NFC Chips Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trend, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI2827
NFC Chips Market size is predicted to grow over the forecast time span owing to the rise in the applications of these components in consumer electronics and smart appliances. The integration of this technology into smartphones for online payment services is providing the customers the advantage of digitizing their wallet. Several OS developers are providing their own applications for this functionality. For instance, Android is offering several applications for contactless payments such as Android Pay, and Samsung is providing Samsung Pay for their users. Several players are integrating this technology into smartwatches to provide contactless payment functionality to them. In November 2016, Samsung launched its Samsung Gear S3, which provides NFC-based payments with its Samsung Pay application. The applications of this technology in these smart devices are driving the demand for the components in the NFC chips market.
Increasing government initiatives for digital payments in countries including India are driving the demand for these components, positively impacting the NFC chips market. The rise in corruption activities in the country is encouraging the government administration to support cashless payments and adopt the chips. In July 2015, the Indian government launched the Digital India Program, an initiative to provide its citizens with an improved online infrastructure by enhancing the Internet connectivity. The initiative provides a seamless payment facility in an affordable, easy, convenient, quick, and secured manner. Several advantages of government initiatives and digital payments have increased customer satisfaction, improved sales, reduced expenses, and enhanced the security. These advantages are encouraging the country to transform their payments into digital modes, thereby driving the NFC chips market growth.
The wide adoption of contactless payments across several industries is augmenting NFC chips market. The retail sector is the leading industry where the demand for this technology is increasing rapidly. With the increase in traffic in shopping malls and retail stores, it is convenient to adopt devices with contactless payment features to save time and cost for the company. This technology will make shopping easier and quicker for customers and will allow retailers to serve them more quickly and easily. The growing need for speedy transactions is generating a massive demand for these devices in the NFC chips market.
Lack of awareness about this technology and its applications is limiting the growth of the NFC chips market. The integration of these components into smart devices and the creation of several applications to support such payment modes are expected to make the users aware about the technology in the NFC chips market. The complexity in designing these chips is another factor restraining the industry growth. The technical challenge faced by the developers is the integration of these chips into electronic devices such as smartphones and smartwatches. The increasing applications of NFC chips other than card payments will create opportunities for the market in the future. For instance, Apple, Inc. is integrating this technology into their iPhones, which will provide wireless data transferring without the internet connectivity. The company is using the technology for unlocking the doors using iPhones in their offices.
Increasing mergers and acquisitions in the NFC chips market are expected to grow the demand for these devices. It will provide a large market base to the leading company and will help in increasing its market coverage, thereby driving the demand of these devices. For instance, in January 2018, Qualcomm Technologies, Inc. acquired NXP Semiconductors to expand the offerings of the company. It is anticipated to accelerate its strategy of extending the leading mobile technology into robust new opportunities. This acquisition provides Qualcomm Technologies, Inc. the advantage of targeting the potential customers of NXP Semiconductors and growing their market share in the NFC chips market.
Applications of the technology in smartphones are expanding the demand for these components in the NFC chips market. The rise in technological advancements is encouraging the players to integrate the technology into mobile phones, which will provide smart solutions to the customers in their hands. Several mobile applications are developed to support this payment feature in smartphones. Several smartphones players are providing these components in their devices; for instance, the first phone integrated with these chips was Nokia 6131, which was launched in 2006. Similarly, Apple Pay uses this technology to provide contactless payment benefits to their customers; these phones detect the field and allow the authentication of the payment by touch ID, face ID, or passcode.
The healthcare sector is expected to witness a substantial growth with the adoption of this technology in several medical activities and patient monitoring. The growing importance and the need for tracking and marking the patient’s medicines, timings, doctor’s visit, and days of recovery are driving the NFC chips market growth. This technology provides details about the medication of the patients by scanning the tags and the information about the timing of the scan is noted. This technology will help the doctors and patients in performing their tasks and activities effectively and efficiently without any errors.
Asia Pacific is expected to witness a high growth in industry share in the NFC chips market. The strong presence of smartphone players and retail sectors is the major factor driving the revenue of the industry. With the technological advancements in the smartphone industry, the need for contactless payments using mobile phones is increasing rapidly. Growing adoption of this technology in the retail sector is expected to provide several advantages to the companies such as customer satisfaction, spreading awareness about contactless payments, and speedy transactions. The higher adoption of this technology in retail stores and the increasing demand for traffic management in these outlets are driving the NFC chips market growth.
Key players operating in NFC chips market are Barclays, Ingenico Group, Giesecke & Devrient GmbH, Apple, Inc., Marvell Technology Group Ltd., Sony Corporation, Samsung Electronics Ltd., Heartland Payment Systems, Inc, Inside Secure, On Track Innovations Ltd., Gemalto N.V., Verifone Systems, Inc., Wirecard AG, NXP Semiconductors, Broadcom Corporation, Texas Instruments, Inc., Qualcomm, Inc., STMicroelectronics, Media Tek, Inc., MStar Semiconductor, Inc, Murata Manufacturing Co., Ltd., EM Microelectronic-Marin Sa, Renesas Electronics Corporation, and Toshiba Corporation, among others. These players are competing based on the customer requirements for contactless payments and the ease to carry out this feature. For instance, in July 2018, Pernod Ricard and BlackSheep developed connected glass, which is integrated with these chips, allowing customers to order their food or drink on the table. They are targeting their products in the smartphone industry to grow their industry share in the NFC chips market.
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