Near field communication (NFC) is a set of communication protocols for communication between electronic devices over a distance of 4 cm or less. NFC offers a low-speed connection with a simple setup that can be used to bootstrap wireless connections. Subscriber identity module (SIM) cards inside mobile phones act as smart cards that identify a customer’s payment account to the network. On the NFC-enabled phones, these SIM cards act as the secure elements that hold secure data and other applications such as payment cards. Moreover, some typical uses include mobile payment, authentication, and access control, and data sharing among NFC-enabled units. Over the coming years, NFC is poised to become a major technology being used as a secure medium of access to contents and for a variety of services including cashless payment, access control, and ticketing.
Market Statistics:
The global near field communication market is expected to surpass US$ 64,783.9 Mn in terms of value by the end of 2028.
Global Near Field Communication Market: Drivers
Rising production of NFC-enabled mobile phones is expected to boost the global near field communication market growth over the forecast period
Over the years, there has been increasing production of NFC-enabled mobile phones. These smartphones facilitate faster payment options as well as the exchange of different types of information including telephone numbers, MP3 files, pictures, or digital authorizations. Moreover, some typical uses include mobile payment, authentication, and access control, and data sharing among NFC-enabled units. For instance, in July 2020, Google Pixel 4a received BIS certification with IMDA listing. Pixel 4a will support Bluetooth, Wi-Fi, and NFC. Therefore, these factors are expected to drive growth of the global near field communication market during the forecast period.
Global Near Field Communication Market: Opportunities
Contracts and agreements among market players can present lucrative growth opportunities in the global near field communication market
Major companies in the market are focused on contracts and agreements, in order to enhance the market presence. For instance, in July 2013, MoneyGram signed an agreement with DeviceFidelity. According to this agreement, MoneyGram will serve as a money transfer provider for the DeviceFidelity Moneto mobile financial service. In February 2013, Visa, Inc. signed an agreement with Samsung to accelerate mobile NFC payments. According to this agreement, customers will be able to securely download payment account information to their Samsung mobile phones.
Global Near Field Communication Market: Recent Developments
- In November 2021, Panasonic Corporation announced that it has developed a secure near field communication technology using a loop antenna by applying Wavelet OFDM*2 to a communication method using a magnetic field.
- In June 2020, NXP Semiconductors, Mastercard, and Xiaomi Inc. announced that they are bringing more secure contactless experiences to Russia as the first phase of a European-wide roll-out with NXP’s mobile wallet solution. Powering mobile payments for Xiaomi’s Mi Smart Band 4 NFC wearable devices, NXP’s mWallet 2GO supports an accelerated roll-out across Europe by addressing OEMs’ needs for easy yet secure and scalable, wallet implementations. It also addresses user demands to quickly enable payment devices by digitizing their bank cards and experience smooth NFC transactions at the Point-of-Sale.
Global Near Field Communication Market: Restraints
Lack of consumer awareness related to NFC technology is expected to hamper the global near field communication market growth over the forecast period
Despite its numerous advantages, NFC still lacks mass adoption due to a lack of consumer awareness. A vast number of consumers are still unaware of its benefits, which in turn, is hindering its adoption. Therefore, these factors are expected to hamper the global near field communication market growth over the forecast period.
To know the latest trends and insights prevalent in the Global Near Field Communication Market, click the link below:
https://www.coherentmarketinsights.com/market-insight/near-field-communication-market-4859
Global Near Field Communication Market - Impact of Coronavirus (Covid-19) Pandemic
Globally, as of 4:32pm CEST, 15 October 2021, there have been 239,437,517 confirmed cases of COVID-19, including 4,879,235 deaths, reported to WHO. The emergence of Covid-19 has led to increasing adoption of contactless payments. In August 2021, Strasbourg, a City in France, launched Android-compatible NFC ticketing service. The NFC ticketing service works for riders of buses, trams, and other forms of public transportation in Strasbourg, France, including regional rail services.
Key Takeaways:
- The global near field communication market was valued at US$ 19,309.2 Mn in 2020 and is forecast to reach a value of US$ 64,783.9 Mn by 2028 at a CAGR of 16.4% between 2021 and 2028.
- The Consumer Electronics segment was valued US$ 3,707.37 Mn in 2020 and is expected to witness a CAGR of 15.2% over the forecast period. The growth of the segment is attributed to emergence of innovative consumer electronics products that integrate NFC technology.
North America Trends
Among regions, North America is expected to witness significant growth in the global near field communication market during the forecast period. This is owing to increased volume of a smartphone or contactless payments across the region. Furthermore, a large presence of market players such as Visa Inc., Broadcom Corporation, DeviceFidelity, Inc., and Identive Group, Inc. is expected to boost North America near field communication market growth over the forecast period.
Asia Pacific Trend
Asia Pacific is expected to exhibit a robust growth rate in the global near field communication market over the forecast period. This is owing to increasing adoption of smartphones in emerging economies such as India, China, and Japan. Furthermore, rising population across the region is expected to propel the regional market growth over the forecast period.
Global Near Field Communication Market: Competitive Landscape
Key players operating the global near field communication market are Broadcom Corporation, On Track Innovations (OTI) Ltd., DeviceFidelity, Inc., Identive Group, Inc., Gemalto N.V., NXP Semiconductors N.V., Visa, Inc., Samsung Electronics Co. Ltd., Toshiba Corporation, and ST Microelectronics N.V.
Key Developments
Major companies are focused on partnership and collaboration, in order to enhance the market presence. For instance, in May 2020, ST Microelectronics N.V. partnered with Zhaga Consortium to accelerate the deployment of NFC technology in the industrial lighting market.
