According to a recent report published by Allied Market Research, titled, “Near Field Communication Market by Product Type, Operating Mode, and End User: Global Opportunity Analysis and Industry Forecast, 2021-2028,” The global NFC market size was valued at $15,531 million in 2019, and is projected to reach $54,521 million by 2028, registering a CAGR of 14.8% from 2021 to 2028.
Increase in demand for convenient transfer & security of data, surge in demand for contactless payments due to the COVID-19 pandemic, and rise in proliferation of smartphones are the factors anticipated to boost the growth of the global near field communication (NFC) market. However, security concerns and short operational range limit the near field communication market growth. Nevertheless, technological advancements in NFC and rise in adoption of NFC-enabled wearable technology are the factors anticipated to make way for new opportunities for the growth of the NFC market.
By product type, the NFC readers segment exhibited the highest growth in the NFC market share in 2019, and is expected to maintain its dominance in the upcoming years. This is attributed to its emerging application areas as well as surge in demand for NFC readers in access control and authentication applications. In addition, NFC reader comes in compact size and offers various features such as access control, payments, mass transit, and attendance check. However, the NFC tags segment is expected to witness the highest growth, due to the high demand from payments and access control applications.
By end user, the consumer electronics segment dominated the NFC market share in 2019 and is expected to remain dominant in the upcoming years. This is mainly attributed to introduction of innovative NFC technology enabled consumer electronic products. A lot of companies focus on product innovations such as wearable near field communication (NFC) Tags that can be used in the healthcare industry. For instance, INFOSKIN is a wearable NFC tag that helps improve patient care, offers automatic time stamps for recording patient activity, and helps update patient records easily. Therefore, rise in adoption of NFC to track the medical record of the patients fosters the growth of the healthcare segment.
The current estimation is expected to increase as compared to pre-COVID-19 estimates by 2028. The COVID-19 pandemic has significantly increased the growth rate of the near field communication market due to surge in requirement of contactless solutions in different areas. This in turn boosts the NFC market growth. In addition, the market players focus on introduction of innovative near field communication enabled products to ensure better customer experiences. For instance, in May 2019, Samsung Electronics launched a vertical TV that uses NFC functionality to work as a standard TV in horizontal mode and as a mirror of a user’s phone when in vertical mode. Such innovations are anticipated to drive the market growth.
Key Findings Of The Study
- By product type, in 2019 the NFC readers dominated the NFC market size. However, the NFC tags segment is expected to exhibit significant growth during the forecast period.
- By operating mode, the peer-to-peer mode generated the highest revenue in 2019. However, the card emulation mode segment is expected to witness highest growth rate in the near future.
- By end user, the consumer electronics segment accounted for the highest revenue in 2019, however, the medical & healthcare segment is expected to witness highest growth rate during the forecast period.
- By region, the near field communication market was dominated by Asia-Pacific in 2019.
Some of the key near field communication industry players profiled in the report include Broadcom Inc., Identive, Infineon Technologies, MagTek, NXP Semiconductors, Qualcomm Technologies, Inc., Samsung Electronics Co. Ltd., Sony Corporation, Texas Instruments Incorporated, and Thales Group. This study includes NFC market trends, near field communication market analysis, and future estimations to determine the imminent investment pockets.