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NFC chips market to grow at CAGR of 12.78% by 2027

Wednesday, March 27, 2024 — 12:41:39 (EDT)

NEW YORK, March 26, 2024 /PRNewswire/ -- The global near field communication (NFC) chips market is witnessing a remarkable surge, projected to skyrocket by USD 3,083.48 million at a staggering Compound Annual Growth Rate (CAGR) of 12.78% from 2022 to 2027. This unprecedented growth is attributed to various factors including the widespread adoption of smartphones, the surge in contactless payments, and government initiatives fostering digital transactions.

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Technavio has announced its latest market research report titled Global Near Field Communication (NFC) Chips Market 2023-2027

Technavio has announced its latest market research report titled Global Near Field Communication (NFC) Chips Market 2023-2027

Market Dynamics

The upsurge in contactless payments stands as a driving force propelling the market forward. Contactless payments offer swift, convenient, and secure transactions for consumers, enhancing the overall in-store payment experience. The growing popularity of mobile wallets like Apple Pay and Samsung Pay further fuels this trend, with these platforms utilizing NFC technology to seamlessly transmit payment data to terminals.

Key Market Drivers

The burgeoning demand for contactless payments, fueled by the convenience they offer, is a key driver of market growth. This trend is further buoyed by the increasing prevalence of mobile wallets leveraging NFC technology. Additionally, the advent of smart parking solutions integrating NFC-enabled identification and payment systems is poised to play a pivotal role in reshaping the market landscape.

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Market Trends

The market is witnessing a notable trend towards smart parking solutions, wherein NFC technology plays a central role. As smart city initiatives gain momentum, the demand for smart parking solutions incorporating NFC-enabled access control readers is on the rise. This technology integration is poised to streamline parking operations and enhance user experience significantly.

Market Challenges

Despite its rapid growth, the NFC Chips market faces challenges stemming from low awareness of NFC technology in certain regions. Particularly in countries like China and India, where QR codes dominate the payment landscape, raising awareness about the benefits of NFC technology remains a hurdle. Moreover, cost considerations prompt smartphone manufacturers to reduce the integration of NFC chips, impacting market growth.

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Customer Landscape

The market analysis encompasses the entire adoption lifecycle, from early innovators to laggards, across different regions. Furthermore, the report delves into key purchase criteria and drivers of price sensitivity, aiding companies in refining their market strategies.

Key Market Players

Major companies in the NFC Chips market are implementing various strategies including alliances, partnerships, mergers, acquisitions, and product/service launches to bolster their market presence. Prominent players include Verimatrix Inc., Infineon Technologies AG, Intel Corp., and Samsung Electronics Co. Ltd., among others.

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Fastest-Growing Segment

The non-auxiliary segment, encompassing internal NFC-enabled accessories such as chips for smartphones, is poised for significant growth during the forecast period. This growth is propelled by the rising demand for smartphones and the myriad applications supported by NFC-enabled devices.

Key Regions

Asia-Pacific (APAC) is anticipated to lead the global market growth, contributing 63% during the forecast period. The region boasts a high concentration of Original Equipment Manufacturers (OEMs) across various industries, solidifying its dominance in the NFC Chips market.

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Analyst Review

Near Field Communication (NFC) technology has revolutionized the way we engage with our devices and conduct transactions. As the demand for seamless connectivity and secure transactions continues to grow, the NFC chips market stands at the forefront of innovation, catering to a diverse range of industries and applications.

Financial institutions, mobile application developers, and PoS systems providers are among the key stakeholders leveraging NFC technology to facilitate mobile commerce and contactless payment systems. With the rise of wearable technology and IoT devices, NFC chips have found their way into smartwatches, fitness trackers, and various IoT gadgets, enabling convenient interactions and data exchange.

Infineon, a leading semiconductor manufacturer, has been instrumental in shaping the NFC chips market with its SECORA Connect platform. This platform offers robust security features to address concerns surrounding data privacy and fraud prevention, ensuring a safe and reliable user experience. Additionally, Infineon's NFC ICs/chips play a pivotal role in enabling secure reader emulation, allowing devices to interact seamlessly with NFC-enabled terminals.

Google Pay, a popular mobile payment service, relies on NFC technology to enable quick and secure transactions using compatible smartphones and wearable devices. This interoperability highlights the versatility of NFC chips in supporting diverse payment ecosystems and enhancing user convenience.

Moreover, NFC technology extends beyond banking and finance, with applications in access control, ticketing, and authentication systems. QR codes, once ubiquitous in these domains, are gradually being replaced by NFC-enabled solutions due to their enhanced security and ease of use.

TouchBase, another innovation in the NFC chips market, offers advanced features such as multi-protocol support and enhanced range, catering to the evolving needs of consumers and businesses alike. This continuous innovation underscores the dynamic nature of the NFC chips market, driven by the relentless pursuit of efficiency, security, and interoperability.

As the adoption of NFC technology continues to soar, non-auxiliary products such as smartphones, smartwatches, and IoT devices are increasingly incorporating NFC capabilities into their designs. This integration further fuels the growth of the NFC chips market, opening up new opportunities for manufacturers and developers to create innovative solutions that redefine the way we interact with technology.

In conclusion, the NFC chips market is poised for exponential growth, driven by the increasing demand for secure, convenient, and interconnected devices and services. With Infineon, Google, and other industry leaders pushing the boundaries of innovation, NFC technology is set to become even more pervasive, shaping the future of commerce, connectivity, and beyond.

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Market Overview

The Near Field Communication (NFC) chips market is experiencing exponential growth, fueled by the increasing demand for contactless payment systems and wearable technology. Financial institutions are leveraging NFC IC/chips to enhance security and enable seamless transactions via mobile commerce platforms like Google Pay. PoS systems are integrating NFC technology to streamline transactions, while mobile application developers are incorporating NFC capabilities for innovative solutions. With the rise of IoT devices, security concerns surrounding NFC technology are being addressed through solutions like SECORA Connect. TouchBase and reader emulation functionalities are enhancing user experiences, making NFC-enabled devices more versatile. As the market expands, non-auxiliary products are emerging to complement NFC IC/chips, driving further adoption and innovation in the industry.

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Related Reports:

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Table of contents:

1 Executive Summary 2 Landscape 3 Sizing 4 Historic Size 5 Five Forces Analysis 6 Segmentations 7 Customer Landscape 8 Geographic Landscape 9 Drivers, Challenges, and Trends 10 Vendor Landscape 11 Vendor Analysis 12 Appendix

About US

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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Source: Company press release.