“Global Near Field Communication (NFC) Market to reach a market value of USD 66.0 Billion by 2031 growing at a CAGR of 12.0%”
The Global Near Field Communication (NFC) Market size is expected to reach $66.0 billion by 2031, rising at a market growth of 12.0% CAGR during the forecast period.
NFC is increasingly integrated into consumer electronics such as smartphones, tablets, wearables, and smart home devices. This integration enables functionalities like device pairing, data transfer, and mobile payments, enhancing user convenience. Therefore, the consumer electronics segment held 10% revenue share in the market in 2023. The continuous innovation in consumer electronics and the growing demand for smart and connected devices have significantly contributed to this segment’s revenue share.
With the increasing demand for seamless, contactless experiences in retail, transportation, and banking, NFC is poised to dominate the mobile payments landscape. As consumers and businesses seek faster, safer, and more convenient ways to process payments, the global push toward adopting NFC for mobile transactions will continue, further driving the growth of NFC technology in various sectors worldwide. Thus, the increasing adoption of mobile payments and contactless transactions propels the market's growth. Moreover, the market for NFC in IAM solutions is anticipated to expand due to the increasing adoption of mobile phones for access management. Integrating NFC with smartphones allows users to authenticate access to systems and buildings effortlessly. This trend is expected to drive the growth of NFC technology as businesses and consumers seek more secure and efficient solutions for identity management, further solidifying NFC’s role in the digital security ecosystem. Thus, the growing demand for secure identity and access management solutions drives the market's growth.
However, the lack of standardization among NFC devices and protocols complicates the adoption process. Different manufacturers may have varying implementations of NFC, leading to compatibility issues between devices. This lack of uniformity can hinder device interoperability and create a fragmented market. Without standardization, the cost of implementing NFC solutions will remain high, and businesses may continue to hesitate before fully embracing the technology. In the long term, addressing these issues will be critical for NFC to achieve widespread adoption and to realize its full potential in driving digital transformation across various industries. In conclusion, high implementation costs and lack of standardization among NFC devices impede the market's growth.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
Based on device operating mode, the market is divided into reader emulation, card emulation, and peer-to-peer. In 2023, the reader emulation segment garnered 40% revenue share in the near field communication (NFC) market. Reader emulation mode is widely used in various applications, such as payment systems, access control, and data exchange. This mode allows NFC-enabled devices to act as readers that can scan NFC tags and cards, facilitating quick and secure transactions and information retrieval. The increasing adoption of contactless payment solutions and the integration of NFC technology in smartphones, tablets, and other electronic devices have significantly contributed to the growth of the reader emulation segment.
On the basis of offering, the market is segmented into non-auxiliary products, auxiliary products, and software. In 2023, the auxiliary products segment attained 19% revenue share in the near field communication (NFC) market. Auxiliary products encompass a range of supporting items that enhance and extend the capabilities of NFC technology, including accessories, software solutions, and peripheral devices. These products play a crucial role in the broader adoption and functionality of NFC-enabled systems, providing users with enhanced convenience, security, and versatility in their NFC applications.
The non-auxiliary products segment is further subdivided into NFC tags, NFC ICs & antennas, and NFC readers. In 2023, the NFC ICs & antennas segment attained 49% revenue share in the near field communication (NFC) market. NFC integrated circuits (ICs) and antennas are critical components that enable NFC functionality in a wide range of devices. These components are essential for the seamless operation of NFC-enabled devices, allowing them to communicate and perform transactions effectively. The increasing integration of NFC technology in smartphones, wearables, payment terminals, and various IoT devices has driven the demand for NFC ICs and antennas.
By application, the market is divided into retail, transportation, automotive, consumer electronics, BFSI, medical & healthcare, residential & commercial, hospitality, and others. In 2023, the retail segment registered 22% revenue share in the market. NFC technology has revolutionized the retail industry by enabling contactless payments, enhancing customer engagement, and improving inventory management. Retailers leverage NFC for quick and secure transactions, creating a seamless customer shopping experience.
Free Valuable Insights: Global Near Field Communication (NFC) Market size to reach USD 66.0 Billion by 2031
Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed 37% revenue share in the market in 2023. The widespread adoption of NFC technology in various applications such as mobile payments, access control, and public transportation has been a key driver for market growth in this region. The presence of major tech companies and a high level of consumer awareness and acceptance of new technologies have further propelled the NFC market.
| Report Attribute | Details |
|---|---|
| Market size value in 2023 | USD 27.1 Billion |
| Market size forecast in 2031 | USD 66.0 Billion |
| Base Year | 2023 |
| Historical Period | 2020 to 2022 |
| Forecast Period | 2024 to 2031 |
| Revenue Growth Rate | CAGR of 12.0% from 2024 to 2031 |
| Number of Pages | 381 |
| Number of Tables | 590 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Device Operating Mode, Offering, Application, Region |
| Country scope |
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| Companies Included | NXP Semiconductors N.V., Broadcom, Inc., Qualcomm Incorporated (Qualcomm Technologies, Inc.), Samsung Electronics Co., Ltd. (Samsung Group), Texas Instruments, Inc., STMicroelectronics N.V., Infineon Technologies AG, Sony Corporation, Toshiba Corporation, Apple, Inc |
By Device Operating Mode
By Offering
By Application
By Geography
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