The global NFC market was valued at USD 21.69 billion in 2024 and is projected to reach USD 30.55 billion by 2029; it is expected to register a CAGR of 7.1% during the forecast period. NFC technology is widely used in industries such as retail, transportation, automotive, consumer electronics, banking & finance, and hospitality. Some of the most common use cases of NFC in these verticals include product identification, inventory management, access control, payments & transactions, and data transfer, among others. Benefits such as easy and secure contactless payments and data transfer will boost the demand for NFC technology in the coming years. Mobile payment applications, both online and in-store, are expected to drive the NFC market in the future.
Scope of the Report
Years Considered for the Study
2020-2029
Base Year
2023
Forecast Period
2024-2029
Units Considered
Value (USD Billion)
Segments
By Offering, Operating Mode, Use Cases and Region
Regions covered
North America, Europe, APAC, RoW
"Peer-to-peer segment is expected to grow at the impressive CAGR during the forecast period."
The peer-to-peer segment is projected to grow significantly during the forecast period as this mode allows direct communication between two NFC devices. The demand for secure and efficient payment solutions and data transfer options in sectors like retail and healthcare is driving the growth in this mode. Further, ongoing advancements in NFC technology and its integration with other technologies such as IoT and blockchain, are expected to further boost this segment. The peer-to-peer mode also offers several key benefits, like ease of use, quick data transfer, and reduced risk of unauthorized access. Additionally, it supports various other functions such as sharing contact information and transferring files.
"Retail segment is likely to hold the second largest market in 2024."
The NFC application has shown tremendous growth in the retail industry, owing to the production of NFC-enabled smartphones. These phones have an embedded NFC chip; the consumers only have to wave the mobile phone in front of the NFC tag, and the required balance gets deducted from their account with the help of banking gateways and trusted service managers. The purchasing of the goods and services and their payment is done either online or at the point-of-sale. In the retail industry, NFC technology is used for access control, product identification, and transaction applications.
"The North America segment is likely to grow at the second highest CAGR during the forecast period."
The US is one of the leading adopters of advanced technologies such as AI and IoT, and consistently pushing the implementation of automation across various industry verticals ranging from retail to automotive. US also ranks among the top three nations in terms of expenditure on smart city initiatives that include the implementation of contactless technologies such as NFC for access control and ticketing. Additionally, government support for technological development and favorable regulatory frameworks to develop and implement technologies such as NFC, AI, and IoT to accelerate the growth of NFC market in the country.
Breakdown of primaries
The study contains insights from various industry experts, ranging from component suppliers to Tier 1 companies and OEMs. The break-up of the primaries is as follows:
By Company Type - Tier 1 - 25%, Tier 2 - 30%, Tier 3 - 45%
By Region-North America - 30%, Europe - 20%, Asia Pacific - 40%, RoW - 10%
The NFC market is dominated by a few globally established players such as NXP Semiconductors (Netherlands), Broadcom (US), Qualcomm Technologies, Inc. (US), Texas Instruments Incorporated (US), STMicroelectronics (Switzerland), Renesas Electronics Corporation (Japan), ams-OSRAM AG (Austria), Thales (France), and Infineon Technologies AG (Germany). The study includes an in-depth competitive analysis of these key players in the NFC market, with their company profiles, recent developments, and key market strategies.
Research Coverage:
The report segments the NFC market and forecasts its size by signaling technology, offering, type, operating mode, vertical, and region. The report also discusses the drivers, restraints, opportunities, and challenges pertaining to the market. It gives a detailed view of the market across four main regions-North America, Europe, Asia Pacific, and RoW. Supply chain analysis has been included in the report, along with the key players and their competitive analysis in the NFC ecosystem.
Key Benefits to Buy the Report:
Analysis of key drivers (Rising interest towards the adoption of mobile commerce, Rising trend of wearable technology), Restraint (Security concerns related to NFC, Competition from alternative payment methods), Opportunity (Rising urbanization in emerging economies, Increasing online and in-Store payment, Growing trend of contactless technology, Rising need for connectivity between different devices), Challenges (Lack of awareness about the benefits associated with NFC).
Product Development/Innovation: Detailed insights on upcoming technologies, research and development activities, and new product launches in the NFC market.
Market Development: Comprehensive information about lucrative markets - the report analyses the NFC market across varied regions
Market Diversification: Exhaustive information about new products and services, untapped geographies, recent developments, and investments in the NFC market.
Competitive Assessment: In-depth assessment of market shares, growth strategies, and service offerings of leading players NXP Semiconductors (Netherlands), Broadcom (US), Qualcomm Technologies, Inc. (US), Texas Instruments Incorporated (US), STMicroelectronics (Switzerland), among others in the NFC market.
