Near Field Communication (NFC) Market Size was valued at USD 24.23 Billion in 2023. The Near Field Communication (NFC) Market industry is projected to grow from USD 26.3 Billion in 2024 to USD 60.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 12.30% during the forecast period (2024 - 2032). The growing product use in contactless payment and information systems drives the worldwide near-field communication (NFC) industry. Accordingly, the growing trend of social isolation to reduce contact with others brought on by the COVID-19 disease has raised the adoption of intelligent payment solutions such as cashless or contactless payments are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The growing demand for secure and contactless information systems and payments is one of the main factors propelling the growth of the worldwide near field communication (NFC) market. The development of contactless near field communication (NFC) has greatly benefited the customer service, transportation, social networking, and healthcare industries. According to a Gartner report from 2020, 36 billion IoT devices will be used for NFC-enabled mobile payments. By 2025, according to the GSMA, smartphones and near field communication (NFC) will support 80% of all connections worldwide. This potent pairing of NFC and smartphones considerably drives the near field communication (NFC) market. Additionally, a spike in the usage of smart wearables and IoT-based devices is anticipated to support market expansion. Therefore, the growing use of contactless payment methods has enhanced the market CAGR in recent years.
Figure 1: Estimated market size of contactless payments in various regions worldwide from 2020 to 2024
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Near field communication (NFC) -capable jewelry such as rings, smartwatches, bracelets, wristbands, fitness monitors, and key fobs are rising in popularity worldwide. 304.69 million wearables shipped worldwide in 2021. The wearable market is anticipated to ship 344.9 million units globally in 2022, representing a 13.2% CAGR. The benefits of wearable payment devices, such as the potential to anticipate consumer requirements, improve customer interaction, and enhance merchant payment tracking, have significantly expanded the use of near field communication (NFC)-enabled wearable devices. Additionally, there is a significant chance that the industry will expand due to end users' increased use of cloud-enabled rings for low-value transactions throughout the globe. Thus, the growing wearable device industry is another factor driving the growth of the near field communication (NFC) market revenue.
The near field communication (NFC) market segmentation, based on type, includes non-auxiliary and auxiliary. Most near-field communication (NFC) markets consisted of non-auxiliary products. Internal NFC-enabled accessories, such as NFC IC/Chips made for smartphones to enable contactless payments, access control, and safe pairing with other NFC devices for data transfer, are known as non-auxiliary near field communication (NFC) items.
November 2021: STMicroelectronics has introduced a low-cost NFC Type 2 Tag IC with privacy features and enhanced NDEF. The solution provides a new cost-performance balance for high-volume usage cases, including consumer engagement, product information, and brand protection. This creation has broadened the growth opportunity for the near field communication (NFC) industry.
The second fastest-growing segment in the near field communication (NFC) industry is the auxiliary sector. Auxiliary near field communication (NFC) is also the best for network authentication, e-transactions, collecting toll road fares, securing access control e-payment, and e-ticketing for events and public transportation.
The near field communication (NFC) market data has been bifurcated by end-user into cloud service, telecom service, and enterprise. The enterprise sector dominated the market with respect to the near field communication (NFC) market revenue. Because of the quick adoption of NFC technology in various applications, such as access control, product identification, and transactions, the market is growing in the retail sector.
Figure 2: Near Field Communication (NFC) Market, by End-User, 2021 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The second fastest-growing segment in the near field communication (NFC) industry is the telecom industry. Due to its simplicity, security, and affordability in connecting Android and iOS mobile phones to appliances or other electronic devices, Near Field Communication (NFC) is becoming increasingly popular among designers and customers. Hence, rising applications of NFC in the telecom sector positively impact market growth.
By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. North America Near Field Communication (NFC) market accounted for USD 8.8 billion in 2021 and is expected to exhibit a significant CAGR of 43.9 percent growth during the study period. The near-field communication market is anticipated to grow rapidly across North America, particularly in the United States and Canada, along with the wide adoption of near field communication (NFC) solutions in banking, finance, retail, and healthcare. North America will also likely dominate the market due to many important competitors and the anticipated high adoption and development of near field communication (NFC) solutions. The near field communication (NFC) IC NTAG 210 from NXP is used in Identiv's Dry Inlay (25 mm diameter), which has been made available at a lower price.
Further, the major countries studied in the market report are The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: NEAR FIELD COMMUNICATION (NFC) MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe near field communication (NFC) market accounts for the second-largest market share. Demand for near field communication (NFC) is rising as the region uses cutting-edge technologies like artificial intelligence and cloud-based apps more frequently. The proliferation of NFC-enabled payment wearables is the key driver anticipated to support European market expansion over the forecast period. The European wearable market is anticipated to reach 170.0 million units in 2025. Further, the German near field communication (NFC) market held the largest market share, and the UK near field communication (NFC) market was the fastest-growing market in the European region.
