Thursday, 11 September 2014

Near Field Communication (NFC) Market Forecast 2013 - 2019


The global market for NFC, in terms of revenue, was valued at USD 1.07 billion in 2012 and is estimated to grow at a CAGR of 43.7% during the forecast period from 2013 to 2019. The growing adoption of NFC technology in smartphones emerged as the most significant growth driver for NFC market. In 2012, North America was the largest market for NFC which held a share of around 32% in terms of revenue owing to the significant demand for contactless payments and early implementation of technology.

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Among all the product types, NFC reader was the largest segment in terms of revenue in 2012 and accounted for around 46% share of the total market, majorly owing to higher selling prices. Growing adoption of NFC technology would also increase the demand for NFC readers during the coming years. NFC tags are finding significant demand in newer applications such as NFC marketing, games and toys, and healthcare among others and this is expected to drive the growth of NFC tags during the coming years.

Contactless transactions using NFC-enabled devices were the largest application for NFC in 2012, holding a share of around 22% of the total market. Authentication and access control using NFC is fast gaining market traction owing to improved security features. Low awareness among people towards the benefits and concerns regarding security and privacy related with the use of NFC technology has been a challenge for the growth of this market. However, users are increasingly confident with the use of contactless payments and this would lead to further rise in demand for NFC technology. The major challenge for NFC contactless payments during the coming years would be low level of co-ordination among various participants in the value chain such as banks/credit card companies and payment service providers and network operators.


In 2012, NXP Semiconductors N.V. and STMicroelectronics N.V. emerged as the leading players for NFC controller ICs and secure elements. Other key players in the market include Broadcom, Inc., DeviceFidelity, Inc., Gemalto N.V., Visa, Inc., Samsung Electronics Co. Ltd., Toshiba Corporation, Identive Group, Inc., On Track Innovations (OTI) Ltd. and Infineon Technologies, among others. The market has been segmented as follows:

Near Field Communication Market, by Product Type

NFC controller ICs (chips)
NFC tags
NFC readers
NFC secure elements


Near Field Communication Market, by Application
Payment (transaction)
Ticketing
Booking
Data sharing
Service
Authentication and access control
Medical
Games and toys
Others (smart advertising, NFC based navigation)


Near Field Communication Market, by Geography
North America
Europe
Asia Pacific
Rest of the World

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