Ubiquity of Smartphones Driving Global NFC Chips Market

Near field communication (NFC) chips, or the technology as a whole, has emerged as something very useful that can be used in laptops, smartphones, and tablets for a data exchange over a short range of about 10cm or less. NFC chips are an array of protocols based over a wireless interface that works with electronic gadgets and other communication devices to establish radio communication when in proximity. On account of the convenience and versatility that NFC chips offer, the market for the same has expanded quickly as these chips can help in enhancing safety. In addition to that, 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. 

A recent business and commerce study by Transparency Market Research reiterates the expanding demand for NFC chips, projecting the revenue in the market to increment at an impressive CAGR of 26.0% during the forecast period of 2016 to 2024. The report has evaluated that the opportunities in the global NFC chips market were worth US$1.35 bn in 2015, which will exponentially rise up to US$10.62 bn by the end of 2024.

Which factors are favoring the global NFC chips market?

Growing adoption of smart appliances, trend of mobile commerce, growth in the production of NFC chips and mobile phones, enhanced user experience and trust in contactless technologies, and decline in the prices of these chips are some of the key factors augmenting the demand in the global NFC chips market. On the other hand, inability of these chips to expand to longer range communications, lack of consumer awareness (especially in the rural areas of emerging economies), lack of proprietary standards, disagreement and disputes between key players in the value chain, and need for intermediaries gateway for mobile payment are a few challenges that are obstructing the prosperity of the NFC chips market. Nevertheless, the vendors operating in this market will continue to gain new opportunities from integrated ICS supporting NFC, Wi-Fi, and Bluetooth, growing need for connectivity between different devices, and online and in-store payment.

Which market segments are showing greater promise?

Application-wise, the TMR report segments the global NFC chips market into television, smartphones, car, medical equipment, and others. Currently, the segment of smartphones has been providing the maximum demand in the NFC market. Rapid ubiquity of smartphones and growing adoption of newer technologies is aiding the prosperity 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.

Geographically, the report picks out North America as most lucrative region for the vendors operating in the NFC chips market, wherein 34% of the demand came in 2015. However, Asia Pacific is anticipated to emerge as the dominant regional market for NFC chips by the end of the forecast period. The APAC NFC chips market is estimated to expand at an above-average 27.90% CAGR between 2016 and 2024 on account of the growing penetration or use of smart phones in the region.

What is the nature of competition among the leading companies?

NXP Semiconductor dominated the global NFC chips market in 2015, reserving 55% of the market shares, and the company is expected to retain its position of strength by the end of 2022. Qualcomm Inc., STMicroelectronics, Broadcom Corp., Texas Instrument, and AMS AG are some of the key prominent companies operating in this market.


Post a Comment

Note: only a member of this blog may post a comment.

Latest Post

Market Research Reports