Near Field Communication (NFC) Market Size, Share Global Analysis Report, 2023 – 2030

Industry Insights

[228+ Page Report] According to the report published by Facts & Factors, the global near field communication (NFC) market size was evaluated at $21.1 billion in 2022 and is slated to hit $33.1 billion by the end of 2030 with a CAGR of nearly 14.4% between 2023 and 2030. The near field communication market report is an indispensable guide on growth factors, challenges, restraints, and opportunities in the global marketspace.

The report covers the geographical market along with a comprehensive competitive landscape analysis. It also includes cash flow analysis, profit ratio analysis, market basket analysis, market attractiveness analysis, PESTEL analysis, SWOT analysis, Porter’s five force analysis, and value chain analysis. Additionally, the near field communication industry report explores the investor and stakeholder space to help companies make data-driven decisions.

Market Overview

Near-field communication (NFC) is a set of communication protocols facilitating communication between two electronic equipment over a distance of 4 cm or less. NFC provides a low-speed connection through a simple setup that can be utilized in bootstrapping capable wireless connections.

Reportedly, nearly all of today’s smartphones, as well as smartwatches, are embedded with NFC systems. NFC is a set of short-range wireless systems allowing one to share small payloads of data between an NFC tag and an Android-driven equipment.   

Key Insights

• As per the analysis shared by our research analyst, the global near field communication (NFC) market is projected to expand annually at the annual growth rate of around 14.4% over the forecast timespan (2023-2030)
• In terms of revenue, the global near field communication (NFC) market was evaluated at nearly $21.1 billion in 2022 and is expected to reach $33.1 billion by 2030.
• The global near field communication market is anticipated to record massive growth over the forecast period owing to the growing penetration of near field communication in fitness monitors, wristbands, and bracelets.
• Based on the operating mode, the reader emulation segment is predicted to contribute majorly toward the global market share over the forecast timeline.
• In terms of offering, the non-auxiliary products segment is projected to dominate the global market size over 2023-2030.
• On the basis of the application, the banking & finance segment is projected to account for a major share of the global market in 2023-2030.
• Region-wise, the North American near field communication (NFC) market is projected to register the fastest CAGR during the assessment period.

Industry Growth Factors

• Humungous preference for cashless payments to augment the global market trends over 2023-2030

Escalating demand for contactless payments is predicted to expedite the global near field communication (NFC) market trends. Growing penetration of near field communication in fitness monitors, wristbands, and bracelets is predicted to spearhead the expansion of the global market.

The thriving wearable device sector along with the benefits offered by wearable payment equipment will steer the market expansion across the globe. The burgeoning need for effective consumer interaction will prop up the scope of the market growth in the years ahead.

Furthermore, rapidly expanding m-commerce activities will embellish the expansion of the new field communication market globally. The rise in acceptance of wearable technologies will exponentiate the growth of the global market. In addition to this, demand for products such as NFC-based PoS systems has translated into immense expansion of the market across the globe.

Restraints

• Growing safety concerns related to NFC systems & easy access to alternate payment modes hinder the global industry expansion

NFCs can be used only for short-range data transfer and this can impede the expansion of the near field communication (NFC) industry globally. Apart from this, the inability to work over 12 cm distances and the inability to the high rate of data transfer can further deter the growth of the global industry. Security concerns pertaining to NFC and the easy availability of alternate payment options can put brakes on the global industry surge.

Opportunities

• Increase in adoption of smart cameras with growing photography trends to open new growth avenues for the global market

The rise in the use of near field communications in infotainment systems in new vehicles will create new growth opportunities for the near field communication market across the globe. The rise in acceptance of smart cameras due to the growing popularity of photography among people has led to the massive use of wireless data transfer tools such as NFC, thereby generating new growth avenues for the global market.

Challenges

• A surge in Wi-Fi costs poses the biggest challenge in the path of industry growth across the globe

NFC systems require a large proportion of hardware & software for installation. Moreover, it requires continuous maintenance for offering seamless and error-free wireless transactions. This can pose a huge challenge towards the expansion of the global near field communication (NFC) industry. The rise in Wi-Fi cost can further put a big challenge for the global industry

Segmentation Analysis

The global near field communication (NFC) market is sectored into operating mode, offering, application, and region.   

