The global NFC market is expected to see strong and fast growth across various application verticals over the forecast period of 2014 to 2020, according to a new study by Grand View Research. Rapid technological advancement and high mobile smartphone demand due to technology standardization is expected to positively impact NFC market growth. Demand for cost effectiveness along with increasing availability of NFC-enabled mobile devices is also a major market driver. In addition, the market provides opportunities to the direct mail marketing sector, which in turn may drive m-commerce and mobile payment options, especially after the introduction of NFC-based Apple Pay.
NFC is integrated in a wide range of equipment and devices including tablets, laptops, cameras, headsets, televisions, cookers, washing machines, cars and vending machines. In addition to industrial and commercial applications, this technology is preferred for financial transactions. High development cost, poor infrastructure coupled with lack of consumer awareness about potential benefits may hamper market growth over the next 6 years. Transformation in transaction process methods along with social media engagement applications are expected to offer growth avenues for the global NFC market.
Further key findings from the NFC report suggest:
* The NFC market comprises non-auxiliary and auxiliary products. Non-auxiliary segment includes readers, tags and IC/chips, while auxiliary products include NFC-enabled covers, SIMs and microSD cards. NFC readers are expected to witness high growth over the forecast period, which is a result of growing application areas and demand for ticketing, access control and authentication.
* Mobile payment application is expected to remain the dominant market segment over the next six years. This can be attributed to benefits such as improved financial transparency, improved public sector servicing and reduced carbon footprint. In addition, emergence of mobile wallet payment methods has enhanced user experience against contactless cards.
* Asia Pacific is expected to witness high growth due to growing adoption of this technology in retail and transportation. Financial institutions as well as Mobile Network Operators (MNOs) have supported contactless payment facilities. Increasing use of smartphones for transaction at point of sale (POS) terminals is expected to drive the market in North America.
* Key companies operating in the NFC market include Nexperts, Infineon Technologies, Gemalto, Renesas, Sony Corporation, STMicroelectronics and Texas Instruments. Rising emphasis on vertical integration activities in order to obtain greater product reliability and optimized manufacturing throughput is estimated to be the major growth strategy.
The full global NFC market report covering 2014 to 2020 trends can be acquired here.