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The near-field communication (NFC) chips market is estimated to grow at a CAGR of 12.78% between 2022 and 2027. The size of the market is forecast to increase by USD 3083.48 million. The growth of the market depends on several factors, including increased penetration of smartphones, increased adoption of contactless payments, and rising government initiatives for digital payments.
This report extensively covers market segmentation by type (non-auxiliary and auxiliary), product (smartphones, smart wearables, POS terminals, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The reports categorize the global near field communication chips market as a part of the global semiconductor market within the overall global semiconductors and semiconductor equipment market. The parent global semiconductor market covers manufacturers of semiconductors and related products. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The increased adoption of contactless payments is notably driving the market growth, although factors such as low awareness of NFC technology may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Near Field Communication (NFC) Chips Market Driver
The increased adoption of contactless payments is notably driving market growth. Contactless payment is a method through which consumers can purchase products using their credit cards, debit cards, or smartphones with NFC technology. Contactless payment is fast, convenient, and secure. It also helps the merchants in improving their in-store payment experience for the customers. The technology can reduce the customer time taken to make the payment and eventually the waiting time in a queue.
The increasing use of mobile wallets such as Apple Pay and Samsung Pay has contributed to the growth of contactless payments. These mobile wallets use NFC technology to wirelessly transmit payment data to payment terminals with NFC readers. The rising prevalence of contactless payments and the increasing use of contactless cards and mobile payments are expected to drive the demand for NFC card readers across POS terminals. This will drive the demand for NFC chips during the forecast period.
Significant Near Field Communication (NFC) Chips Market Trend
Increasing demand for smart parking is the primary trend in the market. NFC-enabled identification and payment solutions are expected to play significant roles in smart parking during the forecast period. The NFC technology will be an integral technology for smart parking.
The rising number of smart city initiatives has accelerated the demand for smart parking solutions, which integrate access control readers or NFC readers to read and fetch the database. 91springboard, a global provider of co-working office spaces on rent. There are over 2,000 start-ups that work out of its properties. The facility provides access control of any type such as NFC, QR code, BLE, Wi-Fi, and others. The access controls present in the entry points are integrated with chips such as NFC ICs, Bluetooth ICs, and wireless ICs. Such developments in the market is likely to drive the growth of the NFC chips market during the forecast period.
Major Near Field Communication (NFC) Chips Market Challenge
Low awareness of NFC technology is the major challenge impeding market growth. The majority of the countries, such as China and India, in the region, use QR codes more often. This is primarily because of the increasing awareness of payment services such as Alipay and Paytm. Also, most of the customers in these regions are price-sensitive and prefer buying low-priced and medium-priced smartphones. As a result, smartphone manufacturers such as OPPO, LG Electronics, Xiaomi, and others are trying to reduce the use of NFC chips in their devices. The removal of NFC chips from their devices is expected to bring down the cost of their products by a few dollars.
The cost of NFC chips that are integrated into smartphones ranges from USD 1.7 to USD 5.56 per unit. Smartphones are one of the large-volume application segments for NFC chips. The smartphone market segment has a high influence on the volume growth of the market. With the reduced adoption of NFC chips in key market segments, the barriers to market growth will increase. This will affect the unit shipment of NFC chips during the forecast period.
Key Near Field Communication (NFC) Chips Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Near Field Communication Chips Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Verimatrix Inc. - The company offers near field communication chips which are being designed to replace traditional ticketing systems with smart tickets for airlines, train, and bus tickets. The company offers various software solutions for protecting digital content. Software solutions offered by the company includes multi-DRM, embedded DRM, Verimatrix Video Content Authority System, TV everywhere authentication system, passwordless authentication system, and code protection system.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the non-auxiliary segment will be significant during the forecast period. Non-auxiliary NFC products primarily include internal NFC-enabled accessories, such as NFC IC/Chips built for smartphones to perform contactless payments, access control, and secure data sharing with other NFC devices. While passive NFC tags are typically read by NFC readers, NFC readers are frequently integrated into contactless POS terminals and access gateways for public transportation. Thus, the growing demand for contactless POS terminals across the retail sector is majorly driving the growth of the non-auxiliary segment in the global NFC chips market during the forecast period.
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The non-auxiliary segment was valued at USD 1,590.46 million in 2017 and continued to grow until 2021. It is anticipated that the demand for NFC chips will be driven by the rising demand for smartphones. Peer-to-peer communication, read/write mode, and card emulator applications are all supported by NFC-enabled smartphones. This, in turn, is anticipated to drive the growth of the non-auxiliary segment in the global NFC chips market during the forecast period.
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APAC is estimated to contribute 63% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The buyers of NFC ICs in APAC are mostly OEMs. APAC has a high concentration of OEMs across end-user industries. This substantiates the dominance of APAC in the global NFC chips market. Some of the major OEMs, incorporating NFC ICs in their product offerings, from different end-user industries are Huawei Technologies, Lenovo, LG Electronics, Newland Payment Technology, OPPO, OnePlus, Pax, Sony, and Samsung Electronics. These smartphone manufacturers have established their production sites across APAC due to the low costs of raw materials and labor in the region. China, Taiwan, South Korea, and Japan are considered home to smartphone manufacturers that have a strong presence in the global market.
The outbreak of COVID-19 severely affected various countries in APAC, such as China, Japan, India, South Korea, and Thailand in 2020. However, with the resumption of operations by end-users such as restaurants, hotels, gyms, and other commercial spaces, the growth of the regional near-field communication chips market recovered and increased further. This trend is expected to continue during the forecast period, driving the growth of the regional market.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
NFC Systems Market- The market size is estimated to grow at a CAGR of 14.63% between 2022 and 2027. The market size is forecast to increase by USD 21,742.46 million.
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Near Field Communication (NFC) Chips Market Scope |
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Report Coverage |
Details |
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Page number |
173 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 12.78% |
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Market growth 2023-2027 |
USD 3,083.48 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
10.76 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 63% |
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Key countries |
US, Canada, China, South Korea, and Japan |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Broadcom Inc., EM Microelectronic Marin SA, HID Global Corp., Identiv Inc., Infineon Technologies AG, Intel Corp., MagTek Inc., Marvell Technology Inc., MediaTek Inc., Murata Manufacturing Co. Ltd., Nordic Semiconductor ASA, NXP Semiconductors NV, Qualcomm Inc., Renesas Electronics Corp., Samsung Electronics Co. Ltd., STMicroelectronics NV, Texas Instruments Inc., Thales, Verimatrix Inc., and Sony Group Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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