Near Field Communication (NFC) Chips Market, 63% of Growth to Originate from APAC, Technavio

NEW YORK, May 9, 2024 /PRNewswire/ -- The global near field communication (nfc) chips market size is estimated to grow by USD 3.08 billion from 2023 to 2027, according to Technavio. The market is estimated to grow at a CAGR of 12.78% during the forecast period.

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Region Outlook

1. APAC
2. North America
3. Europe
4. South America
5. Middle East & Africa

1. APAC - APAC is estimated to contribute 63%. to the growth of the global market. The Near Field Communication (NFC) Chips Market report forecasts market growth by revenue at global, regional & country levels from 2017 to 2027. In the Asia-Pacific (APAC) region, NFC ICs are in high demand, primarily due to the significant presence of Original Equipment Manufacturers (OEMs). These OEMs, operating across various industries, are driving the growth of the NFC chips market.

• Leading smartphone manufacturers such as Huawei Technologies, Lenovo, LG Electronics, Newland Payment Technology, OPPO, OnePlus, Pax, Sony, and Samsung Electronics are among the major players incorporating NFC ICs into their products. The APAC region, known for its abundant OEMs and cost-effective production resources, particularly raw materials and labor, dominates the global NFC chips market.
• Notably, countries like China, Taiwan, South Korea, and Japan serve as hubs for smartphone manufacturing, boasting a strong global market presence. The strategic establishment of production facilities by these manufacturers further solidifies APAC's position as a key player in the NFC chips market.

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Segmentation Overview

1. Type 
• 1.1 Non-auxiliary
• 1.2 Auxiliary
2. Product 
• 2.1 Smartphones
• 2.2 Smart wearables
• 2.3 POS terminals
• 2.4 Others
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Fastest growing segment: The non-auxiliary segment of the global NFC chips market is set to experience substantial growth in the coming years. These products, like NFC IC/Chips embedded in smartphones for contactless transactions, are gaining traction. The surge in demand for contactless POS terminals in retail is a key driver. Valued at USD 1.59 billion in 2017, this segment has steadily grown.

• The upward trend is expected to continue, fueled by the increasing popularity of smartphones. These devices support various NFC applications like peer-to-peer communication and card emulation. As a result, the demand for NFC chips is projected to rise, particularly in the non-auxiliary category. This growth trajectory underscores the significance of NFC technology in facilitating secure and convenient transactions, positioning it as a vital component in the modern digital landscape.

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Research Analysis

The Near Field Communication (NFC) chips market is experiencing significant growth in the mobile industry, driven by the integration of NFC technology in IoT devices, wearables, and NFC-enabled jewelry. The GSMA and organizations like STMicroelectronics and NXP Semiconductors are leading the charge in this sector. NFC enables short-range communication between devices, facilitating mobile commerce and wearable technology applications.

NFC technology utilizes NDEF for data transfer and operates at transmission frequencies compatible with Android Pay, Android Beam, and RFID infrastructure. Contactless smart cards and RFID tags are common use cases for NFC in ticketing scenarios. Peer-to-Peer mode allows for money transfer and data exchange between smartphone users. NFC's role in mobile payment and ticketing scenarios is expanding, with companies like Ericsson investing in NFC infrastructure development. The market for NFC chips is expected to grow as mobile application developers continue to explore new use cases for this versatile technology.

Market Overview

The Near Field Communication (NFC) Chips Market is experiencing significant growth due to the increasing adoption of contactless technology. NFC chips enable secure and convenient transactions through smartphones and wearable devices. NFC technology is used in various applications such as payment systems, access control, and data exchange. The NFC chips market is driven by factors like the growing number of NFC-enabled devices, increasing demand for contactless payments, and the need for secure and efficient data transfer.

The market is also witnessing innovation with the development of new NFC technologies, such as Ultra-Wideband (UWB) and Seamless Transition Technology (STT). The NFC chips market is expected to continue its growth trajectory in the coming years, with major players focusing on expanding their product portfolios and enhancing their technology offerings.

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Key Topics Covered:

 1 Executive Summary
 2 Market Landscape
 3 Market Sizing
 4 Historic Market Size
 5 Five Forces Analysis
 6 Market Segmentation
 7 Customer Landscape
 8 Geographic Landscape
 9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio