Leading Players in the Global Near Field Communication (NFC) Chips Market Taking the Mergers and Acquisitions Route to Expand

The global market for near field communication (NFC) chips is highly consolidated. The leading player NXP Semiconductor accounted for about 55% of the market share in 2015 and going forward too is predicted to retain its leading share. A few other prominent names operating in the market are STMicroelectronics, Broadcom Corp., Texas Instrument, Qualcomm Inc., and AMS AG. These companies have been resorting to mergers, acquisitions, and partnerships to up the ante and expand their footprints.

A report by Transparency Market Research predicts the global market for near field communication (NFC) to clock a phenomenal 26.0% CAGR between 2016 and 2024 to reach a value of US$10.62 bn by 2024-end from US$1.35 bn.

What is primarily bolstering the global NFC market?

At the forefront of driving growth in the near field communication (NFC) is the surging demand for consumer electronics that use NFC chips. As NFC chips simplify user interfaces to augment their applicability. This has led to their being used in various electronic goods including smartphones. The latter is contributing the most to the market at present.

Although the future of this market looks bright, the complexity in product designs and the dearth of awareness among consumers are expected to limit the uptake of NFC chips, which may create hindrances for this market in the next few years, states the research report.

Which application of NFC is driving its market?

Near field communication (NFC) chips find application in smartphones, medical equipment, televisions, and cars. Among them, the smartphone segment leads with a dominant share on account of their rapidly proliferating market. The medical equipment and television segments are also expected gain market share steadily in the years to come. While the growth in the television segment is expected to be generated primarily by the rising disposable income of consumers, the medical equipment segment is expected to be bolstered by the infrastructural developments in the medical and healthcare industry.

What makes North America lead the market?

Geographically, North America holds a dominating position in the market. In 2015, it accounted for a share of 34%. The market in the region has been primarily bolstered by collaborations between big banks and enterprises that help in tokenizing cards using NFC chips and the introduction of NFC modes, such as reader modes, card emulation standards, and peer-to-peer modes, by various semiconductor vendors.

In the years ahead, however, Asia Pacific is predicted to gain greater market share than North America by expanding at a 27.90% CAGR between 2016 and 2024. The burgeoning smartphone market in the region will likely stoke stellar growth in the region. Europe is another key market slated to expand at a healthy clip owing to a robust smartphones market in Western Europe. Additionally, the increasing usage of other consumer electronics products, such as refrigerators, television, and cameras, coupled with the surging popularity of wireless technology will also bolster the market.


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