In terms of operating mode, the global near field communication (NFC) market is sectored into reader emulation, card emulation, and peer-to-peer emulation segments. Furthermore, the reader emulation segment, which contributed to the largest share of the global market in 2022, is projected to establish its segmental dominance in the forecast timespan. The segmental growth in the coming eight years can be owing to the massive use of NFC chips in reader mode in smartphones and the retail sector. 

Based on the offering, the near field communication industry across the globe is divided into software, non-auxiliary products, and auxiliary products segments. Moreover, the non-auxiliary products segment, which garnered nearly 41% of the global industry share in 2022, is projected to dominate the global industry expansion even in the forecasting timespan. The growth of the segment in the ensuing years can be due to the embedding of NFC IC/chips in smartphones for making digital payments and making secured pairing with other NFC-embedded equipment for data sharing.

On the basis of application, the global near field communication (NFC) market is sectored into retail, automotive, banking & finance, transport, residential & commercial, consumer electronics, medical & healthcare, and hospitality segments. Moreover, the banking & finance segment, which accounted for a major share of over 58% of the global market in 2022, is predicted to lead the global market in the forecasting timespan. The segmental expansion over the assessment timeframe can be due to the large-scale use of smartphone wallets and payments through digital e-wallets in the banking & finance sector.

Recent Breakthroughs:

• In the first half of 2019, NXP Semiconductors joined hands with FeliCa Networks, Inc., for reinforcing the mobile payment & ticketing ecosystem of Japan. The move is likely to expedite the expansion of the near field communication (NFC) market in Japan.
• In the last quarter of 2021, STMicroelectronics N.V., a Swiss-based semiconductor technology firm, launched a low-cost NFC type 2 tag IC possessing key features along with improved NDEF. Moreover, the new solution offers a cost-performance balance for high-volume use cases, thereby steering the growth of the NFC business globally.
• In the second quarter of 2022, Clinique introduced the first near field communication-based packaging for its skin care product referred to as Moisture Surge 100H. The move is aimed at driving the rate of conversion at point-of-sale. The initiative is likely to expedite the expansion of the NFC business across the globe.

Report Scope

Near Field Communication (NFC)Market: Regional Insights

• Asia-Pacific near field communication (NFC) market to accrue massive revenues over the forecast timeline

Asia-Pacific, which accounted lucratively towards the global near field communication (NFC) market revenue in 2022, is anticipated to continue its dominance over the analysis timeline. The regional market expansion over 2023-2030 can be due to the rising acceptance of NFC tools in retail & transportation sectors. Apart from this, the growing demand for smartphones in India and China will steer the regional market surge in the coming years.   

Furthermore, the North American near field communication industry, which recorded major growth in 2022, is set to register the fastest CAGR over the forecast timeline. The factors that are projected to measure the growth of the regional market include a surge in the sale of laptops, smartphones, and tablets in the countries such as Canada and the U.S.

Competitive Space

• NXP Semiconductors 
• Broadcom 
• Qualcomm 
• Texas Instruments 
• STMicroelectronics 
• Thales Group 
• Infineon Technologies 
• Sony 
• Flomio 
• HID Global 
• AMS 
• Identive 
• MagTek 
• Avery Dennison

The global near field communication (NFC) market is segmented as follows:

By Operating Mode Segment Analysis

• Reader Emulation
•  Card Emulation
• Peer-to-Peer Emulation

By Offering Segment Analysis

• Non-Auxiliary Products
•  Software
• Auxiliary Products

By Application Segment Analysis

• Retail
• Automotive
•  Transport
• Residential & Commercial
• Consumer Electronics
• Medical & Healthcare
• Banking & Finance
• Hospitality

By Regional Segment Analysis

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Nordic Countries
    • Denmark
    • Sweden
    • Norway
  • Benelux Union
    • Belgium
    • The Netherlands
    • Luxembourg
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Southeast Asia
    • Indonesia
    • Thailand
    • Malaysia
    • Singapore
    • Rest of Southeast Asia
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America