Near Field Communication Global Market Report 2024

The near field communication market size has grown rapidly in recent years. It will grow from $26.78 billion in 2023 to $30.47 billion in 2024 at a compound annual growth rate (CAGR) of 13.8%. The growth observed in the historical period can be attributed to the integration of near-field communication (NFC) into mobile devices, the adoption of contactless payment methods, the implementation of transportation ticketing solutions, the use of NFC in smart access and security systems, and its applications in marketing and advertising.

The near field communication market size is expected to see rapid growth in the next few years. It will grow to $51.24 billion in 2028 at a compound annual growth rate (CAGR) of 13.9%. The anticipated growth in the forecast period can be attributed to collaborative efforts in standards development, the expansion of retail and loyalty programs, innovations in security and access control, integration with healthcare records and wearables, and the continued growth in transport and ticketing solutions. Major trends expected in the forecast period include the integration of biometric authentication, a focus on smart packaging solutions, an expansion in smart home applications, a rise in health and wellness tracking, and increased integration with public services.

The growth of the near-field communication market is anticipated to be propelled by the increased adoption of smartphones. Smartphone adoption measures the rate at which individuals acquire and utilize smartphones as their primary mobile communication and computing devices. With near-field communication (NFC) technology, smartphones can communicate with nearby devices, enabling various functionalities such as mobile payments, digital content exchange, and connection with electronic devices. A report by Cybercrew in March 2023 revealed that 91.43% of households in the United Kingdom were using mobile internet in 2021, and this percentage is expected to rise to 93.8% by 2026, indicating a steady upward trajectory in smartphone usage. Consequently, the heightened adoption of smartphones is a key driver fueling the growth of the near-field communication market.

The growing adoption of the Internet of Things (IoT) is poised to contribute to the expansion of the near-field communication market. IoT involves interconnected physical objects or devices exchanging data over the Internet, enhancing autonomous communication and task performance. NFC facilitates seamless device setup and data exchange within the IoT, offering quick and secure connectivity by simply tapping devices together. According to a report by Ericsson in September 2022, global IoT connections reached 13.2 billion in 2022 and are projected to increase by 18% to 34.7 billion connections by 2028. This surge in IoT adoption is a driving force behind the growth of the near-field communication market.

The near-field communication market faces a significant restraint in the form of data security concerns. The nature of NFC technology, involving data exchange in close proximity, raises vulnerabilities to data interception, unauthorized access, and potential breaches. These security risks, especially in applications such as mobile payments and access control systems, can deter both consumers and businesses from embracing NFC technology. The Australian Cyber Security Centre reported a 13% increase in cybercrime reports between July 2021 and June 2022, underscoring the prevailing data security concerns. Consequently, these apprehensions pose a hindrance to the growth of the near-field communication market.

Key players in the near-field communication (NFC) market are at the forefront of developing cutting-edge products to address the demand for innovative solutions, exemplified by the creation of the NAC1080. This product serves as a cost-effective and user-friendly platform designed for the development of smart actuators. The NAC1080 is a single-chip solution that seamlessly integrates crucial components such as an H-bridge, energy harvesting module, NFC frontend, sensing unit, and motor driver. Introduced by Infineon Technologies AG, a prominent semiconductor manufacturer based in Germany, the NAC1080 utilizes a programmable 32-bit ARM Cortex-M0 microcontroller with an embedded NFC frontend. This facilitates the economical development of smart actuators, including passive locks. The versatility and user-friendly nature of the NAC1080 make it an ideal framework for crafting smart actuators. Notably, it incorporates various security features, such as a real random number generator, a protected flash section, and a 128-bit AES accelerator. Additionally, the NAC1080 leverages near-field communication, a wireless technique enabling data sharing between devices in close proximity.

In June 2023, Renesas Electronics Corporation, a semiconductor manufacturing company based in Japan, executed the acquisition of Panthronics AG. This acquisition underscores Renesas' commitment to fortifying its presence in the NFC market. Panthronics AG, headquartered in Austria, specializes as a fabless semiconductor company, focusing on providing smart chipsets designed for near-field communication (NFC) technology. The acquisition is expected to contribute to Renesas' capabilities in meeting the rising demand for NFC solutions, reaffirming its commitment to innovation and market leadership in this evolving technological landscape.

Major companies operating in the near field communication market report are Google LLC, Samsung Electronics Corporation, Microsoft Corporation, At and T Inc., Verizon Communications Inc., Sony Group Corporation, T-Mobile US Inc., Qualcomm Technologies Inc., Toshiba Electronic Devices and Storage Corporation, Broadcom, Nokia Corporation, Royal Philips Electronics, Texas Instruments Incorporated​, Thales Group, MediaTek Inc., Infineon Technologies, STmicroelectronics N.V.​, NXP Semiconductors N.V., Renesas Electronics Corporation, Avery Dennison, Motorola Solutions Inc., Omron Healthcare, Ams-OSRAM AG, HID Global, A and D Company Limited, Impak Health Nedap, Identive Group, MagTek Inc., Gentag Inc.

North America was the largest region in the near field communication market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the near field communication market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa The countries covered in the near field communication market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The near-field communication (NFC) market consists of revenues earned by entities by providing services such as contactless ticketing, access control, information sharing, data exchange, credit card authentication, and smart home integration. The market value includes the value of related goods sold by the service provider or included within the service offering. The near-field communication market consists of sales of near-field communication readers, smartphones and tablets, smart cards, healthcare devices, NFC microSD cards, NFC covers, and IoT devices. Values in this market are 'factory gate' values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The main types of near-field communication are non-auxiliary and auxiliary. Non-auxiliary methods or tools are considered primary and essential, not secondary or supportive. These methods operate based on read and write mode, peer-to-peer mode, and card emulation mode. Near-field communication finds application in various end-users, including cloud services, telecom services, and enterprises.

The near-field communication market research report is one of a series of new reports that provides near-field communication market statistics, including near-field communication industry global market size, regional shares, competitors with a near-field communication market share, detailed near-field communication market segments, market trends and opportunities, and any further data you may need to thrive in the near-field communication industry. This near-field communication market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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