Global Near Field Communication (NFC) Market Size, Share & Trends Analysis Report By Device Operating Mode (Reader Emulation, Card Emulation, and Peer-to-peer), By Offering, By Application, By Regional Outlook and Forecast, 2024 - 2031

Global Near Field Communication (NFC) Market Size, Share & Trends Analysis Report By Device Operating Mode (Reader Emulation, Card Emulation, and Peer-to-peer), By Offering, By Application, By Regional Outlook and Forecast, 2024 - 2031

The Global Near Field Communication (NFC) Market size is expected to reach $66 billion by 2031, rising at a market growth of 12.0% CAGR during the forecast period.

NFC is increasingly integrated into consumer electronics such as smartphones, tablets, wearables, and smart home devices. This integration enables functionalities like device pairing, data transfer, and mobile payments, enhancing user convenience. Therefore, the consumer electronics segment held 10% revenue share in the market in 2023. The continuous innovation in consumer electronics and the growing demand for smart and connected devices have significantly contributed to this segment’s revenue share.

With the increasing demand for seamless, contactless experiences in retail, transportation, and banking, NFC is poised to dominate the mobile payments landscape. As consumers and businesses seek faster, safer, and more convenient ways to process payments, the global push toward adopting NFC for mobile transactions will continue, further driving the growth of NFC technology in various sectors worldwide. Thus, the increasing adoption of mobile payments and contactless transactions propels the market's growth. Moreover, the market for NFC in IAM solutions is anticipated to expand due to the increasing adoption of mobile phones for access management. Integrating NFC with smartphones allows users to authenticate access to systems and buildings effortlessly. This trend is expected to drive the growth of NFC technology as businesses and consumers seek more secure and efficient solutions for identity management, further solidifying NFC’s role in the digital security ecosystem. Thus, the growing demand for secure identity and access management solutions drives the market's growth.

However, the lack of standardization among NFC devices and protocols complicates the adoption process. Different manufacturers may have varying implementations of NFC, leading to compatibility issues between devices. This lack of uniformity can hinder device interoperability and create a fragmented market. Without standardization, the cost of implementing NFC solutions will remain high, and businesses may continue to hesitate before fully embracing the technology. In the long term, addressing these issues will be critical for NFC to achieve widespread adoption and to realize its full potential in driving digital transformation across various industries. In conclusion, high implementation costs and lack of standardization among NFC devices impede the market's growth.

Operating Mode Outlook

Based on device operating mode, the market is divided into reader emulation, card emulation, and peer-to-peer. In 2023, the reader emulation segment garnered 40% revenue share in the near field communication (NFC) market. Reader emulation mode is widely used in various applications, such as payment systems, access control, and data exchange. This mode allows NFC-enabled devices to act as readers that can scan NFC tags and cards, facilitating quick and secure transactions and information retrieval. The increasing adoption of contactless payment solutions and the integration of NFC technology in smartphones, tablets, and other electronic devices have significantly contributed to the growth of the reader emulation segment.

Offering Outlook

On the basis of offering, the market is segmented into non-auxiliary products, auxiliary products, and software. In 2023, the auxiliary products segment attained 19% revenue share in the near field communication (NFC) market. Auxiliary products encompass a range of supporting items that enhance and extend the capabilities of NFC technology, including accessories, software solutions, and peripheral devices. These products play a crucial role in the broader adoption and functionality of NFC-enabled systems, providing users with enhanced convenience, security, and versatility in their NFC applications.

Non-Auxiliary Products Outlook

The non-auxiliary products segment is further subdivided into NFC tags, NFC ICs & antennas, and NFC readers. In 2023, the NFC ICs & antennas segment attained 49% revenue share in the near field communication (NFC) market. NFC integrated circuits (ICs) and antennas are critical components that enable NFC functionality in a wide range of devices. These components are essential for the seamless operation of NFC-enabled devices, allowing them to communicate and perform transactions effectively. The increasing integration of NFC technology in smartphones, wearables, payment terminals, and various IoT devices has driven the demand for NFC ICs and antennas.

Application Outlook

By application, the market is divided into retail, transportation, automotive, consumer electronics, BFSI, medical & healthcare, residential & commercial, hospitality, and others. In 2023, the retail segment registered 22% revenue share in the market. NFC technology has revolutionized the retail industry by enabling contactless payments, enhancing customer engagement, and improving inventory management. Retailers leverage NFC for quick and secure transactions, creating a seamless customer shopping experience.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region witnessed 37% revenue share in the market in 2023. The widespread adoption of NFC technology in various applications such as mobile payments, access control, and public transportation has been a key driver for market growth in this region. The presence of major tech companies and a high level of consumer awareness and acceptance of new technologies have further propelled the NFC market.

Recent Strategies Deployed in the Market

• Aug-2024: Apple, Inc. unveiled the iOS 18.1 update opening NFC access for third-party developers and enabling contactless transactions outside of Apple Pay and Wallet. This allows use in apps for transit, loyalty programs, and more. Companies like PayPal see the potential to expand NFC payments, making it easier for consumers to use PayPal in-store.
• Jun-2024: STMicroelectronics N.V. unveiled the STeID Java Card platform for electronic identity (eID) and eGovernment applications. It includes the STeID JC Open OS, which is compliant with Java Card 3.0.5 and Global Platform 2.3.1 standards, and supports secure eMRTD, eIDAS QSCD, NFC, and biometric authentication. It works with ST31 microcontrollers for enhanced security.
• May-2024: Infineon Technologies AG unveiled the OPTIGA Authenticate NBT, a high-performance NFC I2C bridge tag for secure, single-tap authentication and configuration of IoT devices. It supports asymmetric cryptography, fast data exchange, and offers superior security with EAL6+ certification. Ideal for applications like device setup, shared mobility, and patient monitoring.
• Apr-2024: STMicroelectronics N.V. unveiled the ST25R100 NFC reader combines high performance, low power consumption, and affordability, making it ideal for consumer and industrial products. Its compact size (4mm x 4mm) enables easy integration into devices like printers, power tools, medical equipment, and appliances. It supports NFC-A/B and NFC-V standards with enhanced low-power detection.
• Apr-2024: STMicroelectronics N.V. unveiled ST25TA-E NFC tag IC enhances digital product passports and blockchain applications with its TruST25 Edge digital signature, based on elliptic curve cryptography (ECC). This solution protects against counterfeiting, tracks products' supply chain journey, and offers secure consumer engagement, especially for high-value items, luxury goods, and ownership transfer.

List of Key Companies Profiled

• NXP Semiconductors N.V.
• Broadcom, Inc.
• Qualcomm Incorporated (Qualcomm Technologies, Inc.)
• Samsung Electronics Co., Ltd. (Samsung Group)
• Texas Instruments, Inc.
• STMicroelectronics N.V.
• Infineon Technologies AG
• Sony Corporation
• Toshiba Corporation
• Apple, Inc.

Global Near Field Communication (NFC) Market Report Segmentation

By Device Operating Mode

• Reader Emulation
• Card Emulation
• Peer-to-peer

By Offering

• Non-auxiliary Products
• NFC Tags
• NFC ICs & Antennas
• NFC Readers
• Auxiliary Products
• NFC Micro-SD Cards
• NFC SIM/UICC Cards
• NFC Covers
• Software

By Application

• Retail
• Transportation
• Automotive
• Consumer Electronics
• BFSI
• Medical & Healthcare
• Residential & Commercial
• Hospitality
• Other Application

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA