According to a recent report published by Allied Market Research, titled, “NFC Payment Devices Market by Device Type and Application: Global Opportunity Analysis and Industry Forecast, 2021–2028,” the global NFC payment devices market size was valued at $16.35 billion in 2020, and is projected to reach $67.71 billion by 2028, growing at a CAGR of 19.5% from 2020 to 2028.
Increase in adoption of smart wearables and rise in penetration of digital payments have led to the growth of the NFC payments market in recent years. NFC payment devices comprise several devices smart watches, fitness trackers, payment wristbands, smart rings and others. Unlike mobile payments that are done through the internet, NFC payments are carried out in close physical proximity preventing unauthorized access during the transactions.
The key factor driving the NFC payment devices market trends include surge in penetration of contactless payment system at various retail stores, petrol pump stations, and restaurants positively impacts the growth of the market. In addition, increase in shift from traditional payment system to digital system across the developing nations and rise in trend of mobile commerce across the globe boost global NFC payment devices market growth. These transactions are considered highly authenticated and extremely protected as NFC chips interchange cryptographic data to render the transfer complete. However, battery drain issues and high risk of stolen or lost wearables is expected to hamper the market growth. On the contrary, rise in demand for mobile and wearable payments devices among the developing nations, such as China, Japan, and India, is expected to offer remunerative opportunities for the expansion of the market during the forecast period.
The grocery stores segment is expected to garner a significant NFC payment devices market share during the forecast period. This is attributed to rise in demand for contactless payment service in the retail industry and increase in investment by the retail owners for adopting digital payment technology. However, the others segment contributes the largest revenue share in 2020, owing to increase in adoption of mobile payment devices among various industries for reducing cash counting time and different types of errors.
Region-wise, the NFC payment devices market was dominated by North America in 2020, and is expected to retain its position during the forecast period. This is attributed to increase in demand among merchants across the U.S. and Canada to use contactless payment technology. However, Asia-Pacific is expected to witness significant growth rate during the forecast period, owing to penetration of high-speed internet connectivity across developing nations such as China and India.
The outbreak of COVID-19 is anticipated to have a positive impact on the growth of the NFC payment devices market. This is attributed to increase in government initiatives to use mobile payment technology for breaking COVID-19 chain due to restrictions of cash payment process. In addition, with the rise of COVID-19 patients across the world, many businesses and individuals are adopting contactless payment technology, which boosts the growth of the market in the pandemic situation. Furthermore, several governments across developing nations are investing heavily in digital payment technology for preventing people from getting coronavirus by creating awareness among the people about online payment systems, which drives the growth of the market.
Key Findings Of The Study
- By device type, the smart watches segment accounted for the largest market share in 2020.
- Region-wise, North America generated the highest revenue in 2020.
- Depending on application, the grocery stores segment generated the highest revenue in 2020.
The key players profiled in the NFC payment devices market analysis are Apple, Inc. Fitbit, Inc., Gramin Ltd, Huawei Technologies Co., Ltd., Jakcom Technology Co. Inc. McLear Ltd., Nymi, Inc., Samsung Electronics, Sony Corporation, and Xiaomi Corporation. These players have adopted various strategies to increase their market penetration and strengthen their position in the NFC payment devices industry.