Near Field Communication Chips Market Size 2024-2028

The near field communication (NFC) chips market is projected to grow by USD 3.71 billion from 2023 to 2028, at a compound annual growth rate (CAGR) of 13.64%. The market is primarily driven by increasing smartphone adoption, particularly with Android operating systems, and the growing demand for contactless transactions and mobile commerce.

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Market Segmentation

The NFC chips market is segmented based on type, product, and geography. Below are the key segments and subsegments:

By Type

• Non-auxiliary
• Auxiliary

By Product

• Smartphones
• Smart wearables
• POS terminals
• Others

By Geography

• APAC
  • China
  • Japan
  • South Korea
• North America
  • Canada
  • US
• Europe
• South America
• Middle East and Africa

Market Dynamics

Drivers: 

The NFC chips market is mainly driven by the growing adoption of smartphones. With mobile phone penetration increasing globally, particularly in countries like India, Vietnam, and the Philippines, the demand for NFC technology continues to rise. Mobile payment systems and IoT applications, including wearables and contactless smart cards, further drive the demand for NFC chips.

Trends: 

A notable trend in the NFC chips market is the increasing demand for smart parking solutions. NFC technology is being integrated into parking solutions, especially in the US, enhancing transaction security and improving the user experience. The mobile industry's adoption of NFC, particularly through Android OS features like Android Beam, plays a significant role in advancing this trend.

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Challenges: 

One of the significant challenges the market faces is the rising threat from substitute payment systems. Online banking and mobile wallets have become increasingly popular, and while NFC technology facilitates secure and convenient payments, substitute technologies could pose a competitive challenge to NFC adoption.

Key Players in the NFC Chips Market:

• 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. (April 2023) - Verimatrix launched NFC chips designed for smart tickets to replace traditional ticketing systems in transportation, including buses, trains, and airports.

Future Market Insights

The NFC chips market is poised for significant growth as industries continue to adopt this technology for applications in mobile payments, wearables, smart cards, and smart parking solutions. The market's expansion is anticipated to be fueled by the ongoing innovation in NFC technology and its integration into various sectors such as transportation, retail, and healthcare. With increasing consumer demand for convenience and security, the NFC chips market is expected to remain a key player in the global tech landscape through 2028.