ID: MRFR/SEM/6254-HCR | February 2021 | Region: Global | 100 pages
Market Synopsis: The global NFC chip market was valued at USD 4.26 billion in 2017 and is expected to reach USD 11.76 billion by the end of the forecast period with a CAGR of 18.86%.
NFC chip is integrated into NFC tag which lets the tag perform various NFC operations. NFC chip is attached to an antenna to form an inlay. The performance of NFC depends on the NFC chip, tuning of the antenna, the NFC inlay, and the interactive device. A few features of NFC chip include read and write memory, unique identifier (UID), and memory locking. Apart from these basic features, some chips also have (American Standard Code for Information Interchange) ASCII mirroring, password protection, web service mutual authentication, and authenticity check. However, as these features are not standardized across all the systems, these can only be used in limited environments.
The rapid development of payment platforms and technologies globally have led to the a significant growth of NFC, registering similar demand trends for its components. This technology is being integrated with smartphones to enable mobile payments, thus benefitting customers with ease of access to digital wallets. The governments of several countries are promoting digitization and digital payments to encourage transparent transactions.
NFC transactions are widely being adopted in the retail sector to save time and cost of the stores. Furthermore, the highly intuitive user interface provides users with a satisfying experience. Retail stores use NFC to make their users aware of their products or check whether a particular product is available on their online store or not.
However, security remains one of the major concerns for the market along with data manipulation. Data manipulation happens when someone corrupts the NFC data transmission thus increasing the risk of security breach.
Segmentation: By storage capacity, the market has been segmented into 64 Bytes, 168 Bytes, 180 Bytes, and 540 Bytes. The 64 bytes segment is expected to contribute a major share to NFC chip market while 180 bytes is expected to grow at a high growth rate.
By vertical, the NFC chip market is segmented into BFSI, media & entertainment, retail, hospitality, healthcare, and others. The BFSI sector is expected to dominate the NFC chip market during the forecast period due to a large number of contactless payment in the retail sector. The healthcare sector is expected to grow at a high CAGR during the forecast period.
Regional Analysis: The global market for NFC chip is estimated to grow at a significant rate during the forecast period from 2018 to 2023. The geographical analysis of the NFC chip market has been studied for North America, Europe, Asia-Pacific, and the rest of the world (including the Middle East, Africa, and South America). Among the regions mentioned, North America is expected to hold a significant share of the NFC chip market during the forecast period, followed by Europe. High adoption of digital payments coupled with increasing ownership of smartphones and internet reach is the major factor driving the NFC chip market in North America.
Asia-Pacific is expected to grow at the highest CAGR during the forecast period. This is due to government initiatives implemented in many countries promoting cashless transactions. Also, technological advancements such as a rapid increase in smartphone adoption and contactless payments are further expected to drive the growth of the NFC chips market. NFC enables consumers to have a better connection with stores and offers which improves the customer satisfaction and the retailers in return, have better consumer insights which help them to serve better.
Global NFC Chip Market USD Billion:
The global NFC chip market was valued at USD 4.26 billion in 2017 and is expected to reach USD 11.76 billion by the end of the forecast period at a CAGR of 18.86%.
Key Players: The key players in the NFC chip market are identified across all the major regions based on their country of origin, presence across different regions, recent key developments, product diversification, and industry expertise. Some of them are Intel Corporation (US), Verifone Systems, Inc. (US), MStar Semiconductor, Inc. (Taiwan), Broadcom Corporation (US), STMicroelectronics (Switzerland), Qualcomm, Inc. (US), NXP Semiconductors (Netherlands), Ingenico Group (France), SAMSUNG (South Korea), and Marvell Technology Group Ltd (Bermuda). These players contribute a major share in the growth of NFC chip market.
Apart from the top key players, the other players that contribute to the market growth include Murata Manufacturing Co. (Japan), Media Tek, Inc. (Taiwan), Giesecke & Devrient GmbH (Germany), Renesas Electronics Corporation (Japan) and Texas Instruments (US), and others.
|Market Size||USD 11.76 Billion|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Storage Capacity, Vertical|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Market Opportunities||Technological advancements such as a rapid increase in smartphone adoption and contactless payment.|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The valuation of the NFC chip market is expected to be USD 11.76 Bn by 2023.
The NFC chip market is poised to expand at 18.86% CAGR across the evaluation period.
The segments of the NFC chip market, on the basis of storage type, are 64 Bytes, 180 Bytes, 168 Bytes, and 540 Bytes.
Increasing adoption of smartphones and rise in inclination towards cashless payments are poised to drive market growth in APAC.
The vertical-based segments are BFSI, retail, hospitality, media & entertainment, healthcare, and others.