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Published Date: 2014-07-24Number of Pages: 88

Near Field Communication (NFC) Market (By Products - NFC Controller ICs (chips), NFC Tags, NFC Readers and NFC Secure Elements; By Applications - Payments, Ticketing, Booking, Data Sharing, Services, Authentication and Access Control, Healthcare, Games and Toys, and Others) - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2013 - 2019

The near field communication (NFC) market is primarily driven by growing adoption of NFC in the rapidly growing smartphones market across the world. Further, contactless payment tradition is growing which is also aiding the growth of NFC market. The global NFC market was valued at USD 1,068.3 million in 2012 and is expected to grow at a CAGR of 43.7% during the forecast period. 

The products in NFC market include NFC controller ICs (chips), NFC tags, NFC readers and NFC secure elements. NFC chips enable transactions and data exchange without the need to pair the devices. NFC technology saves time in payment processing as the transaction gets conducted through radio frequency (RF); this is resulting in the increasing adoption of NFC chips. NFC tags are capable of storing small amounts of information. Customer satisfaction, easy communication and ease of use are some of the factors expected to drive the NFC tags market. NFC readers are the devices capable of reading data through the NFC-enabled devices when tapped. Secure elements store applications which perform security execution and authentication for access. These products are finding applications in various areas such as payment (transaction), ticketing, booking, data sharing, service, authentication and access control, healthcare, and games and toys, among others. Furthermore, NFC complements and enhances advanced smart card driven applications such as payment, logistics & supply chain, public transport, customer loyalty program, point of sale (POS), access management and eGovernance. Number of new applications across various industries such as healthcare, and gaming and services is also leading to the growth of this market. NFC-based payment model is rapidly gaining momentum as it is anticipated to replace currently used debit and credit cards owing to better security features. Ease of use and improved security features are some of the reasons for the increasing adoption of NFC technology in newer application areas.

Payment is one of the most important applications of NFC technology. NFC-enabled devices can be used for contactless payment. Need for error free and quick operation with secure money transactions in businesses is expected to drive the NFC payment market in the coming years. NFC-based booking has significant opportunity in the healthcare sector. The bookings in hospitals can be automated and fastened using NFC-based booking systems. NFC devices can be used to carry out loyalty membership programs by different organizations. Ticketing systems are being replaced by NFC electronic ticket smart cards which allow contactless payment through any NFC-enabled device. Japan, France, and China experienced significant growth in the NFC market for healthcare application due to significant investment in technology to upgrade healthcare facilities in these countries. NFC card games and geocaching are creating new dimensions in NFC-based gaming. 

Around 7 million NFC readers were shipped in 2012 and the shipments are expected to experience continued growth over the coming years. More number of readers would be needed as the demand for NFC-enabled devices and applications grow and this is expected to drive the growth of NFC readers market over the coming years.

In 2012, North America was the largest market for NFC in terms of revenue. The region has experienced significant adoption of contactless payments. This is attributed to high market penetration of smartphones in the region and pre-existence of significant infrastructure to enable contactless payments. Asia Pacific is expected to be the fastest growing region owing to high adoption rates for NFC in countries such as China, Japan, South Korea and Australia. In 2012, NXP Semiconductors N.V. was the market leader for NFC controller ICs and NFC secure elements in terms of revenue.

The global NFC market is fragmented with numerous leading players including Broadcom, Inc., DeviceFidelity, Inc., Gemalto N.V., Visa, Inc., Toshiba Corporation, STMicroelectronics N.V., Samsung Electronics Co. Ltd., NXP Semiconductors, Identive Group, Inc., On Track Innovations (OTI) Ltd. and Infineon Technologies among others. 

near-field-communication-market

Near Field Communication (NFC) is a wireless technology and mainly finds application in mobile phones and tablets PC for data exchange and transactions in a close range. It is based on RFID technology and has emerged as an alternative to other wireless technologies for short range data exchange such as Wi-Fi, Bluetooth and other radio protocols. NFC offers added advantage of high security As compared to other wireless technologies. The NFC market has gained significant momentum in recent years due to the ease of using NFC technology and its wide range of applications in various sectors. NFC technology has emerged as a strong contender for replacement of the current transaction and payment techniques owing to its improved security and connectivity features. Products in the NFC market have been categorized into NFC controller ICs (chips), NFC tags, NFC readers and NFC secure elements. NFC secure elements further include NFC micro SD cards, embedded secure elements (SE), NFC subscriber identity module / universal integrated circuit card (SIM/UICC cards). Demand for NFC controller ICs, NFC readers, NFC secure elements and NFC tags is growing across the world. Increasing prevalence of contactless payments across the globe and its application in various sectors is responsible for the growth of the NFC readers and NFC tags market in the last few years. NFC-enabled devices are expected to replace payment cards and authentication and access cards in the coming years to a significant extent.

Worldwide, the shipment for NFC-enabled cellular handsets stood at 264.5 million units in 2013. The mobile phone and tablet manufacturers are increasingly including NFC features in their phones and this is expected to grow during the coming years. Further, most of the already existing point of sale (POS) and transportation systems across the globe use NFC technology, thus considerable infrastructure is already developed for the use of NFC –enabled devices. There is a lot of research being carried out in the NFC field which shows the commitment of industry players toward full scale implementation of NFC in coming future.

This research study focuses on market data and insights, including the size and growth of the NFC market. The report provides a thorough analysis of the emerging industry trends and the prevailing state of the market. It offers a comprehensive coverage of the underlying technological and social issues and economic factors influencing the NFC technology business. The study includes market data and forecasts based on in-depth analysis of the global NFC market. The report aims to find out various factors that restrain and drive the NFC market. The report focuses on trends and future business opportunities in the NFC market. The prevalent competition in the market is identified through market share analysis of key players in the market. Furthermore, the value chain analysis and Porter’s five forces analysis are included in the report, aiming to provide strategic insight across the supply chain of the NFC market.

The study offers a complete understanding of different application sectors of NFC technology. The report includes various major applications of NFC technology such as payment (transaction), ticketing, booking, data sharing, service, authentication and access control, healthcare, games and toys and NFC based geo-tagging The report aims to provide a comprehensive cross-sectional analysis of the product and application segments across North America, Europe, Asia Pacific and Rest of the World (RoW). 

Key players in the market have been profiled in the report along with their business strategies and market positions. Companies profiled in this report include Broadcom, Inc., DeviceFidelity, Inc., Gemalto N.V., Visa, Inc., Toshiba Corporation, STMicroelectronics N.V., Samsung Electronics Co. Ltd., NXP Semiconductors N.V., Identive Group, Inc., On Track Innovations (OTI) Ltd., and Infineon Technologies.

The global NFC market is categorized into the following segments:

Near Field Communication Market, by Product Type
  • NFC Controller ICs (Chips)
  • NFC Tags
  • NFC Readers
  • NFC Secure Element
Near Field Communication Market, by Application
  • Payment
  • Ticketing
  • Booking
  • Data Sharing
  • Service
  • Authentication and Access Control
  • Healthcare
  • Games and Toys
  • Others (smart advertising and NFC based location services)
Near Field Communication Market, by Geography
  • North America
  • Europe
  • Asia Pacific
  • Rest of the World (RoW)


 
 
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