TABLE OF CONTENTS
1 INTRODUCTION
1.1 STUDY OBJECTIVES
1.2 MARKET DEFINITION
1.3 STUDY SCOPE
1.3.1 MARKETS COVERED AND REGIONAL SCOPE
1.3.2 INCLUSIONS AND EXCLUSIONS
1.3.3 YEARS CONSIDERED
1.4 CURRENCY CONSIDERED
1.5 UNIT CONSIDERED
1.6 STAKEHOLDERS
1.7 SUMMARY OF CHANGES
2 RESEARCH METHODOLOGY
2.1 RESEARCH DATA
2.1.1 SECONDARY AND PRIMARY RESEARCH
2.1.2 SECONDARY DATA
2.1.2.1 List of key secondary sources
2.1.2.2 Key data from secondary sources
2.1.3 PRIMARY DATA
2.1.3.1 List of primary interview participants
2.1.3.2 Key data from primary sources
2.1.3.3 Key industry insights
2.1.3.4 Breakdown of primaries
2.2 MARKET SIZE ESTIMATION METHODOLOGY
2.2.1 TOP-DOWN APPROACH
2.2.1.1 Approach to arrive at market size using top-down analysis (supply side)
2.2.2 BOTTOM-UP APPROACH
2.2.2.1 Approach to arrive at market size using bottom-up analysis (demand side)
2.3 MARKET BREAKDOWN AND DATA TRIANGULATION
2.4 RESEARCH ASSUMPTIONS
2.5 RESEARCH LIMITATIONS
2.6 RISK ANALYSIS
3 EXECUTIVE SUMMARY
4 PREMIUM INSIGHTS
4.1 ATTRACTIVE OPPORTUNITIES FOR PLAYERS IN NFC MARKET
4.2 NFC MARKET, BY OFFERING
4.3 NFC MARKET, BY VERTICAL
4.4 NFC MARKET IN NORTH AMERICA, BY VERTICAL AND COUNTRY
4.5 NFC MARKET, BY COUNTRY
5 MARKET OVERVIEW
5.1 INTRODUCTION
5.2 MARKET DYNAMICS
5.2.1 DRIVERS
5.2.1.1 Rising interest in mobile commerce
5.2.1.2 Mounting demand for smart wearables and IoT devices
5.2.2 RESTRAINTS
5.2.2.1 Availability of alternative technologies for contactless applications
5.2.3 OPPORTUNITIES
5.2.3.1 Rapid urbanization in emerging economies
5.2.3.2 Reliance on PoS systems and smart posters to enhance shopping experiences
5.2.3.3 Implementation of electronic shelf labels in retail stores
5.2.3.4 Rise in cellular IoT connections
5.2.4 CHALLENGES
5.2.4.1 Lack of awareness about NFC benefits
5.2.4.2 Security concerns related to contactless payments
5.3 TRENDS/DISRUPTIONS IMPACTING CUSTOMER BUSINESS
5.4 PRICING ANALYSIS
5.4.1 AVERAGE SELLING PRICE TREND OF KEY PLAYERS, BY HARDWARE TYPE
5.4.2 AVERAGE SELLING PRICE TREND, BY HARDWARE TYPE
5.5 VALUE CHAIN ANALYSIS
5.6 ECOSYSTEM ANALYSIS
5.7 INVESTMENT AND FUNDING SCENARIO
5.8 TECHNOLOGY ANALYSIS
5.8.1 KEY TECHNOLOGIES
5.8.1.1 NFC-enabled wearables
5.8.2 COMPLEMENTARY TECHNOLOGIES
5.8.2.1 Internet of Things (IoT)
5.8.3 ADJACENT TECHNOLOGIES
5.8.3.1 Radio-frequency identification (RFID)
5.9 PATENT ANALYSIS
5.10 TRADE ANALYSIS
5.10.1 IMPORT SCENARIO (HS CODE 852352)
5.10.2 EXPORT SCENARIO (HS CODE 852352)
5.11 KEY CONFERENCES AND EVENTS, 2024-2025
5.12 CASE STUDY
5.12.1 ONEID DEVELOPS USER-FRIENDLY APP TO OPTIMIZE NFC READING FOR ID DOCUMENTS AND ENSURE SECURE DATA TRANSMISSION
5.12.2 NIKE INTEGRATES NFC TECHNOLOGY TO INCREASE SALES AND CUSTOMER ENGAGEMENT
5.12.3 BARBADILLO ADOPTS NFC TAGS TO INCREASE CUSTOMER ENGAGEMENT AND SALES
5.13 REGULATORY LANDSCAPE
5.13.1 REGULATORY BODIES, GOVERNMENT AGENCIES, AND OTHER ORGANIZATIONS
5.13.2 STANDARDS
5.14 PORTER'S FIVE FORCES ANALYSIS
5.14.1 BARGAINING POWER OF SUPPLIERS
5.14.2 BARGAINING POWER OF BUYERS
5.14.3 THREAT OF NEW ENTRANTS
5.14.4 THREAT OF SUBSTITUTES
5.14.5 INTENSITY OF COMPETITIVE RIVALRY
5.15 KEY STAKEHOLDERS AND BUYING CRITERIA
5.15.1 KEY STAKEHOLDERS IN BUYING PROCESS
5.15.2 BUYING CRITERIA
