Status : Published Published On : Jan, 2022 Report Code : VRSME9092 Industry : Semiconductor & Electronics Available Format : Page : 200

Global Near Field Communication Market – Analysis and Forecast (2021-2027)
Industry Insight by Device Operating Mode (Reader Emulation, Peer-To-Peer, and Card Emulation), by Offering (Non-Auxiliary Products (NFC ICs & Antennas, NFC Tags, NFC Readers), Auxiliary Products (NFC Micro-SD Cards, NFC SIM/UICC Cards, and NFC Covers), and Software), by Application (Retail (Access Control, Product Identification, and Transaction), Transportation (Ticketing and Access Control), Automotive (Low-End, Mid-Range, and High-End), Residential & Commercial (Physical Access, Time & Attendance, Automated Locking System, and Smart Lighting), Medical & Healthcare (Medical Devices and Access Control), Consumer Electronics (Wearable Devices, Mobile Phones/Tablets, Laptops/ PCs, Cameras, Printers, Gaming Devices, and Others), Banking & Finance (E-Money Services (POS machines) and Multi Forex Cards), Hospitality (Access Control and Transaction), and Others (Education and Government)), and Geography (U.S., Canada, Germany, U.K., France, China, Japan, India, and Rest of the World)

Industry Overview

During the projected period 2021-2027, the global near field communication (NFC) market is expected to increase at a CAGR of 14.5 percent, from USD 18.6 billion in 2021 to USD 36.8 billion in 2027. Near field communication (NFC) is a short-range wireless networking technology that simplifies the transmission of digital content, transactions, and connections between different electronic devices for users all over the world. It is mostly used for short-range data sharing in smartphones, laptops, and tablets (up to 10 cm or less). This technology is commonly utilized in marketing and payment applications, but it is also being adopted in chip-enabled mobile marketing, ticketing, identity and access management, and gaming too. In addition, mobile devices have also become an important means of data transfer, owing to technologies such as NFC, which enables PoS systems. Several financial institutions are collaborating with mobile app developers to develop apps that will enable customers to perform business transactions. Thus, the rising focus towards enhancing customer experience will boost the NFC market growth.

Near Field Communication Market Highlights

The COVID-19 outbreak has accelerated the development of the near-field communication industry due to a surge increasing demand for contactless solutions. Furthermore, as a result of the COVID-19 epidemic, the NFC market will see increased usage of NFC technology in smart packaging for healthcare, as well as increased demand for NFC in expanding medical applications.

Market Segmentation

Insight by Device Operating Mode

Based on device operating mode, the global near-field communication market is segmented into reader emulation, peer-to-peer, and card emulation. The reader emulation is anticipated to have a high CAGR during the projected period as the NFC chip is widely used in reader emulation mode by mobile phones and retail applications. There is an increased demand for payments, resulting in the adoption of NFC-based mobile wallets such as Google Pay, Samsung Pay, Apple Pay, and Android Pay are predicted to grow significantly during the forecast period.

Insight by Offering

Based on offering, the global near-field communication market is divided into non-auxiliary products, auxiliary products, and software. The non-auxiliary products are further sub-divided into NFC ICs & antennas, NFC tags, NFC readers. NFC micro-SD cards, NFC SIM/UICC cards, and NFC covers are some of the auxiliary products. Non-auxiliary offering dominates the NFC market. Internal NFC-enabled accessories, such as NFC IC/Chips developed for smartphones to make contactless payments, access control, and secure data sharing with other NFC devices, are known as non-auxiliary NFC items. The expansion of non-auxiliary items in the NFC market has been spurred by the increased acceptance of NFC in smartphones.

Insight by Application

Retail, transportation, automotive, residential & commercial, medical & healthcare, consumer electronics, banking & finance, hospitality, and others (education and government) are the application segments of the near-field communication market. The retail segment is sub-divided into access control, product identification, and transaction. The transportation segment is sub-divided into ticketing and access control. The automotive segment is sub-divided into low-end, mid-range, and high-end. The residential & commercial segment is sub-divided into physical access, time & attendance, automated locking system, and smart lighting. Medical & healthcare is sub-divided into medical devices and access control. Consumer electronics is sub-divided into wearable devices, mobile phones/tablets, laptops/ PCs, cameras, printers, gaming devices, and others. Banking & finance is sub-divided into e-money services (POS machines) and multi forex cards. Hospitality is sub-divided into access control and transaction. Banking & finance is anticipated to have a high CAGR during the forecast period as NFC technology is revolutionizing the banking infrastructure via using mobile technologies and cloud platform. The increased penetration of mobile wallets is a safer secured option than having physical cards because digital e-wallet apps like Apply Pay, Google Pay tokenize all financial details into something that intruders can't access or use. The healthcare industry is anticipated to have significant growth as patient monitoring methods like smart sensors and record of patients’ health status is done by NFC. "MiniME," a biometric gadget designed by Ergonomi design monitors, with features such as ECG, blood pressure, heart rate, body temperature, and many other characteristics that transfer data using NFC cloud, is one of NFC's advances in patient monitoring.

Near Field Communication Market Report Coverage

Report Metric


Historical Period


Base Year Considered


Forecast Period


Market Size in 2021

$18.6 Billion

Revenue Forecast in 2027

$36.8 Billion

Growth Rate

CAGR 14.5%

Segments Covered in the Report

By Device Operating Mode, By Offering, and By Application

Report Scope

Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling

Regions Covered in the Report

North America, Europe, Asia-Pacific, Middle East, and Rest of the World


Industry Dynamics

Industry Trends

The increasing trend for mobile internet applications and the development of 3G and 4G networks will drive the growth of the market. The rising need to reduce the cost of ownership, the escalating pattern of portable business, and the growing convenience need are further accelerating the industry development.

