Near Field Communication Market - Size, Share, Industry Trends, and Forecasts (2024 - 2031)

By Product Type:

Based on product type, the market is segmented into smartphones, wearable devices, POS terminals, smart cards, and others.

Trends in the product type:

• NFC-enabled smart cards are widely used for secure access and identification. Recent trends include the development of multi-functional smart cards that combine various features, such as payment capabilities, transit access, and secure identification, into a single card.
• NFC technology is being embedded into a variety of devices beyond traditional consumer electronics, including household appliances and industrial equipment. This trend reflects the growing application of NFC in smart home systems and industrial automation, where NFC provides seamless connectivity and control.

The smartphone segment accounted for the largest revenue share of 36.20% in the year 2023.

• Most modern smartphones come equipped with NFC technology, making it a standard feature in mobile devices worldwide.
• Smartphones leverage NFC for multiple functionalities, including contactless payments, data sharing, device pairing, and access control.
• In September 2023, Huawei launched the Huawei P60 Pro with an LTPO OLED screen of high resolution, 120Hz refresh rate, camera sensors, and connectivity. It is integrated with NFC technology for various applications, including mobile payments and smart device pairing.
• Therefore, widespread adoption of smartphones and integration with NFC technology is boosting the near field communication market trend.

The wearable device is anticipated to register the fastest CAGR during the forecast period.

• Wearable devices like smartwatches and fitness trackers are rapidly gaining popularity due to their convenience and functionality.
• The trend towards using wearables for contactless payments is growing. Many consumers prefer the convenience of making payments with their smartwatch or fitness band, which is likely to drive further adoption of NFC in these devices.
• In September 2023, Google introduced the Fitbit Charge 6 for fitness tracker along with access control over digital wallets enabling contactless payments directly from the fitness tracker.
• Hence, the analysis shows that the wearable devices used for contactless payments are fueling the near field communication market demand.

By Application:

Based on application the market is segmented into contactless payment, access control, marketing, and others.

Trends in the Application:

• NFC is being integrated into digital identity solutions for secure access control in various sectors, including corporate offices, events, and public transportation.
• The market and advertising industry are utilizing NFC technology to create interactive and engaging user experiences. It is embedded in posters, packaging, and advertisements allowing consumers to access additional content, offers, or product information by tapping their NFC-enabled devices.

The contactless payment segment accounted for the largest revenue share in the year 2023 and is anticipated to register the fastest CAGR during the forecast period.

• NFC technology is increasingly being used for secure and convenient contactless payments.
• The trend is moving towards more widespread adoption of mobile wallets and payment systems, enabling users to make transactions by simply tapping their smartphones or wearables on payment terminals.
• In October 2021, Qualcomm and NXP collaborated to expand eSIM into the wearable segment. This partnership aimed at integrating NXP's eSIM solutions with Qualcomm's Snapdragon Wear platform. The Snapdragon Wear 4100+ uses near field communication technology for contactless payments.
• Hence, as per the analysis the increasing demand for contactless payments is proliferating the global near field communication market.

By End-User:

Based on end-users the market is segmented into retail, transportation, healthcare, BFSI, IT and telecommunications, hospitality, and others

Trends in the End-User:

• The transportation segment utilizes near field communication technology for contactless payments enabling passengers to use contactless cards and mobile devices for quick and convenient fare payments.
• There is a growing trend towards the adoption of NFC technology in the hospitality sector for mobile room keys, allowing guests to use their devices to check in and access the rooms without physical keys.

The retail segment accounted for the largest revenue share in 2023.

• Retailers globally are increasingly adopting NFC technology for contactless payment systems. This enables customers to make quick and secure transactions using smartphones or NFC-enabled cards.
• The technology enhances the customer experience by offering seamless payment options, digital loyalty programs, and interactive marketing tools.
• In January 2023, Qualcomm Technologies introduced retail Internet of Things (IoT) which enables seamless payments through voice assistants, smart cards, and other devices. The digital transformation includes Datalogic and Worldline for contactless shopping and Tap-to-Pay with NFC technology for making payments.
• Therefore, the adoption of NFC technology is transforming the way the retail industry operates, driving the near field communication market share.

The healthcare segment is anticipated to register the fastest CAGR during the forecast period.

• Near field Communication facilitates communication between medical devices, improving patient identification and ensuring secure data transfer.
• It provides robust technology by enabling healthcare providers to create electronic patient records linked to NFC tags and cards.
• Additionally, it facilitates secure and easy access to electronic health records (EHRs), streamlined medical equipment tracking, health monitoring, and disease diagnosis with enhanced security.
• In January 2021, according to the analysis of the National Center for Biotechnology Information, the field technology is used across biomedical fields including healthcare and disease monitoring. It helps in personalized health monitoring, disease diagnosis, and drug identification without requiring transmission control protocol connections.
• Therefore, improved health monitoring and secured patient records in the healthcare sector in boosting the near field communication market.

Regional Analysis:

The regions covered are North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.

Asia Pacific region was valued at USD 7,159.94 Million in 2023. Moreover, it is projected to grow by USD 8,104.92 Million in 2024 and reach over USD 22,051.76 Million by 2031. Out of this, China accounted for the maximum revenue share of 28.6%. The Asia-Pacific region is experiencing rapid growth in NFC technology, driven by countries including China, Japan, South Korea, and India. According to the analysis, the region is seeing significant investments in mobile payments and smart devices. Moreover, high smartphone penetration, rising e-commerce, smart city developments, and advancements in smart devices for access control and digital payments are key drivers of the near field communication market.

• In September 2021, Samsung Electronics introduced Genesis GV60, a digital key for Samsung smartphones. This Samsung digital key is powered by NFC and ultra-wideband (UWB) technology which enables users to control access to their cars with smartphones.

Thus, the global market benefits immensely from the APAC region's prowess in the Near Field Communication Market trends.

North America is estimated to reach over USD 27,891.42 Million by 2031 from a value of USD 9,319.71 Million in 2023 and is projected to grow by USD 10,524.31 Million in 2024. North America, particularly the US and Canada, is a leading region in NFC technology adoption. The region has a well-established infrastructure, high technology penetration, and significant investments in innovative applications of NFC. High consumer demand for contactless payments, advancements in mobile technology, and the presence of major tech companies and financial institutions drive NFC growth. Additionally, the integration of NFC in mobile payments, smart cards, and wearable devices is prominent, fueling the near field communication market growth.

• In September 2023, Apple (US) unveiled the Apple Watch Series 9 integrated advanced NFC capabilities, including seamless contactless payments with Apple Pay and secure access control along with health monitoring. This enhances the role of NFC in wearables, driving consumer adoption.

As per the near field communication market analysis, Europe is a strong player in the NFC market, with countries including Germany, the UK, and France showing robust adoption rates. The European market benefits from regulatory support for contactless payments and a strong emphasis on data security.

Latin America, the Middle East, and Africa are gradually adopting NFC technology, with countries including Brazil, Mexico, UAE, South Africa, and Saudi Arabia leading the charge. The region is witnessing increased investment in digital payment infrastructure and mobile technology boosting the near field communication market.