NFC Chip Market Analysis and Opportunities by 2028

The NFC chip market is expected to grow from US$ 8,714.4 million in 2021 to US$ 17,827.0 million by 2028; it is estimated to grow at a CAGR of 10.8% during 2021–2028.

Smartphones have become an integral component of the lives of today's consumers. Consumers are using their cell phones to make quicker and faster payments in addition to traditional ways of communication. NFC is a convenient means of payment as it combines a consumer's mobile device with their wallet. It allows users to conduct mobile transactions, trade digital material quickly, and link their devices to other devices by touch. As a result, the number of devices equipped with NFC technology is growing, which helps in gaining the expansion and popularity of NFC technology in emerging markets. NFC chips make user interfaces easier to use, making them more useful in consumer products. Smartphone manufacturers, such as Apple and Samsung, include NFC chips in their handsets, resulting in increased demand for NFC chips among mobile phone manufacturers. With increasing use of smartphones, penetration of NFC will also rise that will boost the growth of NFC chip market

Further, the rising adoption of digitalization and enhanced communication technologies is driving NFC chip demand. Android Beam, for example, is a function present in every NFC-enabled Android smartphone. Users may exchange media and contacts with another Android smartphone by merely keeping their phones close together. As NFC takes less power to operate and can occasionally work without electricity, it is a convenient way to share digital files. The aforesaid factors are creating positive impact in fueling the growth of NFC chip market.

NFC also operates in a peer-to-peer mode, apart from mobile payments and the smart distribution of information. It enables two smartphones to exchange contacts, calendar activities, website links, images, and even video clips, similar to Bluetooth and Wi-Fi direct. NFC is a promising exchange and trade solution, and small retail businesses improve their profits by offering a smooth and easier transaction to their customers. The benefits exhibited above related to NFC technology is resulting into generating lucrative business opportunities for the the growth of NFC chip market.

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NFC Chip Market: Strategic Insights

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Impact of COVID-19 Pandemic on NFC Chip Market

North America has the highest adoption and growth rate of new technologies owing to favorable government policies to boost innovation and strengthen the infrastructural capabilities. Hence, any impact on industries is expected to affect the region's economic growth negatively. The US was the world’s worst affected country due to the COVID-19 outbreak, thereby influencing the high adoption of online shopping during the pandemic. For instance, according to studies, Amazon recorded an increase in sales by 37% owing to the COVID-19 pandemic.

The shut down of all retail outlets by the government authorities coupled with the social distancing norms affected the investments by retail outlets on any technological advancements. For instance, the sales of the online grocery segment across the US, recorded an increase of 210.1% due to the pandemic. This rise in online sales of consumables decreased the dependency of the region’s population on brick and mortar stores. The COVID-19 pandemic has resulted into positively impacting the growth of NFC technology owing to contactless and caahless payment, which in turn has drive the NFC chip market.

NFC Chip Market Insights

Surge in Adoption of NFC-Enabled Wearable Technology

Wearable technology is a new trend that integrates electronics into daily activities and responds to changing lifestyles by allowing devices to be worn on any part of the body. Wearable technology is driven by connecting to the internet and giving data exchange choices between a network and a device. Due to the surge in the fitness trend among consumers, wearable has received a lot of popularity. According to Cisco Systems, linked wearable devices are predicted to rise from 593 million in 2018 to 1,105 million in 2022 due to additional features, such as the brand that suits the everyday lifestyle. Strong brands like Apple and Fossil keep their pricing constant with typical watch price bands to preserve their sales. Many additional premium watchmakers, like TAG and Armani, have entered the segment due to Google's WearOS. Despite significant space and power constraints, intelligent wearables and IoT devices are becoming increasingly popular by adding additional functions. When a wearable gadget has NFC capabilities, it can be used to pay at a store, use public transportation, or gain entrance to an office building. SECORA Connect, for example, is a solution family from Infineon that addresses the growing popularity of smart wearables and IoT devices. It is a system solution that can be implemented into smart wearables to enable contactless secured payment, transportation ticketing, and other applications using Near Field Communication (NFC). Thus, the factors mentioned above are driving the growth of the NFC chip market. More investments and growth plans in these technologies are projected to continue in the forecast period, which is expected to create opportunities for NFC chips in the industry.

End-User-Based Market Insights

Based on end user, the NFC chip market is segmented into consumer electronics, automotive, retail, medical, and others. In retail industry, most of the NFC POS terminals were installed worldwide due to the rising demand for contactless payments. Carrefour, a France-based retailer, launched Carrefour Pay—a mobile payment system—which allows users to pay for their groceries with their NFC-enabled smartphones at the POS terminal. The system has been connected to cards of all banks and has been accepted in 3000 stores in France. The launch of this system is part of the Carrefour‘s plan to design digital operations, supported by an investment of US$ 3.39 billion. As older systems approach retirement, POS vendors increasingly include NFC support in new systems as a standard. Moreover, smartphone-wielding customers are adopting contactless payments in ever-growing numbers as it is quick and convenient.

Storage Capacity-Based Market Insights

Based on storage capacity, the NFC Chip Market is segmented as 64 bytes, 168 bytes, 180 bytes, and 540 bytes. The NFC chips with low storage capacity are used for inventory management, supply chain management, asset tracking, and automation in ticketing and anti-counterfeiting. The NFC chips with high storage capacity, such as 180 bytes and 540 bytes, have high read/write endurance and can retain up to 50 years’ worth of data. They also support SUN (secure unique NFC message), which enables and simplifies many applications involving security and encryption such as advanced anti-counterfeiting, secured sensitive data applications, secure login, and authentication.

NFC Chip Market Regional Insights

The regional trends and factors influencing the NFC Chip Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses NFC Chip Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

NFC Chip Market Report Scope

NFC Chip Market Players Density: Understanding Its Impact on Business Dynamics

The NFC Chip Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Players operating in the NFC chip market adopt strategies such as mergers, acquisitions, and market initiatives to maintain their positions in the market. A few developments by key players are listed below:

• In 2021, Broadcom launched World's lowest power L1/L5 GNSS receiver chip, the BCM4778, for mobile & wearable applications.

The global NFC chip market is segmented into type, storage capacity, end-user, and geography. On the basis of type, the NFC chip market is segmented into active and passive. Based on storage capacity, the market is segmented into 64 bytes, 168 bytes, 180 bytes, and 540 bytes. Based on end-user, the market is segmented into consumer electronics, automotive, retail, healthcare, and others.  

AMS AG; Broadcom Inc.; Identiv, Inc; Toshiba Corporation; Intel Corporation; NXP Semiconductors; Samsung Electronics Co., Ltd.; Qualcomm Technologies, Inc.; STMicroelectronics; and Texas Instruments Incorporated are the key NFC chip market players considered for the research study. In addition, several other significant NFC chip market players have been studied and analyzed in this research report to get a holistic view of the global NFC chip market and its ecosystem.