 Billion by 2032, Growing at a CAGR of 14.8% from 2024-2032.

The near field communication market is progressively growing over the last few years due to its demand in various applications in the electronics sector, retail, healthcare, transport sectors, and many more. NFC is the short-range wireless connectivity technology that is used for information exchange between two models with non-line-of-sight distance of up to 4 cm. Some of the common uses of this technology include contactless payment, IDENTIFICATION & access control, smart appliances and sensors, and assets tracking technologies, and so forth, which are helpful in transformations that are happening in the world at the moment. One of the biggest factors that have driven the market is the growing ownership of NFC supported smartphones boosting mobile payments and digital transactions.

The heightened need for better secured and effective modes of payment is one of the factors that has fueled the NFC market. The adoption of mobile payment technology especially in the retailing and Banking sectors is on the rise since it is a contactless type of payment. More so, by applying NFC with other service offerings like ticketing, loyalty cards, and even healthcare, makes the technology appealing in other areas. Smartphones and other NFC compatible devices give users greater usability for payments, sharing data, and engaging with digital content and so the NFC market continues to grow.

Nevertheless, the market of NFC has a number of imperatives, for instance, the data protection problem and the lack of synchronous protocols between the device and another platform. Nonetheless, prospects for future growth exist mainly due to continuous trends in new technology development and growing consolidation of market majors. Potential for evolution can be found in optimizing NFC solutions at present on a higher level as well as in introducing new types of authentication, IoT and blockchain. Expectedly, it is expected that the NFC market will expand in the next few years following the increasing implementation of NFC amongst various industries for various uses.

Near Field Communication Market Trend Analysis:

Integration of NFC with Mobile Payment Systems

• There is hope for growing trends of integration with NFC technology in the mobile payment systems market. Due to the growth of mobile payments and contacts less payment, NFC has been widely used for facilitating safe and quick transactions. Many of today’s established mobile payment solutions such as Apple Pay, Google Wallet, and Samsung Pay have implemented NFC throughout the world, and are utilizing it to provide consumers with easy, contactless payment services at physical stores, transit systems, and even on the Web. Mobile payment system is on the rise day by day and particularly in developing countries this will enhance the utility of NFC in financial sectors and hence the market size.

Expansion of NFC in IoT and Smart Devices

• Another emerging trend that affect the NFC market is the increase in the number of IoT devices as well as smart devices. Its (--NFC’s) application is becoming integrated into virtually any smart-connected products, from home appliances, wearable devices, and even health care devices and equipment. This trend allows for quicker communication flows between the devices, for instance in use of locking doors, in sharing information from one wearable to another or in tracking of health-related devices. With the increasing adoption of IoT, people require more NFC technology used in the contactless interactions between devices and the constant developments and arising applications will also contribute to the future growths of the NFC market.

Near Field Communication Market Segment Analysis:

Near Field Communication Market is Segmented on the basis of product type, operating mode, end-users, and region

By Product Type, NFC Tags segment is expected to dominate the market during the forecast period

• The Nearby Field Correspondence (NFC) market based on the product type is divided into NFC Tags, NFC ICs, SIM cards, NFC readers, and others. One of the popular realizations of NFC Tags is in the use of assets tracking, storage management together with sales promotion services since the technology offer cheap means of contactless communication. NFC ICs are used for making NFC-enabled devices where they act the bridge between the hardware and the software requirements of the NFC system. SN: It is because the SIM Cards with purpose-built NFC capability are indispensable for mobile payment, providing unhackable connection for financial activities. NFC Readers are a deployable hardware in numerous applications like POS, access control, ticketing, etc; it helps the users who have to interface with NFC devices or cards. Other new uses embody wearable devices and IoT, which fall under the category of “Others” in this research. Rising mobile payment and contactless transactions, smartphone application usage in business, and integrating innovation in the offerings are the factors driving the market’s growth across these segments.

By End-Users, Automotive segment expected to held the largest share

• The NFC marketplace is segmented by using numerous end-users, all of whom enjoy the merit of using the NFC, which allows secure and contactless communication. NFC is used majorly in retail to include payment via mobile, loyalty, and tracking of inventory. cars for hire use NFC for ticketless travel and security, making the traveling experience of the passengers more convenient. In the automobile segment, NFC is used in smart access systems and M- commerce applications. The residential and commercial segments use their NFC for application in smart home devices, security systems, and asset tracking. Of special interest to the medical and healthcare fields include the use of NFC devices for, monitoring patients, transferring secured data and use in tracking medications respectively. Smartphones, wearables and smart watches employ NFC for content exchange and mobile payments. In the current world, mobile banking and finance industries employ NFC for secure contactless or contact payments and identity. In the hospitality industry, NFC can be used for the processing of checking in information and permits access to the rooms, as well as processing payments. Other industries also find NFC application in logistics, marketing, and event management that positively impact the market in these industries.

Near Field Communication Market Regional Insights:

North America is Expected to Dominate the Market Over the Forecast period

• Over the forecast period, North America is projected to lead the Near Field Communication (NFC) Market due to the increased usage of mobile payments facilitated by the technological advancement in the region. The increasing sales of smartphones and other smart devices with NFC compatibility in the United States and Canada, as well as the need for fast-developing means of secure contactless payments, also contribute to the growth of the market. Also, the ever-growing number of key stakeholders involved in the NFC market such as Apple, Google, and Samsung make North America a leading region in the NFC Market. North America is also forecast to continue its dominance of the NFC market Picture 8, owing to ongoing investment in smart cities and IoT solutions, as well as digital transformation.

Active Key Players in the Near Field Communication Market:

• Broadcom Inc. (USA)
• Identive (USA)
• Infineon Technologies (Germany)
• Magtek (USA)
• NXP Semiconductors (Netherlands)
• Qualcomm Technologies Inc. (USA)
• Samsung Electronics Co. Ltd (South Korea)
• Sony Corporation (Japan)
• Texas Instruments Incorporated (USA)
• Thales Group (France), and Other Active Players.

Key industry Development in the Near Field Communication Market:

• In May 2024, Infineon Technologies AG launched the OPTIGA Authenticate NBT, an advanced NFC I2C bridge tag designed to simplify device pairing and configuration in IoT applications. Offering single-tap authentication, the solution ensures secure and effortless configuration of smart devices, addressing growing demands for improved user experiences in the expanding IoT ecosystem. The high-performance bridge tag supports secure communication and enhances device protection against unauthorized access, paving the way for seamless integration across industries. Infineon’s innovation highlights its commitment to advancing the security and functionality of connected devices in the IoT landscape.
• In November 2023, STMicroelectronics launched the ST54L, an advanced NFC controller integrated with an embedded secure element, enhancing secure contactless payment and ticketing capabilities. Designed for mobile devices such as smartphones, wearables, and tablets, the ST54L supports the STPay-Mobile digital wallet platform. This innovative solution enables seamless and security-protected access to digital services, meeting the growing demand for reliable and convenient contactless transactions. With the ST54L, STMicroelectronics has reinforced its position as a leader in NFC and secure element technologies, empowering device manufacturers to deliver advanced, secure digital payment and ticketing experiences to consumers worldwide.