Growth Drivers

Factors attributing to the growth of the NFC market include the rising trend of mobile commerce, increasing usage of wearable technology, an increasing number of online consumers driving the demand for e-commerce, rising adoption of wireless technologies in various industry verticals like medical, banking, consumer retail. Furthermore, the rising penetration of smartphones to make contactless payments and authentication, substantial espousal of NFC technology in consumer electronics and government globally will encourage cashless transactions, and convenient transfer and security of data will propel the growth of the NFC market. Besides payments and device-to-device sharing, airlines are using NFC technology for boarding cards and security access, as well as keyless entry for businesses, buildings, and cars, giving the NFC sector room to develop.


The problem related to short-term communication will hamper the growth of the NFC market. Furthermore, the increasing cost of installations and security concerns, supply chain uncertainties, competition from alternative payment methods like TouchBase which uses touchscreens, and complexity in integration are some of the challenges faced by NFC market. Furthermore, a lack of awareness among healthcare staff, as well as suspicion among industry specialists and leaders, may constrain the market in the near future.


The rising mobile penetration with enhanced payment infrastructure and data connectivity will provide substantial growth opportunities in eth NFC-enabled mobile payment. The increasing demand for developed manufacturing hubs for consumer electronics and automobiles in countries like India and China will provide massive growth opportunities in the NFC market in the region. Furthermore, novel applications of NFC, like smart posters, NFC-enabled smart automobiles, and smart sensors, have acquired prominence among consumers, particularly among the young and technologically savvy, providing an opportunity for existing brands to access new markets.

Geographic Overview

North America contributes to the largest share in the NFC market owing to the presence of developed technologies and global industry players. To ensure that payments are easy when connecting to NFC terminals, the SIM cards are equipped with the fastest and most stable internet connections available. Furthermore, mobile phone manufacturers in the United States and Canada are making mobile payments technology more accessible by integrating it in all new phones and making the applications operate with all available mPayment solutions.

APAC is anticipated to grow at a high CAGR during the projected period owing to countries like India, Japan, China, and South Korea are anticipated to have large-scale development due to the increasing adoption of contactless technology amid the COVID-19 crisis will fuel the growth in the region.

Competitive Insight

The NFC market is moderately competitive, with several worldwide firms as well as local businesses competing. Strategic collaboration efforts are being used by businesses to manage market share and profitability. With the advent of innovation, it is projected that a number of small to mid-sized businesses will enter the market in the near future. The robust diversification of mobile payment services has augmented collaboration among the key player, thereby leading to advancement in technology.

NXP is a leading provider of RFID and NFC-integrated circuits (ICs). A diverse range of high-performance NFC frontend controller solutions includes NFC Readers, NFC Connected Tags, NFC Smart Tags and Labels, NFC Sensing, and NFC Charging.

ST offers a wide variety of HF RFID/NFC devices, addressing all NFC application needs and supported by a robust ecosystem, as STMicroelectronics are one of the pioneers of RFID and NFC technology.NFC / RFID tags, Dynamic NFC tags, NFC / RFID readers & NFC controllers, and Secure NFC applications are among their offerings.

In October 2021, Qualcomm and NXP have expanded their collaboration and integrated NXP’s eSIM into the Wearable Segment as per Qualcomm’s widely used Snapdragon Wear Platform.

In November 2021, STMicroelectronics has launched ST25TN512 and ST25TN01K, cost-effective NFC Type 2 Tag IC having features of privacy, balancing high-volume use cases such as consumer engagement, product information, and brand protection and augmented NDEF.

Some of the key players operating in the near field communication market: NXP Semiconductors, Broadcom, Qualcomm Technologies, Inc., Texas Instruments Incorporated, STMicroelectronics, Infineon Technologies AG, TOSHIBA ELECTRONIC DEVICES & STORAGE CORPORATION, Thales Group, Identiv, Inc., and MagTek Inc.

Near Field Communication Market Size and Market Analysis

Region Covered in the Report

•    North America

- U.S.
- Canada
- Mexico

•    Europe

- Germany
- U.K.
- France
- Italy
- Spain
- Russia
- Rest of Europe

•    Asia-Pacific (APAC)

- China
- Japan
- India
- South Korea
- Rest of Asia-Pacific

•    Rest of the World (RoW)

- Brazil
- Saudi Arabia
- South Africa
- U.A.E.
- Other Countries

Frequently Asked Questions

During the projected period 2021-2027, the global near field communication (NFC) market is expected to increase at a CAGR of 14.5 percent, from USD 18.6 billion in 2021 to USD 36.8 billion in 2027.
Near Field Communication Market is based on a wireless interface that allows all communication equipment and electronic gadgets to communicate with one another by establishing radio connectivity under proximity.
The rising mobile penetration along with enhanced payment infrastructure and data connectivity will provide significant opportunities for the growth of NFC-enabled mobile payment.
APAC is anticipated to have a high CAGR owing to the world’s fastest-growing and leading industrialized economies as there are novel technologies and developments across industry verticals.
Some of the major players in the global Near Field Communication Market include NXP Semiconductors, Broadcom, Qualcomm Technologies, Inc., Texas Instruments Incorporated, STMicroelectronics, Infineon Technologies AG, TOSHIBA ELECTRONIC DEVICES & STORAGE CORPORATION, Thales Group, Identiv, Inc., and MagTek Inc.

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Research Methodology

  •  Desk Research / Pilot Interviews
  •  Build Market Size Model
  •  Research and Analysis
  •  Final Deliverabvle