5.16 IMPACT OF AI/GEN AI ON NFC MARKET
5.16.1 INTRODUCTION
5.16.2 AI/GEN AI IMPACT ON KEY NFC APPLICATIONS
5.16.2.1 Retail
5.16.2.2 Consumer electronics
5.16.3 USE CASES
5.16.4 KEY COMPANIES IMPLEMENTING AI/GEN AI
5.16.5 FUTURE OF AI/GEN AI IN NFC ECOSYSTEM
6 NFC SIGNALING TECHNOLOGIES
6.1 INTRODUCTION
6.2 NFC-A
6.3 NFC-B
6.4 NFC-F
7 NFC MARKET, BY OFFERING
7.1 INTRODUCTION
7.2 HARDWARE
7.2.1 NFC ICS & ANTENNAS
7.2.1.1 Emphasis on ensuring proper electrical interface and maximizing power transfer to bolster segmental growth
7.2.2 NFC TAGS
7.2.2.1 Ability to identify proximity and vicinity to contribute to segmental growth
7.2.3 NFC READERS
7.2.3.1 Emphasis on seamless communication and data exchange among devices to foster segmental growth
7.3 SOFTWARE
7.3.1 EASE OF USE AND FUNCTIONALITY IN ROUTERS, INFOTAINMENT SYSTEMS, AND CONSUMER ELECTRONICS TO DRIVE MARKET
8 NFC MARKET, BY OPERATING MODE
8.1 INTRODUCTION
8.2 CARD EMULATION
8.2.1 INCREASING USE TO CONVERT NFC DEVICES TO CONTACTLESS SMART CARDS TO BOOST SEGMENTAL GROWTH
8.3 READER EMULATION
8.3.1 RISING ADOPTION TO READ DATA FROM MANDATED NFC TAGS TO FUEL SEGMENTAL GROWTH
8.4 PEER-TO-PEER
8.4.1 ABILITY TO OFFER LINK-LEVEL COMMUNICATION BETWEEN TWO NFC DEVICES TO ACCELERATE SEGMENTAL GROWTH
9 NFC MARKET, BY VERTICAL
9.1 INTRODUCTION
9.2 RETAIL
9.2.1 PRODUCT IDENTIFICATION
9.2.1.1 Increasing need to identify product location and availability in retail stores to foster segmental growth
9.2.2 PAYMENT & TRANSACTION
9.2.2.1 Growing adoption of NFC-enabled devices as contactless cards to expedite segmental growth
9.3 TRANSPORTATION
9.3.1 TICKETING
9.3.1.1 Strong focus on convenience and security in ticketing process to augment segmental growth
9.3.2 ACCESS CONTROL
9.3.2.1 Ability of NFC to reduce cash handling to contribute to segmental growth
9.4 AUTOMOTIVE
9.4.1 RISING DEPLOYMENT IN ACCESS CONTROL AND IN-CAR INFOTAINMENT APPLICATIONS TO BOOST SEGMENTAL GROWTH
9.5 RESIDENTIAL & COMMERCIAL
9.5.1 ACCESS CONTROL
9.5.1.1 Reliance on NFC to offer physical access control in buildings to fuel segmental growth
9.5.2 TIME & ATTENDANCE
9.5.2.1 Requirement to keep track of in-time and out-time in commercial sector to augment segmental growth
9.5.3 HOME AUTOMATION
9.5.3.1 Use of smart lighting solutions with wireless switch capabilities to boost segmental growth
9.6 HEALTHCARE
9.6.1 PATIENT IDENTIFICATION
9.6.1.1 Increasing deployment of NFC tags to secure access to healthcare information to bolster segmental growth
9.6.2 PRODUCT IDENTIFICATION
9.6.2.1 Growing preference for remote patient monitoring to augment segmental growth
9.6.3 ACCESS CONTROL
9.6.3.1 Rising need to identify patient health cards and other medical items to expedite segmental growth
9.7 CONSUMER ELECTRONICS
9.7.1 WEARABLE DEVICES
9.7.1.1 Ability to interact with NFC-enabled devices to fuel segmental growth
9.7.2 MOBILE PHONES/TABLETS
9.7.2.1 Adoption of home automation and control solutions to bolster segmental growth
9.7.3 LAPTOPS/PERSONAL COMPUTERS
9.7.3.1 Growing popularity of touchless laptops to contribute to segmental growth
9.7.4 OTHER CONSUMER ELECTRONICS
9.8 BANKING & FINANCE
9.8.1 RELIANCE ON ADVANCED TECHNOLOGIES TO ENHANCE SECURITY TO BOOST SEGMENTAL GROWTH
9.9 HOSPITALITY
