Near Field Communication (NFC) Chips Market Size 2024-2028
The near field communication (nfc) chips market size is forecast to increase by USD 3.71 billion, at a CAGR of 13.64% between 2023 and 2028.
- The market is experiencing significant growth, driven by the increasing penetration of smartphones with integrated NFC capabilities. This trend is fueled by the convenience and versatility of NFC technology, which enables contactless payments, ticketing, and access control, among other applications. Another key driver is the increasing demand for smart parking solutions, as urbanization and growing traffic congestion necessitate more efficient and streamlined parking management systems. However, the market faces challenges from substitute payment systems, such as QR code-based solutions and traditional credit and debit cards.
- These alternatives offer similar contactless payment functionality and may limit the adoption of NFC chips. Companies in the NFC Chips Market must innovate and differentiate their offerings to maintain a competitive edge. Strategic partnerships, collaborations, and investments in research and development can help businesses capitalize on the market's potential and navigate the challenges effectively.
What will be the Size of the Near Field Communication (NFC) Chips Market during the forecast period?
Explore in-depth regional segment analysis with market size data - historical 2018-2022 and forecasts 2024-2028 - in the full report.
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The market continues to evolve, driven by the expanding use cases and technological advancements in this contactless technology. NFC's seamless integration into various sectors, such as contactless payments, supply chain management, healthcare applications, and industrial automation, is revolutionizing business processes. NFC middleware and reader-writer mode enable inventory tracking and data logging, while NFC antennas extend read range and enhance performance. NFC software and readers facilitate secure data transfer and peer-to-peer communication, ensuring regulatory compliance and encryption algorithms. The market dynamics are further shaped by advancements in NFC antenna design, power consumption optimization, and chipset integration. NFC controllers and wireless communication enhance industrial automation and smart home integration.
NFC libraries, NFC writers, and NFC APIs streamline development and customization. The ongoing unfolding of market activities includes the emergence of new applications, such as digital signage and access control systems, and the evolution of existing ones, like transit ticketing and card emulation. The market's continuous growth is fueled by the convergence of NFC technology with RFID and the development of new operating frequencies. NFC's role in enabling contactless payments is a significant factor in its market growth. However, its applications extend beyond monetary transactions, with potential in areas like healthcare, transportation, and industrial automation. The technology's ongoing evolution is marked by advancements in water resistance, temperature range, and security protocols, ensuring its relevance and versatility in various industries.
How is this Near Field Communication (NFC) Chips Industry segmented?
The near field communication (nfc) chips industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
- Type
- Non-auxiliary
- Auxiliary
- Product
- Smartphones
- Smart wearables
- POS terminals
- Others
- Geography
- North America
- US
- Canada
- APAC
- China
- Japan
- South Korea
- Rest of World (ROW)
- North America
By Type Insights
The non-auxiliary segment is estimated to witness significant growth during the forecast period.
The Near Field Communication (NFC) chip market encompasses a range of applications and technologies, including testing and validation, mobile payments, inductive coupling, impedance matching, temperature range, the NFC Forum, active mode, access control systems, passive mode, transit ticketing, NFC libraries, NFC writers, contactless payments, supply chain management, NFC middleware, reader-writer mode, inventory tracking, NFC antennas, healthcare applications, NFC software, NFC readers, read range, water resistance, encryption algorithms, RFID technology, card emulation, operating frequency, digital signage, NFC controllers, wireless communication, industrial automation, smart home integration, regulatory compliance, NFC enabled devices, peer-to-peer communication, data transfer rates, data logging, chipset integration, NFC APIs, antenna design, power consumption, security protocols, antenna tuning, cost optimization, ISO/IEC standards, authentication methods, firmware updates, and wearable technology.
NFC chips are integrated into various products, such as smartphones, controllers, antennas, NFC tags, and NFC readers, enabling contactless payments, access control, and secure data sharing. Passive NFC tags, which can store and transfer a wide range of information, are read by NFC readers and are often used in public transportation systems and contactless POS terminals. NFC readers, on the other hand, are integrated into various devices, including access control systems, transit ticketing systems, and contactless POS terminals, to facilitate contactless transactions and data sharing. NFC technology offers numerous benefits, such as increased convenience, improved security, and enhanced functionality, making it a popular choice for various industries, including healthcare, retail, transportation, and logistics.
The Non-auxiliary segment was valued at USD 1.72 billion in 2018 and showed a gradual increase during the forecast period.
Regional Analysis
APAC is estimated to contribute 65% 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 NFC chips market in APAC is primarily driven by the region's high concentration of OEMs, particularly in the end-user industries of mobile payments, access control systems, and transit ticketing. Major OEMs, such as Huawei Technologies, Lenovo, LG Electronics, Newland Payment Technology, OPPO, OnePlus, Pax, Sony, and Samsung Electronics, have incorporated NFC chips into their product offerings. These manufacturers, including those based in China, Taiwan, South Korea, and Japan, have established production sites in APAC due to cost advantages. NFC technology enables various applications, including contactless payments, supply chain management, inventory tracking, and healthcare applications.
