NFC Market worth $30.55 billion by 2029

The global NFC market will be USD 30.55 billion by 2029 from USD 21.69 billion by 2024, at a CAGR of 7.1% during the forecast period according to a new report by MarketsandMarkets. Rapid industrialization and urbanization prevail largely in the emerging economies of China and India, particularly through the development of smart cities. Gradual concentration in industrial development has increased demand for the infrastructure required in cities. This would eventually lead to the development of educational & healthcare institutions, public administration offices, shopping malls, stores, and warehouses. This, in turn, will boost the demand for advanced NFC solutions and smartcard, particularly in technologically advancing countries such as India, China, and Brazil.

NFC hardware products are internal NFC-enabled accessories that are built into the device to facilitate NFC communication. These include NFC IC/Chips designed for smartphones to make contactless payments, access control, and secure paring with other NFC devices for data sharing. NFC tags are similar to RFID tags that are used to store small but essential data used as readers and access control devices. NFC tags are similar to RFID tags and are used to store essential data in a compact format.

This data can be read and accessed by NFC readers or NFC-enabled smartphones. NFC tags are commonly utilized for proximity and vicinity identification. Some of their applications include transit systems, ticketing, access control, and offline authentication through digital signatures.

In the transportation industry, the NFC-enabled phone transactions can be used with existing contactless infrastructure, which requires no additional investment. NFC enables two-way communications such as redeeming a ticket and sensing a receipt. NFC forum tags placed behind posters and other printed media (smart posters) allow travelers to touch and read schedules, get special offers, and learn about destination highlights. The major applications of NFC in the transportation industry are ticketing and access control. NFC-enabled smartphones and travel cards allow passengers to simply use their personal devices/cards on designated readers to validate their tickets or access rail, metro, and airport stations. NFC adds several benefits in all stages of ticketing such as convenience, security, and flexibility. Proof of ticket registration, special travel discount coupons and entitlements can be stored on the phone or travel cards.

North America is one of the leading markets for NFC in terms of R&D, network design/deployment, and the presence of key market players such as Broadcom (US), Qualcomm Technologies, Inc. (US), Texas Instruments Incorporated (US), and Flomio, Inc. (US). In North America, the US is considered to have the most engaged mobile user base, and this is expected to grow with the addition of new subscribers. Full-fledged NFC implementation in North America is expected to boost retail services. In the current scenario, the NFC industry for such services is growing continuously. The US is a leading adopter of advanced technologies committed to implementing automation solutions across various sectors. It ranks among the top three countries for spending on smart city initiatives and is also one of the top five nations in industrial automation investments. Additionally, smartphone penetration rate is high in the country, which has facilitated the widespread adoption of wired and wireless technologies.