The Near Field Communication (NFC) market is estimated to observe rapid increase across several application verticals over the forecasted period. The Near Field Communication (NFC) is a short-range wireless technology that allows to communicate between two or more devices on contact or when they are temporarily held together. Increasing smart phone demand and growing technological advancements are anticipated to drive the market over the next five years. Increasing availability and cost effectiveness of NFC-enabled mobiles is projected to positively impact market growth. Need for secured and rapid financial transactions with flexibility and ease of use is also estimated to drive NFC market growth. The NFC market offers major opportunities to the direct mail marketing segment. It allows marketers in transferring content through an embedded NFC chip, which enables wireless communication when a client touches a smart phone or a mobile device when the device in near proximity of an NFC chip. M-commerce or mobile payment options are estimated to drive the Near Field Communication (NFC) market.
The Near Field Communication (NFC) technology has security features which help I making in secured financial transactions. Besides from M-commerce, increasing variety of equipment and devices integrate near field communication such as cars, washing machines, cookers, vending machines, televisions, speakers, headsets, cameras, tablets and laptops. Data speed and transfer capacity is another facet of the technology as it provides ten times faster data transmission, which is also estimated to boost the market growth. Lack of customer knowledge about the benefits of NFC technology, high development cost and poor infrastructure may pose a challenge to the Near Field Communication (NFC) market growth. This technology is expected to gradually replace traditional transaction services which are expected to favour the NFC market growth. Increasing usage of NFC technology social media applications is estimated to provide positive avenues to market growth.
The NFC market is segmented into non-auxiliary and auxiliary products. The non-auxiliary category comprises tags, readers, IC/chips, and auxiliary category comprises NFC-enabled covers, microSD cards and SIMs. Many mobiles have in-built NFC chips that allow data exchange over a short range. These are gradually more adopted by merchant and retailers across their credit card readers or cash registers. SIM-based products offer better security and help decrease frauds. NFC tags include wristbands or stickers including microchips, which store data that can be transferred to another near device, such as smart phones. These tags enable to store different types of data like a telephone number or URL.
NFC applications include transportation, payment, data sharing, booking, service, health care and access control. Smartphone increase has boosted mobile payment demand. Customers can make payments by using NFC-enabled credit card or smart phone which is expected to fuel the market growth. Additionally, growing mobile wallets is also estimated to boost the NFC market growth. Transit applications provide new capabilities, such as processing payment acquisition, system exit/entry, post-purchase inspection and payment processing. This technology is largely adopted in various application sectors due to numerous benefits related with it such as better consumer choice and value, abridged carbon foot-print.
North America and Europe market is expected to grow at a significant rate owing to technology advancement. Manufactures in South Korea, Japan and China is the key source of audio and video products supplied in the U.S. Asia-Pacific is expected to grow significantly owing to growing infrastructure, urbanization trends and technological advancements in developing countries such as India and China. Increase usage of smart phones is the major factor which is expected to drive the market growth in Asia Pacific region.
The key market and niche players include Inside Secure, Broadcom, Samsung Electronics and NXP Semiconductors. Other companies include STMicroelectronics, Texas Instruments, Sony Corporation, Gemalto, Renesas, Nexperts and Infineon Technologies. Market participants enter into mergers & acquisitions to sustain in the market.
Research Support Specialist, USA