Description
The global near-field communication market was valued at USD 17,875.0 million in 2020 and is projected to reach USD 46,781.0 million by 2027, registering a CAGR of 14.8% from 2021 to 2027. Near field communication (NFC) is an array of protocols based on a wireless interface that enables communication devices and electronic gadgets to establish radio communication under proximity. Near-field communication technology is mainly used in smartphones, laptops, and tablets for a short range of data exchange. This technology is used for marketing and payments applications; however, many other applications like medical devices and ticketing adopt NFC. In addition, NFC-enabled mobile phones are used for various applications such as chip-enabled mobile marketing, ticketing, identity & access, and gaming.
The global near-field communication (NFC) market is expected to display significant growth during the forecast period. This is attributed to various factors such as the growing need for convenient transfer & security of data and the rise in the proliferation of smartphones. In addition, demand for improved customer experience and the rise in demand for contactless payments due to the COVID-19 pandemic significantly fuel the market's growth. However, short operational range and security concerns may hamper the market's growth during the forecast period. On the other hand, factors such as an upsurge in the adoption of NFC-enabled wearable technology and technological advancements in NFC create lucrative growth opportunities for the market.
Get a Sample PDF copy of the Report: - https://www.marketstatsville.com/request-sample/near-field-communication-market
COVID-19 Impact on the Global Near Field Communication Market
The pandemic has caused a recessionary economy that has forced various enterprises globally to shift their operations rapidly. The industries around the globe are being severely affected by the COVID-19 induced recession; though, the impact on the technology sector during the crisis was comparatively lesser than the rest of the economy. The lockdowns have encouraged a proliferation of new-age contactless technologies such as near-field communication.
Moreover, the coronavirus outbreak severely impacts the global economy, changing all industries. While travel demand has decreased dramatically, businesses including financial services, manufacturing, and retail are under immense pressure to serve their customers in effective ways. Enterprises with hundreds or thousands of employees forced the governments to work from home. In addition, the COVID-19 pandemic has pushed consumers and merchants to rethink shopping and payments methods.
Although COVID-19 does not have a major negative impact on the market's growth, the outbreak of COVID-19 will surely provide numerous opportunities for market growth during the forecast period. These opportunities include a rise in demand for contactless payment solutions, NFC technology in smart packaging for healthcare, and an upsurge in penetration of NFC into the sectors such as IoT, retail, government, medical, and security industries.
Global Near Field Communication Market Dynamics
Drivers: Growth in need for convenient transfer and security of data
NFC offers better collaboration in corporate environments by ensuring speedy and secured sharing of documents, files, and confidential data. Since establishing a connection through NFC is approximately 100 milliseconds, it is much better and faster than other competing technologies such as Bluetooth, which take a few seconds to establish the same. In the case of payments, the consumers' card details are stored on the mobile phone in a secure element, which takes the form of a Subscriber Identity Module, secured chips, or a secure digital card.
The presence of hardware encryption that can only be used near the point of sale makes it one of the most secure payments. Along with the security of consumer data, the card and reader need to be in proximity to one another, which makes the process easier than swiping or choosing the options from a menu or entering a password. Thus, consumers are increasingly adopting this technology owing to varied applications. This creates the demand for NFC-enabled devices.
Restraints: Short operational range and security concerns
Near field communication (NFC) can work for limited distances around 10-20 cm. Its shorter operational range makes it prone to unintentional or intentional signal interferences. Also, the disruptions can result in failed communications between two NFC devices. This is expected to hamper the growth of the global near-field communication market.
In addition, as NFC facilitates the contactless transfer of information, users are potentially exposed to certain security issues eavesdropping, data corruption, data manipulation, and hacking. Although the range of NFC devices is limited to a few centimeters, an attacker can retrieve usable signals up to a distance of 1–10 meters, depending upon the mode of signals. Thus, the threat of data theft and hacking restricts the penetration of this market globally.
Opportunities: Upsurge in the adoption of NFC-enabled wearable technology
There is an upsurge in the adoption of NFC-enabled rings, smartwatches, bracelets, fitness trackers, wristbands, and keyfobs across the globe. Wearable payments devices offer different benefits, such as anticipating the customer's need, providing better customer engagements, and improving the retailer’s ability to track the customers' payments, significantly boosting the adoption of NFC-enabled wearable devices. In addition, the rise in the adoption of cloud-enabled rings for small value transactions among end-users across the globe is expected to provide lucrative opportunities for market growth.
Furthermore, a surge in the adoption of NFC-enabled wearable technologies for healthcare is expected to facilitate and improve public health services. There is an upsurge in adopting such wearable technologies as it enables tracking patients' health status and help update the treatment process. Hence, the upsurge in adopting such NFC-enabled wearable technologies creates lucrative growth opportunities for the market.
Buy an exclusive copy: - https://www.marketstatsville.com/buy-now/near-field-communication-market
Scope of the Report
The study categorizes the near-field communication market based on product type, operating mode, and end-users at the regional and global levels.
By Product Type (Thousand Units, Revenue, 2017-2027, USD Million)
- NFC Tags
- NFC ICS
- SIM Cards
- NFC Readers
- Others
By Operating Mode Outlook (Thousand Units, Revenue, 2017-2027, USD Million)
- Read/Write Mode
- Peer-to-peer Mode
- Card Emulation Mode
By End-Users Outlook (Thousand Units, Revenue, 2017-2027, USD Million)
- Retail
- Transportation
- Automotive
- Residential & Commercial
- Medical & Healthcare
- Consumer Electronics
- Banking & Finance
- Hospitality
- Others
By Region Outlook (Thousand Units, Revenue, 2017-2027, USD Million)
- North America (US, Canada, Mexico)
- South America (Brazil, Argentina, Colombia, Peru, Rest of Latin America)
- Europe (Germany, Italy, France, UK, Spain, Poland, Russia, Slovenia, Slovakia, Hungary, Czech Republic, Belgium, the Netherlands, Norway, Sweden, Denmark, Rest of Europe)
- Asia Pacific (China, Japan, India, South Korea, Indonesia, Malaysia, Thailand, Vietnam, Myanmar, Cambodia, the Philippines, Singapore, Australia & New Zealand, Rest of Asia Pacific)
- The Middle East & Africa (Saudi Arabia, UAE, South Africa, Northern Africa, Rest of MEA)
The NFC Readers, by product type, is projected to account for the largest market share
On the basis of product type, the near-field communication market is divided into NFC tags, NFC ICs, SIM cards, NFC readers, and others. In 2020, NFC Readers had the largest market and accounted for the 36.3% market share. NFC readers are essential active components in NFC transactions. They read & write cards and tags, enable communication from device to device, and interact with NFC phones. In addition, an NFC reader is best for secure access control e-payment, e-ticketing for events & mass transit, toll road fare collection, network authentication, and e-transactions.
The rise in the adoption of NFC readers to create better experiences in the businesses primarily drives the growth of this segment. NFC readers enable businesses to streamline payment options to increase efficiency and productivity. For instance, by making payments easier, companies can focus on other core responsibilities which will contribute to their success and growth, such as employee training or marketing. In addition, with the growing technological advancements, manufacturers have integrated different unique features in an NFC reader. These advanced features include a secured access module, upgradeable firmware, and support for all NFC tags and devices.
Request for Report TOC, Table of Figure, Chart, etc:- https://www.marketstatsville.com/table-of-content/near-field-communication-market
Asia Pacific accounts for the highest CAGR during the forecast period
Region-wise, the global near field communication market is analyzed across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. Asia Pacific is projected to hold the highest CAGR of 16.5% in the global near-field communication market during the forecast period. Asia-Pacific is expected to observe the highest growth rate during the forecast period due to increased adoption and awareness of NFC technology in the transportation and retail industries. In addition, the high penetration of smartphones in the countries such as India and China drives the growth of the near-field communication market in the region.
Moreover, an upsurge in demand for mobile payment and wireless applications of NFC are significantly fueling the market growth in the region. Furthermore, government initiatives to promote the NFC in the banking sector across the region drive the market's growth. For instance, in July 2018, The Finance Ministry of India asked the banks in the country to start issuing near field communication (NFC)-enabled credit and debit cards to their customers.
Key Market Players
Every company follows its business strategy to attain the maximum market share. Identive, Infineon Technologies, MagTek, NXP Semiconductors, Broadcom Inc., Qualcomm Technologies, Inc., Sony Corporation, Texas Instruments Incorporated, Samsung Electronics, and Thales Group are leading players operating in the global near field communication market. Top winning strategies are analyzed by thoroughly studying the leading players in the near-field communication market.
Recent Developments
- In June 2020, The Thales Corporation launched next-generation single-chip solutions for Samsung smartphones (Galaxy S20 series). The single-chip combines the integrated safe feature (eSE) and an integrated SIM (eSIM) – allowing high-quality contactless services and a completely digital mobile networking experience for highly portable smartphones, smart clocks, and tablet applications. Safe payments, transit checking, and Digital ID may all be supported by certified applications.
- In June 2019, v Identiv, Inc., in collaboration with NXP® Semiconductors N.V., announced a new inlay for ultra-low-cost radio frequency identification (RFID). The Inlay is suitable for NFC use, including the Internet of Things (IoT) and applications for customer involvement.
- In December 2019, NXP Semiconductor acquired Marvell’s Wi-Fi and Bluetooth Connectivity Assets. Due to this acquisition, NXP drives innovation on the mobile and communication infrastructure markets for automotive, industrial & IoT.
- In June 2019, Infineon technologies launched the world's first accredited NFC Type 4B Tag for seamless mobile connectivity. NFC tags have traditionally been restricted to applications where security isn't a concern, such as sharing URLs or exchanging business cards.
Key Issues Addressed
- What is the market size by various segmentation of the near field communication by region and its respective countries?
- What are the customer buying behavior, key takeaways, and Porter's five forces of the near-field communication market?
- What are the key opportunities and trends for manufacturers in the near field communication supply chain?
- What are the market's fundamental dynamics (drive)
Request For Report Analysis: - https://www.marketstatsville.com/near-field-communication-market
