Global NFC Chips Market: Snapshot
The global near field communication (NFC chips) market is anticipated to witness a tremendous growth in the period from 2016 to 2024 on account of the versatility and convenience of NFC chips. These chips also provide enhanced safety, driving their demand. The growing need for secure transactions can be felt worldwide and this is boosting the growth of the NFC chips market. NFC requires PIN and does not provide retailers with credit card information about users and thus, more secure. Also, the use of NFC causes no hassle and is easy to use for wide range of applications such as contactless payments, for providing authentication of information when required, and for information sharing. It is thus, no wonder that NFC is replacing other short range communication technologies such as Bluetooth. The growing adoption of NFC technology in smart phones and smart cameras is slated to fuel the growth of the NFC chips market in the years to come.
High Demand for Efficiency and Quick Accessibility to Drive Demand
There is a need for efficiency and reliable mode of information sharing and this is driving the adoption of NFC chips. The requirement of faster access to data across industries is also a key factor behind the growing popularity of near field communication technology. The growing advancements and investments by players within the market are expected to help the market to grow within the forecast period. The decreasing rates of NFC chips on account of the declining prices of various materials required for the manufacturing of these chips will make it very profitable for NFC market players. The increasing demand for connectivity between devices for information or data sharing will help the market to grow further. The growing adoption of online payments is another key factor boosting the growth of this market.
Asia Pacific Emerges Key Market for NFC Chips Leaving Behind North America
North America emerged as the leading regional segment within the NFC chips market, accounting for 34% of the market in 2015. The key factor behind the growth of this market in North America is the partnerships between banks and enterprises, which is helping in tokenizing the cards that use NFC chips. The introduction of NFC reader modes, peer to peer modes, and card emulation standards is also helping the market to grow in North American region. However, it is Asia Pacific which will emerge as the leading market for NFC chips in the future. The Asia Pacific NFC chips market is slated to expand at a 27.90% CAGR between 2016 and 2024 on account of the growing penetration or use of smart phones in the region.
Europe is also slated to witness a positive growth in the coming years on account of the high use of consumer electronic products in Western part of Europe. Growing applications of wireless technology is also helping the market to grow in Europe. The Latin America and the Middle East and Africa markets for NFC chips are also anticipated to do extremely well in the coming years.
Smartphones to Remain Leading Application Area
Smartphones are a key application area of NFC and thus, the smartphones segment has been leading in the NFC market. The growing demand for smartphones and increasing adoption of newer technologies is aiding the growth of this segment. The medical equipment and television segments are not far behind in terms of growth. The increasing disposable income of consumers worldwide will lead to a healthy growth of the television segment.
Global NFC Chips Market: Overview
Near Field communication (NFC) chips systems are communicating device that are ideal for electronic applications and are capable of identifying the radio frequency identifying technology. Dispensing technology have been widely accepted since 2004 and the further technological advancements have led to evolution of shorter range radio identification technologies between two devices. This advancements helps in facilitating safer data transfer. A key trend that has been observed in the recent past years is growing demand of NFC chips among consumer electronics manufacturer, which is a key driver during the forecast period of 2016-2024.
A surge in demand for smart phones across the globe is driving the demand for NFC chips in global market. This technology is being deployed in electronics to increase and boost contactless safe data transfer. Consumer electronics manufacturers’ are increasing their demand for NFC chips overtime, this factor acts as a major driving factor for future demand of NFC chips. Additionally, rapid technological advancements in radio frequency identification are fueling the growth of the global market.
The government initiatives as well as private investments in research & devolvement of NFC chip technology are supplementing the growth of the market. Thus, the conjoint effect of all these drivers is set to strengthen the growth of the global NFC chip market in the coming years. NFC chips are sometimes of very complex design is expected to hindering the growth for NFC chips during the forecast period. Simpler version of NFC chips designs as an alternative to traditional complex product design is required for wider application usability. Furthermore, cost effectiveness and simplicity to install in devices is boosting the growth of this product market.
Global NFC Chips Market: Segmentation
The global market has been segmented in the basis of application, storage, end users and geography. By application, the global NFC chip market has been broadly classified into smartphone, television, medical equipment, car and others. On the basis of storage NFC chip has been further sub-divided into 64 Bytes, 168 Bytes, 180 Bytes, 540 Bytes and others. Furthermore, end users of NFC chip has been fragmented into consumer electronics, automotive, retail, medical, and aviation among others. By geography, this market has been segregated into North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Growing popularity in end-user industries such as medical, automotive, retail, and aviation among others coupled with healthy economic growth of emerging economies are offering potential growth opportunities to the global NFC chip market. NFC chips have been extensively used in healthcare sector such as NFC based diabetes monitoring system, NFC for heart monitoring devices, medical implants, and medical data storage devices among others are expected to gain popularity across several end user application is set to boost the market growth in the coming years.
Global NFC Chips Market: Competitive Analysis
The key players in the global NFC chip market have been competitively profiled across the five broad geographic regions. This competitive landscape is inclusive of the various business strategies adopted by these major players and their recent developments in the field of NFC chip. Further, this report includes the market attractiveness analysis of the electronics applications for offering and insight into the major application area of the NFC chip.
An exhaustive analysis of the market dynamics of the global market that is inclusive of the market drivers, restraints and opportunities is covered under the purview of the study. Therefore, the global high resolution dispensing systems and equipment market report offers and extensive study of the market along with providing the forecast of the market in terms of revenue (USD Million) and volume (Units) from 2016–2024. Some of the major players operating in the NFC chip market are NXP Semiconductor (Netherlands), Texas instrument (U.S), Qualcomm Inc. (U.S.), among others.
The global NFC chips market has been segmented into:
- Smart phone
- Medical equipment
By Storage Capacity
- 64 Bytes
- 168 Bytes
- 180 Bytes
- 540 Bytes
By End Users
- Consumer Electronics
- North America
- Asia Pacific
- Middle East and Africa
- Latin America