NFC chips operate using inductive coupling, impedance matching, and temperature range within the NFC forum's specifications. Impedance matching and temperature range are crucial factors in ensuring reliable communication between NFC devices. NFC chips operate in both active and passive modes, with active mode requiring a power source and passive mode utilizing energy from the reader. NFC chips are also used in transit ticketing, access control systems, and digital signage. NFC libraries, writers, and middleware facilitate the development and implementation of NFC applications. NFC readers and antennas are essential components of NFC systems, with read ranges varying depending on the application.
NFC chips are also used in wearable technology, industrial automation, and smart home integration. Security is a significant concern in NFC applications, with encryption algorithms and authentication methods essential to protect data. Regulatory compliance is also crucial, with NFC chips adhering to ISO/IEC standards. Firmware updates and antenna tuning are essential for maintaining optimal performance and cost optimization. NFC technology is not limited to mobile devices but is also used in RFID technology, card emulation, and peer-to-peer communication. NFC chips operate at a frequency of 13.56 MHz and support data transfer rates of up to 848 kbps.
Power consumption is a critical factor, with NFC chips designed for minimal power usage. NFC chips are also water-resistant and support wireless communication. In conclusion, the NFC chips market in APAC is thriving due to the region's high concentration of OEMs and the versatility of NFC technology. NFC chips are used in various applications, including mobile payments, access control systems, transit ticketing, and healthcare applications. NFC technology offers benefits such as contactless payments, supply chain management, inventory tracking, and security. NFC chips are essential components of NFC systems, including readers, antennas, libraries, writers, and middleware.
NFC technology is subject to regulatory compliance and security protocols, ensuring data protection and optimal performance.
Market Dynamics
Our researchers analyzed the data with 2023 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.
What are the key market drivers leading to the rise in the adoption of Near Field Communication (NFC) Chips Industry?
- The significant expansion of smartphone market penetration serves as the primary catalyst for market growth.
- The global NFC chips market is experiencing significant growth due to the increasing adoption of mobile payments and contactless technology. NFC chips enable inductive coupling for secure data transfer between devices, making them ideal for various applications such as access control systems and transit ticketing. The technology operates in both active and passive modes, allowing for flexibility in implementation. Testing and validation are crucial aspects of NFC technology to ensure impedance matching and temperature range compatibility. The NFC Forum, an industry association, plays a vital role in promoting the standardization and interoperability of NFC technology. NFC libraries and writers facilitate the development and deployment of NFC applications.
- The increasing popularity of mobile payments and the growing number of smartphone users worldwide are driving the demand for NFC chips. According to recent research, the global smartphone market is projected to reach 5.7 billion subscribers by 2025, with the majority of growth coming from the sales of affordable smartphones. The demand for NFC technology is expected to follow this trend, with applications ranging from secure access control systems to convenient transit ticketing solutions.
What are the market trends shaping the Near Field Communication (NFC) Chips Industry?
- Smart parking is an emerging market trend as demand continues to increase for more efficient and technologically advanced parking solutions. This growing demand reflects the need for convenient, contactless, and data-driven parking experiences.
- The market is witnessing significant growth due to the increasing adoption of contactless payments and supply chain management applications. NFC technology enables seamless and secure transactions, making it an attractive option for businesses and consumers alike. In addition to contactless payments, NFC chips are also being used for inventory tracking, healthcare applications, and supply chain management in reader-writer mode. NFC middleware and NFC software are essential components of NFC systems, enabling secure communication between NFC tags and NFC readers. NFC readers come in various forms, including portable and fixed, and offer different read ranges. NFC antennas are an integral part of NFC readers, determining the read range and efficiency of the system.
- NFC chips are also being used in healthcare applications, such as patient identification and medical record access, due to their water resistance and encryption algorithms. The healthcare industry's increasing focus on digitization and data security is driving the demand for NFC chips in this sector. In summary, the NFC chips market is experiencing robust growth due to the increasing demand for contactless payments, inventory tracking, and healthcare applications. NFC technology's ability to offer secure and efficient communication between devices is making it an attractive option for various industries.
What challenges does the Near Field Communication (NFC) Chips Industry face during its growth?
- The emergence of substitute payment systems poses a significant challenge to the industry's growth trajectory. This trend, driven by advancements in technology and shifting consumer preferences, necessitates a strategic response from industry players to maintain competitiveness and market share.