9.9.1 ACCESS CONTROL
9.9.1.1 Rising awareness about benefits of NFC-enabled smartphones in check-in process in hotels to drive market
9.9.2 PAYMENT & TRANSACTION
9.9.2.1 Growing preference for contactless payment to contribute to segmental growth
9.10 OTHER VERTICALS
10 NFC MARKET, BY REGION
10.1 INTRODUCTION
10.2 NORTH AMERICA
10.2.1 MACROECONOMIC OUTLOOK FOR NORTH AMERICA
10.2.2 US
10.2.2.1 Increasing adoption of smart city initiatives to accelerate market growth
10.2.3 CANADA
10.2.3.1 Rising deployment of advanced communication technologies to improve enterprise efficiency to fuel market growth
10.2.4 MEXICO
10.2.4.1 Growing interest toward digital payments to contribute to market growth
10.3 EUROPE
10.3.1 MACROECONOMIC OUTLOOK FOR EUROPE
10.3.2 UK
10.3.2.1 Rising awareness about contactless payment systems to augment market growth
10.3.3 GERMANY
10.3.3.1 Increasing access of payment service providers to NFC antennas to bolster market growth
10.3.4 ITALY
10.3.4.1 Rapid digitalization and adoption of contactless payments to expedite market growth
10.3.5 FRANCE
10.3.5.1 Growing demand for advanced technologies to allow dynamic pricing and real-time product positioning to drive market
10.3.6 SPAIN
10.3.6.1 Rising implementation of biometric security payment solutions to accelerate market growth
10.3.7 SWITZERLAND
10.3.7.1 Growing focus on secure payment networks and reliable connectivity to foster market growth
10.3.8 NETHERLANDS
10.3.8.1 Rising emphasis on security and privacy to contribute to market growth
10.3.9 REST OF EUROPE
10.4 ASIA PACIFIC
10.4.1 MACROECONOMIC OUTLOOK FOR ASIA PACIFIC
10.4.2 CHINA
10.4.2.1 Growing focus on expanding public transportation to boost market growth
10.4.3 JAPAN
10.4.3.1 Rising trend for e-money smart cards powered by NFC technology to drive market
10.4.4 INDIA
10.4.4.1 Increasing use of NFC-enabled contactless credit cards to fuel market growth
10.4.5 SOUTH KOREA
10.4.5.1 Mounting demand for high-end smartphones to contribute to market growth
10.4.6 AUSTRALIA
10.4.6.1 Growing adoption of contactless payment methods to bolster market growth
10.4.7 INDONESIA
10.4.7.1 Rising focus on digital infrastructure development to fuel market growth
10.4.8 REST OF ASIA PACIFIC
10.5 ROW
10.5.1 MACROECONOMIC OUTLOOK FOR ROW
10.5.2 MIDDLE EAST
10.5.2.1 Burgeoning demand for NFC-enabled smartphones to accelerate market growth
10.5.2.2 GCC countries
10.5.2.3 Rest of Middle East
10.5.3 SOUTH AMERICA
10.5.3.1 Increasing smartphone penetration and mobile payments to drive market
10.5.4 AFRICA
10.5.4.1 Rising preference for payments using contactless cards to contribute to market growth
11 COMPETITIVE LANDSCAPE
11.1 OVERVIEW
11.2 KEY PLAYER STRATEGIES/RIGHT TO WIN, 2020-2024
11.3 REVENUE ANALYSIS, 2019-2023
11.4 MARKET SHARE ANALYSIS, 2023
11.5 COMPANY VALUATION AND FINANCIAL METRICS, 2024
11.6 PRODUCT COMPARISON
11.7 COMPANY EVALUATION MATRIX: KEY PLAYERS, 2023
11.7.1 STARS
11.7.2 EMERGING LEADERS
11.7.3 PERVASIVE PLAYERS
11.7.4 PARTICIPANTS
11.7.5 COMPANY FOOTPRINT: KEY PLAYERS, 2023
11.7.5.1 Company footprint
11.7.5.2 Region footprint
11.7.5.3 Vertical footprint
11.7.5.4 Operating mode footprint
11.7.5.5 Offering footprint
11.8 COMPANY EVALUATION MATRIX: STARTUPS/SMES, 2023