Global Near Field Communication Market Overview
The key driver impacting the near-field communication market is the growing trend of mobile commerce and mobile retailing. The primary cause of growing e-commerce and mobile retailing is majorly driven by the rising use of smartphones, one of the fastest-growing segments of the retail sector in the UK, the U.S., and Western Europe. In Western Europe, mobile retailing total online sales had risen to 33.9% in 2018 from 6.7% in 2013. There were 117.1m mobile shoppers in Western Europe in 2018, of which the largest were in Germany and the U.K. Similarly, m-commerce is also expanding at a high pace, and it is expected that 72.9% of all retail eCommerce will be generated through mobile commerce by 2021, as per the Website Builder. Furthermore, smartphones are expected to contribute to over 50% of online spending by September 2022. Thus, the growing consumption of tobacco and alcohol can create massive demand for near-field communications. Moreover, Moreover, progression of 3G and 4G networks and rapid growth of mobile internet applications globally contribute to the near field communication market demand in the coming years.
According to Value Market Research, the global Near Field Communication market size was valued at about USD 35 billion in 2017 and is estimated to grow at a CAGR of around 15% during the forecast period.
The abundance and acceptance of mobile payments include digital wallets and usage of apps, have encouraged the non-payment technology firms to enter into the payment technology area, which is likely to expand the market demand in the forecast period. For instance, As per the world economic forum, China's shares in the global e-commerce market are 42%in 2016, which is less than one percent in 2005. China’s dominance is attributed to the outburst in mobile payments usage, which climbed from 25% of mobile internet users in 2013 to 68% in 2016. In its entirety, about 731 million of 1.4 billion citizens of China make use of the internet. In 2016, total consumption-related mobile payments were around $790 billion. It is eleven times that of the United States, which possesses 262 million mobile internet users. Also, the rising penetration of contactless NFC POS across the globe is an important factor that increases the market demand.
Conversely, the issue of short-range communication may hamper the market in the long run. In addition, security concerns related to NFC are impeding market demand. However, the industry trends, such as rising urbanization in emerging economies, and high penetration of contactless technology, are expected to offer several beneficial market opportunities to the key players.
The near-field communication market is vast, with many local and global players. The near-field communication market is extensive, with many regional and international players. The leading market leaders were ensuing many strategies that help in mounting their market share globally, such as contracts, expanding product portfolio, mergers, acquisitions product innovations. The prominent players included in the report are NXP Semiconductors, Sony, Qualcomm, Texas Instruments, Broadcom, STMicroelectronics, Huawei Technologies Co., Ltd, Infineon Technologies, Thales Group, ams, Flomio, Identive, MagTek, HID Global, Avery Dennison.
In this research report, the Near Field Communication market is segmented by product type, application, ad region.
Analysis by Product Type:
By product type, the report is categorized into SD Cards, SIM Cards, NFC Cover, NFC ICs, NFC Tags, and NFC Readers. The SIM Cards segment dominates the product type segment with over 25% share in 2020. It is due to the ability of SIM cards for cashless payments with an improved user experience that contributes to the sim-card segment growth in the coming years.
Analysis by Application:
By Application, the report is segmented into ticketing, access control, medical devices, data sharing, product identification, transaction, and others. The transaction segment dominates the distribution channel segment with over 20% share in 2020. It is due to the proliferation of smartphones with an increasing need for a better consumer experience. Moreover, the growing popularity of NFC-based mobile payments contributes to the development of the transaction application segment in the forecast period.
Analysis by Region:
In the regional outlook of the global near-field communication market, the Asia Pacific region is expected to hold the second-largest market share of around 22% in the forecast period. It is due to the increasing penetration of smartphones and tablets. Also, the expanding e-commerce sector and the growing trend of mobile payment while shopping online across India and China are adding growth to the market. Moreover, increased adoption and awareness of NFC technology in the transportation and retail industry contributes to the tremendous market growth across the Asia Pacific.
Market Segmentation covered in the Report:
By Product Type
- SD Cards
- SIM Cards
- NFC Cover
- NFC ICs
- NFC Tags
- NFC Readers
- Access Control
- Data Sharing
- Medical Devices
- Product Identification
- North America
- Asia Pacific
- Latin America
- Middle East and Africa
This market research report has been produced by gathering information on the basis of primary and secondary research. Secondary research has been done by using various sources which include (but not limited to) Company Websites, Paid Data Sources, Technical Journals, Financial Reports, SEC Filings, and other different industry publications.
If specific information is required which is not currently within the scope of the report, it can be provided as a part of customization.