Communications technology has observed considerable advancements over the years. Various inventions such as Near Field Communication (NFC) chips have changed how some industries operated years ago. Used as a standard application on numerous smartphones and devices, NFC has emerged as a powerful tool that enhances and complements the performance and value of consumer electronics devices. These chips enhance User Experience (UX), thus increasingtheir demand exponentially.
The NFC technology refers to the contactless communication technology based on a radio frequency field. This technology is specifically designed for seamless data exchange between two devices through a simple touch. NFC chips are generally used in various end-use industriessuch as medical, consumer electronics, aviation, retail, automotive, etc. They have a storage capacity ranging from 64 bytes to 540 bytes. The expanding usage of NFC chips in numerous applications will serve as a key revenue generator for the market.
Transparency Market Research (TMR) has analyzed different growth aspects associated with the NFC chips market. According to the analysts at TMR, the NFC chips market is expected to expand at a CAGR of 8.49% during the forecast period. The market insights on NFC chips estimate it to be valued at US$ 2.88 Bn by 2030.
The rising disposable income of many individuals around the globe has led to an increase in the demand for consumer electronics such as cameras, refrigerators, televisions, washing machines, etc. As these electronics use NFC chips on a large scale, the global market is expected to observe positive growth trend. In addition, the growing popularity of smartphones will also drive the NFC chips market. According to Information Handling Services (IHS) Markit data, two billion NFC-enabled devices such as smartphones are in use today. These statistics help in understanding the growing use of NFC chips.
Cosmetics and Personal Care Products to Propel Global Market
Personal care and cosmetics sector are utilizing NFC tags on a massive scale. The use of these tags will shape the growth of the NFC chips market in the near future. This is because the COVID-19 pandemic has enhanced the sales of personal care products and cosmetics massively as many people are focusing on home skincare due to the strict stay-at-home orders.
Manufacturers in the personal care industry are adding cryptography-enabled, highly secure NFC tags for providing quick information about the products to the customers. This assures better brand transparency and accountability, thus contributing to the growth of the NFC chips market.
NFC Payment Applications to Accelerate Market Growth
Even before the pandemic, contactless payments were gaining traction in some areas. Now, government bodies of numerous countries are encouraging the transition to a cashless economy through mobile wallet payments, Internet banking, and mobile banking. For instance, the Government of India launched the Digital India Program with the vision to transform India into a digitally empowered society. As NFC chips are the prime component for enabling contactless payments, they will witness exponential growth.
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