The global NFC chips market is projected to witness a CAGR of 20.51% during the forecast period to reach a total 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.
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.
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.
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.
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.
The market leaders for 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,
|Market size value in 2019||US$3.925 billion|
|Market size value in 2026||US$14.487 billion|
|Growth Rate||CAGR of 20.51% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Application, Industry, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Qualcomm Technologies Inc., NXP Semiconductors, STMicroelectronics, Infineon Technologies, Renesas Electronics Corporation, Toshiba, Samsung|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the NFC chips market size by 2026?
A1. The global NFC chips market is projected to reach a market size of US$14.487 billion by 2026.
Q2. What is the size of the global NFC chips market?
A2. NFC Chips Market was valued at US$3.925 billion in 2019.
Q3. What are the growth prospects for the NFC chips market?
A3. The NFC chips market is projected to witness a CAGR of 20.51% over the forecast period.
Q4. What factors are anticipated to drive the NFC chips market growth?
A4. The current trends of smartphone usage, mobile internet, digital payment gateways, marketing, ticketing, identity & access, and gaming will boost the NFC chips market.
Q5. Which region holds the largest market share in the NFC chips market?
A5. Geographically, the Asia-Pacific region is expected to hold a significant share in the NFC chips market owing to the emergence of a robust semiconductor market and dependence on consumer electronics.
Qualcomm Technologies Inc.
Renesas Electronics Corporation
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