The global near field communication (NFC) market is expected to reach USD 47.43 billion by 2024, according to a new report by Grand View Research, Inc. The industry is poised for an unprecedented growth over the forecast period owing to the increasing penetration of smartphones in the developing economy.
Increasing adoption of mobile payment services has led to the intensive utilization of POS with the launch of e-wallet and Apple Watch. Banking entities, payment gateways, and payment processors are expected to expand the capabilities for accommodating the new enhanced technology.
The emergence of the mobile wallet services has allowed users to pay for services through mobile devices or through cashless payment modes, which have further enhanced near field communication market growth.
The increasing demand for the NFC-based payment solutions has led the manufacturers to develop an enhanced version of the digital payment platform, further developing the market growth. Growing penetration of wearable technology devices as a significant component of Internet of Things with lowered costs have immensely contributed to the industry growth.
The emergence of mobile wallets, such as Android Pay, Apple Pay, and Samsung Pay, are also expected to further drive the substantial mobile payments growth, owing to their capability of paying through mobile phones instead of cards or any other cashless payment modes.
The increasing number of vendors is expected to increase the concentration and propel the development of near field communication infrastructure, thus accelerating the market growth. The increasing need for lowering the cost of ownership and the increased convenience need will continue to dictate the market development.
Further key findings from the report suggest:
- Banking entities, payment gateways, businesses and payment processors are expanding with the emerging payment technologies.
- Near field communication Tags is expected to grow with a significant CAGR over the forecast period as the technology provides a possibility of data exchange within the range of 10cm wirelessly.\
- SIM card type near field communication is expected to have the substantial transaction revenue over the projected period owing to the technological advancement and increasing penetration of smartphones
- The transaction segment is estimated to have the significant market share and is expected to remain as the key segment for generating revenue over the forecast period. The increasing demand for contactless payments and growing interest of banks and other financial institutions in the segment have led to the immense growth.
- The data sharing application is expected to have the considerable growth as data sharing segment includes the sharing of consumers’ personal data, such as pictures, videos, and MP3
- U.S. NFC market is driven by in-store payments as a smartphone ecosystem leads to enhanced mobile platforms. Canadian smartphones are used widely for checking balances, online transaction, and funds transfer, which offers an opportunity of further technological advancements.
- The key players in the NFC market include Identiv Group Inc (U.S), Broadcom Limited (A subsidiary of Avago Technologies) (U.S), Gemalto NV (Netherlands), Inside Secure (France).