- Near Field Communication (NFC) chips have gained significant traction in various industries due to their integration with RFID technology. NFC enables wireless communication between NFC-enabled devices, facilitating peer-to-peer data transfer at operating frequencies of 13.56 MHz. This technology is increasingly used in digital signage, industrial automation, and smart home integration for contactless interactions. NFC controllers play a crucial role in managing the secure exchange of data between NFC devices. The market dynamics for NFC chips are driven by the increasing demand for regulatory compliance, higher data transfer rates, and seamless integration with various applications. NFC technology supports card emulation, allowing users to make contactless payments and access secure data using their smartphones.
- The market is expected to grow further as more industries adopt this technology for various applications. NFC chips offer numerous benefits, including immersive user experiences, harmonious integration with various systems, and increased security. As businesses continue to prioritize digital transformation, the demand for NFC-enabled devices and services is expected to surge. The technology's ability to facilitate secure and contactless transactions makes it an attractive option for industries such as healthcare, transportation, and retail. Overall, the future of NFC technology looks promising, with continued innovation and advancements expected to drive its growth.
Exclusive Customer Landscape
The near field communication (nfc) chips market forecasting 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 near field communication (nfc) chips market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Key Companies & Market Insights
Companies are implementing various strategies, such as strategic alliances, near field communication (nfc) chips market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
Broadcom Inc. - This company specializes in producing advanced microcontroller system chips, engineered for enhanced security in payment applications and user authentication within computing platforms. These chips ensure robust protection for sensitive data transactions.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- 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.
- Sony Group Corp.
- STMicroelectronics International N.V.
- Texas Instruments Inc.
- Thales Group
- Verimatrix Inc.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Recent Development and News in Near Field Communication (NFC) Chips Market
- In January 2024, Infineon Technologies AG, a leading provider of NFC chips, announced the launch of its new NFC Tag product line, the SLE78N1, which offers enhanced security features and longer read ranges (Infineon Technologies AG Press Release, 2024). In March 2024, NXP Semiconductors, another major player in the NFC chip market, entered into a strategic partnership with Mastercard to develop and deploy NFC solutions for contactless payment systems in the Asia-Pacific region (NXP Semiconductors Press Release, 2024).
- In May 2024, STMicroelectronics, a global semiconductor manufacturer, secured a significant investment of â¬1.4 billion from the European Investment Bank to expand its production capacity for NFC chips and other advanced technologies (European Investment Bank Press Release, 2024). In April 2025, Samsung Electronics Co. Ltd. Received approval from the Federal Communications Commission (FCC) in the United States to commercially deploy its new NFC-enabled mobile devices, marking a significant market entry for the South Korean tech giant (Federal Communications Commission Press Release, 2025).
Research Analyst Overview
- The NFC (Near Field Communication) chips market encompasses a diverse ecosystem, with various stakeholders shaping its dynamics and trends. NFC applications span from contactless payments and ticketing to access control and marketing campaigns. NFC integration challenges persist, particularly with Android NFC and IoT devices, necessitating collaboration among NFC chip manufacturers, reader manufacturers, and software developers. NFC tag lifespan and durability are crucial factors in ensuring seamless user experience. NFC-enabled smart cards and smartphones are increasingly popular, driving market growth. The NFC ecosystem continues to evolve, with NFC standards and security vulnerabilities under constant scrutiny. NFC marketing campaigns offer innovative use cases, while NFC antenna materials impact tag performance.
- The future trends include advancements in NFC technology limitations, such as longer read ranges and faster data transfer rates. Simultaneously, NFC security vulnerabilities necessitate ongoing efforts to enhance data protection. IOS NFC integration remains a topic of discussion, with potential implications for market expansion. NFC tag durability and user experience remain key focus areas for manufacturers and developers. NFC adoption rate continues to increase, driven by the convenience and versatility of NFC technology. Despite the progress, NFC technology faces challenges, including interoperability issues and the need for standardization. NFC forensics plays a crucial role in addressing security concerns and ensuring the integrity of NFC transactions.
- Overall, the NFC market presents significant opportunities for businesses seeking to leverage contactless technology for enhanced customer experiences and operational efficiency.
Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Near Field Communication (NFC) Chips Market insights. See full methodology.
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Market Scope |
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Report Coverage |
Details |
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Page number |
181 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 13.64% |
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Market growth 2024-2028 |
USD 3706 million |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
11.73 |
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Key countries |
China, US, South Korea, Japan, and Canada |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
What are the Key Data Covered in this Near Field Communication (NFC) Chips Market Research and Growth Report?
- CAGR of the Near Field Communication (NFC) Chips industry during the forecast period
- Detailed information on factors that will drive the growth and forecasting between 2024 and 2028
- Precise estimation of the size of the market and its contribution of the industry in focus to the parent market
- Accurate predictions about upcoming growth and trends and changes in consumer behaviour
- Growth of the market across APAC, North America, Europe, South America, and Middle East and Africa
- Thorough analysis of the market’s competitive landscape and detailed information about companies
- Comprehensive analysis of factors that will challenge the near field communication (nfc) chips market growth of industry companies
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