Near field communication (NFC) chips employ electromagnetic radio fields to transfer data between devices in close proximity. NFC-based devices are deployed in banking, payment, seat reservation, coupon collection, and multiple other services with a single device. Inkwood Research anticipates that the global near field communication (NFC) chips market will propel at a CAGR of 11.78% from 2022 to 2030 and is expected to reach $9309.52 million in revenue by 2030.
The proliferating demand for NFC-based wearables and smartphones, in addition to their integration into several medical equipment, are driving the global market. The technology may also be used in reserving restaurant seats, mobile banking, real-time updates on expenditure and reward points, booking train tickets, etc. It finds and offers versatile applications in various industries and services.
Adoption of NFC Chips | Segmentation
Our experts have analyzed the global near field communications (NFC) chips market into application, product, and end-user segments. Leading companies in the market are improving chip quality with increased security, reduced costs, better interaction times, increased interoperability, and several other benefits to draw customers. Also, the application plays a vital role in influencing buyers’ behavior while purchasing NFC chips.
Market by Medicine is the fastest growing in the End-User segment
Medicine is anticipated to have the highest CAGR in the end-user segment by 2030. This trend is driven by the adoption of NFC-based medical equipment for timely and accurate health tracking of patients using NFC chip-based equipment. As per company sources, the Automated Assembly Corporation (AAC) has introduced technologically-advanced NFC tags that uniquely store the patient’s crucial information.
Further, the United States Department of Veterans Affairs (VA) introduced the real-time location systems (RTLS) at the Veterans Health Administration (VHA) department, operating approximately 1,400 non-patient VHA centers and community clinics, about 152 medical centers. The adoption of NFC chip-based medical equipment for accurate and timely health tracking is expected to propel the global NFC chip market growth in the medical sector.
E-money to propel market growth in the Banking and Finance segment
The introduction of mobile wallets and NFC-driven payments development programs by banks and financial institutions boost the NFC chip market growth globally. Further, financial institutions worldwide deploy e-Money that uses NFC technology to perform safe and secure online banking transactions, propelling the market by increasing NFC chips adoption manifold.
For instance, according to the bank sources, the ICICI Bank has collaborated with Tech Mahindra to introduce an advanced payment service called the ‘Tap-n-Pay’ based on advanced NFC technology, allowing customers to make over-the-counter (OTC) payments without using cash. Hence, this collaboration is expected to boost the deployment of NFC chips to support cashless payment services.
Competitive & Strategic Analysis
The key players in the NFC chips market are adopting different development activities to compete with one another directly.
- MediaTek and STMicroelectronics have been incorporated to develop NFC technology into mobile platform design. STMicroelectronics is liable to provide NFC technology to MediaTek that will enable MediaTek to deliver high contactless performance solutions to OEMs. This strategic initiative is expected to benefit both companies in enhancing cost-efficiency and integrating optimization through smaller antennas and reduced bill materials.
- In April 2021, Marvell Technology Inc announced the completion of its acquisition of Inphi Corporation. It resulted in forming a leading US semiconductor powerhouse for end-to-end technology in data infrastructure.
- Verimatrix sold its NFC patents portfolio to Infineon Technologies AG for approximately $2 million. Verimatrix patents’ participation in the NFC patent licensing program, which generated over $50 million in cumulative revenues between 2014 and 2021, including $16.6 million in the second quarter of 2021, was ended by the divestiture.
All in All
The rise in data security and privacy concerns affects the adoption of NFC technology, thereby hindering the global NFC chips market. By introducing viruses, miscreants can hack into NFC-enabled smartphones, gain full control over Android-based smartphones and run malicious code on them. While the new contactless technology is set to become an important part of our lives, it also raises valid and understandable security concerns.
However, governments globally are stepping up with regulations to secure the data. In addition, people, in general, have become more aware of data-sharing and their privacy rights, therefore urging the companies to improve the firewalls and function securely while using minimal customer information. As a result, leading companies are investing millions in preventing hacking and safeguarding user information, thereby securing a constant growth of their products and sustaining the market’s competition.
FAQs:
What are the key regions analyzed in the report?
Europe, North America, Asia-Pacific, and Rest of World analysis are evaluated in the report.
What are some of the leading NFC-enable products in the market?
NFC tags, NFC readers, controllers, antennas, etc., are some of the key products that use NFC chips in the market.