NFC chips market is expected to increase at a CAGR of 15% by 2033

The surge in global mobile payment adoption stands as a primary catalyst for the growth of the near field communication (NFC) chip market. With more individuals utilising smartphones for transactions, NFC technology plays a pivotal role. These chips empower NFC-enabled smartphones to facilitate secure and convenient payments at contactless terminals, surpassing the ease and safety of conventional cash or payment methods. 

The surge in NFC chip sales is partly due to the flourishing Internet of Things (IoT). NFC technology finds extensive use in diverse IoT applications, spanning from smart residences to linked automobiles. These NFC-equipped devices facilitate secure data exchange, a critical aspect for numerous IoT functions.

The market for NFC chips is witnessing remarkable expansion, driven by rising requirements across multiple sectors such as healthcare, retail, transportation, and finance. Healthcare heavily relies on NFC for patient monitoring and remote medical services, whereas retailers leverage it to enhance customer interactions, offering varied mobile payment market choices and personalised promotions.

Key takeaways from market study

• The global NFC chip market is expected to reach $7.6 billion by 2033.
• The US market for NFC chips is expanding rapidly due to the presence of key market players.
• NFC technology is widely used in the healthcare sector in Germany.
• China is the leading market in Asia Pacific due to its increasing use in the banking sector.

“Popularity of wireless charging and NFC-enabled vehicle diagnostic systems are fuelling NFC chip sales,” says a Fact.MR analyst.

Recent market developments

STMicroelectronics unveiled a cost-effective NFC Type 2 Tag IC in November 2021, integrating privacy features alongside an improved NFC data exchange format (NDEF). Ideal for widespread applications like customer interaction, product details, and brand security, this solution strikes a fine balance between affordability and performance.

Meanwhile, in May 2019, NXP Semiconductors collaborated with Identive, a prominent figure in digital security and IoT identity, to create an exceptionally affordable RFID inlay.

Competitive landscape

Marvell Technology, Inc., NXP Semiconductors N.V., MediaTek Inc., Nordic Semiconductor, and Qualcomm Technologies, Inc. stand as key players in the NFC chips market. They employ diverse strategies to expand their market presence and gain a competitive edge.

As per insights from Fact.MR, a provider of market research and competitive intelligence, major NFC chip market players consistently innovate by introducing new products. These innovations focus on heightened security, improved performance, and reduced power consumption to meet the escalating demand for NFC technology.

In May 2022, NXP Semiconductors unveiled NTAG 22x DNA, a cutting-edge generation of NFC tags. These tags boast tamper-detection and condition-monitoring capabilities, all packed into a single chip.

These insights are based on a report on NFC chip market by Fact.MR.