NFC Chips Market Technologies and the Increase in Investments for further advancements, Worldwide
Thanks to the growing demand for efficiency and faster accessibility of data in a number of industries across the world, the global market for Near field communication (NFC) chips has been witnessing a substantial rise in its valuation since the last few years. Going forward, the market is likely to gain significantly from the continual development of the NFC technologies and the increase in investments for further advancements, worldwide.
The increasing user base of smartphones and mobile apps is another important factor behind the substantial rise in the demand for NFC chips, globally. Apart from this, the decreasing prices of these chips, owing to the declining costs of various modules required for their production, is also projected to reflect positively on this market over the next few years. In 2015, the overall opportunity in this market was worth US$1.35 bn. Expanding at a CAGR of 26.0% during the period of 2016-2024, the market is likely to rise to US$10.62 bn by the end of 2024.
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Smartphones, televisions, medical equipment, and cars are the key application areas of NFC chips. Smartphones have been leading this market and are expected to remain dominant over the forthcoming years. The faster adoption of communication technologies is projected to boost the demand for smartphones and, consequently, NFC chips in the near future.
The television and the medical equipment segments are also anticipated to maintain a steady growth rate in this market over the next few years. The increasing disposable income of consumers is likely to boost the television segment while the medical equipment segment is predicted to be driven by the infrastructural developments in the medical and healthcare industry.
Asia Pacific to Surpass North America by 2024
The global market for NFC chips is spread across Asia Pacific, the Middle East and Africa, North America, Latin America, and Europe, among which, North America, surfaced as the market leader in 2015 with a share of more than 34%. The partnerships between major banks and the enterprises that help in tokenizing cards using NFC chips and the introduction of NFC modes, such as reader modes, card emulation standards, and peer-to-peer modes, by various semiconductor vendors, supported the NFC chips market in North America considerably. However, over the forthcoming years, the Asia Pacific market is anticipated to surpass the former, rising at a 27.90% CAGR between 2016 and 2024. The rising penetration of smartphones is expected to boost the NFC chips market in Asia Pacific remarkably over the forthcoming years.
Among other regional markets, Europe is projected to witness steady growth with a high year on year growth in the smartphones segment in Western Europe. The growing usage of other consumer electronics products, such as television, cameras, and refrigerators, and the rising application of wireless technology are also expected to support the Europe NFC chips market in the years to come. The markets in Latin America and the Middle East and Africa, on the other hand, are anticipated to experience exponential growth rate over the next few years.