Near Field Communication Market

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.

Current Scenario of the Global Near Field Communication Market

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.

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.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Near Field Communication Market Analysis By Type

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 Analysis By End User

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

Global Near Field Communication Market Analysis By Device

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

Global Near Field Communication Market Analysis By Application

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

REGIONAL ANALYSIS

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 PLAYERS IN THE GLOBAL NEAR FIELD COMMUNICATION MARKET

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 HAPPENINGS IN THE GLOBAL NEAR FIELD COMMUNICATION MARKET

• 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.

DETAILED SEGMENTATION OF THE GLOBAL NEAR FIELD COMMUNICATION MARKET INCLUDED IN THIS REPORT

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.

By Type

• Auxiliary   

• Non-Auxiliary 

By End User

• Cloud Service         

• Telecom Service   

• Enterprises             

By Device

• Smartphone           

• Laptop      

• Tablet        

• Computer

By Application

• NFC Payments       

• Ticketing  

• Reservation            

• Data Exchange       

• Authentication and Access Control               

• Healthcare              

• Games and Toys   

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