Near Field Communication (NFC) Chips Market - Forecasts from 2021 to 2026

The global NFC chips market is projected to witness a CAGR of 20.51% during the forecast period to reach a market size of US$14.487 billion by 2026, increasing from US$3.925 billion in 2019. NFC or near-field communication is a chip is made up of small storage memory, radio chip, and an antenna and evolved from radio-frequency identification (RFID) technology. It enables laptops, smartphones, and other related digital devices to share and send data with other NFC-equipped devices easily.



This form of short-range wireless connectivity has made life convenient and easier for consumers across the globe by enabling the simpler exchange of digital content, transactions, and connection with different electronic devices. As such, the market for NFC chips is expected to proliferate during the forecast period. The current trends of smartphone usage, mobile internet, digital payment gateways, marketing, ticketing, identity & access, and gaming will aid the market to advance further.

By industry, the consumer electronics segment is expected to grow at a significant rate due to the emergence of innovative consumer electronics products that integrate NFC technology. Geographically, the Asia-Pacific region is presumed to harness the fastest growth owing to the emergence of a robust semiconductor market and dependence on consumer electronics.

Growth Factors

Growing usage of smartphones

Smartphones are becoming a part and parcel of today's modern life. The availability of cost-effective mobile internet and the rolling out of 5G networks has augmented its usage. The latest smartphones launched into the market are enabled with NFC chips for wireless connectivity, cardless payments, gaming, etc. As the purchasing power of the people rises coupled with urbanization, the market for NFC chips has a high potential for expansion and proliferation.

Convenience and contactless payments

Wireless forms of connectivity modes are surging in the market during the current times, especially after the hit of the COVID-19 pandemic. The rise and growth in the adoption of advanced and innovative contactless technology are growing at a significant rate as consumers and customers have been looking for convenient, and secure, ways to generate pay, unlock and start connecting with the world around them. Along with it, the national policies formulated to encourage digital payment are creating a conducive environment for the market to expand and explore. The simplicity and convenience associated with NFC tags have further assisted consumers to avail such technologies.

Restraints

Though the market for NFC Chips is mounting possibilities in the current period, factors like short operational range and security concerns may dampen the growth of the market during the market forecast period.

Impact of COVID-19 on the global NFC chips market

The pandemic has brought to light the importance of semiconductor technology and wireless connectivity as restrictions and social distancing norms were imposed to curb the spread of the virus. The NFC chips market has been accentuated significantly owing to the rise in demand for contactless solutions. The manufacturers have also resorted to the introduction of technologies and upgraded their existing products to capture these growing possibilities of the market. Thus, the NFC chips market has been factored ahead during the pandemic.

Competitive Insights

The market leaders in the Global NFC Chips Market are Qualcomm Technologies Inc., NXP Semiconductors, STMicroelectronics, Infineon Technologies, Renesas Electronics Corporation, and Toshiba. The imperative firms in the market have been introducing several strategies such as product launches, etc. to develop a competitive edge over their respective rivals. For instance,

• Qualcomm announced that its subsidiary Qualcomm Technologies, Inc., had acquired a key CPU and technology design firm, known as NUVIA for approx. $1.4 billion in 2021.
• In 2021, STMicroelectronics developed NFC applications named ST25TV512C and ST25TV02KC with dynamic message content and anti-tamper in type-5 tags.
• Osram and Infineon Technologies AG announced that they had developed a partnership in the year 2021 to allow NFC programming for the respective digital industry. Osram's novel and advanced Optotronic Fit product family features and would show Infineon's NLM0011 and NLM0010 dual-mode NFC wireless configuration integrated circuits (ICs) with an advanced pulse width modulation (PWM).
• Renesas Electronics Corporation acquired Dialog Semiconductor Plc in 2021. The company had announced that it would be funding the cash payable to Dialog shareholders of around €4.8 billion through a combination of several financial aspects, such as cash on hand, debt, and equity offering of around ¥222.6 billion.

Market Segmentation:

By Application

• Authentication
• Access Control
• Payment
• Others

By Industry

• Retail
• Healthcare
• Consumer Electronics
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Italy
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Australia
• Japan
• South Korea
• India
• Thailand
• Taiwan
• Indonesia
• Others