Global Near Field Communication Market

Growing use of contactless payment to boost the market growth

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.

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 Global Near Field Communication (NFC) Market Industry is projected to experience substantial growth over the coming years. With a market value of 26.3 USD Billion in 2024, it is anticipated to reach 85.3 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate of 11.28% from 2025 to 2035. Such projections indicate a robust demand for NFC technology across various sectors, including retail, healthcare, and transportation. The increasing integration of NFC solutions into everyday applications underscores the technology's potential to revolutionize how consumers interact with their environments.

The emphasis on security in digital transactions is a crucial factor driving the Global Near Field Communication (NFC) Market Industry. NFC technology offers advanced security features, such as encryption and tokenization, which protect sensitive information during transactions. As cyber threats become more sophisticated, consumers and businesses alike are seeking secure payment options. The ability of NFC to provide secure transactions fosters trust among users, encouraging wider adoption. This growing demand for secure payment solutions is likely to contribute to a compound annual growth rate of 11.28% from 2025 to 2035, reflecting the market's potential for expansion.

The proliferation of smart devices, including smartphones, wearables, and IoT devices, significantly contributes to the expansion of the Global Near Field Communication (NFC) Market Industry. With an increasing number of devices equipped with NFC capabilities, users can engage in various applications, from mobile payments to smart home automation. The integration of NFC technology in devices enhances connectivity and user interaction, making it a preferred choice for manufacturers. As the number of NFC-enabled devices continues to rise, the market is expected to experience substantial growth, potentially reaching 85.3 USD Billion by 2035, indicating a robust demand for NFC solutions.

The increasing acceptance of mobile payment solutions is a primary driver of the Global Near Field Communication (NFC) Market Industry. As consumers increasingly prefer contactless transactions for their convenience, the market is projected to reach 26.3 USD Billion in 2024. Major retailers and financial institutions are integrating NFC technology into their payment systems, facilitating seamless transactions. For instance, companies like Apple and Google have expanded their mobile wallet services, allowing users to make payments with a simple tap. This trend not only enhances user experience but also encourages further investment in NFC infrastructure, thereby propelling market growth.

The rise of smart retail solutions is transforming the landscape of the Global Near Field Communication (NFC) Market Industry. Retailers are increasingly adopting NFC technology to enhance customer engagement and streamline operations. For instance, NFC-enabled tags and devices allow customers to access product information, promotions, and loyalty programs with ease. This interactive shopping experience not only improves customer satisfaction but also drives sales. As retailers recognize the benefits of NFC in creating a seamless shopping journey, the market is likely to witness accelerated growth, reflecting the evolving dynamics of consumer behavior in the retail sector.

Government initiatives aimed at promoting digital payments and cashless economies play a pivotal role in the growth of the Global Near Field Communication (NFC) Market Industry. Various governments are implementing regulations and incentives to encourage the adoption of contactless payment systems. For example, initiatives to enhance digital infrastructure and promote financial inclusion are driving the integration of NFC technology in public services and transportation systems. These efforts not only facilitate smoother transactions but also stimulate economic growth. As a result, the market is poised for significant expansion, with projections indicating a steady increase in NFC adoption across various sectors.

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.