Global NFC Transaction Market 2016-2020

Overview of the global NFC transaction market

Market research analyst at Technavio predicts that the global NFC transaction market will grow steadily and post an excellent CAGR of over 55% by 2020. One of the factors contributing towards the growth of the market will be the increasing adoption of mobile payment and digital wallet services. Major vendors such as Apple, Samsung, and Android are introducing payment gateways such as Apple Pay, Samsung Pay, and Android Pay, the use of which will eliminate the need to carry credit cards and smoothen shopping transaction. Furthermore, as these technologies have high security against hacking, retailers will not be able to access the card information or security code illegitimately.

The emergence of HCE (host-card emulation) is one of the recent trends in the global NFC transaction market. HCE is an on-device technology that enables mobile or wearable devices to perform card emulations on an NFC-enabled device without relying on access to a secure element (SE). The increasing popularity of HCE technology has encouraged banks to adopt these solutions as they have the ability to use security features provided by the inbuilt feature of smartphones such as fingerprint readers and iris scanners. Additionally, the HCE technology stores credentials and other sensitive data in the cloud for added data protection.

Competitive landscape and key vendors

Constant changes in consumer spending pattern, demographic trends, and customer preferences will lead to intense competition in the market. The vendors are also trying to create an identity for themselves in the market by investing in digital content, product differentiation, portfolio expansion, and pricing. Additionally, manufacturers are also investing in designing, planning, developing, and branding of existing products and services to stay up-to-date with the emerging technologies.

Leading players in the market are -

• Apple
• Google
• MasterCard
• PayPal
• Samsung
• Visa

Other prominent vendors in the market are American Express, Broadcom, Gemalto, Infineon Technologies, Inside Secure, MediaTek, Nokia, Nxp Semiconductors, Qualcomm, and Renesas Electronics.

Segmentation based on platform and analysis of the NFC transaction market

• Mobile device
• Wearable

During 2015, the mobile device segment dominated the market by accounting for around 56% of the total market share. The increasing use of smartphones with superior features, the availability of contactless payment point of sale (POS) terminals, and the growing preference for mobile wallets will augment the growth of the NFC transaction market.

Segmentation based on geography and analysis of the NFC transaction market

• America
• APAC
• EMEA

Market analysts predict that the Americas will be the largest market for NFC transactions during the forecast period and will grow at an extraordinary CAGR of approximately 57% by 2020. The extensive use of EMV (Europay, MasterCard, and Visa) cards will lead to the deployment of NFC POS terminals across the Americas. As a result, vendors like Apple have started launching NFC-enabled smartphones that follow the global standards for card authentication and processing.

Key questions answered in the report include

• What will the market size, market forecast and the growth rate be in 2020?
• What are the key factors driving the global NFC transaction market?
• What are the key market trends impacting the growth of the global NFC transaction market?
• What are the challenges to market growth?
• Who are the key vendors in the global NFC transaction market?
• What are the market opportunities and threats faced by the vendors in the global NFC transaction market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global NFC transaction market?

Technavio also offers customization on reports based on specific client requirement.

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