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August 21, 2014

NFC Market Forecast: Expected Growth through 2019

According to a new market report published by Transparency Market Research titled “Near Field Communications (NFC) Market- Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2013-2019,” the global market for NFC in terms of revenue was valued at USD 1.07 billion in 2012 and is estimated to grow at a CAGR of 43.7 percent during the forecast period from 2013 to 2019. The most significant area of growth for NFC technology was the adoption of smartphones.

In 2012, North America was the largest market for NFC, which held a share of 32 percent in terms of revenue owing to the significant demand for early implementation of technology. Among all the product types, NFC reader was the largest segment in terms of revenue in 2012 and accounted for around 46 percent share of the total market, majorly owing to higher selling prices, according to PRWeb. The forecast for the following years predicted an increased demand for NFC readers due to the growing adoption of NFC technology. Significant demand for newer applications such as NFC marketing, games and toys, and healthcare among others and is expected to drive the growth of NFC tags during the coming years.

The largest application for NFC in 2012 was contact-less transactions using NFC-enabled devices, holding a share of around 22 percent of the total market. Authentication and access control using NFC is fast gaining market traction owing to improved security features, according to the report. The challenge for the growth of this market has been low awareness among people toward the benefits and concerns regarding security and privacy related with the use of NFC technology.  However, users are increasingly confident with the use of contact-less payments and this would lead to further rise in demand for NFC technology. The major challenge for NFC contact-less payments during the coming years would be low level of co-ordination among various participants in the value chain such as banks/credit card companies and payment service providers.




Edited by Maurice Nagle


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