NFC Reader ICs Market Size
Global NFC Reader ICs Market size was USD 18.3 billion in 2021 and projected to grow from USD 23.6 billion in 2023 to USD 81.9 billion by 2032, exhibiting a CAGR of 14.8% during the forecast period.
NFC is a wireless communication technology with short-range and allows two various devices to communicate with each other when the devices are present in a nearby environment. NFC reader IC market is a Near Field Communication (NFC) reader integrated circuits (ICs). These have several applications in access control, contactless payments, and in transportation. The use of NFC in access control and transportation has increased which is expected to fuel the market growth. NFC readers are working parts in NFC transactions which read and write tags & cards interact with NFC phones by enabling communication.
Market Highlights
Global NFC Reader ICs Market is expected to project a CAGR of 14.8% during the forecast period, 2022-2032
Global NFC Reader ICs Market is expected to reach USD 81.9 billion, growing at a CAGR of 14.8% during forecast period. The increasing demand for secure transactions due to the ease of convenience along with the rising adoption of contactless payment systems are expected to boost the growth of the market. The dual interface NFC reader ICs may observe a growth due to their ability to work with broad range of devices and cards and their flexibility. The innovation of several new applications for NFC technology are creating a growth opportunity for the market.
Global NFC Reader ICs Market Segmentation:
Contactless payment segment is expected to grow with high CAGR during the forecast period
Global NFC Reader ICs Market is classified based on the Application into Transportation, Contactless payment, Media & Entertainment, Hospitality, Healthcare, Others. Contactless payment segment is expected to dominate in the forecast period owing to the adoption of contactless payment solutions. The increasing demand for convenient and secure transactions which is enabled by the NFC Reader ICs is expected to drive the growth of the market.
Serial Peripheral Interface (SPI) segment is expected to grow with high CAGR during the forecast period
Global NFC Reader ICs Market is classified based on the Host Interface into I2C and SPI, SPI, UART, I2C and SPI, USB and UART. The Serial Peripheral Interface (SPI) segment is expected to dominate in the forecast period owing to its usage in high-speed data transfer applications like sensor networks and wireless communication. The advancement of technology in connected devices and other wireless may boost the growth of NFC Reader ICs with SPI interfaces.
Market Dynamics:
Growth Drivers
Increasing Penetration of Smartphones is Expected to Boost the Growth of the Market
The penetration of smartphones has led to the adoption of new lifestyle of consumers which has also led to the acquiring of wearable technology and smart devices, and NFC enables the devices to contact with each other with the integration of NFC reader ICs. The acceptance of smartphones has led to the growth of the market in different regions and is boosting the growth of NFC reader ICs markets.
Speed and Secure Data Sharing May Boost the Market Growth
The speed and secure way of data sharing has created a growth option for the market. The increasing efficiency of FC reader ICs along with security-related issues of the NFC technology and its speed may drive the growth of the NFC reader ICs market. The usage of these components in several applications may aid in the growth of the NFC reader ICs market.
Restraint
High Cost of NFC reader ICs May Hamper the Market Growth
NFC reader ICs are expensive compared to other chips and the availability of alternative NFC reader ICs may hamper the market growth. The alternatives of NFC reader ICs like UPI systems and mobile wallets of which are of low cost and a secure option may restrain the growth of NFC reader ICs market.
Recent Developments:
- In 2021, NXP Semiconductors introduced a new variation of NFC reader ICs with improved security features.
- In 2021, Infineon Technologies along with Fingerprint Cards declared a collaboration for progress a secure biometric payment solution using the NFC technology.
Key Players Covered:
- NXP Semiconductors
- STMicroelectronics
- Qualcomm
- Marvell Technology Group
- Texas Instruments
- Broadcom
- Sony Corp
- Mstar Semiconductor
- AMS AG
- MediaTek
Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)
Regional Analysis
Global NFC Reader ICs Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. Asia-Pacific region dominated the market in 2021 and is expected to dominate the NFC reader ICs market during the forecast period owing to the increased usage of mobile payment options and the presence of key market players in this region. The rising acceptance of contactless payment systems and the increasing demand for easy and secure transactions is expected to boost the growth of the market in the forecast period.
Impact of Covid-19 on Global NFC Reader ICs Market
The COVID-19 pandemic had resulted in the downfall of several countries economy. The pandemic had resulted in the disruption of supply chains globally, leading to scarcity of raw materials and finished products. This has resulted in the reduced availability & production of NFC reader ICs and their components. The pandemic had resulted in the increased usage of contactless payment solutions to minimize the contact physically and to reduce the transmission. Covid-19 pandemic had resulted in the increased demand for NFC reader ICs and thereby having growth of the market during the pandemic period.
Global NFC Reader ICs Market is further segmented by region into:
- North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
- Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil and Rest of Latin America
- Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey and Rest of Europe
- Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia and Rest of APAC
- Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa and Rest of MENA.
Global NFC Reader ICs Market Scope and Segments:
|
ATTRIBUTE |
DETAILS |
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Study Period |
2018-2032 |
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Base Year |
2022 |
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Forecast Period |
2022-2032 |
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Historical Period |
2019-2021 |
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Growth Rate |
CAGR of 14.8% from 2022-2032 |
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Unit |
Value (USD Billion) |
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Segmentation |
Main Segments List |
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Type |
|
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Host Interface |
|
|
Application |
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By Region |
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Frequently Asked Questions (FAQ):
Global NFC Reader ICs Market size was estimated at USD 18.3 billion in 2021 and is expected to reach USD 81.9 billion in 2032.
NFC is a wireless communication technology with short-range and allows two various devices to communicate with each other when the devices are present in a nearby environment. NFC reader IC market is a Near Field Communication (NFC) reader integrated circuits (ICs).
Contactless payment and Serial Peripheral Interface (SPI) segment accounted for the largest Global NFC Reader ICs market share.
Key players: NXP Semiconductors, STMicroelectronics, Qualcomm, Marvell Technology Group, Texas Instruments, Broadcom, Sony Corp, Mstar Semiconductor, AMS AG, MediaTek and Other Prominent Players are the key players in the Global NFC Reader ICs Market.
Increasing penetration of smartphones and speed and secure data sharing are the factors driving the Global NFC Reader ICs market
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