The Asia-Pacific Near Field Communication (NFC) Market is expected to grow at the fastest CAGR from 2022 to 2030. Demand for near field communication (NFC) is rising as the region uses cutting-edge technologies like artificial intelligence and cloud-based apps more frequently. The region's near-field communication market is also growing as more people in countries like China and India use smartphones. In China, there were almost 1.04 billion smartphone users in 2022. Moreover, China near field communication (NFC) market held the largest market share, and the India near field communication (NFC) market was the fastest growing market in the Asia-Pacific region
The market for near field communication (NFC) will continue to rise due to major market players spending a lot of money on R&D to diversify their product offerings. Market participants are engaging in various strategic initiatives to improve their worldwide presence along with important market developments such as new product releases, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. Competitors in the near field communication (NFC) industry must offer reasonably priced products if they want to thrive and survive in a hostile environment where competition and the market are expanding.
One of the primary business strategies manufacturers use in the near field communication (NFC) industry to assist clients and expand the market sector is local manufacturing to reduce operating costs. Some of the most significant advantages recently given to medicine by the near field communication (NFC) industry. Near field communication (NFC) market major players in the biosensor industry, including Texas Instruments (US), STMicroelectronics (Switzerland), Qualcomm (US), and NXP Semiconductors (The Netherlands), are supporting R&D projects to boost market demand.
Osram Licht AG is a German manufacturer of electric lighting with headquarters in Munich and Premstätten (Austria). Osram sees itself as a high-tech photonics company with a growing emphasis on sensor technologies, visualization, and light treatment. In May 2021, Osram and Infineon Technologies AG (FSE: IFX / OTCQX: IFNNY) joined forces to allow industry-wide Near Field Communication (NFC) programming. Infineon's NLM0011 and NLM0010 dual-mode NFC wireless configuration integrated circuits (ICs) with pulse width modulation are used in Osram's new OPTOTRONIC ® FIT product family (PWM).
Pragmatic is a low-cost, flexible electronics company. Their flexible integrated circuits (FlexICs) are thinner than human hair and maybe invisibly placed in objects, allowing inventors to build unique solutions to everyday problems that would be impossible to solve with traditional electronics. In July 2021, PragmatIC Semiconductor (a flexible electronics firm), Avery Dennison (a manufacturer of inlays), and Schreiner MediPharm (a pharmaceutical packaging company) collaborated to develop a low-cost solution: an NFC-enabled smart label for pharmaceuticals. This will allow for better monitoring of pharmaceuticals and healthcare items by enhancing and identifying potential tampering and authentication, allowing patients to reorder instructions and information.
NXP Semiconductors (The Netherlands)
Qualcomm (US)
Broadcom (US)
STMicroelectronics (Switzerland)
Texas Instruments (US)
July 2022: Infineon offers the NAC1080: a single-chip solution with an integrated H-Bridge for passive NFC lock applications. The NAC1080 MCU uses the near field communication (NFC) interface to allow cell phones to operate devices directly. Advanced local and cloud functionalities can be added to the regional marketing partners' mobile apps. This decreases the material bill and promotes miniaturized product design.
June 2020: NXP Semiconductors, Mastercard, and Xiaomi Inc. announced that they would deliver more convenient and secure contactless experiences to Russia as part of the first phase of a European-wide rollout of NXP's mobile wallet solution. NXP's mWallet 2GO, which powers mobile payments for Xiaomi's Mi Smart Band 4 NFC wearable devices, enables an expedited roll-out across Europe by answering OEMs' needs for simple yet secure and scalable wallet implementations.
Non-Auxiliary
Auxiliary
Cloud Service
Telecom Service
Enterprise
North America
US
Canada
Europe
Germany
France
UK
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Australia
Rest of Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 24.23 Billion |
| Market Size 2024 | USD 26.3 Billion |
| Market Size 2032 | USD 60.2 Billion |
| Compound Annual Growth Rate (CAGR) | 12.30% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018 & 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type and End-User |
| Geographies Covered | Europe, North America, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Texas Instruments (US), STMicroelectronics (Switzerland), Qualcomm (US), and NXP Semiconductors (The Netherlands). |
| Key Market Opportunities | Increasing urbanization in emerging economies |
| Key Market Dynamics | Increasing trend of mobile commerce Growing adoption of wearable technology |
Global Near Field Communication Market Highlights:
Frequently Asked Questions (FAQ) :
In 2023, the value of the near field communication (NFC) market size was estimated at USD 24.23 Billion.
The market is estimated to grow at a CAGR of 12.30% during the forecast period 2024-2030.
The largest market share worldwide was held by North America.
The key players in the market are Texas Instruments (US), STMicroelectronics (Switzerland), Qualcomm (US), and NXP Semiconductors (The Netherlands).
The nom-auxiliary near field communication (NFC) category dominated the market in 2021.
The retail user had the largest share of the market.
NFC or Near-Field Communication is a bunch of short-range remote innovations, regularly requiring a distance of 4cm or less to start an association. NFC permits you to divide small payloads of information among an NFC tag and an Android-controlled gadget or two Android-based devices.
Basically, it's a strategy for remote information move called NFC (Near field correspondence) that distinguishes and afterward empowers innovation in nearness to convey without the requirement for a web association. It's simple, quick, and works amazingly.
It's likewise a profoundly flexible stage in that it covers a scope of administrations and enterprises. As an installment stage, NFC can be utilized for mobile banking, eatery reservations, booking train or film tickets, conveying ongoing updates on consumption and prize focuses, recovering rewards and coupons, and the sky is the limit from there. Clients are better off through promising, bother-free innovations, which like this improves brand notoriety and expands profitability.
Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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