Near Field Communication (NFC) Market by Offering (Hardware (Tags/Cards, Readers), Platform), Operating Mode (Read/Write, Peer-to-Peer, Card Emulation), Application (Contactless Payment, Ticketing, Data Transfer & Sharing), End-use Industry, and Geography - Global Forecast to 2030

The Near Field Communication (NFC) Market is projected to reach $50.1 billion by 2030, at a CAGR of 12.3% from 2024 to 2030. The growth of this market is attributed to the rising demand for contactless payment and the growing integration of NFC technology in smartphones. Furthermore, the surging adoption of NFC technology in retail to improve customer experience and growing keyless entry applications in apartments & cars are expected to create significant opportunities for this market. However, the limited range of operations challenges this market growth. Also, security issues in near field communication are restraining market growth.

The global NFC market is segmented based on offering, operating mode, application, and end-use industry. The study also evaluates industry competitors and analyses the regional and country-level markets.

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Rising Demand for Contactless Payment is Expected to Drive Market Growth

With the increasing consumer preference for low or no-touch engagements, contactless payment technologies have been widely adopted since COVID-19. Contactless cards, kiosk payments, and QR codes are becoming increasingly prevalent for a safer shopping experience, and digital wallets are replacing conventional in-store payment methods. According to Visa's Back to Business Study, 63% of consumers claimed they would change to a company that accepts contactless payments.

For businesses and customers, accepting contactless payments has the major advantage of being significantly faster than other physical payment methods. Contactless payments are also possible via NFC technology. Mobile contactless payments like Apple Pay are related to near field communication (NFC). With NFC, contactless cards allow users to complete transactions by tapping on NFC-capable point-of-sale terminals at the participating merchants.

The contactless payment capability of NFC technology is encouraging companies to focus on NFC-based payments solution to support the transition from physical transition to contactless payments. For instance, in September 2022, ProvidusBank (Nigeria), Mastercard International Incorporated (U.S.), Interswitch Group (Nigeria), and Thales Group (France) introduced a new Tap-to-Pay service. The service allows cardholders to make fast, secure, and convenient in-store payments by tapping their NFC-enabled smart device at any contactless-enabled payment terminal. Such collaborative efforts of companies to provide the benefits of contactless payments to consumers contribute to the adoption of NFC technology.

Key Findings in the NFC Market Study:

The Hardware Segment is Projected to Register the Highest CAGR During the Forecast Period

Based on offering, the global NFC market is segmented into hardware and platform. The hardware segment is projected to record the highest CAGR during the forecast period. The growth of this segment is driven by the rising integration of NFC technology in smartphones and point-of-sale (POS) terminals and the growing use of NFC tags/cards by organizations to improve consumer experience.

In 2024, the Mixed Reality Segment is Expected to Dominate the NFC Market

Based on operating mode, the global NFC market is segmented into read/write mode, peer-to-peer mode, card emulation mode, and charging mode. In 2024, the card emulation mode segment is expected to account for the largest share of the global NFC market. The large market share of this segment is attributed to the benefits of this mode, such as security, compatibility, and reliability. Furthermore, this mode allows a device, such as a smartphone or wearable, to emulate a contactless card and connect to an existing framework.

The Access Control & Authentication Segment is Projected to Register the Highest CAGR During the Forecast Period

Based on application, the global NFC market is segmented into contactless payment, data transfer & sharing, access control & authentication, ticketing, asset tracking, and other applications. The access control & authentication segment is also projected to record the highest CAGR during the forecast period. The growth of this segment is driven by the adoption of NFC technology in automotive to facilitate smart entry in passenger vehicles, the growing use of NFC cards/tags for access control in organizations, and the growing adoption of smart locks.

In 2024, the Retail Segment is Expected to Dominate the NFC Market

Based on end-use industry, the global NFC market is segmented into retail, BFSI, healthcare, automotive, hospitality, consumer, electronics, transportation, residential & commercial, manufacturing, and other end-use industries. In 2024, the retail segment is expected to account for the largest share of the NFC market. The large market share of this segment is attributed to the increasing penetration of digital payments in retail, the growing use of technology for product identification, and the need to reduce counterfeiting.

In 2024, Asia-Pacific is Expected to Dominate the NFC Market

Based on geography, the global NFC market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Asia Pacific is expected to account for the largest share of the NFC market. The region's large share is attributed to the increasing penetration of digital payments in this region, the presence of large hospitality organizations such as Marriott International, Inc. (U.S.), Jin Jiang International (Holdings) Co., Ltd. (China), Banyan Tree Holdings Limited (Singapore), and Mandarin Oriental Hotel Group Limited (Hong Kong).

Key Players:

The key players profiled in the global NFC market study include NXP Semiconductors N.V. (Netherlands), Broadcom Corporation (U.S.), Renesas Electronics Corporation (Japan), STMicroelectronics N.V. (Switzerland), Infineon Technologies AG (Germany), Identiv, Inc. (U.S.), ams-OSRAM AG (Austria), Intel Corporation (U.S.), Texas Instruments Incorporated (U.S.), Samsung Electronics Co., Ltd. (South Korea), Sony Corporation (Japan), Avery Dennison Corporation (U.S.), MagTek Inc. (U.S.), Identis (India), HID Global Corporation(a subsidiary of ASSAABLOY AB) (U.S.).

Scope of the Report:

NFC Market Assessment, by Offering    

• Hardware
  • IC's & Antennas
  • Tags/Cards
  • Readers
  • Other Hardware
• Platforms    

 NFC Market Assessment, by Operating Mode

• Read/Write Mode
• Peer-to-peer Mode
• Card Emulation Mode
• Charging Mode

 NFC Market Assessment, by Application

• Contactless Payment
• Data Transfer & Sharing
• Access Control & Authentication
• Ticketing
• Asset Tracking
• Other Applications

 NFC Market Assessment, by End-use Industry

• Retail
• BFSI
• Healthcare
• Automotive
• Hospitality
• Consumer Electronics
• Transportation
• Residential & Commercial
• Manufacturing
• Other End-use Industries

 NFC Market Assessment, by Geography

• North America           
  • U.S.
  • Canada
• Europe         
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Singapore
  • Rest of Asia-Pacific
• Latin America            
• Middle East & Africa

Key Questions Answered in the Report: