Download Sample, Growing Popularity of Smartphones and Rising Numbers of Online Customers are Simulating the Market Growth
The increasing recognition of smartphone devices and the rising number of online customers are expected to drive the demand for e-commerce. However, the near-field communication technology is extensively used in the pay terminals using mobile devices. The growing penetration of payment infrastructure and data connectivity presents a significant opportunity for the growth of near-field communication-enabled mobile payment. Well-established substructure and device infiltration in developed markets accompany mobile transactions among persons and between financial institutions and clients. The growing need for improved government strategies and security issues is anticipated to fuel the near-field communication market growth. Organizations across industries are emerging and deploying new products for rising productivity with enlarged security.
Near-field communication supported mobile health monitoring, which applies to the prevailing mobile communication procedures and cloud, to deliver feedback decision support is considered as innovative approach to improving the quality of healthcare service with low costs. Smartphone manufacturing companies are increasingly integrating NFC hardware in their mobiles, as it gaining traction in the field of medical devices and electronic health records. The rising adaptation of wearing technology is another factor driving the growth of the market. Adaptation of more advanced wearable technology is growing owing to the rapidly growing athletic industry and the increasing trend of using activity trackers among users.
Near-field communication supported mobile health monitoring, which applies to the prevailing mobile communication procedures and cloud, to deliver feedback decision support is considered as innovative approach to improving the quality of healthcare service with low costs. Smartphone manufacturing companies are increasingly integrating NFC hardware in their mobiles, as it gaining traction in the field of medical devices and electronic health records. The rising adaptation of wearing technology is another factor driving the growth of the market. Adaptation of more advanced wearable technology is growing owing to the rapidly growing athletic industry and the increasing trend of using activity trackers among users.
Smart Wearables, IoT Devices and P2P Segment to Drive the Market Growth
Smart wearables and IoT devices are becoming increasingly accepted due to their increasing functionality for various applications. If these mechanisms are prepared with NFC built-in capabilities, the wearable device will grant access to public transport, or grant entry into office buildings, and allow users to pay in stores. Moreover, smart wearables and IoT devices are becoming increasingly popular by adding more functions despite severe space and power limitations. For instance, SECORA connect, by Infineon for connected IoT devices, makes it easy to secure payments and enable convenient biometric authentication while addressing the technical problems of other industries.
The peer-to-peer segment is expected to gain the largest market share in the market over the forecast period. With near-field communication, starting a transaction only requires a quick tap. However, a two-way communication channel is created between two near-field communication-enabled devices using peer-to-peer mode. Each NFC-capable device acts as an endpoint, consenting two systems to start a conversation as peers or equals. This method employs the active or passive strategy communication strategy. For instance, Google launched ‘Nearby Share’ for transferring data from one device to another device this technology uses NFC technology for transferring the data. However, smartphone users use NFC technology to make payments by scanning the QR code using various mobile applications.
The peer-to-peer segment is expected to gain the largest market share in the market over the forecast period. With near-field communication, starting a transaction only requires a quick tap. However, a two-way communication channel is created between two near-field communication-enabled devices using peer-to-peer mode. Each NFC-capable device acts as an endpoint, consenting two systems to start a conversation as peers or equals. This method employs the active or passive strategy communication strategy. For instance, Google launched ‘Nearby Share’ for transferring data from one device to another device this technology uses NFC technology for transferring the data. However, smartphone users use NFC technology to make payments by scanning the QR code using various mobile applications.
Recent Trends in the Near Field Communication Industry
- An exclusively promising developing use case for NFC is wireless charging.
- The read range of the NFC devices has been increased by four to six times.
- Businesses to empowered and individuals are able to optimize the SoftPOS which makes payment methods easier.
- Enhanced reliability ensures the reliability of near-field communication transactions through comprehensive testing.
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Security Concerns and Short Range for Data Sharing can Hamper the NFC Market
Near-field communication technology is suitable for short-range data sharing. For data transfer through NFC technology, the communicating devices must be in close range of area or should have a distance of 4cm or less between them for the connections to take place. This is a major drawback of the near-field communication technology. The data transfer frequency of NFC technology is 13.56 MHz. However, data can be sent either 106, 212, or 244 kilobits per second, which is swift for a range of data transfers such as contact details to exchange pictures, music, and other data.
Countless payment systems based on NFC technology implanted in cards, mobile devices, key fobs, wearables, and other devices give access to persons to swipe their cards or mobile devices through POS terminals to safe payments. When the card is bought closed, the contactless payments terminal sends a signal, starting the NFC chip implanted in the card which creates the transaction information. This data is used by cybercriminals to steal money from the accounts of individuals. Prilex’s developers developed malware with algorithms that block contactless transactions, which results in the terminal prompting the buyer to insert their credit card into the device. The update in code by cybercriminals may cause cybercrimes while using the NFC technology. This form of NFC can hinder the market growth during the forecast period.
Countless payment systems based on NFC technology implanted in cards, mobile devices, key fobs, wearables, and other devices give access to persons to swipe their cards or mobile devices through POS terminals to safe payments. When the card is bought closed, the contactless payments terminal sends a signal, starting the NFC chip implanted in the card which creates the transaction information. This data is used by cybercriminals to steal money from the accounts of individuals. Prilex’s developers developed malware with algorithms that block contactless transactions, which results in the terminal prompting the buyer to insert their credit card into the device. The update in code by cybercriminals may cause cybercrimes while using the NFC technology. This form of NFC can hinder the market growth during the forecast period.
Advancements in Automotive NFC Impacting the NFC Market
Near-field communication enables the OEMs to customize the driving experience of the vehicle as per the user requirements. On November 7, 2023, NXP revealed the expansion of its scalable S32 vehicle compute platform with the launch of the S32M2. The purpose-built motor control solution is enhanced for effectiveness development across vehicle edge node applications. On November 28, 2023, NXP announced the Trimension NCJ29D6, a fully assimilated automotive single-chip Ultra-Wideband (UWB) family combining next-generation secure and precise real-time localization with short-range radar to address multiple use cases with a single system, with secure car access, child existence detection, invasion alert, gesture recognition and more.
The near field communication technology uses current mobile technologies along with the cloud and is considered a revolutionizing technology in improving the banking infrastructure across the globe. For instance, In March 2023, Apple Pay was officially initiated in Korea after years of expectation. The service was made possible through an exclusive collaboration with Hyundai Card, enabling users to make contactless payments at numerous retailers and establishments, marking a significant milestone for Apple's expansion in the region. Moreover, In December 2023, Apple yielded to EU pressure, relinquishing its NFC exclusivity stance and potentially broadening payment choices on iPhones. Moreover, Google Wallet's assimilation remains inexact as Apple continues to retain control over its mobile wallet technology.
Intel Corporation, NXP Semiconductors N.V., Qualcomm Incorporated, Texas Instruments Incorporated, STMicroelectronics International N.V., Infineon Group, Sony Group Corporation, Ams-Osram AG, HID Global Corporation, Worldline SA, Broadcom Inc. are some key players in the market.
The near field communication technology uses current mobile technologies along with the cloud and is considered a revolutionizing technology in improving the banking infrastructure across the globe. For instance, In March 2023, Apple Pay was officially initiated in Korea after years of expectation. The service was made possible through an exclusive collaboration with Hyundai Card, enabling users to make contactless payments at numerous retailers and establishments, marking a significant milestone for Apple's expansion in the region. Moreover, In December 2023, Apple yielded to EU pressure, relinquishing its NFC exclusivity stance and potentially broadening payment choices on iPhones. Moreover, Google Wallet's assimilation remains inexact as Apple continues to retain control over its mobile wallet technology.
Intel Corporation, NXP Semiconductors N.V., Qualcomm Incorporated, Texas Instruments Incorporated, STMicroelectronics International N.V., Infineon Group, Sony Group Corporation, Ams-Osram AG, HID Global Corporation, Worldline SA, Broadcom Inc. are some key players in the market.
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Wide Adoption of Automotive Technology is Fuelling Market Growth in North America
The near-field communication market is anticipated to grow rapidly across North America due to the wide adoption of near-field communication 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 technology. Increasing penetration of smartphones and increasing adoption of smart cameras are teeming market growth. The surging trend of photography among millennials is favoring the demand for wireless data transfer technologies such as NFC in the local market. The growing market of automotive vehicles whether it is commercial or passenger vehicles is increasing in the United States. The rise in automotive vehicles creating a demand for associated technologies such as NFC.
Asia-Pacific market is likely to experience growth in the near-field communication market during the forecast period. Businesses in developing markets such as China are localizing content for mobile platforms to enlarge their sales. However, wireless solutions have played a key role in increasing this market in China. Several innovative technology providers cooperate with payment solutions providers to launch novel products along with NFC technologies. For instance, Alipay and WeChat are providing state-owned bank card clearinghouse UnionPay which provides access to their smartphone payment ecosystems. Ant group-owned Alipay declared payment QR codes through UnionPay’s cloud QuickPass application for offline payment across the country.
Asia-Pacific market is likely to experience growth in the near-field communication market during the forecast period. Businesses in developing markets such as China are localizing content for mobile platforms to enlarge their sales. However, wireless solutions have played a key role in increasing this market in China. Several innovative technology providers cooperate with payment solutions providers to launch novel products along with NFC technologies. For instance, Alipay and WeChat are providing state-owned bank card clearinghouse UnionPay which provides access to their smartphone payment ecosystems. Ant group-owned Alipay declared payment QR codes through UnionPay’s cloud QuickPass application for offline payment across the country.
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The report provides a detailed overview of the near-field communication market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for the near field communication market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the near-field communication market. These Y-o-Y projections on regional and country-level markets brighten the political, economic, and business environment outlook, which are anticipated to have a substantial impact on the growth of the near-field communication market. Some key countries and regions included in the near field communication market report are as follows:
| Regions | Countries |
|---|---|
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Netherlands, Switzerland, Belgium, Sweden, Norway, Denmark, Finland, Ireland, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Turkey, Egypt, Morocco, Israel, Kenya, Rest of MEA |
Near Field Communication Market Research Report Covers In-depth Analysis on:
- Near field communication market detailed segments and segment-wise market breakdown
- Near field communication market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in near field communication industry)
- Current, historical, and forthcoming 10 years market valuation in terms of near field communication market size (US$ Mn), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Near field communication market demand analysis
- Near field communication market regional insights with a region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in the near field communication market
- Regulatory landscape by key regions and key countries
- Near-field communication market sales and distribution strategies
- A comprehensive overview of the parent market
- A detailed viewpoint on near-field communication market forecast by countries
- Mergers and acquisitions in near field communication market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What industries benefit most from Near near-field communication technologies?
Industries such as consumer electronics, automotive, healthcare, retail, and banking leverage Near Field Communication for secure, seamless, and contactless communication solutions.
What challenges are impacting the Near Field Communication market growth?
Challenges include security concerns, high initial implementation costs, and compatibility issues, which the report evaluates with actionable recommendations.
Which regions show the highest growth potential in the Near Field Communication market?
The report highlights growth opportunities in regions with increasing adoption of contactless payments, smart devices, and digital transformation initiatives.
